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The city of Clement levies a 5 percent tax on the base price of rooms provided by hotels and motels located within the city limits
The city of Clement levies a percent tax on the base price of rooms provided by hotels and motels located within the city limits This year, the aggregate room price subject to tax was $ million, so current year revenue was $ million. Clements city council recently voted to increase the hotel tax rate to percent for the next fiscal year. Required: Compute next years hotel tax revenue assuming next years tax base equals the current year base. Compute next years hotel tax revenue assuming next years tax base decreases to $ million. Compute next years hotel tax revenue assuming next years tax base decreases to $ million.
The city of Clement levies a percent tax on the base price of rooms provided by hotels and motels located within the city limits This year, the aggregate room price subject to tax was $ million, so current year revenue was $ million. Clements city council recently voted to increase the hotel tax rate to percent for the next fiscal year.
Required:
Compute next years hotel tax revenue assuming next years tax base equals the current year base.
Compute next years hotel tax revenue assuming next years tax base decreases to $ million.
Compute next years hotel tax revenue assuming next years tax base decreases to $ million.
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