RES exam question on Taxes & Duties: annual property tax
An owner-occupier's home has an Annual Value of $18,000. What is the annual property tax?
- A$240
- B$0
- C$400
- D$2,160
Show answer & explanation
Answer
A. $240
Explanation
Issue: a computation that changes when the scale does. Rule: from 1 January 2025 the owner-occupier scale is first $12,000 at 0%, next $28,000 at 4%, next $10,000 at 6%, next $25,000 at 10%, next $10,000 at 14%, next $15,000 at 20%, next $40,000 at 26%, above $140,000 at 32%. Application: the first $12,000 at 0% is nothing, and the remaining $6,000 at 4% is $240. $400 is the answer on the scale that ran from 1 January 2024, where the 0% band stopped at $8,000 — a candidate working from last year's notes lands there and is marked wrong. $2,160 is what this same home would cost if it were not owner-occupied: $18,000 at 12% on the non-owner-occupier scale, which has not changed since 1 January 2024. Conclusion: $240.
Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore
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