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# The total market value of real estate in Altonville has

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The total market value of real estate in Altonville has [#permalink]

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31 Aug 2012, 16:23
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The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s property tax is based—the assessed value of that real estate—has also declined. The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period.

The information above most strongly supports which of the following?

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.

[Reveal] Spoiler:
can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase
[Reveal] Spoiler: OA
If you have any questions
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31 Aug 2012, 18:06
C. The amount of revenue that Altonville collected from property taxes was lower
last year than it was four years ago. -Correct , as the assessed value of that real estate has declined but The percentage of assessed value that was paid as property taxes to the city did not change in this 4 year period which implied the amount of revenue collected last year must be lower than it was four years ago.

D. During the past four years, Altonville officials increased tax rates on other
sources of revenue such as retail sales and business profits. - Incorrect, This might be true that the officials increased tax rates on other sources of revenue which resulted in overall revenue increase but the revenue in question is "the Revenue collected from the property taxes (real estate) over the four year period
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Re: Altonville officials increased tax rates [#permalink]

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31 Aug 2012, 23:06
The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s
property tax is based—the assessed value of that real estate—has also declined. The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period. The information above most strongly supports which of the following?

The question stem was kind of tricky, but after reading it again the it's fairly simple.

I also made the same mistake of selecting D thinking that the amount paid as property taxes to the city didn't change.
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Re: Altonville officials increased tax rates [#permalink]

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02 Sep 2012, 22:22
Since the assessed value of the real estate declined steadily over the past 4 years and the percentage of assessed value collected as taxes did not change, hence the revenue generated last year should be less than that generated four years ago.
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Re: The total market value of real estate in Altonville has [#permalink]

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12 Sep 2012, 19:47
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the
past four years. This decline has meant that the overall figure on which the city’s
property tax is based—the assessed value of that real estate—has also declined.
The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period. The information
above most strongly supports which of the following?
A. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower
last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other
sources of revenue such as retail sales and business profits.

E. Altonville will soon require property owners to pay a higher percentage of the
assessed value of their property as property tax.

can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

The percentage of the tax value did not change .

If the percentage was 50 earlier i.e we can say 100/200

Now the value has decreased,however the percentage remains same - 50% i.e now it can be 10/20 or 50/100 .

The revenue from the taxes has surely decreased
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Re: The total market value of real estate in Altonville has [#permalink]

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14 Sep 2012, 03:13
Hi,you all shared really nice posts,I got so many things from your posts.so thanks
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Re: The total market value of real estate in Altonville has [#permalink]

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19 Sep 2012, 07:17
market value of real estate has declined, so has the assessed value, but the percentage of tax( tax/assessed value* 100) has not changed

This clearly means collected taxes were also low. This is exactly what is given in C.
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Re: The total market value of real estate in Altonville has [#permalink]

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19 Sep 2012, 23:44
ankit0411 wrote:
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the
past four years. This decline has meant that the overall figure on which the city’s
property tax is based—the assessed value of that real estate—has also declined.
The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period. The information
above most strongly supports which of the following?
A. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower
last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other
sources of revenue such as retail sales and business profits.

E. Altonville will soon require property owners to pay a higher percentage of the
assessed value of their property as property tax.

can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

The percentage of the tax value did not change .

If the percentage was 50 earlier i.e we can say 100/200

Now the value has decreased,however the percentage remains same - 50% i.e now it can be 10/20 or 50/100 .

The revenue from the taxes has surely decreased

Hi

If you say C is correct then what is wrong with B?
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Re: The total market value of real estate in Altonville has [#permalink]

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04 Nov 2013, 02:00
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Re: The total market value of real estate in Altonville has [#permalink]

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06 Nov 2013, 07:22
getgyan wrote:
ankit0411 wrote:
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the
past four years. This decline has meant that the overall figure on which the city’s
property tax is based—the assessed value of that real estate—has also declined.
The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period. The information
above most strongly supports which of the following?
A. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in
property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower
last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other
sources of revenue such as retail sales and business profits.

E. Altonville will soon require property owners to pay a higher percentage of the
assessed value of their property as property tax.

can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

The percentage of the tax value did not change .

