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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. Half the base times the height
February 20
are
real property
Triangle computation of area

2. The market rent times the number of units availabe to rent is _
$421 -052
Tuesday following; first Monday in March
Form L-4023
potential gross income

3. 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
Form L-4022
income approach
Industrial Facility Tax Abatement

4. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
May 1
economic obsolescense
Michigan General Property Tax Act
$1 per acre

5. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
Front foot
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
50%; usual selling price
exterior

6. 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 _
$421 -052
sales prices of other parcels similar to the property being appraised
are not
effective gross income

7. is the rent a property could command on the open market
economic obsolescense
local government unit
median
market rent

8. Cost to construct improvement with the same functional utility of the subject
replacement cost
County multipliers
owners and interested parties of the property to be assessed
5 -280 lineal feet

9. _ soil is considered the most productive
Number 1
gross rent multipliers
operating expenses
hear appeals from taxpayers or their agents

10. The government is authorized to levy taxes in the _
3/4 Proposal
March BOR
Michigan Constitution
exempted

11. A depth factor chart is used to adjust lots that are _
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
Open Meetings Act
not standard depth
Reproduction cost

12. Formula used to calculate taxes is _
are not
Taxable Value X Millage Rate
never depreciated
Michigan Constitution

13. The formula for calculating tax bills is _
market comparison approach; cost approach
county multipliers
market rent
Taxable Value x Millage Rate = Tax Bill

14. Vacant land adjustments have to be made for differences in _
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
cost
estimate the assessment

15. May change assessment for current year
March BOR
Federal Northwest
present worth
true cash value

16. Computer assisted mass appraisal
gross rent multipliers
Rectangular survey; metes and bounds; platted or recorded subdivision
CAMA
$421 -052

17. Inventory (is/is not) exempt
February 20
Form L-4046
net income
is

18. Deadline for filing personal property statements
Township Board; City Council
is
February 20
exempted

19. You verify a sale _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
Triangle computation of area
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
at value

20. Public rights-of-way are _
soil survey; land value
exempt
benefits from the special assessment
expenses not allowable

21. A report of Real and Personal Property Taxable Valuations prepared by county equalization; submitted to STC by fourth Monday in April
sales prices of other parcels similar to the property being appraised
Form L-4046
taxation - eminent domain - and police powers
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines

22. The _ determines the size for rates
July; July Board of Review
ground floor area
median
potential gross income

23. The _ to value is best used for mass appraisals being done by the assessor.
partial estate
Cost Approach
not standard depth
true cash value

24. Notices of the decisions of the BOR must be mailed by the _
branches
first Monday in June
County Board of Commissioners
transferability

25. _ 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
General Property Tax Act
exempt
$421 -052
expenses allowable

26. The three principal steps in the cost approach are _
physical - functional - and economic
to hear appeals of the tentative taxable value
potential gross income
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

27. _ is used to adjust the cosst approach to market value for residential properties
Economic condition factor
never the land
cost approach
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

28. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
Federal Northwest
physical - functional - and economic
Cost Approach
Rectangular computation of area

29. Approved by voters in 1978
Headlee Amendment
income
3/4 Proposal
cost

30. Who may ask for establishment of an industrial facility tax exemption district?
Replacement cost
GRM X MARKET RENT = MARKET VALUE
expenses not allowable
the property owner or lessee - or the local government may begin the process of its own volition

31. True cash value is _
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
50%; usual selling price
Township Board; City Council
partial estate

32. Leased property is...
partial estate
General Property Tax Act
income approach
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

33. IFT's affect only the building value...
market comparison approach; cost approach
never the land
present worth
taxes

34. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
soil survey; land value
cost approach
market rent
beginning value the following year

35. When appraising a commercial building - you should remember that unlike building - land is...
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
Industrial Facility Tax Abatement
income approach

36. The right to use - occupy - and control a property for the length of the lessee's life
hear appeals from taxpayers or their agents
transferability
Form L-4025
life estate

37. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
life estate
July and December BOR
taxation - eminent domain - and police powers
Divide the sales price by the gross rent

38. In July and December - the BOR may meet to _
Genesee County
reducing
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
property record cards and assessment maps

39. Sections in a township start _
gross rent multipliers
cost approach
northeast corner with section 1 and proceed west to section 6
value in use

40. 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 _
never depreciated
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
50%; usual selling price

41. The capitalization rate includes the _ - _ and the _
discount rate - recapture rate - effective tax rate
potential gross income
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
Tuesday following Third Monday

42. It is necessary to have an evening meeting unless the residents...
discount rate - recapture rate - effective tax rate
Board of Review; Michigan Tax Tribunal
demand one
Headlee Amendment

43. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
Form L-4023
Replacement cost
effective gross income
real property

44. The formula for calculating income is _
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
the property owner or lessee - or the local government may begin the process of its own volition
assessor and Board of Review
rate x value

45. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
Cost Approach
property record cards and assessment maps
Federal Northwest
General Property Tax Act

46. 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
3/4 Proposal
Form L-4046
a plus adjustemnt for the fireplace to the comp

47. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
taxes
potential gross income
The Land Residual
demand one

48. If a business fails to file a personal property statement - the assessor shall _
replacement cost new; depreciation
Income / rate
estimate the assessment
Reproduction cost

49. A consumer must want the product for it to have value
uniform rates
electors
desirability
the property owner or lessee - or the local government may begin the process of its own volition

50. The rights of ownership removed by government are _
reproduction cost
determining the primary use of the property; in this case probably agricultural or residential
are not
power to tax - eminent domain - police power - escheat