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The total market value of real estate in Altonville has steadily decli

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

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New post 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 steadily decli [#permalink]

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New post 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 steadily decli [#permalink]

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New post 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 steadily decli [#permalink]

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New post 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 steadily decli [#permalink]

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New post 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 steadily decli [#permalink]

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

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

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New post 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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New post 05 Feb 2014, 03:55
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A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years. No new information allowed. The percentage of revenue that comes from property taxes is not mentioned in the stimulus nor something that can be inferred.

B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years. No new information allowed; Could be true. The percentage of revenue from property taxes could have decline or could not have.

C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago. OK - If property values decreased + taxes assessed on property hasn't changed, thus the amount of revenue is lower.

D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits. New information; could be true. Shouldn't include new information in the stimulus. For Altonville to pay its bill, other of sources of income were likely needed.

E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax. Could be true. Atlonville must find other sources of income; it could be from property taxes or could be from something else.

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

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New post 05 Feb 2014, 08:53
CLEAR "C".......
IF ACTUAL NUMBERS DECLINE........AND THE % TAX REMAINS SAME FOR BOTH THE NUMBERS... ACTUAL TAX COLLECTED WILL REDUCE IN THE NEW SCENARIO.....

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

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New post 13 Feb 2014, 05:28
To choose option C as the best option one has to assume that the total number of properties in Alstonville remained constant in the years referred in the passage.

Is that assumption safe? The passage does not provide any hints on the number of properties. If the number of properties increased drastically there are good chances that even with a decline in the assessed value the total amount of tax collected can increase.

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

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New post 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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New post 04 Apr 2014, 08:25
Isn't this supposed to be an inference question?

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

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New post 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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New post 13 Sep 2014, 08:22
The question is an official Question and is part of GMAT Prep Mock 3.

OA is C)
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Re: The total market value of real estate in Altonville has steadily decli [#permalink]

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New post 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 steadily decli [#permalink]

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New post 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,

The answer to your question lies in one of your earlier replies to this post itself.

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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New post 24 Oct 2014, 04:06
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mejia401 wrote:
A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years. No new information allowed. The percentage of revenue that comes from property taxes is not mentioned in the stimulus nor something that can be inferred.

B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years. No new information allowed; Could be true. The percentage of revenue from property taxes could have decline or could not have.

C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago. OK - If property values decreased + taxes assessed on property hasn't changed, thus the amount of revenue is lower.

D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits. New information; could be true. Shouldn't include new information in the stimulus. For Altonville to pay its bill, other of sources of income were likely needed.

E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax. Could be true. Atlonville must find other sources of income; it could be from property taxes or could be from something else.


I think C is ambiguous. The total tax collected will also depend on property sales. It may so happen that last year property sales increased resulting in higher property tax even though the percentage remained the same.
I think phrase "per unit property" is required to be added in option C to make it correct

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

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New post 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 steadily decli [#permalink]

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New post 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 steadily decli   [#permalink] 07 Mar 2015, 10:15

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