Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2IRP
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.
County M imposes a 1 percent tax on the gross receipts earned by firms operating within its jurisdiction. For the past year, gross receipts subject to tax totaled $400 million. The county government is considering raising the tax rate to 2 percent because it needs $400,000 additional revenue to improve its road system.
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As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $300,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 55% and the tax rate to 45 mills.
(a)How much property tax (in $) was collected under the old rates?
(b)How much more tax (in $) revenue will be collected under the new rates?
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands attacks increase will be necessary next year. The total market value of the property in the county is $800,000,000. Currently the assessment rate is 35% and the tax rate is 30 mills. The county commission increases the assessment rate to 55% in the tax rate to 35 mills.
A-how much property tax and dollars was collected under the old rates?
B-how much more tax in dollars revenue will be collected under the new rates? 
Please help solve the below: see picture attached.
The county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax custodial fund, the custodial fund deducts 5 percent from the collections for the town, the school district, and the other towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General Fund.
The following events occurred during the year:
Current-year tax levies to be collected by the custodial fund were
County General Fund
$
10,443,000
Town of Bayshore
4,895,000
Sun County Consolidated School District
6,605,000
Total
$
21,943,000
During the year, $13,810,000 of the current year's taxes was collected.
The 5 percent administrative collection fee was recorded. A schedule of amounts collected for…
Chapter 2 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 2 - What evidence suggests that the federal tax system...Ch. 2 - Prob. 3QPDCh. 2 - National governments have the authority to print...Ch. 2 - In each of the following cases, discuss how the...Ch. 2 - Prob. 6QPDCh. 2 - Ms. V resides in a jurisdiction with a 35 percent...Ch. 2 - What nonmonetary incentives affect the amount of...Ch. 2 - Prob. 9QPDCh. 2 - Prob. 10QPDCh. 2 - Discuss the tax policy implications of the saying...
Ch. 2 - Prob. 12QPDCh. 2 - Jurisdiction E spends approximately 7 million each...Ch. 2 - Prob. 14QPDCh. 2 - Prob. 15QPDCh. 2 - Corporation R and Corporation T conduct business...Ch. 2 - Ms. P is considering investing 20,000 in a new...Ch. 2 - Country M levies a 10 percent excise tax on the...Ch. 2 - The city of Lakeland levies a 2 percent tax on the...Ch. 2 - The city of Clement levies a 5 percent tax on the...Ch. 2 - Mrs. K, a single taxpayer, earns a 42,000 annual...Ch. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 7APCh. 2 - Jurisdiction B levies a flat 7 percent tax on the...Ch. 2 - Jurisdiction X levies a flat 14 percent tax on...Ch. 2 - Prob. 10APCh. 2 - Prob. 11APCh. 2 - Country A levies an individual income tax with the...Ch. 2 - Prob. 13APCh. 2 - Prob. 14APCh. 2 - Prob. 1IRPCh. 2 - Identify the tax issue or issues suggested by the...Ch. 2 - Prob. 3IRPCh. 2 - Prob. 4IRPCh. 2 - Prob. 5IRPCh. 2 - Prob. 6IRPCh. 2 - Prob. 1TPC
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- At the beginning of the fiscal year 20X1-20X2, a governmental unit recorded property tax revenues of $600,000. By fiscal year end (June 30, 20X2), taxpayers had paid a total of $570,000. The remaining $30,000 is considered delinquent. Based upon previous experience, the governmental unit expects that it will collect the delinquent taxes in fiscal year 20X2-20X3 in the following manner: July and August, $15,000; September and October, $10,000; and November, $5,000. How much should the governmental unit normally report as property tax revenue for fiscal year 20X1-20X2? $600,000. $595,000. $585,000. $570,000.arrow_forwardMonroe county levies a tax on the value of real property located within the county. The tax equals 3 percent of the property's assessed value up to $2 million plus 1 percent of the value in excess of $2 million. Required: a. Compute the tax on real property valued at $1.3 million. b. Compute the tax on real property valued at $4.5 million.arrow_forwardThe county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax custodial fund, the custodial fund deducts 2.9 percent from the collections for the town, the school district, and the other towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General Fund. The following events occurred during the year: 1. Current-year tax levies to be collected by the custodial fund were County General Fund Town of Bayshore Sun County Consolidated School District_ 6.615.000 $10.463.000 4,905,000 Total S21,983.000 2. During the year, $13,830,000 of the current year's taxes was collected. 3. The 5 percent administrative collection fee was recorded. A schedule of amounts collected for each participant, showing the amount withheld for the county General Fund and net amounts due to the…arrow_forward
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