Our government relies on tax revenue to fund the services it provides. Calculate the tax described in each item below. Click on the letter of the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
- In his hometown, Alejandro pays 4% for state sales tax and 2% for local sales tax. What sales tax will he pay on a DVD player that sells for $129?
- Max's property tax recently increased by 5%. Last year Max paid $1,200 in property taxes. How much property tax will he pay this year?
- Lux Auto sells expensive cars. Most of their cars are subject to a luxury car excise tax equal to 5% of the car's value over $38,000. The average excise tax on the store's vehicles is $350. Lux Auto sold 240 more luxury automobiles this year than last year. About how much more in excise tax will the government collect this year from Lux Auto?