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. If a business fails to file a personal property statement - the assessor shall _
local government unit
Rectangular computation of area
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
estimate the assessment

2. is the rent a property could command on the open market
market rent
power to tax - eminent domain - police power - escheat
benefits from the special assessment
property record cards and assessment maps

3. _ 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
Form L-4023
rate x value
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
are not

4. _ 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
Income / rate
Headlee Amendment
December 31
expenses allowable

5. Value is determined by _
Summation Method- Bank of Investment Method - and Market Comparison Method
life estate
utility - scarcity - desirability - transferability
county multipliers

6. One use of land value maps is to _
February 20
expenses allowable
county multipliers
track land sales

7. _ soil is considered the most productive
Open Meetings Act
demand one
Number 1
Form L-4025

8. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
taxation - eminent domain - and police powers
income approach
Form L-4023
county multipliers

9. Enacted in 1893
Open Meetings Act
Federal Northwest
Michigan General Property Tax Act
real estate

10. Unknown dimension formula
electors
# of acres times 43 -560 divided by known dimension
real estate
value in exchange

11. The capitalization rate includes the _ - _ and the _
Board of Review; Michigan Tax Tribunal
direct sales comparison
discount rate - recapture rate - effective tax rate
640 acres

12. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
effective gross income
Federal Northwest
Rectangular computation of area
replacement cost new; depreciation

13. The definition of the economic principle of highest and best use is _
fee simple
Rectangular survey; metes and bounds; platted or recorded subdivision
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
lots and blocks

14. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
reducing
direct sales comparison
taxes
$1 per acre

15. Monday December Board of Review begins
Tuesday following the second
are
income approach
property record cards and assessment maps

16. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
operating expenses
net income
market value; existing property
taxation - eminent domain - and police powers

17. The return on the investment called in the capitalization rate is _
General Property Tax Act
Interest or discount
market rent
sales prices of other parcels similar to the property being appraised

18. Notice of special assessment public hearings must be given to _
owners and interested parties of the property to be assessed
depreciation
life estate
replacement cost

19. Approved by voters in 1978
Headlee Amendment
northeast corner with section 1 and proceed west to section 6
receives and reviews
gross rent multipliers

20. The value of vacant land is estimated using _
sales prices of other parcels similar to the property being appraised
sales comparison approach
owners and interested parties of the property to be assessed
electors

21. _ includes the discount rate - recapture rate - and the effective rate.
Capitalizaiton rate
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
Cost Approach
life estate

22. 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?
State Tax Commission
36 sections
electors
a plus adjustemnt for the fireplace to the comp

23. True cash value is _
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
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
General Property Tax Act
Form L-4154

24. IFT's affect only the building value...
Interest or discount
northeast corner with section 1 and proceed west to section 6
Tuesday following the second
never the land

25. Potential income minus vacancy - bad debt - and operating expenses is the _
owners and interested parties of the property to be assessed
market comparison approach; cost approach
net income
receives and reviews

26. Equity within the county is the responsibility of the _
never depreciated
property record cards and assessment maps
County Board of Commissioners
taxes

27. Definition of ad valorem
replacement cost new; depreciation
Form L-4025
at value
Divide the sales price by the gross rent

28. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
# of acres times 43 -560 divided by known dimension
sales prices of other parcels similar to the property being appraised
median
beginning value the following year

29. Movable irrigation systems including pumps not an integral part of a well are _ and are _
expenses allowable
agricultural personal property; exempt
local government unit
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

30. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
Number 1
determining the primary use of the property; in this case probably agricultural or residential
electors
direct sales comparison

31. Market value of property is _
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
is
receives and reviews
Rectangular computation of area

32. Deadline for filing Principal Residence Affidavits
depreciation
May 1
taxes
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

33. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
potential income; vacancy - bad debt and operating expenses
income
are not
Form L-4024

34. 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
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
July and December BOR
specific tax
are not

35. Deadline for filing personal property statements
reducing
February 20
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
rate x value

36. The _ must approve the application for an IFT before the State Tax Commission approves the application
County multipliers
local government unit
Tuesday following Third Monday
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. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
640 acres
real and personal
tangible or intangible
Site/location

38. The definition of market value is _
potential gross income
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
Divide the sales price by the gross rent
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

39. The Board of Review was created by the _ of 1893
Summation Method- Bank of Investment Method - and Market Comparison Method
General Property Tax Act
direct sales comparison
GRM X MARKET RENT = MARKET VALUE

40. 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 _
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
taxes
50%; usual selling price
Form L-4260

41. 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
sales comparison
Income / rate
contract rent
expenses allowable

42. The cost approach is used to estimate _ of an _
Board of Review; Michigan Tax Tribunal
market value; existing property
February 20
March BOR

43. 16 1/2 feet =
1 rod
not standard depth
county multipliers
expenses not allowable

44. Used to value the income stream of a property
potential income; vacancy - bad debt and operating expenses
sales comparison
County Board of Commissioners
income approach

45. Buildings on leased lands _ personal property
are
State Tax Commission
Form L-4022
fee simple

46. _ are applied to the cost schedules in the manuals
Circle computation of area
Form L-4023
County multipliers
economic obsolescense

47. A consumer must want the product for it to have value
taxes
desirability
lots and blocks
Tuesday following First Monday

48. Number of acres in the E 1/2 of the W 1/2 of hte NW 1/4
real property
March BOR
40
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions

49. When appraising a commercial building - you should remember that unlike building - land is...
never depreciated
real estate
receives and reviews
43 -560 square feet

50. A consumer must be able to purchasee the property
Taxable Value x Millage Rate = Tax Bill
5 -280 lineal feet
estimate the assessment
transferability