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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 amount of money or goods you can receive if you sell property
income
market comparison approach; cost approach
Front foot
value in exchange

2. The Tuesday following the third Monday in _ is the _ meeting.
Taxable Value X Millage Rate
Taxable Value x Millage Rate = Tax Bill
July; July Board of Review
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

3. The three principal steps in the cost approach are _
uniform rates
July and December BOR
12
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

4. The formula for calculating tax bills is _
43 -560 square feet
rate x value
specific tax
Taxable Value x Millage Rate = Tax Bill

5. Notices of the decisions of the BOR must be mailed by the _
first Monday in June
beginning value the following year
benefits from the special assessment
agricultural personal property; exempt

6. Net income is _ minus _
lots and blocks
directly benefit
County Board of Commissioners
potential income; vacancy - bad debt and operating expenses

7. You verify a sale _
first Monday in June
by contacting one of the parties to the transaction (buyer - seller - or realtor)
$1 per acre
real property

8. One use of land value maps is to _
Summation Method- Bank of Investment Method - and Market Comparison Method
the property owner or lessee - or the local government may begin the process of its own volition
real estate
track land sales

9. The right to use - occupy - and control a property for the length of the lessee's life
life estate
not standard depth
value in exchange
Industrial Facility Tax Abatement

10. When measuring a house - you use _ measurements
General Property Tax Act
Michigan Constitution
1 rod
exterior

11. The General Property Tax Law states that agricultural operations means farming in all its _
market comparison approach; cost approach
rate x value
taxation - eminent domain - and police powers
branches

12. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
$1 per acre
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
are not
real property

13. Potential income minus vacancy - bad debt - and operating expenses is the _
present worth
income / value
net income
track land sales

14. Movable irrigation systems including pumps not an integral part of a well are _ and are _
Cost Approach
operating expenses
$1 per acre
agricultural personal property; exempt

15. Leased property is...
12
the property owner or lessee - or the local government may begin the process of its own volition
December 31
partial estate

16. The value of vacant land is estimated using _
supervisor
sales prices of other parcels similar to the property being appraised
Form L-4025
Rectangular computation of area

17. Inventory (is/is not) exempt
Form L-4046
directly benefit
branches
is

18. Used to estimate the cost of constructing improvements to the land
lots and blocks
cost approach
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
ground floor area

19. Compares the property beign appraised to similar properties that have recently sold
county multipliers
sales comparison approach
taxes
tangible or intangible

20. Market value of property is _
at 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
# of acres times 43 -560 divided by known dimension
beginning value the following year

21. Radius squared times Pi (3.1416)
at value
tangible or intangible
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Circle computation of area

22. All meetings of the BOR are governed by the _
July and December BOR
exempted
Open Meetings Act
are not

23. Methods used to describe property in Michigan
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Michigan Constitution
electors
Rectangular survey; metes and bounds; platted or recorded subdivision

24. _ 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
expenses allowable
are not
Cost Approach
discount rate - recapture rate - effective tax rate

25. The highest degree of ownership
taxes
fee simple - partial estate - and life estate
taxation - eminent domain - and police powers
fee simple

26. Equity at the local level is the responsibility of the _
exterior
February 20
transferability
assessor and Board of Review

27. The _ determines the size for rates
ground floor area
County multipliers
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
General Property Tax Act

28. _ is the rent actually received for a property
contract rent
Industrial Facility Tax Abatement
February 20
uniform rates

29. Personal property statemetns are due on _
not standard depth
the property owner or lessee - or the local government may begin the process of its own volition
February 20
power to tax - eminent domain - police power - escheat

30. 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 _
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
not standard depth
Front foot
$421 -052

31. In a cost approach program - the computer system should estimate _ less _
to hear appeals of the tentative taxable value
Income / rate
replacement cost new; depreciation
receives and reviews

32. The cost approach is used to estimate _ of an _
market value; existing property
Township Board; City Council
track land sales
operating expenses

33. _ 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
are
Taxable Value x Millage Rate = Tax Bill
gross rent multipliers
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

34. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
GRM X MARKET RENT = MARKET VALUE
determining the primary use of the property; in this case probably agricultural or residential
exterior
discount rate - recapture rate - effective tax rate

35. Property Transfer Affidavit; must be filed by purchaser within 45 days of transfer
physical - functional - and economic
Form L-4260
Form L-4024
State Tax Commission

36. Deadline for filing personal property statements
February 20
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Industrial Facility Tax Abatement
directly benefit

37. Churches - schools - libraries and similar institutions are usually...
effective gross income
exempt
utility - scarcity - desirability - transferability
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

38. Proposal A had the immediate result of _ property taxes in the state
Genesee County
sales comparison
directly benefit
reducing

39. The income approach calculates the _ of a future income stream
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
are not
present worth
by contacting one of the parties to the transaction (buyer - seller - or realtor)

40. Approved by voters in 1978
General Property Tax Act
Headlee Amendment
Form L-4022
Michigan Constitution

41. The difference between commercial and industrial property is _
Industrial Facility Tax Abatement
uniform rates
assessor and Board of Review
Interest or discount

42. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
February 20
income
assessor and Board of Review
demand one

43. is the rent a property could command on the open market
General Land Office survey
first Monday in June
Replacement cost
market rent

44. If a business fails to file a personal property statement - the assessor shall _
market rent
Form L-4024
estimate the assessment
Capitalizaiton rate

45. May change assessment for current year
March BOR
Form L-4046
market rent
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

46. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
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
median
Form L-4022
General Property Tax Act

47. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
Federal Northwest
The Land Residual
640 acres
physical - functional - and economic

48. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
GRM X MARKET RENT = MARKET VALUE
Private Forest Reserve
State Tax Commission
operating expenses

49. _ 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.
to hear appeals of the tentative taxable value
expenses not allowable
exempted
December 31

50. The discount rate may be developed by the following:
Genesee County
Summation Method- Bank of Investment Method - and Market Comparison Method
value in exchange
cost - sales comparison (market) - and income