- Suppose that the Ischua Public Library District tax rate is $0.42 per hundred. The total assessed value of property in the
district is $18,725,095. Calculate the total tax levy. - Jose’s house has a market value of $320,000. The uniform assessment percent is 17.5%. What would you expect his
assessment to be? - North Falls has a tax rate of $31.72 per thousand, while South Falls has a tax rate of $58.43 per thousand. North Falls
uses full assessment, while South Falls has a 40% uniform assessment percent. Which municipality has the lower actual
tax rate? Justify your answer. - Adrian’s condo is assessed at $22,745. The uniform assessment percent is 20%. What fair market value does this
assessment imply? - Dan owns a house in a community where the property tax rate is $67.43 per thousand. The market value of his property
is $128,900 and the uniform assessment percent is 40%. On the basis of this information, what would you expect his
property tax to be?
G. Additional Exercises
- The tax rate in a town is $132.75 per thousand, based on a 25% uniform assessment percent. If the town switches to
full assessment but keeps the total tax levy the same, what would the next tax rate be as a rate per thousand? - A county has a total tax levy of $22,503,000 and total assessed value of $1,579,045,000, of which $302,045,000
is classifi ed as commercial property. If the county decides to use a tax rate for commercial property that is 20% lower
than the rate for other property (making no changes to the assessments), calculate the tax rates for commercial and
noncommercial property as a rate per thousand.
406 Chapter 9 Taxes
9.4 Other Taxes
Income, property, and sales taxes are the most significant taxes faced by most individuals
and businesses, but they are by no means the only ones. In this section, we will discuss
some other types of taxes that must be paid.Excise Taxes
Excise taxes are taxes levied on specific products or services. A quick glance at the break-
out of charges on your telephone bill will probably provide several examples of excise
taxes. Excise taxes may be charged to connect the cost of a government service to activities
that use that service, such as a tax on airplane tickets to pay for airport security or a tax on
gasoline to pay for road maintenance. They may be charged to discourage the purchase of
certain products, such as taxes on cigarettes, alcohol, and firearms. And of course they may
be charged simply as a way to raise revenue without any grander rationale, such as taxes
on mortgages or business licenses.