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

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

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New post 26 Aug 2007, 18:59
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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.


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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 Jun 2016, 11:08
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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
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 26 Aug 2007, 22:19
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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.
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 27 Aug 2007, 09:56
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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)
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 27 Aug 2007, 11:04
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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

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

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New post 26 Jul 2010, 09:16
Could anybody explain why A is wrong?
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 27 Jul 2010, 07:49
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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.
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 05 Feb 2014, 04:55
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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 steadily decli  [#permalink]

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New post 24 Oct 2014, 05:06
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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 06 May 2016, 11:52
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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..........
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 03 Apr 2017, 13:00
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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.

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.
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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 Oct 2017, 01:10
I think B should be the answer.Could you please verify and certify the answer
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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 Oct 2017, 09:41
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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.
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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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.
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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 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!! :-)
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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 Oct 2018, 18:14
This is the confusing part: "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."

What this means is....

The % of total value paid as property tax= 2017Paid in tax/2017total value = 2018Paid in tax/2018total value or 10/100 = 9/90

Therefore - although the percentage stayed the same, the actual amount has decreased
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The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 06 Jan 2019, 17:59
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.
We have no idea of Altonville’s yearly 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.
Same as above
(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.
We do not know whether officials increased tax rates

(E) Altonville will soon require property owners to pay a higher percentage of the assessed value of their property as property tax.
We don't know what will happen in future
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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 Jan 2019, 09:01
Can any please explain the meaning of the last line of the question?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.
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Re: The total market value of real estate in Altonville has steadily decli  [#permalink]

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New post 13 Jan 2019, 15:12
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amansharma2988 wrote:
Can any please explain the meaning of the last line of the question?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.

amansharma2988, the meaning of that sentence depends upon some information earlier in the passage. Let's break it down sentence by sentence:

Quote:
The total market value of real estate in Altonville has steadily declined over the past four years.

OK, this is pretty straightforward-- the total value of real estate has declined over the past four years. Got it.

Quote:
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.

Now we have a relationship between total value of real estate and the assessed value of real estate -- as the total value went down, the assessed value went down. In addition, we know that the city's property tax is based on the assessed value of real estate.

Quote:
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.

And here is that final sentence. The previous sentence told us that the assessed value of real estate has gone down, and that the property tax is based on that number. A new piece of information in this last sentence is that the percentage of assessed value paid as property taxes has not changed. Think of it this way: your house was worth $100 four years ago, and you paid 5% of that amount in property taxes. Your house is now worth only $50, and you are still paying 5% in property taxes.

I hope this helps!
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Re: The total market value of real estate in Altonville has steadily decli   [#permalink] 13 Jan 2019, 15:12

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