Question

Which of the following most logically completes the passage?

California levies its real-estate tax as a percentage of a property's assessed value. California reassessed all properties late last year, ensuring that this year's real-estate tax on a given property fairly reflects that property's current value. By comparison with the previous assessment 3 years ago, the mean assessed property value was considerably lower. Nonetheless, the mean real-estate tax bill sent to California’s property owners this year is likely to be no lower than last year's, because ___.

• A. the assessed value of relatively modest properties in California went down more, on average, than that of more valuable properties
• B. actual selling prices of properties sold in California so far this year have been higher, on average, than assessed values
• C. a likely consequence of declining real-estate values in California will be a general slow-down in the local economy
• D. there have been many real-estate transactions over the last year, and many current property owners did not own California property a year ago
• E. the real-estate tax rate in California has not been set for this year, but will probably be higher than last year's rate

Answer 1

The correct option is E the real-estate tax rate in California has not been set for this year, but will probably be higher than last year's rate

E is the correct answer as rate will probably be higher than last year rate.