Name17.2

?

Personal Financial

Literacy—5.10.A

Also 5.3.E, 5.3.K

MATHEMATICAL PROCESSES

5.1.A, 5.1.F

Sales and Property Taxes

Essential Question

What are sales tax and property tax?

You have learned about taxes that employers withhold from an

employee’s pay. There are other taxes that are based on the

value of certain items. These are usually paid to a city or state

government. Just like payroll tax, the government uses these taxes

to pay for services.

Math Idea

Sales and property taxes are

based on the value of the item.

The greater the value, the

greater the tax.

Sales tax is the money added to the cost of items and services. It is

usually paid when an item is purchased.

Property tax is a portion of the value of items. Property tax can be

charged on things such as cars, houses, boats, or land. This kind of tax

is paid once or several times a year as long as a person owns the item.

Unlock

Unlock the

the Problem

Problem

Ethan’s favorite book is on sale for $11.98 plus tax.

Ethan has $13. Can he buy the book?

Price

Through

Add

Tax

Price

Through

Add

Tax

Price

Through

Add

Tax

$0.06

$0.00

$5.87

$0.48

$11.69

$0.96

The store clerk has a sales tax table to determine

how much the tax will be.

$0.18

$0.01

$5.99

$0.49

$11.81

$0.97

$0.30

$0.02

$6.12

$0.50

$11.93

$0.98

Read the table. To find the tax, find the price in the

table that is close to $11.98, but not less than $11.98.

Add the tax to $11.98.

$0.42

$0.03

$6.24

$0.51

$12.06

$0.99

$0.54

$0.04

$6.36

$0.52

$12.18

$1.00

$0.66

$0.05

$6.48

$0.53

$12.30

$1.01

$0.78

$0.06

$6.60

$0.54

$12.42

$1.02

Find the total cost.

Price of book

Sales tax

Total cost

$0.90

$0.07

$6.72

$0.55

$12.54

$1.03

$

$1.03

$0.08

$6.84

$0.56

$12.66

$1.04

The total cost of the book is $12.97.

$1.15

$0.09

$6.96

$0.57

$12.78

$1.05

$1.27

$0.10

$7.09

$0.58

$12.90

$1.06

$1.39

$0.11

$7.21

$0.59

$13.03

$1.07

$1.51

$0.12

$7.33

$0.60

$13.15

$1.08

$1.63

$0.13

$7.45

$0.61

$13.27

$1.09

__ + $__ = $__

© Houghton Mifflin Harcourt Publishing Company

Sales Tax Table

Ethan has $_ , so he _ buy the book.

Module 17

623

Example Find the property tax.

The Green family builds a shed behind their house. The shed will increase the

amount the family has to pay in property tax. In their town, the tax is $19.41 per

year for every $1,000 of property value. The shed is worth $9,000. If the property

tax is paid yearly, how much tax will they pay on the shed in one year?

The shed has a value of $__ , which is __ × $1,000.

So, the tax on the shed is __ × $__ = $__

Share

Share and

and Show

Show

1. The price of the dress Bonnie wants to buy is $85. The state has

Math Talk

a $0.05 sales tax for every dollar of the price.

Mathematical Processes

a. What is the sales tax on the dress?

For $85, the sales tax will be __ × $0.05 = __.

Why do you add the sales

tax to the price of an item?

Explain.

b. What is the total cost of the dress?

$85 + __ = __

2. Miguel has a small boat that has a value of $3,100. He pays property tax

on the boat to his town. The property tax is $4.20 for every $100 of

the property value. How much will Miguel pay in tax on his boat?

$3,100 = __ × $100

The tax will be $4.20 × 31= __.

Name the type of tax described. Write income tax, payroll tax, property tax,

or sales tax. You may write more than one type.

of the sweatshirt is $47.95.

4. The value of a house is $250,000. The yearly tax

on the house is $7,500.

5. Rolando earns $395. His pay after taxes is $356.

6. The video game sells for $19.99 plus $0.55 in tax.

7. Chase pays a yearly tax of $100 on his car.

8. $21.65 is withheld from Ed’s weekly earnings.

624

© Houghton Mifflin Harcourt Publishing Company

3. The price of the sweatshirt is $45. The total cost

Name

Problem

Problem Solving

Solving

9.

