TAXES. 639. Taxes are sums of money levied on persons, property, or products, for any public purpose. 640. Capitation or Poll Taxes are levied at a certain amount for each person or head of legal voters not exempt by law. 641. Property Tax is a tax assessed or levied upon property, at a given rate per cent. of the valuation. 642. Property is of two kinds: Personal and Real. 643. Personal Property is movable property; as, merchandise, ships, cattle, money, stocks, mortgages, etc. 644. Real Property or Real Estate consists of immovable property; as, houses and lands. 645. Assessors are public or government officers, who appraise the value of property to be taxed, and apportion the taxes pro rata; that is, in proportion to the value of each man's property. 646. Collectors are public or government officers, who collect taxes. REMARK.-Taxes are generally assessed and made payable in money, but in "road taxes" they may be made payable in "day's work." 647. The terms of Percentage, applied to Taxes, are: The Sum, minus the Collector's fees, or commission the Difference. 648. To find a Property Tax. EXAMPLE. The rate of taxation in the city of Des Moines, Iowa, is 12%. What amount of tax must a person pay, whose personal property is valued at $17500, and who owns real estate assessed at $24900 ? $17500 24900 OPERATION. $42400 x .012 = $742. EXPLANATION.- Since his total valuation was $42400, and the rate of taxation 1 per cent., his tax would be 1o per cent of $42400, or $742. Rule.—Multiply the total assessed value by the rate per cent. of taxation. EXAMPLES FOR PRACTICE. 649. 1. Mr. B. owns personal property assessed at $7140, and real estate assessed at $11100, in a village in which he is taxed one-half of one per cent. Find the amount of his tax. 2. A person having lands valued at $7500, $12250 in money, and a stock of goods worth $6000, pays tax on all at the rate of 1%. Find his total tax. 650. To find a General Tax. EXAMPLE.—A tax of $2505 is to be assessed upon the village of Livonia; the valuation of the taxable property is $600000, and there are 324 polls, to be assessed $1.25 each. What will be the tax on a dollar, and how much will be the tax of Mr. Scott, whose property is valued at $12500, and who pays for 2 polls. OPERATION. $1.25 × 324 = $405, amount of poll tax. $2505 $405 = $2100, amount of property tax. $2100 $600000 = .0035, rate of taxation. $12500 X .0035 = $43.75, Mr. Scott's property tax. $43.75 + $2.50 (2 polls) = EXPLANATION.-Since $2505, the amount to be raised, includes both the poll and property tax, if $405, the poll tax, is subtracted from this amount, the remainder, $2100, will be the Percentage, or sum to be assessed on the Base, or entire property. Divide this Percentage by this Base, and the quotient will be the rate of tax assessed, 34 mills on the dollar. Multiply $12500, the assessed valuation of Mr. Scott's property, by .0035, the per cent. expressed decimally, and the result, $43.75, is his property tax; adding to this $2.50, the tax on two polls, gives $46.25, his entire tax. Rule. From the sum to be raised, deduct the poll tax, if any; divide the remainder by the total assessment, and multiply the assessment of each individual by the quotient; add to the product the amount of poll tax to be paid. EXAMPLES FOR PRACTICE. 651. 1. A tax of $125000 is levied on a city, the assessed valuation of which is $15000000. What is the rate of taxation, and what amount of tax will a person have to pay whose property is valued at $7500? 2. If a tax of $120 is assessed on a mill valued at $24000, what is the valuation of a residence that is taxed $17.75 at the same rate? 3. The per cent. of tax assessed for state purposes is 3%, for county 1%, and for city 1%. What will be the amount of my tax, on property assessed at $21500 ? 4. The tax assessed upon a town is $20914.80; the town contains 2580 polls, taxed $.62 each, and has a real estate valuation of $4062000, and a valuation of personal property to the amount of $227400. Find the rate of taxation, and C's tax, who pays for 4 polls, and whose property is assessed at $15000. REMARK.-In certain States, the common schools are supported by a tax or rate bill made out on the basis of the total attendance. 5. My son and daughter each attended school 214 days, and the expense, including teacher's wages and incidentals, was paid by a rate bill. How much must I pay, if the teacher's wages amounted to $440, fuel and repairs $101.50, and janitor's fees $74.75, and the total number of day's attendance was 7460? 6. For the year 1888 the rates of taxation in the State of New York were as follows: Schools, 1.085 mills; general purposes, 1.475 mills; new capitol, .6 of a mill; other purposes, .34 of a mill. What was the total rate of taxation, and how much was raised by Livingston County, the valuation of which, as fixed by the State board of equalization, was $25395180? How much did said county raise for school purposes? 7. The cost of maintaining the public schools of a city during the year 1888, was $112000, and the taxable property of the city was $44800000. How many mills on a dollar must be assessed for school purposes? If 10% of the tax assessed cannot be collected, how many mills on a dollar must then be assessed? 8. A tax of $13943.20 is assessed upon a town containing 860 taxable polls; the real estate is valued at $2708000, and the personal property at $151600. If the polls be taxed $1.25 each, what will be the rate of property taxation, and what will be the tax of Peter Parley, who pays for three polls, and has real and personal estate valued at $23750? 9. In a school district, the valuation of the taxable property is $752400, and it is proposed to repair the school house and ornament the grounds, at an expense of $5000. If old material sells for $673.70, what will be the rate per cent. of taxation, and what will be B's tax, whose property was valued at $9400? 