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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. Half the base times the height
3/4 Proposal
real and personal
December 31
Triangle computation of area

2. Property Transfer Affidavit; must be filed by purchaser within 45 days of transfer
Form L-4260
Board of Review; Michigan Tax Tribunal
hear appeals from taxpayers or their agents
40

3. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
Township Board; City Council
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
# of acres times 43 -560 divided by known dimension
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

4. Leased property is...
February 20
Divide the sales price by the gross rent
State Tax Commission
partial estate

5. If a business fails to file a personal property statement - the assessor shall _
Township Board; City Council
estimate the assessment
lots and blocks
Form L-4025

6. The cost approach is used to estimate _ of an _
market value; existing property
40
Number 1
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

7. 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.
reproduction cost
sales comparison approach
3/4 Proposal
market rent

8. Depreciation in the assessing process is expressed as a _
taxes
by contacting one of the parties to the transaction (buyer - seller - or realtor)
taxation - eminent domain - and police powers
percent good

9. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
gross rent multipliers
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
5 -280 lineal feet
Board of Review; Michigan Tax Tribunal

10. Number of acres in the E 1/2 of the W 1/2 of hte NW 1/4
owners and interested parties of the property to be assessed
40
Form L-4023
replacement cost

11. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
reproduction cost
Form L-4025
Industrial Facility Tax Abatement
directly benefit

12. When measuring a house - you use _ measurements
power to tax - eminent domain - police power - escheat
Circle computation of area
GRM X MARKET RENT = MARKET VALUE
exterior

13. Michigan's Constitution provides for _ of taxation
uniform rates
Michigan Constitution
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
lots and blocks

14. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
market comparison approach; cost approach
expenses allowable
benefits from the special assessment
determining the primary use of the property; in this case probably agricultural or residential

15. _ is used to adjust the cosst approach to market value for residential properties
agricultural personal property; exempt
expenses allowable
Economic condition factor
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

16. To calculate a gross rent multiplier - _
1 rod
GRM X MARKET RENT = MARKET VALUE
February 20
Divide the sales price by the gross rent

17. The formula for using a gross rent multiplier to determine market value is _
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
Form L-4154
GRM X MARKET RENT = MARKET VALUE
expenses allowable

18. The formula for calculating tax bills is _
cost approach
March BOR
Taxable Value x Millage Rate = Tax Bill
43 -560 square feet

19. Definition of ad valorem
Front foot
county multipliers
at value
transferability

20. 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 _
Headlee Amendment
$421 -052
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
to hear appeals of the tentative taxable value

21. Market value of property is _
expenses allowable
Site/location
replacement cost new; depreciation
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

22. The BOR _ and _ the roll
Taxable Value x Millage Rate = Tax Bill
receives and reviews
hear appeals from taxpayers or their agents
Replacement cost

23. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
exterior
estimate the assessment
real property
rate x value

24. 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
Industrial Facility Tax Abatement
assessor and Board of Review
Triangle computation of area

25. Special assessments must _ the properties in the district
fee simple - partial estate - and life estate
income approach
sales prices of other parcels similar to the property being appraised
directly benefit

26. 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 _
to hear appeals of the tentative taxable value
income
50%; usual selling price
cost approach

27. _ are expenses that may be part of the capitalization rate such as depreciation and property taxes or capital improvement expenses and the owner's costs and corporation costs; also not income taxes.
expenses not allowable
General Land Office survey
Form L-4024
Michigan Constitution

28. _ is estimating the cost of a building of similar design and utility
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
3/4 Proposal
Replacement cost
owners and interested parties of the property to be assessed

29. The three principal steps in the cost approach are _
sales prices of other parcels similar to the property being appraised
Form L-4154
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
replacement cost new; depreciation

30. Who may ask for establishment of an industrial facility tax exemption district?
a plus adjustemnt for the fireplace to the comp
the property owner or lessee - or the local government may begin the process of its own volition
income
market comparison approach; cost approach

31. A depth factor chart is used to adjust lots that are _
owners and interested parties of the property to be assessed
Cost Approach
not standard depth
Interest or discount

32. In a cost approach program - the computer system should estimate _ less _
demand one
potential gross income
value in use
replacement cost new; depreciation

33. It (is not necessary to use __________ when valuing agricultural property.
effective gross income
county multipliers
40
The Land Residual

34. The _ to value is best used for mass appraisals being done by the assessor.
Cost Approach
Federal Northwest
July and December BOR
GRM X MARKET RENT = MARKET VALUE

35. The Tuesday following the third Monday in _ is the _ meeting.
taxation - eminent domain - and police powers
Open Meetings Act
The Land Residual
July; July Board of Review

36. The four basic steps in the sales comparison approach is _
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
GRM X MARKET RENT = MARKET VALUE
are
Form L-4054

37. The three approaches to value
cost - sales comparison (market) - and income
General Property Tax Act
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
direct sales comparison

38. Equity within the county is the responsibility of the _
branches
specific tax
County Board of Commissioners
50%; usual selling price

39. One use of land value maps is to _
July and December BOR
track land sales
operating expenses
Reproduction cost

40. Pole barns - silos - and large grain bins are considered _
typical farm buildings
Reproduction cost
cost
Form L-4154

41. _ is estimating the cost of an exact duplication of the building
expenses not allowable
Reproduction cost
1 rod
first Monday in June

42. Buildings on leased lands _ personal property
The Land Residual
Interest or discount
are
agricultural personal property; exempt

43. The return on the investment called in the capitalization rate is _
Interest or discount
taxes
depreciation
physical - functional - and economic

44. Monday December Board of Review begins
Tuesday following the second
market value; existing property
tangible or intangible
receives and reviews

45. IFT's affect only the building value...
never the land
Form L-4023
Form L-4154
Income / rate

46. Used to value the income stream of a property
track land sales
640 acres
Federal Northwest
income approach

47. Equity at the local level is the responsibility of the _
assessor and Board of Review
Private Forest Reserve
lots and blocks
potential gross income

48. Proposal A had the immediate result of _ property taxes in the state
reducing
December 31
value in exchange
northeast corner with section 1 and proceed west to section 6

49. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
Form L-4054
branches
to hear appeals of the tentative taxable value
Michigan Constitution

50. Taxable personal property includes all property not expressly _
exempted
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
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
track land sales