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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. In a cost approach program - the computer system should estimate _ less _
agricultural personal property; exempt
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
640 acres
replacement cost new; depreciation

2. True cash value is _
sales prices of other parcels similar to the property being appraised
county multipliers
utility - scarcity - desirability - transferability
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

3. When appraising a commercial building - you should remember that unlike building - land is...
branches
never depreciated
50%; usual selling price
discount rate - recapture rate - effective tax rate

4. _ is used to adjust the cosst approach to market value for residential properties
Circle computation of area
Economic condition factor
assessor and Board of Review
not standard depth

5. Personal property forms must be approved by the _
State Tax Commission
Triangle computation of area
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
branches

6. The right to use - occupy - and control a property for the length of the lessee's life
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
cost - sales comparison (market) - and income
life estate
GRM X MARKET RENT = MARKET VALUE

7. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
gross rent multipliers
effective gross income
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
County Board of Commissioners

8. A consumer must be able to purchasee the property
transferability
potential income; vacancy - bad debt and operating expenses
Cost Approach
Tuesday following the second

9. Initial survey point for Michigan at the intersection of two streets
sales comparison approach
Genesee County
taxation - eminent domain - and police powers
Form L-4260

10. Methods used to describe property in Michigan
county multipliers
never the land
5 -280 lineal feet
Rectangular survey; metes and bounds; platted or recorded subdivision

11. Special assessments are not levied on all real and personal property that...
Number 1
never depreciated
benefits from the special assessment
first Monday in June

12. Equity at the local level is the responsibility of the _
12
assessor and Board of Review
first Monday in June
at value

13. A report of Real and Personal Property totals prepared by the county equalization department; submitted to STC by the third Monday in April
640 acres
Form L-4024
State Tax Commission
General Property Tax Act

14. The four basic steps in the sales comparison approach 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
demand one
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
replacement cost new; depreciation

15. The three approaches to value
cost - sales comparison (market) - and income
July and December BOR
5 -280 lineal feet
exterior

16. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
are not
December 31
General Property Tax Act
property record cards and assessment maps

17. You verify a sale _
General Property Tax Act
by contacting one of the parties to the transaction (buyer - seller - or realtor)
beginning value the following year
Federal Northwest

18. It is necessary to have an evening meeting unless the residents...
exempt
agricultural personal property; exempt
real property
demand one

19. A depth factor chart is used to adjust lots that are _
agricultural personal property; exempt
December 31
County Board of Commissioners
not standard depth

20. Computer assisted mass appraisal
local government unit
market rent
typical farm buildings
CAMA

21. The definition of the economic principle of highest and best use is _
market comparison approach; cost approach
value in exchange
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
July and December BOR

22. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
a plus adjustemnt for the fireplace to the comp
Site/location
12
beginning value the following year

23. Proposal A had the immediate result of _ property taxes in the state
Economic condition factor
reducing
County Board of Commissioners
never depreciated

24. The three categories of depreciation are _
exempt
replacement cost new; depreciation
General Property Tax Act
physical - functional - and economic

25. 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
Form L-4154
Form L-4054
Form L-4046
sales comparison

26. Management costs in timber-cutover include _ which are usually the largest expense in this classification
are
Michigan General Property Tax Act
fee simple
taxes

27. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
market comparison approach; cost approach
Rectangular survey; metes and bounds; platted or recorded subdivision
State Tax Commission
Form L-4022

28. The government is authorized to levy taxes in the _
Michigan Constitution
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
exempted
reproduction cost

29. The rights of ownership removed by government are _
Form L-4154
power to tax - eminent domain - police power - escheat
expenses allowable
partial estate

30. Cost to construct an exact duplicate of the subject
reproduction cost
Industrial Facility Tax Abatement
Circle computation of area
power to tax - eminent domain - police power - escheat

31. 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 _
physical - functional - and economic
Form L-4154
36 sections
$421 -052

32. IFT certificates are granted for _ years with a possible 2-year construction period
at value
12
are
life estate

33. _ 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.
Form L-4260
Income / rate
expenses not allowable
$1 per acre

34. A private claim describes property that was occupied prior to the _
depreciation
General Land Office survey
February 20
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

35. The usual reference source regarding assessment and taxes
are not
General Property Tax Act
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
value in exchange

36. _ includes the discount rate - recapture rate - and the effective rate.
are not
43 -560 square feet
replacement cost
Capitalizaiton rate

37. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
market comparison approach; cost approach
income approach
electors
median

38. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
real estate
October 31
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
cost

39. The formula for using a gross rent multiplier to determine market value is _
GRM X MARKET RENT = MARKET VALUE
lots and blocks
County multipliers
Taxable Value X Millage Rate

40. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
reproduction cost
adverse possession
Number 1
Federal Northwest

41. Not transfers of ownership
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
fee simple
depreciation
Michigan General Property Tax Act

42. When measuring a house - you use _ measurements
Tuesday following Third Monday
The Land Residual
Private Forest Reserve
exterior

43. The government retains the following powers
taxation - eminent domain - and police powers
exempt
beginning value the following year
Form L-4023

44. _ are those expenses necessary for generating income. This includes reserves for replacements - accounting fees - advertising costs - maintenance costs such as lawn care - snow removal - repairs - trash removal - utilities - and a maintenance manager
typical farm buildings
Reproduction cost
expenses allowable
Capitalizaiton rate

45. May change assessment for current year
March BOR
taxation - eminent domain - and police powers
assessor and Board of Review
never depreciated

46. The amount of money or goods you can receive if you sell property
value in exchange
at value
Divide the sales price by the gross rent
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income

47. Deadline for filing personal property statements
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
GRM X MARKET RENT = MARKET VALUE
February 20
Tuesday following the second

48. _ is estimating the cost of an exact duplication of the building
Capitalizaiton rate
36 sections
Reproduction cost
receives and reviews

49. If a business fails to file a personal property statement - the assessor shall _
partial estate
true cash value
estimate the assessment
Tuesday following First Monday

50. Special assessment districts are commonly used for _
true cash value
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
GRM X MARKET RENT = MARKET VALUE