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With Proposition 13, if you bought your house 11 years ago [#permalink]
28 Nov 2005, 06:44

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct
0% (00:00) wrong based on 0 sessions

With Proposition 13, if you bought your house 11 years ago for $75,000,
your property tax would be approximately $914 a year (1 percent of
$75,000 increased by 2 percent each year for 11 years); and if your
neighbor bought an identical house next door to you for $200,000 this
year, his tax would be $2,000 (1 percent of $200,000). Without
Proposition 13, both you and your neighbor would pay $6,000 a year in
property taxes (3 percent of $200,000).

Which of the following is the conclusion for which the author most likely is
arguing in the passage above?

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
(E) Proposition 13 has benefited some homeowners more than others

Re: CR: Property Tax [#permalink]
28 Nov 2005, 12:39

I also vote for B.

E is very general and D is wrong. I think the catch in this problem is that many might initially think that 1% + 2% = 3 %. However it is not 2 percentage points but rather an increase of 2 %.