If the value of a piece of property decreases by 10% while the new tax rate on the property represent 110% of the original tax rate, what is the effect on the taxes?
Options:
A) taxes increase by 10%
B) taxes increase by 1%
C) there is no change in taxes
D) taxes decrease by 1%
E) taxes decrease by 10%
Consider the value of property = 100, Original tax rate 10%, hence tax value = 100*10% = 10.   Decreased value of property = 90, New tax rate = 110% of 10 = 11%, hence tax value = 90*11% = 9.9   10-9.9 = decrease by 1%.   Answer taxes decrease by 1%.
<result>D</result>
If the value of a piece of property decreases by 10% while the new tax rate on the property represent 110% of the original tax rate, what is the effect on the taxes?