Cooper Abby GOV 260 Analyzing Tax Worksheet PDF

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Summary

Tax sheet overall completion....

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GOV-260: Analyzing Taxes Worksheet Part One: Taxes Examine the specific taxes listed below. Identify what each tax is intended to fund and who determines the tax rate. The first row has been filled out as an example. Tax

Funds

Governmental Body Responsible for Rate of Taxation

Example: AZ Gasoline Tax Highways Arizona State Sales Tax This is intended to pay for state budget items such as schooling, roads, and fire departments.

State of Arizona Local state government

Phoenix City Sales Tax

Public Safety and Criminal Justice Services

City of Phoenix, AZ

Maricopa County Sales Tax

This used to help operate and maintain the county and its overall needs.

Maricopa County Assessor's Office or the county Treasurer

School District Property Tax

This spending typically goes to state agencies, prisons, and universities.

County Assessors

*Cities, counties, and districts have the power to levy taxes on individuals residing in their zone. School District Property Tax (Bonds/Overrides):

They affect local property taxes. Bonds are used to pay for building new schools, renovating others, and investing in new technological advances that can enhance the

State and Local Arizona

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overall learning environment. An override is used to increase the overall classroom budget in the current school district. County Property Tax

Nearly all counties within the state of Arizona have a specific fund that goes directly to education. In Maricopa County, 75% of their property taxes go towards education. This can include community colleges, public schools, and universities.

State of Arizona

Arizona State Income Tax

Military, health care, and unemployment as well as veteran benefits such as VA.

State of Arizona determines this and continuously reassess and monitors if the taxes should be risen once again.

Part Two: Sales Tax Examine the newest sales tax receipt for a purchase in Phoenix, Maricopa County located in the assignment. Based on the information provided on the receipt please answer the following questions. 1. 2. 3. 4.

Total sales tax paid: 0.77 (8.6%) Amount of sales tax assessed by the State of Arizona: .50 (5.6%) Amount of sales tax assessed by the City of Phoenix: .21, rounded and the original amount is .20677 (2.3%) Amount of sales tax assessed by Maricopa County: .06 (.7%)

Part Three: Payroll Statement Review Review the attached payroll statement. Based on the statement, how much tax was collected by the State of Arizona? Describe the difference between Arizona State Income tax and Arizona State Sales tax. Once you have described each tax, add your personal opinion regarding the positive or negative nature of state income and sales tax to all citizens.

After reviewing the pay stub statement, it states that the amount of taxes taken by the State of Arizona on this particular paycheck was $24.00, however, for the current year it was $72.00 total (year-to-date). Income tax is defined as the taxation of a person’s total income that is directly paid to the federal and state governments. The amount in which a person may owe varies from income to income and state to state. Sales tax is the set percentage amount in which an individual pays on goods and services they have purchased. The amount a person will owe will vary upon location. I personally feel income taxes should increase with the increase of an individual’s overall income. This ultimately promotes the equality of people and living. With the promotion of such state income tax to a person’s income helps aid in education, healthcare, and other items. Without the proper disbursements of these taxes or if everyone had to pay the same amount, we would possibly not be able to fund the previously stated. While this does not personally benefit me, it does benefit those close to me including my mother who does collect a disability check as she is paralyzed.

Part Four: Utility Bill Review Based on the sample utility bill included in the assignment, what is the total amount of taxes paid and the total amount of fees paid by the customer? Also, explain the difference between an imposed fee and a tax. Finally, clarify who determines if utility fees may be increased by this sample utility company? Based upon the utility bill statement, the individual paid a total of $68.09 in fees for the water/sewer services and the solid waste service. The answer is found by adding the two subtotals together, $41.24 + $26.85 which then equals $68.09. The total amount of taxes paid for the water/sewer services and the solid waste service is $4.27. This can be found by again adding the city services tax ($1.50), city sales tax ($0.97), and state and other taxes ($1.80), which then equals $4.27. An imposed fee is assessed for a certain service and usually specified on a bill or form. Taxes are collected by state and federal governments in which they go into a general fund. The funds are typically predetermined for how and where they will go such as paying for a teacher, police officer, or military affiliate. After reviewing the sample utility bill, the determination of increasing the utility bill is based upon the companies needs. The company, however, must request this by going to their local PUC (Public Utility Commission) office and from there may be accepted or denied. The increase may need to occur in order to sustain the cost of living, environmental changes in the area, possible weather damage to equipment, and other environmental factors....