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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. Value is determined by _
utility - scarcity - desirability - transferability
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
Form L-4154
branches

2. 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
Tuesday following Third Monday
Genesee County
market value; existing property

3. Who may ask for establishment of an industrial facility tax exemption district?
the property owner or lessee - or the local government may begin the process of its own volition
Tuesday following First Monday
is
5 -280 lineal feet

4. In July and December - the BOR may meet to _
Tuesday following First Monday
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Michigan Constitution
real estate

5. The income approach calculates the _ of a future income stream
are not
present worth
economic obsolescense
are not

6. The amount of money or goods you can receive if you sell property
Open Meetings Act
value in exchange
sales comparison approach
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions

7. The return on the investment called in the capitalization rate is _
taxes
depreciation
Interest or discount
Site/location

8. _ is estimating the cost of a building of similar design and utility
reducing
Replacement cost
Headlee Amendment
The Land Residual

9. Personal property statemetns are due on _
February 20
real and personal
adverse possession
exempted

10. The second meeting of the BOR is held to _
typical farm buildings
hear appeals from taxpayers or their agents
Taxable Value x Millage Rate = Tax Bill
Michigan General Property Tax Act

11. True cash value is _
potential income; vacancy - bad debt and operating expenses
fee simple
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
43 -560 square feet

12. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
reducing
Form L-4154
cost - sales comparison (market) - and income
county multipliers

13. Compares the property beign appraised to similar properties that have recently sold
northeast corner with section 1 and proceed west to section 6
value in exchange
sales comparison approach
typical farm buildings

14. Monday December Board of Review begins
Taxable Value x Millage Rate = Tax Bill
Form L-4024
Tuesday following the second
Form L-4022

15. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
Site/location
640 acres
May 1
Form L-4022

16. Special assessments are not levied on all real and personal property that...
benefits from the special assessment
February 20
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
Tuesday following Third Monday

17. Sections in a township start _
desirability
northeast corner with section 1 and proceed west to section 6
direct sales comparison
Tuesday following; first Monday in March

18. The cost approach is used to estimate _ of an _
$1 per acre
market value; existing property
never the land
market rent

19. All meetings of the BOR are governed by the _
12
Open Meetings Act
receives and reviews
Form L-4022

20. The formula for calculating income is _
Replacement cost
rate x value
are
Form L-4046

21. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
not standard depth
$1 per acre
3/4 Proposal
market comparison approach; cost approach

22. The formula for calculating value is _
Interest or discount
3/4 Proposal
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
Income / rate

23. _ includes the discount rate - recapture rate - and the effective rate.
Divide the sales price by the gross rent
General Property Tax Act
Capitalizaiton rate
October 31

24. The highest degree of ownership
income / value
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
fee simple
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

25. A platted subdivision is described by _
Divide the sales price by the gross rent
real property
lots and blocks
Reproduction cost

26. In a cost approach program - the computer system should estimate _ less _
replacement cost new; depreciation
Income / rate
power to tax - eminent domain - police power - escheat
expenses allowable

27. Unknown dimension formula
# of acres times 43 -560 divided by known dimension
Cost Approach
March BOR
a plus adjustemnt for the fireplace to the comp

28. The _ determines the size for rates
ground floor area
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
potential gross income
Michigan Constitution

29. The right to use - occupy - and control a property for the length of the lessee's life
beginning value the following year
are not
life estate
General Property Tax Act

30. _ 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
$421 -052
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
exempted
Form L-4022

31. The rights of ownership removed by government are _
life estate
power to tax - eminent domain - police power - escheat
Tuesday following; first Monday in March
determining the primary use of the property; in this case probably agricultural or residential

32. Taxable personal property includes all property not expressly _
cost - sales comparison (market) - and 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
Rectangular survey; metes and bounds; platted or recorded subdivision
exempted

33. _ soil is considered the most productive
State Tax Commission
owners and interested parties of the property to be assessed
Number 1
benefits from the special assessment

34. 16 1/2 feet =
median
1 rod
County multipliers
March BOR

35. 1 mile =
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
Circle computation of area
5 -280 lineal feet
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions

36. When measuring a house - you use _ measurements
Form L-4260
The Land Residual
exterior
Open Meetings Act

37. The four basic steps in the sales comparison approach is _
effective gross income
economic obsolescense
40
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

38. Depreciation in the assessing process is expressed as a _
never the land
percent good
Federal Northwest
physical - functional - and economic

39. _ are used to value income-producing residential property
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
income
determining the primary use of the property; in this case probably agricultural or residential
gross rent multipliers

40. The discount rate may be developed by the following:
Summation Method- Bank of Investment Method - and Market Comparison Method
uniform rates
# of acres times 43 -560 divided by known dimension
replacement cost new; depreciation

41. If the subject property has a fireplace and air-conditioning and the comp has only air-conditioning - what adjustment would be made to what property?
exempt
a plus adjustemnt for the fireplace to the comp
uniform rates
benefits from the special assessment

42. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
real property
CAMA
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
Triangle computation of area

43. 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
County multipliers
GRM X MARKET RENT = MARKET VALUE
sales comparison
sales prices of other parcels similar to the property being appraised

44. _ is used to adjust the cosst approach to market value for residential properties
market value; existing property
fee simple - partial estate - and life estate
Economic condition factor
12

45. Tax day
real property
December 31
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
transferability

46. Initial survey point for Michigan at the intersection of two streets
December 31
not standard depth
adverse possession
Genesee County

47. Public rights-of-way are _
replacement cost new; depreciation
Form L-4054
fee simple
exempt

48. _ is a loss in value caused by factors outside the property
36 sections
Circle computation of area
economic obsolescense
Township Board; City Council

49. Deadline for filing personal property statements
February 20
12
July; July Board of Review
cost - sales comparison (market) - and income

50. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
income
Economic condition factor
are not
fee simple - partial estate - and life estate