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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. When appraising a commercial building - you should remember that unlike building - land is...
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
Capitalizaiton rate
never depreciated
February 20

2. 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 _
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
50%; usual selling price
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
owners and interested parties of the property to be assessed

3. A depth factor chart is used to adjust lots that are _
market rent
Form L-4024
May 1
not standard depth

4. Formula used to calculate taxes is _
Taxable Value X Millage Rate
exempted
General Property Tax Act
value in exchange

5. 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?
operating expenses
is
Divide the sales price by the gross rent
a plus adjustemnt for the fireplace to the comp

6. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
Form L-4154
net income
ground floor area
soil survey; land value

7. _ are expenses that may be part of the capitalization rate such as depreciation and property taxes or capital improvement expenses and the owner's costs and corporation costs; also not income taxes.
never the land
expenses not allowable
partial estate
county multipliers

8. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
value in exchange
at value
Township Board; City Council
December 31

9. The Commercial Forest Act permits an owner to put property into a program that permits payment of a _ in lieu of the ad valorem rates
50%; usual selling price
specific tax
receives and reviews
is

10. Cost to construct improvement with the same functional utility of the subject
Federal Northwest
replacement cost
cost
Triangle computation of area

11. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
State Tax Commission
are
Taxable Value x Millage Rate = Tax Bill
are not

12. Notices of the decisions of the BOR must be mailed by the _
Form L-4260
market value; existing property
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
first Monday in June

13. The rights of ownership removed by government are _
power to tax - eminent domain - police power - escheat
lots and blocks
the property owner or lessee - or the local government may begin the process of its own volition
Form L-4025

14. Requires that the ratio of assessments to true cash value not exceed 50%
July; July Board of Review
fee simple
Replacement cost
Michigan Constitution

15. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
supervisor
utility - scarcity - desirability - transferability
to hear appeals of the tentative taxable value
Open Meetings Act

16. The most common types of ownership are _
physical - functional - and economic
the property owner or lessee - or the local government may begin the process of its own volition
fee simple - partial estate - and life estate
assessor and Board of Review

17. Personal property may be _
1 rod
tangible or intangible
direct sales comparison
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

18. Methods used to describe property in Michigan
Form L-4260
Rectangular survey; metes and bounds; platted or recorded subdivision
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
fee simple

19. The second meeting of the BOR is held to _
hear appeals from taxpayers or their agents
Cost Approach
income / value
Site/location

20. Who may ask for establishment of an industrial facility tax exemption district?
February 20
May 1
the property owner or lessee - or the local government may begin the process of its own volition
Replacement cost

21. Public rights-of-way are _
exempt
value in exchange
State Tax Commission
1 rod

22. One use of land value maps is to _
Cost Approach
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
track land sales
fee simple - partial estate - and life estate

23. The definition of the economic principle of highest and best use is _
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
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
Divide the sales price by the gross rent
Economic condition factor

24. In heavily wooded areas where property lines may be difficult to identify - it is important that the owners protect their property from being claimed under _
by contacting one of the parties to the transaction (buyer - seller - or realtor)
rate x value
adverse possession
Site/location

25. Value is determined by _
Interest or discount
specific tax
owners and interested parties of the property to be assessed
utility - scarcity - desirability - transferability

26. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
agricultural personal property; exempt
physical - functional - and economic
Federal Northwest
transferability

27. Pole barns - silos - and large grain bins are considered _
typical farm buildings
exempt
determining the primary use of the property; in this case probably agricultural or residential
5 -280 lineal feet

28. The difference between commercial and industrial property is _
exempted
exterior
640 acres
Industrial Facility Tax Abatement

29. Notice of special assessment public hearings must be given to _
October 31
demand one
owners and interested parties of the property to be assessed
present worth

30. Depreciation in the assessing process is expressed as a _
percent good
County Board of Commissioners
determining the primary use of the property; in this case probably agricultural or residential
discount rate - recapture rate - effective tax rate

31. 16 1/2 feet =
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
cost - sales comparison (market) - and income
income / value
1 rod

32. Most taxpayers must appeal to the local _ before appealing to the _
to hear appeals of the tentative taxable value
Board of Review; Michigan Tax Tribunal
supervisor
Form L-4023

33. _ is a loss in value caused by factors outside the property
reducing
economic obsolescense
Form L-4024
first Monday in June

34. Economic condition factors (are/are not) applied to land and buildings
State Tax Commission
3/4 Proposal
are not
Genesee County

35. To calculate a gross rent multiplier - _
potential income; vacancy - bad debt and operating expenses
Cost Approach
General Property Tax Act
Divide the sales price by the gross rent

36. Compares the property beign appraised to similar properties that have recently sold
income
Open Meetings Act
true cash value
sales comparison approach

37. _ 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
taxation - eminent domain - and police powers
October 31
a plus adjustemnt for the fireplace to the comp

38. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
potential income; vacancy - bad debt and operating expenses
market comparison approach; cost approach
depreciation
property record cards and assessment maps

39. Radius squared times Pi (3.1416)
economic obsolescense
Circle computation of area
expenses allowable
typical farm buildings

40. Vacant land adjustments have to be made for differences in _
are not
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
Circle computation of area
February 20

41. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
Divide the sales price by the gross rent
Michigan General Property Tax Act
is
market comparison approach; cost approach

42. The highest degree of ownership
12
estimate the assessment
fee simple
agricultural personal property; exempt

43. The three categories of depreciation are _
Form L-4046
physical - functional - and economic
effective gross income
12

44. The government is authorized to levy taxes in the _
Michigan Constitution
Circle computation of area
May 1
General Property Tax Act

45. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
local government unit
July and December BOR
to hear appeals of the tentative taxable value
Front foot

46. A consumer must want the product for it to have value
Form L-4025
by contacting one of the parties to the transaction (buyer - seller - or realtor)
12
desirability

47. Deadline for filing personal property statements
February 20
adverse possession
replacement cost
tangible or intangible

48. _ is used to adjust the cosst approach to market value for residential properties
taxation - eminent domain - and police powers
life estate
Number 1
Economic condition factor

49. Equity within the 83 counties of the state is the responsibility of the _
market comparison approach; cost approach
State Tax Commission
July and December BOR
General Property Tax Act

50. In a residential neighborhood - the measurement usually used in developing cost is _
Front foot
by contacting one of the parties to the transaction (buyer - seller - or realtor)
never depreciated
ground floor area