10. The assessed value of a town is, on real estate, $1197500, and on personal property, $432500. A poll tax of $.50 per head is assessed on each of 1870 persons. The town votes to raise $8000 for schools, $1500 for highways, $1500 for salaries, $1000 for support of poor, and $310 for contingent expenses. How much tax will a milling company have to pay, on a mill valued at $46500, and stock at $19750? 11. The total assessed value of a town, real and personal, is $630000, and the town expenses are $3913.95. How much tax must be collected to provide for town expenses and allow 3% for collecting? If the same town contains 310 polls, taxed $1.50 each, what will be the rate of taxation, and how much will be the tax of a man who pays for two polls and owns property assessed at $14500 ? 12. The assessed valuation of the real estate of a county is $1910887, of the personal property, $921073, and it has 4564 inhabitants subject to a poll tax. The year's expenses are: for schools, $8400; interest, $6850; highways, $7560; salaries, $5150; and contingent expenses, $13675. If the poll tax was $1.50, and the revenue from fairs and licenses $6200, what tax must be levied on a dollar to meet expenses and provide a sinking fund of $7000? INSURANCE. 652. Insurance is indemnity secured against loss or damage. It is of two kinds: Property Insurance and Personal Insurance. 653. Property Insurance includes: 1. Fire Insurance, or indemnity for loss of or damage to property by fire. 2. Marine Insurance, or indemnity for loss of or damage to a ship or its cargo, by any specified casualty, at sea or on inland waters. 3. Live Stock Insurance, or indemnity for loss of or damage to horses, cattle, etc., from lightning or other casualty. 654. The Insured Party is usually the owner of the property insured, but may be any person having a financial insurable interest in the property. 655. The Insuring Parties are called Insurers or Underwriters, and are usually incorporated companies. 656. Insurance Companies are distinguished by the way in which they are organized; as Stock Insurance Companies, Mutual Insurance Companies. 657. A Stock Insurance Company is one whose capital has been contributed and is owned by stockholders, who share the profits and are liable for the losses. 658. A Mutual Insurance Company is one in which the profits and losses are shared by the insured parties. REMARKS.-1. Some companies combine the features of both stock and mutual companies, and are called Mixed Companies. 2. In mixed companies, all profits above a limited dividend to the stockholders are divided among the policy-holders. 659. Transit Insurance refers to risks taken on goods being transported from place to place, either by rail or water or both. 660. The Policy is the contract between the insurance company and the person whose property is insured, and contains a description of the insured property, the amount of the insurance, and the conditions under which the risk is taken. 661. The Premium is the consideration in the contract, or the sum paid for insurance. 662. The Term of Insurance is the period of time for which the risk is taken, or the property insured. REMARKS.-1. Premium rates are usually given as so much per $100 of the sum insured, and depend upon the nature of the risk and the length of time for which the policy is issued; insurance is usually effected for a year or a term of years. 2. Short Rates are for terms less than one year. 3. It is usual to make an added charge for the policy. 4. Insurance is frequently effected upon plate glass, the acts of employees, etc. 663. An Insurance Agent is one who acts for an insurance company, in obtaining insurance, collecting premiums, adjusting losses, reinsuring, etc. 664. An Insurance Broker is a person who negotiates insurance for others, for which he receives a brokerage from the company taking the risk; he is considered, however, an agent of the insured, not of the company. REMARK.-A Floating Policy is one which covers goods stored in different places, and generally such as are moved from place to place in process of manufacture. 665. Losses may be total or partial. 666. Fire Insurance Losses are usually adjusted by the insurance company paying the full amount of the loss, provided such loss does not exceed the sum insured; if the policy, however, contains the "average clause," the payment made is such proportion of the loss as the amount of insurance bears to the total value of the property. 667. When a loss occurs to a vessel, the insurance company pays only such a proportion of the loss as the policy is of the entire value of the vessel. 668. It is an established rule in marine insurance, that insurers shall be allowed one-third for the superior value of the new material, as sails, masts, etc., used in repair of damage; that is, "one-third off new for old." REMARK.-Marine policies usually contain the "average clause.” 669. In case a policy is terminated at the request of the insured, he is charged the "short rate” premium; if, however, it be terminated at the option of the company, the lower long rate will be charged, and the company refund the premium for the unexpired time of the policy. 670. A Valued or Closed Policy is the ordinary form, and contains a fixed valuation of the thing insured. 671. An Open Policy is one upon which additional insurances may be entered at any time from port to port, at rates and under conditions agreed upon. 672. Policies on Cargoes are issued for a certain voyage, and on vessels for a voyage or for a specified time. 673. Salvage is an allowance made to those rendering voluntary aid in saving vessels or cargoes from marine casualties. REMARKS.-1. Insurance companies usually reserve the privilege of rebuilding, replacing, or repairing damaged property. 2. Insurance policies ordinarily state that the loss, if becoming a charge upon the company, will be paid 30 days or 60 days after due notice and proof of loss. If not then paid, the amount of the claim becomes interest-bearing. 674. The computations in Property Insurance are performed the same as in Percentage, and the terms compare as follows: The Amount Insured = the Base. The Premium = the Percentage. |