17.2 Sales and Property Taxes

At the bookstore, the clearance shelf has a book about explorers. The book has a price tag of $4. The sales tax is $0.05 on every dollar. Which is the total cost of the book?

• $4.05

• $4.20

• $0.20

• $3.80

Amanda buys a necklace for $280. Which of the following taxes could she have paid on the purchase?

• property tax

• income tax

• payroll tax

• sales tax

Multi-Step

The property tax in one town was $6.95 per $1,000 value in the year 2012. The tax increased to $7.71 per $1,000 value in 2013. What effect did that have on the property tax for a house with a value of $100,000?

• increase $76

• decrease $96

• increase $791

• decrease $695

Angelo buys a pair of jeans for $27. He pays $0.07 in sales tax for every dollar of the price. Write an equation to show how to calculate the sales tax on the jeans.

• $27 + $0.07 = $27.07

• $27 × $0.07 = $1.89

• $27 - $0.07 = $26.94

• $27 + $1.89 = $28.89

Angelo buys a pair of jeans for $27. He pays $0.07 in sales tax for every dollar of the price.

What is the total cost of the jeans?

The Kleins’ home has a value of $120,000. The property tax in their city is $21.30 for every $1,000 of value.

Complete the equations to calculate the property tax.

$120,000 ÷ $1,000 =

The tax will be: 120 × $21.30 =

• $120

• $1200

• $2556

How do sales taxes and property taxes affect the cost of an item?

• They both are a percentage of the value of the item. Sales tax is added to the cost and property tax is paid every year for as long as you own the property.

• They both are a percentage of the value of the item. Sales tax is subtracted from the cost and property tax is paid once.

They both are a percentage of the value of the item. Sales tax is added to the cost and property tax is paid every year for as long as you own the property.

• tent

• backpack

• sleeping bag

• lantern

On Friday, the tent will be on sale for $15 off the price. What will Amber’s total savings be if she buys the tent on Friday? Include $0.06 in sales tax on every $1 when calculating the cost.

• $15.90

• $15

• $.90

Some states, including Texas, have a sales tax holiday in which residents do not have to pay a sales tax for a few days each year. If the sales tax is $0.07 on every $1, how much could you save on a purchase of a $19 calculator during the sales tax holiday?

• $1.40

• $7.00

• $0.95

• $1.33