GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 19 Oct 2018, 09:26

Fuqua EA Calls in Progress:

Join us in the chat | track the decision tracker | See forum posts/summary


Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

VP
VP
avatar
Joined: 10 Jun 2007
Posts: 1370
The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 26 Aug 2007, 18:59
11
73
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

55% (01:21) correct 45% (01:24) wrong based on 1959 sessions

HideShow timer Statistics

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.


Similar Question: https://gmatclub.com/forum/the-total-ma ... 38431.html
Most Helpful Community Reply
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2084
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 12 Jun 2016, 11:08
6
The total market value of real estate has declined over the past four years .
As a result , assessed value of that real estate has also declined .
The percentage of assessed value that was paid as property taxes to the city has remained the same .

Total property tax collected 4 years ago = Assessed value of real estate 4 years ago* Property tax %
Total property tax collected at present = Assessed value of real estate at present * Property tax %

Pre-thinking: Since the assessed value has declined , the total property tax will decrease .

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
Out of scope - we have no information on percentage of Altonville’s yearly revenue and the amount contributed by property taxes to the total revenue.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
Might be true - but need not be true - The total Altonville’s yearly revenue might be declined by bigger % .
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
Correct
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
Out of scope
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
Might be true - but need not be true
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

General Discussion
Director
Director
User avatar
Joined: 03 May 2007
Posts: 812
Schools: University of Chicago, Wharton School
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 26 Aug 2007, 22:19
5
1
bkk145 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.


C. its clear and straight C.

since the value is decreased year by year since the last four years and the tax rate is constant, then the tax in succeding year is lower than the same in previous year.
Senior Manager
Senior Manager
avatar
Joined: 19 Feb 2007
Posts: 305
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 27 Aug 2007, 09:56
3
2
I'll go with (C).

(B) says that The percentage of Altonville’s yearly revenue has declined.

how can we say this???

lets the the there was a decline in other sources also.......so the percentage may remain same

whereas

(C) says the The amount of revenue that Altonville collected from property taxes has reduced.

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

So I go with (C)
Intern
Intern
User avatar
Joined: 03 May 2007
Posts: 38
Schools: Olin
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 27 Aug 2007, 11:04
3
3
bkk145 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.
This does not explain the reason why the property tax figure has declined

B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
Its clearly stated that the percentage did not change

C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
This clearly indicates that though the % is not changed the figure has declined

D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
Out of scope
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
Out of scope

VP
VP
avatar
Joined: 16 Jul 2009
Posts: 1081
Schools: CBS
WE 1: 4 years (Consulting)
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 26 Jul 2010, 09:16
Could anybody explain why A is wrong?
thanks
_________________

The sky is the limit
800 is the limit


GMAT Club Premium Membership - big benefits and savings

VP
VP
avatar
Joined: 15 Jul 2004
Posts: 1294
Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 27 Jul 2010, 07:49
2
noboru wrote:
Could anybody explain why A is wrong?
thanks


I think I know where you are coming from. I believe A is an example of shell game. Please note that in the passage it is stated that PERCENTAGE OF ASSESSED VALUE PAID AS PROPERTY TAX remained constant over the four years period. This does NOT mean that PERCENTAGE OF PROPERTY TAXES ON OVERALL REVENUE COLLECTED also remained constant. But it's easy to fall in this trap if we don't read carefully.
Retired Moderator
avatar
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 645
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
GMAT ToolKit User Premium Member Reviews Badge
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 13 Nov 2011, 01:04
1
I chose C. I met this question once. I can explain simply that value of real estate decrease, tax remain. Decrease value x remain tax = revenue from tax of real estate. Reduce
_________________

CR: Focus of the Week: Must be True Question

Retired Moderator
avatar
B
Joined: 23 Jul 2010
Posts: 485
GPA: 3.4
WE: General Management (Non-Profit and Government)
GMAT ToolKit User Premium Member
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 04 Nov 2013, 03:00
1
Senior Manager
Senior Manager
avatar
Joined: 15 Sep 2011
Posts: 335
Location: United States
WE: Corporate Finance (Manufacturing)
GMAT ToolKit User
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 05 Feb 2014, 04:55
4
1
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.
Intern
Intern
avatar
Joined: 31 Jul 2014
Posts: 1
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 24 Oct 2014, 05:06
1
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
Intern
Intern
avatar
Joined: 17 Sep 2015
Posts: 39
Location: United Kingdom
GMAT 1: 640 Q42 V38
GPA: 3.1
Reviews Badge
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 06 May 2016, 11:52
1
Well that's a classic GMAT Prep Question, though i got it wrong in the test, but in the review i went deep and go it right.

Thumb Rule :- When there is %age in the stimulus, the question mostly will be about the %age only:-

Hence lets Boil it down :-

Market Value is declining from 4 years - Lets say it was 20 Mill in 2012 and now 10 Mill

Hence the property tax from the Real Estate is also going down, Because the tax was calculated on the assessed value of the Real Estate. This is Basically if you have filed tax ever, Tax is not calculated on 100% of the income its on certain percentage.

If the %age stays same the your Tax depends upon your salary. hence since the Tax % on the Assessed Value is Same.

Lets say

2012 - 20,000,000 - 50% Assessed Value - 10,000,000 & 20% Tax = 2,000,000

2014 - 10,000,000 - 50% Assessed Value - 5,000,000 & 20% Tax = 1,000,000

Hence what is changing, one the Market Value already stated and then the Tax Revenue.

