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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 may be _
Michigan Constitution
tangible or intangible
taxation - eminent domain - and police powers
directly benefit

2. Buildings on leased lands _ personal property
are
General Property Tax Act
Front foot
3/4 Proposal

3. Formula used to calculate taxes is _
expenses allowable
hear appeals from taxpayers or their agents
General Land Office survey
Taxable Value X Millage Rate

4. Personal property statemetns are due on _
branches
Tuesday following Third Monday
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
February 20

5. Deadline for filing Principal Residence Affidavits
Michigan Constitution
State Tax Commission
Tuesday following First Monday
May 1

6. The _ must approve the application for an IFT before the State Tax Commission approves the application
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
branches
Tuesday following; first Monday in March
local government unit

7. A consumer must be able to purchasee the property
at value
Michigan Constitution
transferability
uniform rates

8. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
Federal Northwest
October 31
are not
electors

9. is the rent a property could command on the open market
median
economic obsolescense
market rent
electors

10. The three approaches to value
track land sales
cost - sales comparison (market) - and income
specific tax
1 rod

11. The Tuesday following the third Monday in _ is the _ meeting.
real and personal
July; July Board of Review
Township Board; City Council
Income / rate

12. The Commercial Forest Act permits an owner to put property into a program that permits payment of a _ in lieu of the ad valorem rates
Taxable Value x Millage Rate = Tax Bill
specific tax
to hear appeals of the tentative taxable value
Board of Review; Michigan Tax Tribunal

13. The _ determines the size for rates
County Board of Commissioners
Township Board; City Council
ground floor area
market rent

14. The capitalization rate includes the _ - _ and the _
Front foot
3/4 Proposal
Economic condition factor
discount rate - recapture rate - effective tax rate

15. One use of land value maps is to _
Economic condition factor
track land sales
owners and interested parties of the property to be assessed
Tuesday following First Monday

16. You verify a sale _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
40
General Property Tax Act
Michigan General Property Tax Act

17. The three principal steps in the cost approach are _
Income / rate
Cost Approach
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
sales comparison

18. The Board of Review was created by the _ of 1893
Form L-4025
36 sections
determining the primary use of the property; in this case probably agricultural or residential
General Property Tax Act

19. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
exempt
effective gross income
income approach
Form L-4054

20. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
expenses allowable
$1 per acre
36 sections
Michigan General Property Tax Act

21. _ is estimating the cost of a building of similar design and utility
sales comparison approach
General Land Office survey
receives and reviews
Replacement cost

22. Two types of maps that are used in valuing agricultural land are _ maps and _ maps
1 rod
soil survey; land value
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
3/4 Proposal

23. A limits the maximum amount of ad valorem taxes that may be levied for school district operating purposes. The change this maximum requires a vote of _ of the legislature to approve.
taxation - eminent domain - and police powers
3/4 Proposal
potential gross income
first Monday in June

24. Depreciation in the assessing process is expressed as a _
cost approach
Tuesday following First Monday
percent good
Interest or discount

25. _ measures value in exchange; it is based on the principle of substitution
direct sales comparison
replacement cost new; depreciation
real property
October 31

26. The income approach calculates the _ of a future income stream
present worth
income approach
income
Tuesday following; first Monday in March

27. Tax day
taxation - eminent domain - and police powers
December 31
640 acres
direct sales comparison

28. 1 acre =
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
real property
43 -560 square feet
at value

29. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
direct sales comparison
Private Forest Reserve
first Monday in June
expenses allowable

30. True cash value is _
the usual selling price at the place where the property to which the term is applied shall be at the time of the assessment being the price which could be obtained therefore at private sale - and not at forced sale or auction sale
fee simple
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
branches

31. Notices of the decisions of the BOR must be mailed by the _
uniform rates
first Monday in June
General Property Tax Act
43 -560 square feet

32. _ are used to value income-producing residential property
are not
GRM X MARKET RENT = MARKET VALUE
gross rent multipliers
direct sales comparison

33. Requires that the ratio of assessments to true cash value not exceed 50%
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Michigan Constitution
direct sales comparison
Board of Review; Michigan Tax Tribunal

34. In July and December - the BOR may meet to _
gross rent multipliers
cost approach
a plus adjustemnt for the fireplace to the comp
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR

35. CAMA system should estimate replacement cost new less depreciation in the _ approach
cost
agricultural personal property; exempt
life estate
percent good

36. In heavily wooded areas where property lines may be difficult to identify - it is important that the owners protect their property from being claimed under _
fee simple
Front foot
adverse possession
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

37. The value of vacant land is estimated using _
sales prices of other parcels similar to the property being appraised
Circle computation of area
physical - functional - and economic
branches

38. Definition of ad valorem
Replacement cost
at value
branches
Interest or discount

39. 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 _
value in use
Rectangular survey; metes and bounds; platted or recorded subdivision
Form L-4154
$421 -052

40. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
potential income; vacancy - bad debt and operating expenses
electors
utility - scarcity - desirability - transferability
Form L-4022

41. Proposal A had the immediate result of _ property taxes in the state
lots and blocks
expenses not allowable
present worth
reducing

42. _ is a loss of utility and therefore of value from any cause
State Tax Commission
depreciation
Form L-4046
Form L-4022

43. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
cost - sales comparison (market) - and income
Front foot
market comparison approach; cost approach
are not

44. March Board of Review begins
benefits from the special assessment
property record cards and assessment maps
Tuesday following First Monday
Private Forest Reserve

45. 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?
gross rent multipliers
directly benefit
physical - functional - and economic
a plus adjustemnt for the fireplace to the comp

46. _ includes the discount rate - recapture rate - and the effective rate.
real and personal
Capitalizaiton rate
Site/location
640 acres

47. _ is estimating the cost of an exact duplication of the building
expenses not allowable
Township Board; City Council
replacement cost
Reproduction cost

48. Inventory (is/is not) exempt
$1 per acre
typical farm buildings
is
market value; existing property

49. Management costs in timber-cutover include _ which are usually the largest expense in this classification
by contacting one of the parties to the transaction (buyer - seller - or realtor)
value in exchange
taxes
not standard depth

50. Net income is _ minus _
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
tangible or intangible
potential income; vacancy - bad debt and operating expenses
specific tax