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MCAO: Michigan Certified Assessing Officer

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Personal property statemetns are due on _
Michigan Constitution
hear appeals from taxpayers or their agents
February 20
present worth

2. A consumer must be able to purchasee the property
real property
discount rate - recapture rate - effective tax rate
operating expenses
transferability

3. There are _ in a geographical township
economic obsolescense
Form L-4024
36 sections
exterior

4. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
replacement cost
median
ground floor area
real and personal

5. A consumer must want the product for it to have value
market comparison approach; cost approach
Form L-4024
desirability
fee simple

6. In a residential neighborhood - the measurement usually used in developing cost is _
3/4 Proposal
43 -560 square feet
the usual selling price of a property in an open-market transaction with a willing buyer and seller who desire to come to terms but who are under no undue constraints to do so
Front foot

7. The formula for calculating value is _
owners and interested parties of the property to be assessed
taxes
Income / rate
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

8. Public rights-of-way are _
exempt
October 31
$1 per acre
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income

9. The definition of the economic principle of highest and best use is _
track land sales
the usual selling price of a property in an open-market transaction with a willing buyer and seller who desire to come to terms but who are under no undue constraints to do so
the reasonably probable and legal use of vacant land or improved property - which is physically possible - appropriately supported - financially feasible - and that results in the highest value
estimate the assessment

10. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
Form L-4024
$1 per acre
replacement cost new; depreciation
physical - functional - and economic

11. Equity at the local level is the responsibility of the _
are not
never depreciated
the reasonably probable and legal use of vacant land or improved property - which is physically possible - appropriately supported - financially feasible - and that results in the highest value
assessor and Board of Review

12. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
property record cards and assessment maps
life estate
beginning value the following year
utility - scarcity - desirability - transferability

13. Taxable unless specifically exempted
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
power to tax - eminent domain - police power - escheat
income
real and personal

14. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
effective gross income
power to tax - eminent domain - police power - escheat
demand one
Form L-4154

15. Leased property is...
fee simple - partial estate - and life estate
Economic condition factor
gross rent multipliers
partial estate

16. The physical land and any structure attached to it
demand one
reproduction cost
Private Forest Reserve
real estate

17. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
taxes
track land sales
Interest or discount
real property

18. Who may ask for establishment of an industrial facility tax exemption district?
branches
the property owner or lessee - or the local government may begin the process of its own volition
February 20
December 31

19. The amount of money or goods you can receive if you sell property
partial estate
income approach
Rectangular survey; metes and bounds; platted or recorded subdivision
value in exchange

20. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
lots and blocks
Site/location
market value; existing property
income approach

21. The usual reference source regarding assessment and taxes
desirability
Reproduction cost
General Property Tax Act
market value; existing property

22. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
The Land Residual
assessor and Board of Review
3/4 Proposal
reducing

23. _ is used to adjust the cosst approach to market value for residential properties
50%; usual selling price
is
Economic condition factor
potential income; vacancy - bad debt and operating expenses

24. Depreciation in the assessing process is expressed as a _
the reasonably probable and legal use of vacant land or improved property - which is physically possible - appropriately supported - financially feasible - and that results in the highest value
percent good
Form L-4046
assessor and Board of Review

25. Taxable personal property includes all property not expressly _
physical - functional - and economic
exempted
Tuesday following; first Monday in March
uniform rates

26. If the subject property has a fireplace and air-conditioning and the comp has only air-conditioning - what adjustment would be made to what property?
deed- land contract- conveyance to a trust- distribution from a trust- change in beneficiary of trust- distribution after owner dies- lease- corporation partnership- tenancy in common transfers of ownership- spouse to spouse- tenancy by entireties- l
Number 1
a plus adjustemnt for the fireplace to the comp
cost approach

27. Special assessment districts are commonly used for _
demand one
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
by contacting one of the parties to the transaction (buyer - seller - or realtor)
typical farm buildings