Hence the answer C

well thats what i think..........
Director
Director
User avatar
G
Joined: 04 Sep 2015
Posts: 511
Location: India
WE: Information Technology (Computer Software)
CAT Tests
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 03 Apr 2017, 13:00
2
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.

Pay attention to the last sentence: the percentage of the tax collected as property tax is unchanged, that means the share of property tax from the total tx has not changed but this does not mean that the amount has not decreased..After understanding the last line we can clearly find C to be the correct answer.
Intern
Intern
avatar
Joined: 07 Jun 2017
Posts: 1
Location: India
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 07 Oct 2017, 01:10
I think B should be the answer.Could you please verify and certify the answer
GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2037
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 14 Oct 2017, 09:41
1
purnachandu41 wrote:
I think B should be the answer.Could you please verify and certify the answer

Choice (C) is correct. The total assessed value has decreased. The percentage of assessed value that was paid as property taxes to the city has not changed. If the total amount has decreased and the percentage of that amount has not changed, then the total collected must have decreased.

As for choice (B), we have no idea what has happened to the other sources of revenue. What if those other sources have decreased much more than revenue from property taxes? In that case, the percentage of Altonville’s yearly revenue that comes from money collected in property taxes may have INCREASED over the past four years. Because of this possibility, choice (B) must be eliminated.
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

SC Moderator
User avatar
V
Joined: 23 Sep 2015
Posts: 1214
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 23 Jun 2018, 20:34
Skywalker18 wrote:
The total market value of real estate has declined over the past four years .
As a result , assessed value of that real estate has also declined .
The percentage of assessed value that was paid as property taxes to the city has remained the same .

Total property tax collected 4 years ago = Assessed value of real estate 4 years ago* Property tax %
Total property tax collected at present = Assessed value of real estate at present * Property tax %

Pre-thinking: Since the assessed value has declined , the total property tax will decrease .

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
Out of scope - we have no information on percentage of Altonville’s yearly revenue and the amount contributed by property taxes to the total revenue.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
Might be true - but need not be true - The total Altonville’s yearly revenue might be declined by bigger % .
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
Correct
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
Out of scope
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
Might be true - but need not be true


Hi Skywalker18 : I was looking into the question and Can't understand C. my doubt is that why Aren't we considering the new housing in the given duration ? Frankly i don't like any given choices. So not giving reasoning for other choices either.
_________________

Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Want to improve your Score:
GMAT Ninja YouTube! Series 1| GMAT Ninja YouTube! Series 2

My Notes:
Reading comprehension | Critical Reasoning | Absolute Phrases

Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2084
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 24 Jun 2018, 00:57
aragonn wrote:
Skywalker18 wrote:
The total market value of real estate has declined over the past four years .
As a result , assessed value of that real estate has also declined .
The percentage of assessed value that was paid as property taxes to the city has remained the same .

Total property tax collected 4 years ago = Assessed value of real estate 4 years ago* Property tax %
Total property tax collected at present = Assessed value of real estate at present * Property tax %

Pre-thinking: Since the assessed value has declined , the total property tax will decrease .

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
Out of scope - we have no information on percentage of Altonville’s yearly revenue and the amount contributed by property taxes to the total revenue.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
Might be true - but need not be true - The total Altonville’s yearly revenue might be declined by bigger % .
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
Correct
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
Out of scope
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
Might be true - but need not be true


Hi Skywalker18 : I was looking into the question and Can't understand C. my doubt is that why Aren't we considering the new housing in the given duration ? Frankly i don't like any given choices. So not giving reasoning for other choices either.


Hi aragonn,
The total market value of real estate in Altonville has steadily declined over the past four years. --> The total market value also includes the market value of the new housing(if any).

Hope this helps!! :-)
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

GMAT Club Verbal Expert
User avatar
S
Joined: 20 Nov 2016
Posts: 264
CAT Tests
Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

Show Tags

New post 28 Jun 2018, 08:51
Skywalker18 wrote:
aragonn wrote:
Skywalker18 wrote:
The total market value of real estate has declined over the past four years .
As a result , assessed value of that real estate has also declined .
The percentage of assessed value that was paid as property taxes to the city has remained the same .

Total property tax collected 4 years ago = Assessed value of real estate 4 years ago* Property tax %
Total property tax collected at present = Assessed value of real estate at present * Property tax %

Pre-thinking: Since the assessed value has declined , the total property tax will decrease .

A. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes did not change over the past four years.
Out of scope - we have no information on percentage of Altonville’s yearly revenue and the amount contributed by property taxes to the total revenue.
B. The percentage of Altonville’s yearly revenue that comes from money collected in property taxes has declined steadily over the past four years.
Might be true - but need not be true - The total Altonville’s yearly revenue might be declined by bigger % .
C. The amount of revenue that Altonville collected from property taxes was lower last year than it was four years ago.
Correct
D. During the past four years, Altonville officials increased tax rates on other sources of revenue such as retail sales and business profits.
Out of scope
E. Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
Might be true - but need not be true


Hi Skywalker18 : I was looking into the question and Can't understand C. my doubt is that why Aren't we considering the new housing in the given duration ? Frankly i don't like any given choices. So not giving reasoning for other choices either.


Hi aragonn,
The total market value of real estate in Altonville has steadily declined over the past four years. --> The total market value also includes the market value of the new housing(if any).

Hope this helps!! :-)


Thanks Skywalker18 for the explanation!

To post additional questions not already addressed in this thread, feel free to use the request verbal experts' reply button.
_________________

www.gmatninja.com

GMAT Club Bot
Re: The total market value of real estate in Altonville has steadily decli &nbs [#permalink] 28 Jun 2018, 08:51
Display posts from previous: Sort by

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.