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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
Form L-4046
replacement cost
Board of Review; Michigan Tax Tribunal
uniform rates

2. The return on the investment called in the capitalization rate is _
depreciation
Interest or discount
estimate the assessment
expenses allowable

3. In July and December - the BOR may meet to _
rate x value
reducing
median
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR

4. The General Property Tax Law states that agricultural operations means farming in all its _
exempted
branches
1 rod
reducing

5. Capped value is _

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6. Market value of property 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
Front foot
to hear appeals of the tentative taxable value
exempt

7. If the Board of Review or Michigan Tax Tribunal changes the assessed - equalized - or taxable value - that value is used as the _
typical farm buildings
beginning value the following year
Form L-4024
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

8. _ 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.
replacement cost
expenses not allowable
40
Divide the sales price by the gross rent

9. The value of vacant land is estimated using _
are not
adverse possession
sales prices of other parcels similar to the property being appraised
real estate

10. Enacted in 1893
expenses allowable
Federal Northwest
Michigan General Property Tax Act
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

11. _ includes the discount rate - recapture rate - and the effective rate.
Genesee County
Form L-4046
Capitalizaiton rate
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

12. is the rent a property could command on the open market
expenses allowable
Rectangular computation of area
Economic condition factor
market rent

13. _ are applied to the cost schedules in the manuals
Michigan General Property Tax Act
State Tax Commission
County multipliers
Capitalizaiton rate

14. In a residential neighborhood - the measurement usually used in developing cost is _
Open Meetings Act
electors
assessor and Board of Review
Front foot

15. The three principal steps in the cost approach are _
Income / rate
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
Form L-4025
property record cards and assessment maps

16. True cash value is _
electors
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
lots and blocks
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

17. 1 acre =
are not
43 -560 square feet
Michigan Constitution
operating expenses

18. The _ to value is best used for mass appraisals being done by the assessor.
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
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
Board of Review; Michigan Tax Tribunal

19. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
power to tax - eminent domain - police power - escheat
Form L-4025
effective gross income

20. Deadline for filing Principal Residence Affidavits
50%; usual selling price
May 1
Circle computation of area
market value; existing property

21. The right to use - occupy - and control a property for the length of the lessee's life
true cash value
life estate
12
Federal Northwest

22. When appraising a commercial building - you should remember that unlike building - land is...
physical - functional - and economic
Summation Method- Bank of Investment Method - and Market Comparison Method
never depreciated
tangible or intangible

23. 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 _
lots and blocks
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
adverse possession
43 -560 square feet

24. Inventory (is/is not) exempt
by contacting one of the parties to the transaction (buyer - seller - or realtor)
March BOR
taxes
is

25. The most common types of ownership are _
partial estate
ground floor area
5 -280 lineal feet
fee simple - partial estate - and life estate

26. The highest degree of ownership
benefits from the special assessment
fee simple
cost - sales comparison (market) - and income
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

27. The value property has in a specific use
replacement cost new; depreciation
income / value
value in use
beginning value the following year

28. The formula for using a gross rent multiplier to determine market value is _
October 31
GRM X MARKET RENT = MARKET VALUE
beginning value the following year
Number 1

29. Special assessments must _ the properties in the district
directly benefit
May 1
real and personal
direct sales comparison

30. Special assessment districts are commonly used for _
property record cards and assessment maps
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
sales prices of other parcels similar to the property being appraised

31. The three categories of depreciation are _
expenses allowable
physical - functional - and economic
specific tax
General Land Office survey

32. Initial survey point for Michigan at the intersection of two streets
direct sales comparison
$1 per acre
beginning value the following year
Genesee County

33. 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 _
50%; usual selling price
Reproduction cost
taxation - eminent domain - and police powers
net income

34. Half the base times the height
exempt
fee simple - partial estate - and life estate
Triangle computation of area
contract rent

35. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
Circle computation of area
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
Township Board; City Council
a plus adjustemnt for the fireplace to the comp

36. A platted subdivision is described by _
uniform rates
Michigan Constitution
Township Board; City Council
lots and blocks

37. Not transfers of ownership
cost - sales comparison (market) - and income
1 rod
receives and reviews
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

38. The government retains the following powers
taxation - eminent domain - and police powers
$1 per acre
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
July; July Board of Review

39. 16 1/2 feet =
Form L-4024
1 rod
Income / rate
General Property Tax Act

40. The discount rate may be developed by the following:
Form L-4023
Summation Method- Bank of Investment Method - and Market Comparison Method
directly benefit
State Tax Commission

41. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
property record cards and assessment maps
July; July Board of Review
utility - scarcity - desirability - transferability
fee simple - partial estate - and life estate

42. IFT's affect only the building value...
sales comparison approach
never the land
Tuesday following; first Monday in March
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

43. Radius squared times Pi (3.1416)
February 20
life estate
Site/location
Circle computation of area

44. _ is estimating the cost of an exact duplication of the building
Reproduction cost
effective gross income
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
Rectangular computation of area

45. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
Cost Approach
to hear appeals of the tentative taxable value
direct sales comparison
Michigan Constitution

46. The Board of Review was created by the _ of 1893
Tuesday following; first Monday in March
General Property Tax Act
Number 1
43 -560 square feet

47. IFT certificates are granted for _ years with a possible 2-year construction period
640 acres
by contacting one of the parties to the transaction (buyer - seller - or realtor)
effective gross income
12

48. The market rent times the number of units availabe to rent is _
potential gross income
40
February 20
50%; usual selling price

49. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
July and December BOR
Township Board; City Council
taxes
specific tax

50. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
October 31
taxation - eminent domain - and police powers
50%; usual selling price
Form L-4023