With Proposition 13, if you bought your house 11 years ago : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 01 Mar 2017, 13:52

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# With Proposition 13, if you bought your house 11 years ago

Author Message
TAGS:

### Hide Tags

Manager
Joined: 16 Mar 2008
Posts: 70
Followers: 1

Kudos [?]: 7 [0], given: 0

With Proposition 13, if you bought your house 11 years ago [#permalink]

### Show Tags

21 Jun 2008, 10:30
00:00

Difficulty:

(N/A)

Question Stats:

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

### HideShow timer Statistics

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B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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.

Discuss...
If you have any questions
New!
CEO
Joined: 17 Nov 2007
Posts: 3589
Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40
Followers: 556

Kudos [?]: 3692 [0], given: 360

Re: GMAT CR : property prices [#permalink]

### Show Tags

21 Jun 2008, 10:35
look here some nice discussion:http://gmatclub.com/forum/11-t58802
_________________

HOT! GMAT TOOLKIT 2 (iOS) / GMAT TOOLKIT (Android) - The OFFICIAL GMAT CLUB PREP APP, a must-have app especially if you aim at 700+ | PrepGame

Director
Joined: 01 Jan 2008
Posts: 513
Followers: 3

Kudos [?]: 52 [0], given: 0

Re: GMAT CR : property prices [#permalink]

### Show Tags

21 Jun 2008, 11:30
Its B . The other arguments compare and talk about benefits and different rates of taxation for diff properties.

The imp thing here is that without Prop 13 :- all tenants would pay 3% tax instead of 1% and that too on the current market value of their appt . Hence B is the best .

In questions like these go for the most inclusive answer. Although D is good, B is more inclusive. Hence better.
Manager
Joined: 16 Mar 2008
Posts: 70
Followers: 1

Kudos [?]: 7 [0], given: 0

Re: GMAT CR : property prices [#permalink]

### Show Tags

21 Jun 2008, 22:24
thanks bhatia and walker.....

but can we expect these typs or CR's to come in GMAT ...?
Re: GMAT CR : property prices   [#permalink] 21 Jun 2008, 22:24
Similar topics Replies Last post
Similar
Topics:
With Proposition 13, if you bought your house 11 years ago 15 07 Dec 2009, 01:03
With Proposition 13, if you bought your house 11 years ago 11 03 Nov 2008, 21:36
1 With Proposition 13, if you bought your house 11 years ago 3 24 Jul 2008, 12:29
With Proposition 13, if you bought your house 11 years ago 1 08 Jan 2008, 10:16
4 With Proposition 13, if you bought your house 11 years ago 4 14 Mar 2007, 21:10
Display posts from previous: Sort by