Test your basic knowledge |

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. Equity within the 83 counties of the state is the responsibility of the _
northeast corner with section 1 and proceed west to section 6
ground floor area
State Tax Commission
not standard depth

2. The three categories of depreciation are _
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
General Land Office survey
physical - functional - and economic
sales comparison approach

3. Michigan's Constitution provides for _ of taxation
physical - functional - and economic
partial 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
uniform rates

4. Economic condition factors (are/are not) applied to land and buildings
receives and reviews
rate x value
12
are not

5. The discount rate may be developed by the following:
Summation Method- Bank of Investment Method - and Market Comparison Method
rate x value
October 31
Township Board; City Council

6. The Board of Review was created by the _ of 1893
Tuesday following First Monday
General Property Tax Act
effective gross income
Summation Method- Bank of Investment Method - and Market Comparison Method

7. IFT's affect only the building value...
never the land
The Land Residual
Circle computation of area
to hear appeals of the tentative taxable value

8. Members of the Board of Review must be _ of the township
taxes
640 acres
hear appeals from taxpayers or their agents
electors

9. _ is a loss of utility and therefore of value from any cause
depreciation
$421 -052
discount rate - recapture rate - effective tax rate
lots and blocks

10. _ are applied to the cost schedules in the manuals
County multipliers
February 20
the property owner or lessee - or the local government may begin the process of its own volition
potential income; vacancy - bad debt and operating expenses

11. The rights of ownership removed by government are _
40
depreciation
Michigan General Property Tax Act
power to tax - eminent domain - police power - escheat

12. There are _ in a geographical township
36 sections
rate x value
taxation - eminent domain - and police powers
Form L-4154

13. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
market comparison approach; cost approach
Michigan Constitution
are
$1 per acre

14. Churches - schools - libraries and similar institutions are usually...
Divide the sales price by the gross rent
exempt
are not
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

15. 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
County multipliers
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
to hear appeals of the tentative taxable value
specific tax

16. The _ must approve the application for an IFT before the State Tax Commission approves the application
February 20
local government unit
value in exchange
Rectangular survey; metes and bounds; platted or recorded subdivision

17. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
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
uniform rates
Township Board; City Council
Form L-4023

18. July Board of Review begins
supervisor
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
taxation - eminent domain - and police powers
Tuesday following Third Monday

19. Management costs in timber-cutover include _ which are usually the largest expense in this classification
economic obsolescense
Board of Review; Michigan Tax Tribunal
taxes
market rent

20. The usual reference source regarding assessment and taxes
specific tax
Capitalizaiton rate
replacement cost new; depreciation
General Property Tax Act

21. Taxable personal property includes all property not expressly _
income approach
reproduction cost
exempted
real estate

22. Notice of special assessment public hearings must be given to _
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
owners and interested parties of the property to be assessed
value in exchange
the property owner or lessee - or the local government may begin the process of its own volition

23. The physical land and any structure attached to it
real estate
potential income; vacancy - bad debt and operating expenses
effective gross income
potential gross income

24. Taxable unless specifically exempted
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
real and personal
exempted
$1 per acre

25. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
exempt
5 -280 lineal feet
to hear appeals of the tentative taxable value
County multipliers

26. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
property record cards and assessment maps
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Private Forest Reserve
transferability

27. You verify a sale _
43 -560 square feet
Genesee County
by contacting one of the parties to the transaction (buyer - seller - or realtor)
40

28. True cash value is _
State Tax Commission
supervisor
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
a plus adjustemnt for the fireplace to the comp

29. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
County Board of Commissioners
County multipliers
July and December BOR
Form L-4046

30. A private claim describes property that was occupied prior to the _
life estate
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
value in use
General Land Office survey

31. Enacted in 1893
electors
Reproduction cost
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
Michigan General Property Tax Act

32. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
specific tax
estimate the assessment
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income

33. Unknown dimension formula
income / value
December 31
# of acres times 43 -560 divided by known dimension
replacement cost

34. Assessor Affidavit Regarding 'Uncapping' of Taxable Value; used when it is discovered that a property value should have been uncapped but wasn't
Form L-4054
February 20
Federal Northwest
tangible or intangible

35. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
real property
Cost Approach
December 31
property record cards and assessment maps

36. Most taxpayers must appeal to the local _ before appealing to the _
real and personal
Board of Review; Michigan Tax Tribunal
General Property Tax Act
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

37. Inventory (is/is not) exempt
by contacting one of the parties to the transaction (buyer - seller - or realtor)
is
percent good
beginning value the following year

38. The three approaches to value
sales comparison approach
never the land
Divide the sales price by the gross rent
cost - sales comparison (market) - and income

39. _ measures value in exchange; it is based on the principle of substitution
direct sales comparison
county multipliers
lots and blocks
Form L-4054

40. Value is determined by _
utility - scarcity - desirability - transferability
direct sales comparison
to hear appeals of the tentative taxable value
State Tax Commission

41. To calculate a gross rent multiplier - _
income approach
Divide the sales price by the gross rent
$1 per acre
is

42. Depreciation in the assessing process is expressed as a _
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
utility - scarcity - desirability - transferability
percent good
tangible or intangible

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 _
$421 -052
Form L-4024
net income
Industrial Facility Tax Abatement

44. _ is estimating the cost of a building of similar design and utility
Replacement cost
power to tax - eminent domain - police power - escheat
July; July Board of Review
percent good

45. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
40
Form L-4022
rate x value
potential income; vacancy - bad debt and operating expenses

46. _ was designed to provide for the exemption from certain taxes; to levy and collect a specific tax from the owners of properties so exempted; and to provide for the transfer of the exemption certificates; also prescribes the power and dute of the STC
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
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
taxes
specific tax

47. All meetings of the BOR are governed by the _
Form L-4022
Open Meetings Act
Cost Approach
Tuesday following Third Monday

48. The formula for calculating value is _
gross rent multipliers
true cash value
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
Income / rate

49. Cost to construct improvement with the same functional utility of the subject
present worth
Industrial Facility Tax Abatement
Open Meetings Act
replacement cost

50. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
are not
40
$1 per acre
Front foot