medium · GMAT Verbal

Tax revenues for the city of Springfield increased by 10% last year, even though the city council lowered the property tax rate.

Which of the following, if true, most helps to resolve the apparent paradox?

  1. Many Springfield homeowners remained unaware that the council had lowered the property tax rate at all.
  2. Last year's property tax cut was the smallest single rate reduction in the council's recorded history.
  3. The aggregate assessed value of Springfield's taxable property rose by an average of 25% last year.
  4. Cities bordering Springfield held their own property tax rates unchanged for the entire year.
  5. The council separately voted to raise the sales tax rate charged on a list of luxury goods.

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