GOVERNMENT FINANCES

Unit Review

UR Happy School is planning a fundraiser to assist a high school in Hungary to purchase 120 basketballs. They calculated the total cost per basketball in Hungary to be 3,125 forints. How many Canadian dollars do they need to raise?

Cost per basketball = 3,125 forints x 0.0049 (buying rate)           = $15.31

Total money needed = 120 basketballs x $15.31                                  = $1837.20 Canadian dollarsOR

3,125 forints x 120 basketballs = 375,000 forints375,000 forints x 0.0049 = $1837.50

Vito travels from New York to Hong Kong on business. He has a stopover in Vancouver and needs to change his money at a bank while in Vancouver.a) Convert his $800 US into Canadian funds.

b) Convert his Canadian dollars into Hong Kong dollars.

$800 x 1.0892 (buying rate) = $ 871.36 Canadian

$871.36 / 0.1559 (selling rate) = 5589.22 Hong Kong dollars

While visiting the United States, Brian bought a fully-equipped North American-made car (including air conditioning) for $22,000. Calculate the amount of GST Brian will pay when he brings the car back to Canada.

$22,000 + 100 = $22,100

$22,100 x 0.05 =$1,105 

NAFTA countryCustom duties: 0%Excise taxes: $100

A Brandon car dealership is importing five cars from Germany (MFN). Each car is worth $50,000 Canadian.Calculate the custom duties paid when importing these five cars.

5 x $50,000 = $250,000

Custom duties: 6.7% x $250,000 = $16,750 

Frederico's latest plane trip was 810 km. The plane's fuel tank holds 150 L. Determine the amount of provincial aircraft fuel tax on the one-quarter (1/4) tank of fuel used for his trip.

150L x 0.25 = 37.5 LProvincial tax = 37.5 L x 3.2   /L

 = 120    or $1.20

An airline paid $16 in fuel tax. Calculate the amount of fuel that was purchased.

Aircraft fuel tax: $0.032 per litre$16    $0.032/L = 500 litres purchased

If Carl buys 120 grams of loose tobacco and 2 packs of cigarettes (25 per pack), how much provincial tax will he pay?

Loose tobacco tax: 15   per gramCigarettes tax: 17.5    per cigarette

Loose tobacco: 120 grams x 15   = $6.00Cigarette tax: (2 x 25) x 17.5   = $8.75Total tax = $6.00 + $8.75 = $14.75

Choose the three (3) government sources of revenue from the following list and place them in the appropriate category (Federal, Provincial, Municipal):- Snow Removal- Aboriginal and Northern Affairs- Property Taxes- Custom Duties- Retail Sales Tax- Old Age Security Benefits

The major municipal expenditures for Fawcettville for the fiscal year total $2,000,000.

Calculate the amount spent on "other" services.

100% ­ 78% = 22%

22% x $2,000,000 = $440,000

Mr. Chicken owns a farm worth $800,000 and a farmhouse worth $160,000. The portion percentages are 30% for the farm and 45% for the house. Calculate Mr. Chicken's total municipal tax bill if the municipal tax rate is 18.3 mills.

Portioned assessment farm:$800,000 x 30% = $240,000

Portioned assessment farmhouse:$160,000 x 45% = $72,000

Total portioned assessment:$240,000 + $72,000 = $312,000

Municipal tax:$312,000   1000

x 18.3 = $5,709.60

A municipality needs to raise $75,900 in taxes. The total portioned assessed value of the properties in this municipality is $3,000,000.a) Calculate the property tax rate in mills for the municipality.

b) Calculate the amount of tax revenues generated from a property worth $80,000, if the portioned percentage is 45%.

  PTR = 

Total Revenue RequiredTotal Portioned Assessment

x 1000

   $75,900$3,000,000 x 1000 = 25.3 mills

$80,000 x 45% = 36,000

36,000  1000 

x 25.3 = $910.80

b) 

a)

The total portioned assessment of a community is $47,500,000. Calculate the amount of tax that would be lost if the local mill rate was reduced by 4.2 mills.

$47,500,000 x  4.21000 = $199,500

Mr.Bean owns a house with a $220,000 market value assessment, and land with an assessment of $20,000. The portion percentage for the property is 45%. The municipal mill rate is 25 mills, and the educational rate is 24 mills. In addition, there is a local improvement of $2500 to be paid. Calculate the total taxes that Mr.Bean has to pay. $7,792.00

Good Luck on Monday's test

• Make sure you have your own pen/pencil, eraser, and calculator.

• Be on time for class.

• Bring your resource package.