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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. The Board of Review was created by the _ of 1893
5 -280 lineal feet
Board of Review; Michigan Tax Tribunal
General Property Tax Act
taxes

2. _ is used to adjust the cosst approach to market value for residential properties
State Tax Commission
May 1
Economic condition factor
tangible or intangible

3. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
track land sales
determining the primary use of the property; in this case probably agricultural or residential
December 31
to hear appeals of the tentative taxable value

4. The market rent times the number of units availabe to rent is _
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
50%; usual selling price
replacement cost new; depreciation
potential gross income

5. A platted subdivision is described by _
3/4 Proposal
lots and blocks
taxes
fee simple - partial estate - and life estate

6. The government retains the following powers
sales comparison
market value; existing property
a plus adjustemnt for the fireplace to the comp
taxation - eminent domain - and police powers

7. Unknown dimension formula
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
# of acres times 43 -560 divided by known dimension
by contacting one of the parties to the transaction (buyer - seller - or realtor)
market rent

8. A consumer must want the product for it to have value
replacement cost
desirability
Form L-4154
a plus adjustemnt for the fireplace to the comp

9. March Board of Review begins
Tuesday following First Monday
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
Form L-4046
hear appeals from taxpayers or their agents

10. _ is a loss in value caused by factors outside the property
economic obsolescense
Open Meetings Act
July; July Board of Review
value in use

11. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
Private Forest Reserve
exempt
Taxable Value X Millage Rate
July; July Board of Review

12. Members of the Board of Review must be _ of the township
economic obsolescense
electors
receives and reviews
Form L-4154

13. There are _ in a section
$421 -052
640 acres
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
Open Meetings Act

14. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
Form L-4025
local government unit
July and December BOR
reducing

15. Used to estimate the cost of constructing improvements to the land
cost approach
$1 per acre
utility - scarcity - desirability - transferability
1 rod

16. The first meeting of the BOR is held on the _
ground floor area
February 20
transferability
Tuesday following; first Monday in March

17. Most taxpayers must appeal to the local _ before appealing to the _
track land sales
hear appeals from taxpayers or their agents
soil survey; land value
Board of Review; Michigan Tax Tribunal

18. The second meeting of the BOR is held to _
40
hear appeals from taxpayers or their agents
CAMA
Township Board; City Council

19. Compares the property beign appraised to similar properties that have recently sold
never depreciated
utility - scarcity - desirability - transferability
income
sales comparison approach

20. Length times the width
sales prices of other parcels similar to the property being appraised
Rectangular computation of area
first Monday in June
is

21. 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.
desirability
agricultural personal property; exempt
Divide the sales price by the gross rent
3/4 Proposal

22. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
are not
income
October 31
Board of Review; Michigan Tax Tribunal

23. 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 _
Capitalizaiton rate
$421 -052
Taxable Value X Millage Rate
640 acres

24. The right to use - occupy - and control a property for the length of the lessee's life
County Board of Commissioners
life estate
potential income; vacancy - bad debt and operating expenses
value in use

25. Churches - schools - libraries and similar institutions are usually...
exempt
Form L-4024
December 31
Form L-4046

26. The definition of market value is _
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
expenses not allowable
fee simple - partial estate - and life estate
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

27. The definition of the economic principle of highest and best use is _
estimate the assessment
replacement cost new; depreciation
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
operating expenses

28. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
Taxable Value x Millage Rate = Tax Bill
exempt
Form L-4260
Federal Northwest

29. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
benefits from the special assessment
tangible or intangible
track land sales
$1 per acre

30. Computer assisted mass appraisal
never depreciated
CAMA
first Monday in June
February 20

31. Management costs in timber-cutover include _ which are usually the largest expense in this classification
market rent
taxes
contract rent
first Monday in June

32. To calculate a gross rent multiplier - _
640 acres
Site/location
Divide the sales price by the gross rent
the property owner or lessee - or the local government may begin the process of its own volition

33. _ is a loss of utility and therefore of value from any cause
at value
agricultural personal property; exempt
Summation Method- Bank of Investment Method - and Market Comparison Method
depreciation

34. Michigan's Constitution provides for _ of taxation
Form L-4154
depreciation
value in use
uniform rates

35. Depreciation in the assessing process is expressed as a _
Number 1
36 sections
General Property Tax Act
percent good

36. Methods used to describe property in Michigan
are not
Rectangular survey; metes and bounds; platted or recorded subdivision
directly benefit
Form L-4025

37. Used to value the income stream of a property
5 -280 lineal feet
real and personal
local government unit
income approach

38. The cost approach is used to estimate _ of an _
sales comparison
43 -560 square feet
Tuesday following the second
market value; existing property

39. _ includes the discount rate - recapture rate - and the effective rate.
Township Board; City Council
# of acres times 43 -560 divided by known dimension
directly benefit
Capitalizaiton rate

40. IFT certificates are granted for _ years with a possible 2-year construction period
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
transferability
Number 1
12

41. The highest degree of ownership
life estate
County Board of Commissioners
fee simple
Reproduction cost

42. If a business fails to file a personal property statement - the assessor shall _
reducing
estimate the assessment
Form L-4046
Rectangular survey; metes and bounds; platted or recorded subdivision

43. The difference between commercial and industrial property is _
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
Industrial Facility Tax Abatement
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
Tuesday following Third Monday

44. Capped value is _

45. There are _ in a geographical township
February 20
General Property Tax Act
rate x value
36 sections

46. The formula for calculating tax bills is _
gross rent multipliers
fee simple - partial estate - and life estate
present worth
Taxable Value x Millage Rate = Tax Bill

47. Special assessments must _ the properties in the district
Rectangular computation of area
track land sales
directly benefit
effective gross income

48. Value is determined by _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
exterior
reproduction cost
utility - scarcity - desirability - transferability

49. Special assessment districts are commonly used for _
true cash value
February 20
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
desirability

50. When measuring a house - you use _ measurements
Headlee Amendment
$421 -052
exterior
Form L-4154