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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. Michigan's Constitution provides for _ of taxation
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
uniform rates
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
expenses allowable

2. In a township - the _ is the secretary of the Board of Review
discount rate - recapture rate - effective tax rate
adverse possession
Summation Method- Bank of Investment Method - and Market Comparison Method
supervisor

3. The definition of market value is _
life estate
true cash value
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
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

4. 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 _
July; July Board of Review
income
50%; usual selling price
potential gross income

5. The amount of money or goods you can receive if you sell property
market rent
depreciation
value in exchange
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

6. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
The Land Residual
December 31
Township Board; City Council
real estate

7. The discount rate may be developed by the following:
Taxable Value x Millage Rate = Tax Bill
Summation Method- Bank of Investment Method - and Market Comparison Method
$1 per acre
$421 -052

8. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
GRM X MARKET RENT = MARKET VALUE
market value; existing property
present worth
market comparison approach; cost approach

9. Special assessments must _ the properties in the district
directly benefit
local government unit
direct sales comparison
Form L-4022

10. Personal property statemetns are due on _
The Land Residual
February 20
Capitalizaiton rate
Form L-4154

11. Assessor Affidavit Regarding 'Uncapping' of Taxable Value; used when it is discovered that a property value should have been uncapped but wasn't
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
at value
Form L-4054
Taxable Value X Millage Rate

12. _ is a loss of utility and therefore of value from any cause
Michigan Constitution
Interest or discount
depreciation
a plus adjustemnt for the fireplace to the comp

13. Notices of the decisions of the BOR must be mailed by the _
assessor and Board of Review
1 rod
first Monday in June
$421 -052

14. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
percent good
by contacting one of the parties to the transaction (buyer - seller - or realtor)
October 31
property record cards and assessment maps

15. _ includes the discount rate - recapture rate - and the effective rate.
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
Rectangular survey; metes and bounds; platted or recorded subdivision
5 -280 lineal feet
Capitalizaiton rate

16. Cost to construct an exact duplicate of the subject
replacement cost new; depreciation
reproduction cost
12
taxes

17. 16 1/2 feet =
the property owner or lessee - or the local government may begin the process of its own volition
are not
Site/location
1 rod

18. A platted subdivision is described by _
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
sales comparison
expenses not allowable
lots and blocks

19. Enacted in 1893
12
Michigan General Property Tax Act
income
State Tax Commission

20. Who may ask for establishment of an industrial facility tax exemption district?
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
Summation Method- Bank of Investment Method - and Market Comparison Method
exterior
the property owner or lessee - or the local government may begin the process of its own volition

21. When appraising a commercial building - you should remember that unlike building - land is...
exempt
never depreciated
# of acres times 43 -560 divided by known dimension
branches

22. _ is the rent actually received for a property
Form L-4024
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
contract rent
Open Meetings Act

23. The three approaches to value
Form L-4025
Summation Method- Bank of Investment Method - and Market Comparison Method
cost - sales comparison (market) - and income
reproduction cost

24. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
36 sections
sales prices of other parcels similar to the property being appraised
fee simple - partial estate - and life estate
Form L-4023

25. Definition of ad valorem
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
Interest or discount
estimate the assessment
at value

26. Personal property may be _
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
are not
tangible or intangible
track land sales

27. Sections in a township start _
Form L-4260
beginning value the following year
northeast corner with section 1 and proceed west to section 6
Form L-4054

28. The income approach calculates the _ of a future income stream
present worth
Michigan Constitution
reproduction cost
never depreciated

29. The Board of Review was created by the _ of 1893
May 1
cost - sales comparison (market) - and income
February 20
General Property Tax Act

30. Management costs in timber-cutover include _ which are usually the largest expense in this classification
taxes
Private Forest Reserve
supervisor
not standard depth

31. Potential income minus vacancy - bad debt - and operating expenses is the _
first Monday in June
net income
direct sales comparison
reproduction cost

32. In July and December - the BOR may meet to _
exterior
Tuesday following the second
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
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR

33. The three principal steps in the cost approach are _
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
October 31
not standard depth
Open Meetings Act

34. Taxable unless specifically exempted
property record cards and assessment maps
3/4 Proposal
Form L-4154
real and personal

35. A consumer must want the product for it to have value
effective gross income
expenses allowable
desirability
supervisor

36. The General Property Tax Law states that agricultural operations means farming in all its _
are not
gross rent multipliers
branches
typical farm buildings

37. _ 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
are not
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
State Tax Commission
May 1

38. Not transfers of ownership
percent good
contract rent
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
supervisor

39. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
adverse possession
determining the primary use of the property; in this case probably agricultural or residential
value in use
Industrial Facility Tax Abatement

40. The first meeting of the BOR is held on the _
demand one
Board of Review; Michigan Tax Tribunal
Tuesday following; first Monday in March
replacement cost new; depreciation

41. _ is used to adjust the cosst approach to market value for residential properties
expenses allowable
Economic condition factor
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
February 20

42. Compares the property beign appraised to similar properties that have recently sold
October 31
replacement cost new; depreciation
Michigan Constitution
sales comparison approach

43. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
real property
Form L-4046
typical farm buildings
State Tax Commission

44. The formula for calculating income is _
Michigan General Property Tax Act
3/4 Proposal
income / value
rate x value

45. Churches - schools - libraries and similar institutions are usually...
potential gross income
County multipliers
estimate the assessment
exempt

46. _ is a loss in value caused by factors outside the property
economic obsolescense
February 20
CAMA
real and personal

47. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
October 31
exempted
replacement cost new; depreciation
Federal Northwest

48. The return on the investment called in the capitalization rate is _
effective gross income
Michigan General Property Tax Act
Income / rate
Interest or discount

49. One use of land value maps is to _
value in exchange
life estate
partial estate
track land sales

50. The BOR _ and _ the roll
is
net income
receives and reviews
Form L-4022