Bài giảng môn học Quản trị kinh doanh - Chapter nineteen: Sales, excise, and property taxes

SALES, EXCISE, AND PROPERTY TAXESChapter NineteenCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinCompute sales tax on goods sold involving trade and cash discounts and shipping charges.Explain and calculate excise tax.LU19-1: Sales and Excise TaxesLearning unit objectivesLU 19-2: Property TaxCalculate the tax rate in decimal.Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.Compute property tax due.Sales taxes are paid on certain goods and services.Sales TaxThe sales tax percent is set by each state. Merchants collect funds and forward them to government agencies.Sales TaxCompute sales tax and total price given the following information:Selling price of battery: $32Shipping charge: $3.50Trade discount: 10.50%Sales tax: 5%Check 100% is base + 5% is tax = 105%Manual calculation 32.00 Price -10.50 Trade discount 21.50 Taxable x .05 1.08 Tax +21.50 Taxable +3.50 Shipping$26.08 Total price w/shipping1.05 x $21.50 = $22.58 + 3.50 = $26.08Calculating Actual SalesActual sales = Total sales 1 + Tax rateRegister receipts total $40,000 for the day, which included a 7% sales tax. What are actual sales?$40,000 1.07 Check = $37,383.18Sales $37,383.18 x .07 = $2,616.82$37,383.18 + 2,616.82 = $40,000 Example:Excise tax is based on a percentage of the retail price of a product or service.Excise TaxExcise tax is imposed on luxury items or nonessentials.Excise TaxAngel Rome bought a fur coat for $5,000. Sales tax is 7% and excise tax is 8%. What is her total cost?Cost $5,000Sales tax $5,000 x .07 = $350Excise tax $5,000 x .08 = $400Total cost $5,750Assessed value – The value of property for the purposes of computing property taxes.Property TaxAssessed value = Assessment rate x Market valueProperty taxes pay for local fire and police protection, schools, etc. They are based on assessed value.Determining the Tax Rate Budget needed Total assessed valueTax rate =Step 2. Identify tax rate. Town budget needs Total assessed valueStep 3. Calculate property tax due. Tax rate x Assessed value (Step 1 x Step 2)Step 1. Compute assessed value.Assessment rate x Market valueCALCULATING PROPERTY TAXCalculating Property Tax1. Calculate the assessed value of Bill’s home:.40 x $210,000 = $84,000From the following facts: (1) calculate the assessed value of Bill’s home; (2) calculate the tax rate for the community in decimal (to nearest ten thousandth); (3) convert the decimal to (a) %, (b) per $100 of assessed value, (c) per $1,000 of assessed value, and (d) in mills (to nearest hundredth); and (4) calculate the property tax due on Bill’s home in (a) decimal, (b) per $100, (c) per $1,000, and (d) in mills.Given:Assessed market value: 40% Total budget needed: $176,000Market value of Bill’s home: $210,000 Total assessed value: $1,910,000Calculating Property Tax(cont.)a. .0922 = 9.22%3. Convert the decimal to (a) %, (b) per $100 of assessed value, (c) per $1,000 of assessed value, and (d) in mills (to nearest hundredth):2. Calculate the tax rate for the community in decimal (to nearest ten thousandths): 176,0001,910,000= .0922 per dollarb. .0922 x 100 = $9.22c. .0922 x 1000 = $92.20d. .0922 / .001 = 92.2 Mills (or .0922 x 1,000)Calculating Property Tax(cont.) a. .0922 x $84,000 = $7,744.804. Calculate the property tax due on Bill’s home in decimal, per $100, per $1,000, and in mills. b. $9.22 x 840 = $7,744.80c. $92.20 x 84 = $7,744.80d. 92.20 x .01 x $84,000 = $7,744.80Expressing Tax Rate Per $100 of Per $1,000 of By Percent Assessed Value Assessed Value In Mills 6.48% $6.48 $64.80 64.80 Per $100 of Per $1,000 of By Percent Assessed Value Assessed Value In Mills$63,000 x 6.48% $63,000 = 630 $63,000 = 63 64.80 x .001 x $63,000 $100 $1,000 630 x $6.48 63 x $64.80 = $4,082.40 = $4,082.40 = $4,082.40 = $4,082.40