Chapter 2

Question 1

A _______________ tax is a tax imposed so that the effective tax rate decreases as the amount to which the rate is applied increases.

Answer 1

Regressive

Question 2

a tax imposed so that the effective tax rate increases as the amount to which the rate is applied increases. Progressive taxes attempt to reduce the tax incidence of people with smaller incomes, as they shift the incidence disproportionately to those with higher incomes.

Answer 2

Progressive

Question 3

Ad Valorem means which of the following?

Answer 3

According to value

Question 4

The rate is based on the spending requirements of the jurisdiction. Budget and assessed value.

Answer 4

Nominal tax rate

Question 5

True or false
A: Assessed Value / Market Value = Assessment Level

B: Effective Tax Rate x Market Value = Tax Due is True

C:When the assessed value differs from market value, the nominal
tax rate will differ from the effective tax rate is True

Answer 5

A: True
B: True
C: True

Question 6

Taxes=

Answer 6

Market Value x Assessment Level x Nominal Tax Rate

Question 7

Assessment Level=

Answer 7

Assessed Value / Market Value

Question 8

Effective Tax Rate=

Answer 8

Nominal Tax Rate x Assessment Level

Question 9

Tax Due=

Answer 9

Effective Tax Rate x Market Value

Question 10

Tax Due =

Answer 10

Nominal Tax Rate x Assessed Value

Question 11

effective tax rate decreases as the amount to which the rate is applied increases.

Answer 11

Regressive tax

Question 12

Property tax is proportional to

Answer 12

Market value

Question 13

Ad valorem means

Answer 13

According to value

Question 14

If assessed value differs from market value the nominal rate will differ from

Answer 14

Effective rate