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MCAO: Michigan Certified Assessing Officer

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. A report of Real and Personal Property Taxable Valuations prepared by county equalization; submitted to STC by fourth Monday in April
County multipliers
Form L-4046
GRM X MARKET RENT = MARKET VALUE
gross rent multipliers

2. _ measures value in exchange; it is based on the principle of substitution
Triangle computation of area
to hear appeals of the tentative taxable value
percent good
direct sales comparison

3. Special assessments must _ the properties in the district
directly benefit
real estate
Private Forest Reserve
taxes

4. The rights of ownership removed by government are _
potential income; vacancy - bad debt and operating expenses
Form L-4024
power to tax - eminent domain - police power - escheat
depreciation

5. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
fee simple
February 20
to hear appeals of the tentative taxable value
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines

6. Sections in a township start _
replacement cost new; depreciation
northeast corner with section 1 and proceed west to section 6
May 1
Divide the sales price by the gross rent

7. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
expenses allowable
sales comparison approach
net income
Form L-4023

8. 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
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
# of acres times 43 -560 divided by known dimension

9. Definition of ad valorem
determining the primary use of the property; in this case probably agricultural or residential
3/4 Proposal
at value
effective gross income

10. _ soil is considered the most productive
Economic condition factor
potential gross income
Taxable Value X Millage Rate
Number 1

11. Not transfers of ownership
General Property Tax Act
Rectangular survey; metes and bounds; platted or recorded subdivision
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
beginning value the following year

12. The highest degree of ownership
value in exchange
fee simple
Form L-4154
State Tax Commission

13. Taxable unless specifically exempted
Form L-4022
real and personal
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
Income / rate

14. March Board of Review begins
not standard depth
net income
real estate
Tuesday following First Monday

15. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
exterior
$421 -052
Federal Northwest
# of acres times 43 -560 divided by known dimension

16. The government is authorized to levy taxes in the _
Tuesday following Third Monday
Michigan Constitution
Form L-4154
market rent

17. IFT's affect only the building value...
cost
never the land
cost - sales comparison (market) - and income
value in use

18. Pole barns - silos - and large grain bins are considered _
General Land Office survey
typical farm buildings
present worth
market value; existing property

19. There are _ in a section
640 acres
exempted
Number 1
Private Forest Reserve

20. The difference between commercial and industrial property is _
Industrial Facility Tax Abatement
never the land
Income / rate
lots and blocks

21. Compares the property beign appraised to similar properties that have recently sold
Form L-4154
sales comparison approach
market rent
is

22. Cost to construct improvement with the same functional utility of the subject
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
Form L-4025
physical - functional - and economic
replacement cost

23. _ is the rent actually received for a property
true cash value
Headlee Amendment
Front foot
contract rent

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
market comparison approach; cost approach
General Property Tax Act
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

25. One use of land value maps is to _
track land sales
soil survey; land value
adverse possession
benefits from the special assessment

26. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
determining the primary use of the property; in this case probably agricultural or residential
agricultural personal property; exempt
market comparison approach; cost approach
July; July Board of Review

27. _ is a loss of utility and therefore of value from any cause
Headlee Amendment
Tuesday following First Monday
a plus adjustemnt for the fireplace to the comp
depreciation

28. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
transferability
soil survey; land value
cost
operating expenses

29. Churches - schools - libraries and similar institutions are usually...
replacement cost
Interest or discount
exempt
Tuesday following First Monday

30. The BOR _ and _ the roll
receives and reviews
Front foot
northeast corner with section 1 and proceed west to section 6
Rectangular computation of area

31. The formula for calculating income is _
specific tax
expenses allowable
Tuesday following Third Monday
rate x value

32. 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?
typical farm buildings
are
a plus adjustemnt for the fireplace to the comp
depreciation

33. The government retains the following powers
direct sales comparison
benefits from the special assessment
Number 1
taxation - eminent domain - and police powers

34. The value property has in a specific use
directly benefit
value in use
Form L-4260
replacement cost

35. Public rights-of-way are _
exempt
Front foot
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
February 20

36. A consumer must want the product for it to have value
desirability
County Board of Commissioners
partial estate
October 31

37. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
by contacting one of the parties to the transaction (buyer - seller - or realtor)
July and December BOR
market value; existing property
Genesee County

38. The formula for calculating value is _
Income / rate
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
Taxable Value X Millage Rate
taxes

39. In a township - the _ is the secretary of the Board of Review
Summation Method- Bank of Investment Method - and Market Comparison Method
supervisor
percent good
determining the primary use of the property; in this case probably agricultural or residential

40. The definition of the economic principle of highest and best use is _
43 -560 square feet
Michigan Constitution
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
benefits from the special assessment

41. Computer assisted mass appraisal
CAMA
County multipliers
exterior
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

42. It is necessary to have an evening meeting unless the residents...
are not
power to tax - eminent domain - police power - escheat
demand one
1 rod

43. The capitalization rate includes the _ - _ and the _
discount rate - recapture rate - effective tax rate
a plus adjustemnt for the fireplace to the comp
never depreciated
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

44. If a business fails to file a personal property statement - the assessor shall _
branches
uniform rates
estimate the assessment
Form L-4054

45. The most common types of ownership are _
sales comparison
fee simple - partial estate - and life estate
contract rent
Capitalizaiton rate

46. _ is estimating the cost of a building of similar design and utility
beginning value the following year
Replacement cost
exempted
reproduction cost

47. Notices of the decisions of the BOR must be mailed by the _
State Tax Commission
life estate
tangible or intangible
first Monday in June

48. Economic condition factors (are/are not) applied to land and buildings
are not
sales comparison approach
Triangle computation of area
fee simple

49. Michigan's Constitution uses _ to determine assessments
expenses allowable
taxation - eminent domain - and police powers
Headlee Amendment
true cash value

50. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
5 -280 lineal feet
branches
July; July Board of Review
Site/location