10.

Write Math

Explain the similarities and differences

between payroll tax and property tax.

Connect How can you show that a tax of $0.05 for

every $1 is the same as a tax of $5 for every $100? Use an example

to help you explain.

11. Multi-Step Bill buys a camera for $189 and a tablet computer for

$249. The sales tax is $0.08 on every dollar. What is the total cost of

his purchases?

© Houghton Mifflin Harcourt Publishing Company

12.

Write Math

Show Your Work

Multi-Step Mr. Kramer buys a

new car for $24,000. He will pay a sales tax of $0.06

for every dollar of the price. He will pay a property

tax of $14.62 for every $1,000. What are the total

taxes on the new car for this year?

13. Apply The Norton’s home has a value of $150,000. The yearly tax

in their city is $28.13 for every $1,000 of value. What will they

pay in property tax for the year?

Module 17 • Lesson 2

625

Mathematical Processes

M

Model ¥ Reason ¥ Communicate

M

Daily

Daily Assessment

Assessment Task

Task

Fill in the bubble completely to show your answer.

14. 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?

A

$4.05

B

$4.20

C

$0.20

D

$3.80

15. Amanda buys a necklace for $280. Which of the following taxes could

she have paid on the purchase?

A

property tax

B

income tax

C

payroll tax

D

sales tax

16. 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?

A

increase $76

C

increase $791

B

decrease $96

D

decrease $695

TEXAS Test Prep

626

A

You can find the amount of sales tax in a sales tax table.

B

The sales tax is based on the value of an item.

C

The sales tax is the same as income tax.

D

You need to know the price of the item to determine the sales tax.

© Houghton Mifflin Harcourt Publishing Company

17. Which statement about sales tax is NOT true?

H o mewo rk

and Practice

17.2

Personal Financial Literacy—5.10.A

Also 5.3.E, 5.3.K

MATHEMATICAL PROCESSES 5.1.A, 5.1.F

Name

Sales and Property Taxes

1. Angelo buys a pair of jeans for $27. He pays

2. The Kleins’ home has a value of $120,000. The

$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.

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 = __

Write an equation to show how to calculate the

total cost of the jeans.

The tax will be: 120 × $21.30 = __

3. How do sales taxes and property taxes affect the cost of

an item? Explain.

Problem

Problem Solving

Solving

Use the chart for 4–5.

Outdoor Equipment

Item

4. Samuel buys an item for his camping trip and

pays $0.06 in sales tax on every $1 he spends.

His receipt shows a $4.68 charge for sales tax.

Which item did Samuel buy?

Price

Tent

$219

Sleeping bag

$109

Backpack

$78

Lantern

$49

© Houghton Mifflin Harcourt Publishing Company

5. 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. Show how you found your answer.

Module 17 • Lesson 2 627

TEXAS Test Prep

Lesson

Lesson Check

Check

Fill in the bubble completely to show your answer.

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?

A

$1.40

B

$7.00

C

$0.95

D

$1.33

8. What is the sales tax on an item that costs

$33.50, if the sales tax is $0.06 on every $1?

A

$2.01

B

$20.01

C

$0.60

D

$6.00

10. Multi-Step Mrs. Chan buys a new car for

628

7. Which statement about property tax is

NOT true?

A

Property tax is subtracted from the price

of the item.

B

Property tax can be charged on a piece

of land.

C

The greater the value of the item, the

greater the property tax.

D

Property taxes are paid to government.

9. A pair of laces has a price tag of $7.00. The

sales tax is $0.08 on every $1. Which is the total

price of the laces?

A

$7.00

B

$0.08

C

$7.56

D

$7.08

11. Multi-Step Rex buys a flashlight for $44 and

$21,000. She pays a sales tax of $0.06 for every

$1. She pays a property tax of $16.80 on every

$1,000 of the value. If the property tax is paid

once a year, what are the total taxes on the car

for the year?

binoculars for $69. What is the total cost of

Rex’s purchase if sales tax is $0.07 on every $1?

A

A

$113.07

B

$120.91

$1,260

C

$113.00

B

$352.80

D

$116.08

C

$1,612.80

D

$22,612.80

© Houghton Mifflin Harcourt Publishing Company

6. Some states, including Texas, have a sales tax

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