If the percentage was 50 earlier i.e we can say 100/200

Now the value has decreased,however the percentage remains same - 50% i.e now it can be 10/20 or 50/100 .

The revenue from the taxes has surely decreased

Hi

If you say C is correct then what is wrong with B?

As I understand it, B isn't necessarily true because you don't know what the yearly revenue was.
If all of the parts that make the revenue declined by the same percentage as the property tax, then B is false....
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24 Jan 2014, 03:10
It is true property is declined from last few years that discourage investors. It has some drawbacks as well as some benefits. Each has its own view. Well thanks for sharing such significant information.
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Re: The total market value of real estate in Altonville has [#permalink]

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04 Apr 2014, 02:33
For a good Explanation of this question , please refer to the below link

http://www.beatthegmat.com/total-market ... 52553.html
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04 Apr 2014, 08:25
Isn't this supposed to be an inference question?
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04 Apr 2014, 10:43
Option C.
Well if the %age of taxes remains same.But the total amount on which that %age is calculated declines,it implies there is a decline in absolute amount of taxes paid.

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Re: The total market value of real estate in Altonville has [#permalink]

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16 Sep 2014, 12:07
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s property tax is based—the assessed value of that real estate—has also declined. The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period.

The information above most strongly supports which of the following?

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.

[Reveal] Spoiler:
can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

Why are we not choosing A for this?
Is it because it's stated directly and exactly in the stem as is in the answers?
Are we looking for something that is necessarily supported but not written in the stem?
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Re: The total market value of real estate in Altonville has [#permalink]

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16 Sep 2014, 21:33
Hi

If you say C is correct then what is wrong with B?[/quote]
As I understand it, B isn't necessarily true because you don't know what the yearly revenue was.
If all of the parts that make the revenue declined by the same percentage as the property tax, then B is false....[/quote]

Hey ronr34,

As we do not know the yearly revenues in each of the four years, we cannot certainly determine whether the percentage of property tax revenue out of total revenues has changed or not. If the yearly revenues have decreased by a higher percentage than property-tax-revenue decrease then the percentage value under question would have increased or else would have decreased.

Say for example:

Assessed real estate value has dropped by 10%, property tax revenue is 5% of real assessed real estate value and assuming no change in real estate over the years.

Year 0 Year 1 Year 2
Assesses real estate value $10000$9000 $9000 ------------------------------------------------------------------------------------------------------------------------------- Revenue from property tax$500 $450$450
*Other sources of revenue $20000$10000 $50000 Total revenues$20500 $10450$50450
-------------------------------------------------------------------------------------------------------------------------------
Said percentage 500/20500 450/10450 450/50450
=2.44% =4.3% =0.89%

* Other sources of revenue may increase or decrease due to factors outside the scope of our argument.
As seen, the said percentage value has no fixed trend, hence A is not correct.
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02 Mar 2015, 05:52
Quite difficult, but I th8nk it is C
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Re: The total market value of real estate in Altonville has [#permalink]

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07 Mar 2015, 10:15
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s property tax is based—the assessed value of that real estate—has also declined. The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period.

The information above most strongly supports which of the following?

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.

[Reveal] Spoiler:
can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

i was able to crack this one , but i took like 3 minutes . what should i do for improving my timings ?
any advise from experts in this area ?
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Re: The total market value of real estate in Altonville has [#permalink]

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26 Jul 2016, 12:38
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Re: The total market value of real estate in Altonville has [#permalink]

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28 Jul 2016, 02:37
venmic wrote:
The total market value of real estate in Altonville has steadily declined over the past four years. This decline has meant that the overall figure on which the city’s property tax is based—the assessed value of that real estate—has also declined. The percentage of assessed value that was paid as property taxes to the city,
however, did not change from year to year during this period.

The information above most strongly supports which of the following?

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.

[Reveal] Spoiler:
can an expert please explain how to handle perncetage problems

why is this C

i was assuming D becuase it gives an alternate reason for th increase

Can someone explain why 'B' is wrong!
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Re: The total market value of real estate in Altonville has   [#permalink] 28 Jul 2016, 02:37

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