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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.
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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. _ is used to adjust the cosst approach to market value for residential properties
Economic condition factor
demand one
Form L-4022
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

2. There are _ in a section
cost - sales comparison (market) - and income
Open Meetings Act
640 acres
percent good

3. Potential income minus vacancy - bad debt - and operating expenses is the _
# of acres times 43 -560 divided by known dimension
Site/location
specific tax
net income

4. Personal property may be _
operating expenses
tangible or intangible
are
power to tax - eminent domain - police power - escheat

5. _ 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.
expenses not allowable
a plus adjustemnt for the fireplace to the comp
lots and blocks
true cash value

6. Personal property forms must be approved by the _
median
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
General Land Office survey
State Tax Commission

7. The market rent times the number of units availabe to rent is _
market rent
potential gross income
desirability
cost

8. A depth factor chart is used to adjust lots that are _
sales prices of other parcels similar to the property being appraised
Interest or discount
not standard depth
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

9. Used to estimate the cost of constructing improvements to the land
percent good
Taxable Value x Millage Rate = Tax Bill
replacement cost new; depreciation
cost approach

10. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
operating expenses
taxes
640 acres
agricultural personal property; exempt

11. 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 _
Michigan General Property Tax Act
Tuesday following Third Monday
Form L-4260
$421 -052

12. CAMA system should estimate replacement cost new less depreciation in the _ approach
Site/location
Rectangular computation of area
cost
by contacting one of the parties to the transaction (buyer - seller - or realtor)

13. The return on the investment called in the capitalization rate is _
Divide the sales price by the gross rent
cost approach
Interest or discount
43 -560 square feet

14. Inventory (is/is not) exempt
Headlee Amendment
CAMA
taxation - eminent domain - and police powers
is

15. The _ determines the size for rates
never depreciated
effective gross income
ground floor area
Township Board; City Council

16. _ are applied to the cost schedules in the manuals
5 -280 lineal feet
County multipliers
net income
cost

17. Capped value is _

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18. The value of vacant land is estimated using _
Replacement cost
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
sales prices of other parcels similar to the property being appraised
Interest or discount

19. Number of acres in the E 1/2 of the W 1/2 of hte NW 1/4
40
market comparison approach; cost approach
net income
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

20. 1 acre =
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
43 -560 square feet
Headlee Amendment
receives and reviews

21. Formula used to calculate taxes is _
Rectangular survey; metes and bounds; platted or recorded subdivision
State Tax Commission
exempt
Taxable Value X Millage Rate

22. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
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
determining the primary use of the property; in this case probably agricultural or residential
Divide the sales price by the gross rent
estimate the assessment

23. Value is determined by _
utility - scarcity - desirability - transferability
Form L-4054
income
never the land

24. Equity within the county is the responsibility of the _
real estate
physical - functional - and economic
Replacement cost
County Board of Commissioners

25. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
Divide the sales price by the gross rent
effective gross income
February 20
branches

26. A consumer must be able to purchasee the property
transferability
determining the primary use of the property; in this case probably agricultural or residential
cost approach
Tuesday following; first Monday in March

27. Pole barns - silos - and large grain bins are considered _
are
typical farm buildings
agricultural personal property; exempt
life estate

28. The discount rate may be developed by the following:
General Property Tax Act
Circle computation of area
Summation Method- Bank of Investment Method - and Market Comparison Method
income

29. Notices of the decisions of the BOR must be mailed by the _
are not
first Monday in June
transferability
Michigan Constitution

30. To calculate a gross rent multiplier - _
Capitalizaiton rate
Taxable Value X Millage Rate
Divide the sales price by the gross rent
typical farm buildings

31. IFT's affect only the building value...
effective gross income
State Tax Commission
Rectangular computation of area
never the land

32. _ is a loss in value caused by factors outside the property
economic obsolescense
July and December BOR
typical farm buildings
beginning value the following year

33. Tax day
hear appeals from taxpayers or their agents
estimate the assessment
to hear appeals of the tentative taxable value
December 31

34. Special assessments are not levied on all real and personal property that...
value in use
percent good
benefits from the special assessment
Taxable Value x Millage Rate = Tax Bill

35. The General Property Tax Law states that agricultural operations means farming in all its _
CAMA
exterior
cost - sales comparison (market) - and income
branches

36. The three categories of depreciation are _
Form L-4022
physical - functional - and economic
tangible or intangible
Cost Approach

37. Special assessment districts are commonly used for _
Form L-4023
depreciation
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
adverse possession

38. The usual reference source regarding assessment and taxes
General Property Tax Act
first Monday in June
exempted
ground floor area

39. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
Form L-4024
potential gross income
The Land Residual
partial estate

40. Used to value the income stream of a property
income approach
never the land
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
General Property Tax Act

41. Taxable personal property includes all property not expressly _
fee simple
Tuesday following the second
present worth
exempted

42. The Tuesday following the third Monday in _ is the _ meeting.
Replacement cost
July; July Board of Review
income
County multipliers

43. The formula for calculating rate is _
income / value
July and December BOR
exempt
sales prices of other parcels similar to the property being appraised

44. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
Form L-4154
fee simple - partial estate - and life estate
Federal Northwest
Front foot

45. One use of land value maps is to _
track land sales
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
Industrial Facility Tax Abatement
effective gross income

46. The value property has in a specific use
replacement cost
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
value in use
gross rent multipliers

47. The most common types of ownership are _
fee simple - partial estate - and life estate
are
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
are not

48. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
Income / rate
gross rent multipliers
Form L-4025

49. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
Form L-4054
Site/location
market rent
Triangle computation of area

50. _ is a loss of utility and therefore of value from any cause
desirability
receives and reviews
directly benefit
depreciation