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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 BOR _ and _ the roll
at value
sales prices of other parcels similar to the property being appraised
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
receives and reviews

2. Personal property may be _
tangible or intangible
reducing
Michigan Constitution
Replacement cost

3. Churches - schools - libraries and similar institutions are usually...
exempt
beginning value the following year
Federal Northwest
March BOR

4. The formula for calculating income is _
rate x value
Headlee Amendment
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
GRM X MARKET RENT = MARKET VALUE

5. Definition of ad valorem
3/4 Proposal
Form L-4024
at value
36 sections

6. is the rent a property could command on the open market
market rent
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
Michigan General Property Tax Act
potential gross income

7. July Board of Review begins
Tuesday following Third Monday
50%; usual selling price
exempted
Form L-4054

8. Market value of property is _
ground floor area
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
Tuesday following the second
February 20

9. In a cost approach program - the computer system should estimate _ less _
replacement cost new; depreciation
track land sales
demand one
Rectangular survey; metes and bounds; platted or recorded subdivision

10. The rights of ownership removed by government are _
percent good
depreciation
power to tax - eminent domain - police power - escheat
February 20

11. The _ must approve the application for an IFT before the State Tax Commission approves the application
Michigan Constitution
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
local government unit
State Tax Commission

12. Vacant land adjustments have to be made for differences in _
discount rate - recapture rate - effective tax rate
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
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
Industrial Facility Tax Abatement

13. Equity within the county is the responsibility of the _
July; July Board of Review
County Board of Commissioners
Form L-4260
May 1

14. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
effective gross income
hear appeals from taxpayers or their agents
benefits from the special assessment
soil survey; land value

15. Used to estimate the cost of constructing improvements to the land
cost approach
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
Form L-4025
Income / rate

16. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
physical - functional - and economic
local government unit
market comparison approach; cost approach
Federal Northwest

17. Public rights-of-way are _
exempt
reproduction cost
cost approach
Site/location

18. Methods used to describe property in Michigan
Rectangular survey; metes and bounds; platted or recorded subdivision
are not
depreciation
tangible or intangible

19. _ soil is considered the most productive
directly benefit
Number 1
utility - scarcity - desirability - transferability
Form L-4054

20. The first meeting of the BOR is held on the _
Tuesday following; first Monday in March
discount rate - recapture rate - effective tax rate
Township Board; City Council
gross rent multipliers

21. _ do not include property taxes - depreciation - debt retirement - or interest earned on the funds invested in the property
Cost Approach
Income / rate
operating expenses
exterior

22. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
the property owner or lessee - or the local government may begin the process of its own volition
lots and blocks
Form L-4023
expenses not allowable

23. Computer assisted mass appraisal
county multipliers
at value
CAMA
Number 1

24. Inventory (is/is not) exempt
is
market comparison approach; cost approach
beginning value the following year
Federal Northwest

25. The physical land and any structure attached to it
desirability
real estate
real property
replacement cost

26. Proposal A had the immediate result of _ property taxes in the state
reducing
December 31
power to tax - eminent domain - police power - escheat
State Tax Commission

27. The definition of market value is _
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
present worth
tangible or intangible
northeast corner with section 1 and proceed west to section 6

28. _ is estimating the cost of a building of similar design and utility
Economic condition factor
Interest or discount
expenses allowable
Replacement cost

29. _ 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
depreciation
12
expenses allowable
Taxable Value X Millage Rate

30. The General Property Tax Law states that agricultural operations means farming in all its _
CAMA
36 sections
branches
Township Board; City Council

31. The _ to value is best used for mass appraisals being done by the assessor.
tangible or intangible
Cost Approach
owners and interested parties of the property to be assessed
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income

32. _ are applied to the cost schedules in the manuals
December 31
by contacting one of the parties to the transaction (buyer - seller - or realtor)
County multipliers
Form L-4260

33. _ includes the discount rate - recapture rate - and the effective rate.
Board of Review; Michigan Tax Tribunal
Form L-4024
Capitalizaiton rate
May 1

34. Half the base times the height
Triangle computation of area
direct sales comparison
General Property Tax Act
operating expenses

35. Potential income minus vacancy - bad debt - and operating expenses is the _
at value
General Land Office survey
net income
Tuesday following the second

36. Notice of special assessment public hearings must be given to _
owners and interested parties of the property to be assessed
not standard depth
General Property Tax Act
Michigan General Property Tax Act

37. Net income is _ minus _
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
direct sales comparison
not standard depth
potential income; vacancy - bad debt and operating expenses

38. May change assessment for current year
March BOR
market rent
lots and blocks
43 -560 square feet

39. Property Transfer Affidavit; must be filed by purchaser within 45 days of transfer
Township Board; City Council
Form L-4260
36 sections
adverse possession

40. 1 mile =
median
effective gross income
State Tax Commission
5 -280 lineal feet

41. Sections in a township start _
first Monday in June
Tuesday following Third Monday
northeast corner with section 1 and proceed west to section 6
expenses allowable

42. _ measures value in exchange; it is based on the principle of substitution
ground floor area
partial estate
direct sales comparison
property record cards and assessment maps

43. There are _ in a geographical township
replacement cost new; depreciation
Cost Approach
36 sections
Form L-4154

44. A consumer must want the product for it to have value
desirability
Michigan General Property Tax Act
physical - functional - and economic
income approach

45. A report of Real and Personal Property Taxable Valuations prepared by county equalization; submitted to STC by fourth Monday in April
branches
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
Form L-4046
income approach

46. The return on the investment called in the capitalization rate is _
lots and blocks
Interest or discount
Tuesday following; first Monday in March
local government unit

47. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
Michigan Constitution
to hear appeals of the tentative taxable value
income approach
first Monday in June

48. Value is determined by _
utility - scarcity - desirability - transferability
beginning value the following year
tangible or intangible
Reproduction cost

49. 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 _
Form L-4054
Federal Northwest
Headlee Amendment
$421 -052

50. The difference between commercial and industrial property is _
never the land
Industrial Facility Tax Abatement
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
market value; existing property