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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. Special assessments must _ the properties in the district
Reproduction cost
county multipliers
value in use
directly benefit

2. Management costs in timber-cutover include _ which are usually the largest expense in this classification
exempt
taxes
Cost Approach
are not

3. It (is not necessary to use __________ when valuing agricultural property.
are not
expenses allowable
replacement cost new; depreciation
county multipliers

4. The four basic steps in the sales comparison approach is _
effective gross income
Circle computation of area
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
adverse possession

5. Formula used to calculate taxes is _
exempted
Form L-4054
Taxable Value X Millage Rate
General Land Office survey

6. In a residential neighborhood - the measurement usually used in developing cost is _
Front foot
property record cards and assessment maps
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
median

7. In a township - the _ is the secretary of the Board of Review
Form L-4025
track land sales
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
supervisor

8. The formula for calculating tax bills is _
Michigan Constitution
directly benefit
reducing
Taxable Value x Millage Rate = Tax Bill

9. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
December 31
real property
power to tax - eminent domain - police power - escheat
are

10. The BOR _ and _ the roll
sales comparison
exempted
net income
receives and reviews

11. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
Site/location
Michigan Constitution
transferability
supervisor

12. A report of Real and Personal Property totals prepared by the county equalization department; submitted to STC by the third Monday in April
Interest or discount
lots and blocks
5 -280 lineal feet
Form L-4024

13. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
50%; usual selling price
beginning value the following year
never the land
demand one

14. The rights of ownership removed by government are _
adverse possession
October 31
power to tax - eminent domain - police power - escheat
real estate

15. The cost approach is used to estimate _ of an _
real property
market comparison approach; cost approach
taxes
market value; existing property

16. The General Property Tax Law states that agricultural operations means farming in all its _
branches
demand one
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
northeast corner with section 1 and proceed west to section 6

17. The formula for calculating value is _
discount rate - recapture rate - effective tax rate
Michigan Constitution
Income / rate
July; July Board of Review

18. _ is a loss of utility and therefore of value from any cause
depreciation
fee simple - partial estate - and life estate
income / value
electors

19. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
Board of Review; Michigan Tax Tribunal
real estate
real and personal
Private Forest Reserve

20. _ are applied to the cost schedules in the manuals
County multipliers
Front foot
expenses allowable
potential income; vacancy - bad debt and operating expenses

21. The income approach calculates the _ of a future income stream
present worth
$421 -052
Economic condition factor
Tuesday following First Monday

22. The formula for calculating income is _
partial estate
40
rate x value
northeast corner with section 1 and proceed west to section 6

23. A platted subdivision is described by _
lots and blocks
percent good
36 sections
3/4 Proposal

24. IFT's affect only the building value...
$1 per acre
Capitalizaiton rate
direct sales comparison
never the land

25. _ are used to value income-producing residential property
Divide the sales price by the gross rent
soil survey; land value
direct sales comparison
gross rent multipliers

26. The highest degree of ownership
fee simple
electors
12
July; July Board of Review

27. May change assessment for current year
March BOR
income
the property owner or lessee - or the local government may begin the process of its own volition
net income

28. Deadline for filing personal property statements
February 20
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
potential gross income
Rectangular survey; metes and bounds; platted or recorded subdivision

29. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
never the land
Number 1
effective gross income
County multipliers

30. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
$1 per acre
operating expenses
branches
is

31. 16 1/2 feet =
General Land Office survey
12
1 rod
replacement cost

32. The difference between commercial and industrial property is _
Industrial Facility Tax Abatement
Taxable Value x Millage Rate = Tax Bill
not standard depth
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

33. A consumer must be able to purchasee the property
Form L-4054
property record cards and assessment maps
Summation Method- Bank of Investment Method - and Market Comparison Method
transferability

34. Pole barns - silos - and large grain bins are considered _
typical farm buildings
Industrial Facility Tax Abatement
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
3/4 Proposal

35. IFT certificates are granted for _ years with a possible 2-year construction period
beginning value the following year
3/4 Proposal
May 1
12

36. Inventory (is/is not) exempt
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
GRM X MARKET RENT = MARKET VALUE
taxation - eminent domain - and police powers
is

37. Half the base times the height
Triangle computation of area
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
Industrial Facility Tax Abatement

38. Enacted in 1893
first Monday in June
Michigan General Property Tax Act
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
direct sales comparison

39. The right to use - occupy - and control a property for the length of the lessee's life
life estate
Economic condition factor
General Land Office survey
never depreciated

40. The capitalization rate includes the _ - _ and the _
market rent
discount rate - recapture rate - effective tax rate
replacement cost new; depreciation
market comparison approach; cost approach

41. Market value of property is _
43 -560 square feet
never depreciated
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
Income / rate

42. When appraising a commercial building - you should remember that unlike building - land is...
expenses allowable
cost
never depreciated
3/4 Proposal

43. You verify a sale _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
5 -280 lineal feet
true cash value
Form L-4054

44. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
Form L-4023
potential income; vacancy - bad debt and operating expenses
power to tax - eminent domain - police power - escheat
is

45. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
Cost Approach
never the land
to hear appeals of the tentative taxable value
first Monday in June

46. The definition of market value is _
typical farm buildings
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 the second
local government unit

47. Who may ask for establishment of an industrial facility tax exemption district?
the property owner or lessee - or the local government may begin the process of its own volition
Form L-4025
determining the primary use of the property; in this case probably agricultural or residential
12

48. In July and December - the BOR may meet to _
Form L-4054
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
first Monday in June
March BOR

49. Notice of special assessment public hearings must be given to _
owners and interested parties of the property to be assessed
uniform rates
real estate
track land sales

50. A limits the maximum amount of ad valorem taxes that may be levied for school district operating purposes. The change this maximum requires a vote of _ of the legislature to approve.
3/4 Proposal
ground floor area
specific tax
fee simple - partial estate - and life estate