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