What

sent a check to Mr. Blaisdell for his insurance. was the amount of the check? What was the loss to the

company?

10. A storehouse is insured for $12,000 in each of two companies. If the building is damaged by fire to the extent of of the insured value, how much ought each company to pay, one company being liable for two thirds of the loss?

11. Mr. Quinn paid 75 cents to secure the safe delivery of a package in New York. If the rate was %, what value was placed on the package?

12. A cargo of wheat valued at $7600, and insured for of its value at 23%, was lost at sea. What was the loss

to the owners? To the underwriters?

13. At %, Mr. Wilbur paid a premium of $18 for insuring his property for of its value.

Find the face of

the policy. Find the value of the property.

14. A business block is insured for $16,000 in one company, for $18,000 in another, and for $20,000 in a third. If the building is damaged by fire to the extent of 40% of the insurance, what amount will each company pay to the owner?

TAXES

Towns, cities, counties, and states raise money to pay their expenses by means of a tax.

The people in town meeting or through their representatives determine what expenses shall be incurred, and the sum of money to be raised to meet them.

Taxes thus levied are chiefly of two kinds:

1. A poll tax. This is a tax levied directly upon an individual. In most states, every male citizen over 20 years of age is subject to this tax.

2. A property tax. This is a tax levied upon an individual's property.

For purposes of taxation, property is separated into two

classes:

1. Property easily movable, such as money, stocks, bonds, furniture, cattle, etc. This is known as personal property.

2. Property not easily movable, such as lands, buildings, railroads, etc. This is known as real property or real estate.

Persons appointed to estimate the value of property for purposes of taxation and to determine the amount each person is to pay, are assessors.

The estimated value of the property on which the tax is to be levied is the valuation.

Property is usually estimated at a little less than its actual value.

The rate of taxation is always a certain per cent of the valuation.

If the amount to be raised is equal to .016 of the valuation, the rate is spoken of as 16 mills on a dollar, or $1.60 on a hundred dollars, or $16 on a thousand dollars, or1g % of the valuation.

1. A tax of 17% % is what amount on $1? On $100? On $1000?

2. What is the rate of taxation when the tax is $2 per $100? $25 per $1000? 18 mills per $1?

The principles of percentage apply to problems in

taxation.

The valuation is the whole or the base.

The tax to be raised is the part or the percentage. The rate of taxation is the value of the part or the rate per cent.

WRITTEN PROBLEMS

1. In a certain city it is necessary to raise $1,042,978 to pay the expenses for the year. The valuation of the real estate is $39,765,200, and the valuation of the personal estate is $15,578,800. There are 23,393 polls assessed at $2 each. Find the rate of tax to be assessed on the property.

Tax to be raised, $996,192, divided by the valuation, $55,344,000, gives the rate.

That is, the rate of taxation is 14%. This is 18 mills on $1, $1.80 on $100, $18 on $1000.

2. The total valuation of a town is $800,000. amount to be raised is $12,000. What is the rate of taxation? What is the tax on $1000?

The

3. The value of the real property is $2,450,000; the value of the personal property is $3,750,000. It is necessary to raise $74,400. What rate must be declared?

Find the rate of taxation, and the tax per $1000:

8. The sum of $380,512 is to be raised in a town where there are 2456 male citizens above 20 years of age. If each poll is assessed $2, what amount is to be raised on property?

10.

$820,000

11. $16,000,000

$2,450,000 $26,394 117 $27,000,000 $594,900 7,200

12. $72,000,000 $36,000,000 $1,870,494 17,247

13. Mr. White owns property valued at $7800. Find his tax if the rate is 1% on property, and he pays a poll tax of $2.

14. If every poll is assessed $2, what is the total tax of a man whose real estate is assessed at $4400 and personal estate at $3600, in a town where the tax rate is $12.50 per $1000 ?

15. The assessors estimate Mr. Fay's property as follows: bonds, $1200; house, $3600; 10,000 square feet of land at 20 cents per square foot. Find the total valuation. Find Mr. Fay's tax if the rate of taxation is $16.50 per $1000.

NATIONAL TAXES

Our government raises the money necessary to pay its expenses in these ways:

I. By a tax on the right to make or sell liquors, tobaccos, patent medicines, etc. This is known as internal revenue.

II. By a tax on goods imported from foreign countries. This is known as customs revenue or duties.

III. By a corporation tax on the net profits of corpora tions when such profits exceed five thousand dollars.

A tariff is the list of the rates of duty placed by the government on imports.

Imported goods are classified as follows:

(1) On the free list; that is, exempt from duty. For example, coffee, cotton seed, sugar beet seed.

(2) Subject to a specific duty; that is, a duty based on the number, quantity, weight, etc., of the goods without reference to value.

For example, the duty on pineapples is $8 per 1000; on barley, 30 per bushel; on hay, $4 per ton.

(3) Subject to an ad valorem duty; that is, a duty based on the value of the goods in the country where purchased. For example, the duty on agricultural implements is 15% of their value.

(4) Subject to both a specific and an ad valorem duty.