28. The _ must approve the application for an IFT before the State Tax Commission approves the application
local government unit
northeast corner with section 1 and proceed west to section 6
owners and interested parties of the property to be assessed
Triangle computation of area

29. Article 9 of the Michigan Constitution provides for uniform property taxation which may not exceed _ of true cash value which is defined as being the _
40
1 rod
life estate
50%; usual selling price

30. _ is a loss in value caused by factors outside the property
economic obsolescense
electors
July; July Board of Review
median

31. To calculate a gross rent multiplier - _
the usual selling price of a property in an open-market transaction with a willing buyer and seller who desire to come to terms but who are under no undue constraints to do so
Divide the sales price by the gross rent
October 31
benefits from the special assessment

32. The government retains the following powers
taxation - eminent domain - and police powers
the reasonably probable and legal use of vacant land or improved property - which is physically possible - appropriately supported - financially feasible - and that results in the highest value
lots and blocks
utility - scarcity - desirability - transferability

33. You verify a sale _
market value; existing property
CAMA
Circle computation of area
by contacting one of the parties to the transaction (buyer - seller - or realtor)

34. Used to value the income stream of a property
Form L-4022
income approach
agricultural personal property; exempt
beginning value the following year

35. Pole barns - silos - and large grain bins are considered _
life estate
income / value
value in use
typical farm buildings

36. The BOR _ and _ the roll
receives and reviews
cost - sales comparison (market) - and income
Site/location
by contacting one of the parties to the transaction (buyer - seller - or realtor)

37. IFT certificates are granted for _ years with a possible 2-year construction period
branches
are not
12
Capitalizaiton rate

38. The CAMA system should be able to select comparable sales - make adjustments to the comps - and come up with an estimate of market value for the subject in the _ approach
cost - sales comparison (market) - and income
sales prices of other parcels similar to the property being appraised
Economic condition factor
sales comparison

39. Requires that the ratio of assessments to true cash value not exceed 50%
Rectangular survey; metes and bounds; platted or recorded subdivision
Michigan Constitution
the most probable price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale - the buyer and seller - each acting prudently - knowledgeably and assuming the price is not affected
income / value

40. The discount rate may be developed by the following:
owners and interested parties of the property to be assessed
receives and reviews
Summation Method- Bank of Investment Method - and Market Comparison Method
Cost Approach

41. _ are used to value income-producing residential property
benefits from the special assessment
a. valuing the land separately using market data b. estimating the reproduction or replacement of the subject by building a substitute c. estimating the depresiation of the subject from the time it was built to the date of the assessment
gross rent multipliers
desirability

42. _ are applied to the cost schedules in the manuals
the reasonably probable and legal use of vacant land or improved property - which is physically possible - appropriately supported - financially feasible - and that results in the highest value
a plus adjustemnt for the fireplace to the comp
County multipliers
sales comparison approach

43. If the interest rate is 5% - the effective tax rate is 2% - the recapture rate is 2.5% - and the income attributed to the building is $40 -000. The value of the building is _
ground floor area
$421 -052
exterior
income

44. Initial survey point for Michigan at the intersection of two streets
Genesee County
Site/location
Form L-4022
Economic condition factor

45. May change assessment for current year
March BOR
Federal Northwest
determining the primary use of the property; in this case probably agricultural or residential
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions

46. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
real property
Open Meetings Act
physical - functional - and economic
are not

47. Number of acres in the E 1/2 of the W 1/2 of hte NW 1/4
Cost Approach
Site/location
40
market value; existing property

48. Proposal A had the immediate result of _ property taxes in the state
are not
Rectangular survey; metes and bounds; platted or recorded subdivision
February 20
reducing

49. All meetings of the BOR are governed by the _
Open Meetings Act
first Monday in June
cost approach
$1 per acre

50. The difference between commercial and industrial property is _
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
potential income; vacancy - bad debt and operating expenses
reducing
Industrial Facility Tax Abatement