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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. The government is authorized to levy taxes in the _
$421 -052
expenses not allowable
Michigan Constitution
ground floor area

2. Special assessments must _ the properties in the district
directly benefit
not standard depth
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
State Tax Commission

3. Public rights-of-way are _
Economic condition factor
exempt
uniform rates
gross rent multipliers

4. Special assessments are not levied on all real and personal property that...
benefits from the special assessment
Form L-4023
Industrial Facility Tax Abatement
February 20

5. _ is a loss of utility and therefore of value from any cause
depreciation
value in exchange
uniform rates
benefits from the special assessment

6. Leased property is...
Interest or discount
partial 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
soil survey; land value

7. Taxable unless specifically exempted
fee simple - partial estate - and life estate
taxes
real and personal
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

8. Initial survey point for Michigan at the intersection of two streets
northeast corner with section 1 and proceed west to section 6
Front foot
Genesee County
typical farm buildings

9. Notice of special assessment public hearings must be given to _
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
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
expenses not allowable

10. A consumer must be able to purchasee the property
Front foot
expenses allowable
transferability
operating expenses

11. There are _ in a section
depreciation
present worth
adverse possession
640 acres

12. The right to use - occupy - and control a property for the length of the lessee's life
life estate
Form L-4260
Federal Northwest
by contacting one of the parties to the transaction (buyer - seller - or realtor)

13. Economic condition factors (are/are not) applied to land and buildings
are not
Taxable Value X Millage Rate
Tuesday following; first Monday in March
local government unit

14. _ soil is considered the most productive
Site/location
Number 1
Interest or discount
February 20

15. The formula for calculating value is _
real estate
Income / rate
rate x value
Form L-4154

16. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
expenses allowable
Form L-4154
utility - scarcity - desirability - transferability
Replacement cost

17. _ is the rent actually received for a property
determining the primary use of the property; in this case probably agricultural or residential
contract rent
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
desirability

18. Personal property forms must be approved by the _
branches
$421 -052
State Tax Commission
electors

19. Net income is _ minus _
July and December BOR
potential income; vacancy - bad debt and operating expenses
power to tax - eminent domain - police power - escheat
cost - sales comparison (market) - and income

20. Enacted in 1893
Michigan General Property Tax Act
economic obsolescense
Interest or discount
hear appeals from taxpayers or their agents

21. When appraising a commercial building - you should remember that unlike building - land is...
never depreciated
Site/location
are
Summation Method- Bank of Investment Method - and Market Comparison Method

22. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
property record cards and assessment maps
sales comparison
reducing
Number 1

23. Members of the Board of Review must be _ of the township
43 -560 square feet
cost - sales comparison (market) - and income
electors
estimate the assessment

24. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
July and December BOR
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 Land Residual

25. The physical land and any structure attached to it
value in use
Private Forest Reserve
real estate
Township Board; City Council

26. CAMA system should estimate replacement cost new less depreciation in the _ approach
cost
the property owner or lessee - or the local government may begin the process of its own volition
assessor and Board of Review
Rectangular computation of area

27. Movable irrigation systems including pumps not an integral part of a well are _ and are _
uniform rates
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
exempt
agricultural personal property; exempt

28. The market rent times the number of units availabe to rent is _
utility - scarcity - desirability - transferability
Form L-4023
potential gross income
General Property Tax Act

29. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
never the land
are not
Site/location
uniform rates

30. Personal property may be _
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
Economic condition factor
Township Board; City Council
tangible or intangible

31. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
sales prices of other parcels similar to the property being appraised
are not
owners and interested parties of the property to be assessed
Capitalizaiton rate

32. Vacant land adjustments have to be made for differences in _
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
Tuesday following the second
adverse possession
power to tax - eminent domain - police power - escheat

33. You verify a sale _
50%; usual selling price
cost - sales comparison (market) - and income
by contacting one of the parties to the transaction (buyer - seller - or realtor)
$421 -052

34. The amount of money or goods you can receive if you sell property
February 20
are
desirability
value in exchange

35. A depth factor chart is used to adjust lots that are _
Site/location
real property
income approach
not standard depth

36. _ 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
CAMA
Summation Method- Bank of Investment Method - and Market Comparison Method
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

37. Potential income minus vacancy - bad debt - and operating expenses is the _
uniform rates
directly benefit
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
net income

38. 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?
a plus adjustemnt for the fireplace to the comp
3/4 Proposal
# of acres times 43 -560 divided by known dimension
sales comparison approach

39. The formula for calculating income is _
rate x value
branches
Form L-4025
lots and blocks

40. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
not standard depth
State Tax Commission
cost - sales comparison (market) - and income

41. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
fee simple - partial estate - and life estate
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
Form L-4025
life estate

42. _ is used to adjust the cosst approach to market value for residential properties
Interest or discount
expenses not allowable
market rent
Economic condition factor

43. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
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
economic obsolescense
Private Forest Reserve

44. The three principal steps in the cost approach are _
Rectangular computation of area
supervisor
fee simple
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

45. Value is determined by _
utility - scarcity - desirability - transferability
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
true cash value
Form L-4023

46. It is necessary to have an evening meeting unless the residents...
value in use
demand one
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

47. 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 _
Rectangular survey; metes and bounds; platted or recorded subdivision
50%; usual selling price
Interest or discount
power to tax - eminent domain - police power - escheat

48. The three categories of depreciation are _
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
by contacting one of the parties to the transaction (buyer - seller - or realtor)
estimate the assessment
physical - functional - and economic

49. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
never the land
life estate
Taxable Value x Millage Rate = Tax Bill
beginning value the following year

50. Michigan's Constitution uses _ to determine assessments
true cash value
CAMA
lots and blocks
cost - sales comparison (market) - and income