This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 million. To convince Company LI to locate within its jurisdiction, the county abated its 4 percent property tax for the year. Be-cause of the local economic boom created by the new facility, the aggregate assessed value of County G’s property tax base (including the LI facility) increased by $23 million. Compute the net effect on County G’s current year tax revenue from the abatement.
Answer to relevant QuestionsThis year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from $800 million to $710 million. In contrast, State Z ...Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question. A local government levies an annual real property tax on the personal residence located at 123 Maple ...Jurisdiction R and Jurisdiction S both impose a personal income tax on their residents. Under Jurisdiction R’s system, employers are required to withhold income tax from their employees’ paychecks and remit the tax to ...In each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the substitution effect. a. Mr. H earns $195,000 a year as a salaried employee, and Mrs. H doesn’t ...Government G levies an income tax with the following rate structure. Percentage Rate Bracket 6% …………………. Income from –0– to $30,000 10 …………………. Income from $30,001 to $70,000 20 ...
Post your question