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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. Computer assisted mass appraisal
CAMA
replacement cost
Form L-4023
typical farm buildings

2. The definition of market value is _
physical - functional - and economic
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
exterior
power to tax - eminent domain - police power - escheat

3. Cost to construct an exact duplicate of the subject
General Property Tax Act
reproduction cost
CAMA
12

4. Approved by voters in 1978
Tuesday following First Monday
Form L-4023
potential income; vacancy - bad debt and operating expenses
Headlee Amendment

5. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
Income / rate
Township Board; City Council
General Property Tax Act
economic obsolescense

6. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
cost - sales comparison (market) - and income
effective gross income
$421 -052
Federal Northwest

7. The formula for calculating rate is _
State Tax Commission
income / value
directly benefit
discount rate - recapture rate - effective tax rate

8. Definition of ad valorem
sales comparison
at value
real and personal
# of acres times 43 -560 divided by known dimension

9. The capitalization rate includes the _ - _ and the _
discount rate - recapture rate - effective tax rate
value in use
effective gross income
soil survey; land value

10. May change assessment for current year
Reproduction cost
uniform rates
Tuesday following; first Monday in March
March BOR

11. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
tangible or intangible
potential gross income
at value
real property

12. Market value of property is _
adverse possession
40
benefits from the special assessment
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

13. If a business fails to file a personal property statement - the assessor shall _
Form L-4022
estimate the assessment
reducing
discount rate - recapture rate - effective tax rate

14. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
operating expenses
cost approach
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
tangible or intangible

15. 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
beginning value the following year
by contacting one of the parties to the transaction (buyer - seller - or realtor)
never depreciated

16. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
receives and reviews
income
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
General Property Tax Act

17. Requires that the ratio of assessments to true cash value not exceed 50%
taxes
The Land Residual
Michigan Constitution
replacement cost

18. Net income is _ minus _
directly benefit
potential income; vacancy - bad debt and operating expenses
Form L-4025
Form L-4022

19. A platted subdivision is described by _
potential income; vacancy - bad debt and operating expenses
Replacement cost
Front foot
lots and blocks

20. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
July; July Board of Review
Open Meetings Act
$421 -052
July and December BOR

21. Personal property may be _
reproduction cost
$421 -052
May 1
tangible or intangible

22. Special assessment districts are commonly used for _
are
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
local government unit
replacement cost new; depreciation

23. Value is determined by _
replacement cost
never the land
demand one
utility - scarcity - desirability - transferability

24. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
43 -560 square feet
beginning value the following year
Form L-4046
effective gross income

25. Equity at the local level is the responsibility of the _
CAMA
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
assessor and Board of Review
February 20

26. The definition of the economic principle of highest and best use is _
at value
market value; existing property
owners and interested parties of the property to be assessed
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

27. In heavily wooded areas where property lines may be difficult to identify - it is important that the owners protect their property from being claimed under _
northeast corner with section 1 and proceed west to section 6
# of acres times 43 -560 divided by known dimension
directly benefit
adverse possession

28. The _ to value is best used for mass appraisals being done by the assessor.
July and December BOR
Form L-4022
estimate the assessment
Cost Approach

29. There are _ in a section
640 acres
receives and reviews
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
potential gross income

30. Not transfers of ownership
Number 1
The Land Residual
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
July; July Board of Review

31. In a cost approach program - the computer system should estimate _ less _
replacement cost new; depreciation
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
gross rent multipliers
to hear appeals of the tentative taxable value

32. 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
track land sales
fee simple - partial estate - and life estate
Form L-4046
sales comparison

33. One use of land value maps is to _
sales prices of other parcels similar to the property being appraised
track land sales
The Land Residual
never depreciated

34. The second meeting of the BOR is held to _
branches
potential income; vacancy - bad debt and operating expenses
State Tax Commission
hear appeals from taxpayers or their agents

35. Who may ask for establishment of an industrial facility tax exemption district?
track land sales
the property owner or lessee - or the local government may begin the process of its own volition
5 -280 lineal feet
General Property Tax Act

36. In a residential neighborhood - the measurement usually used in developing cost is _
Divide the sales price by the gross rent
the property owner or lessee - or the local government may begin the process of its own volition
exempted
Front foot

37. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
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
local government unit
market comparison approach; cost approach
Summation Method- Bank of Investment Method - and Market Comparison Method

38. The most common types of ownership are _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
fee simple - partial estate - and life estate
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

39. The _ determines the size for rates
Capitalizaiton rate
at value
beginning value the following year
ground floor area

40. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
real estate
partial estate
effective gross income
Taxable Value X Millage Rate

41. Compares the property beign appraised to similar properties that have recently sold
cost
sales comparison approach
Replacement cost
real estate

42. When appraising a commercial building - you should remember that unlike building - land is...
40
soil survey; land value
640 acres
never depreciated

43. _ 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
Form L-4046
income approach
fee simple - partial estate - and life estate

44. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
General Land Office survey
never the land
Private Forest Reserve
October 31

45. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
northeast corner with section 1 and proceed west to section 6
Summation Method- Bank of Investment Method - and Market Comparison Method
are not
estimate the assessment

46. _ 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
Divide the sales price by the gross rent
fee simple
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
May 1

47. 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?
income approach
not standard depth
a plus adjustemnt for the fireplace to the comp
income

48. Assessor Affidavit Regarding 'Uncapping' of Taxable Value; used when it is discovered that a property value should have been uncapped but wasn't
partial estate
value in use
Form L-4054
Interest or discount

49. _ is a loss in value caused by factors outside the property
benefits from the special assessment
not standard depth
economic obsolescense
tangible or intangible

50. Notices of the decisions of the BOR must be mailed by the _
February 20
Form L-4024
July and December BOR
first Monday in June