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22 Aug 2009, 07:37
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70% (01:59) correct 30% (01:21) wrong based on 147 sessions

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29 Mar 2013, 06:37
A and E out, cause property values risen and dropped uniformly.

B and C -- in both these cases property values as whole increased. Ideally govt will reassess the taxes so that owners have to pay more. This reassessment is omething Govt will be looking to do, since these scenarios increase the tax revenue to Govt. So both out.

For D -- Explanation is similar to B and C, but in reverse. So Govt will not want to reassess in this scenario, cause it would mean less revenue to Govt.
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30 Sep 2013, 08:41
rohansherry wrote:
Property taxes are typically set at a flat rate per $1,000 of officially assessed value. Reassessments should be frequent in order to remove distortions that arise when property values change at differential rates. In practice, however, reassessments typically occur when they benefit the government – that is, when their effect is to increase total tax revenue. If the statements above are true, which of the following describes a situation in which a reassessment should occur but is unlikely to do so? (A) Property values have risen sharply and uniformly. (B) Property values have all risen – some very sharply, some less so. (C) Property values have for the most part risen sharply yet some have dropped slightly. (D) Property values have for the most part dropped significantly; yet some have risen slightly. (E) Property values have dropped significantly and uniformly. GMAT people posted this question today on their Facebook page. And I marked a wrong answer (E) Actually I couldn't understand the meaning of "differential". So what does "differential" mean here? _________________ Do not forget to hit the Kudos button on your left if you find my post helpful Collection of some good questions on Number System GMAT Club Legend Joined: 01 Oct 2013 Posts: 10298 Followers: 1001 Kudos [?]: 225 [0], given: 0 Re: Property taxes are typically set at a flat rate per$ 1,000 [#permalink]

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07 Aug 2015, 06:42
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30 Oct 2016, 02:35
mikeCoolBoy wrote:
IMO the best you can do is to diagram the stimulus

property values change at differential rates ---> Reassessments should occur

In reality

a reassessment has occurred ---> is likely that the reassessment has benefited the government, increasing the total revenue

If the statements above are true, which of the following describes a situation in which a reassessment should
occur but is unlikely to do so?

The key to this problem is to rephrase the question

a situation in which a reassessment should occur, the property values should change at different rates.
the reassessment is unlikely to do --> the reassessment won't benefit the government ---> the reassessment won't increase the total revenue

so you are looking for an answer in which the property values change at different rates but in which they don't increase the total revenue

(A) Property values have risen sharply and uniformly.

Eliminate this because the rates are not different

(B) Property values have all risen – some very sharply, some less so.

All the property values have risen, so they have increased the total revenue. out

(C) Property values have for the most part risen sharply yet some have dropped slightly.

This is results in an increase of the revenue. out

(D) Property values have for the most part dropped significantly; yet some have risen slightly.

Correct. Different rates and in global the revenue has decreased

(E) Property values have dropped significantly and uniformly.

not different rates

Clear Explanation , Thanks.
But I have a doubt, If the property rates have dropped significantly and risen scarcely(option D) , the total revenue and tax for govt is low. so government is likely to have reassessment no? If the property rates have risen considerably and dropped scarcely (option C) then Government is getting a lot in Taxes and thus increased revenue but a reassessment is necessary , however it is unlikely to happen.
Re: Property taxes are typically set at a flat rate per $1,000 [#permalink] 30 Oct 2016, 02:35 Similar topics Replies Last post Similar Topics: 6 Property taxes are typically set at a flat rate per$1,000 of official 2 16 Mar 2016, 18:56
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