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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. Capped value is _

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2. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
cost - sales comparison (market) - and income
Board of Review; Michigan Tax Tribunal
The Land Residual
1 rod

3. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
Township Board; City Council
property record cards and assessment maps
discount rate - recapture rate - effective tax rate
Michigan Constitution

4. The physical land and any structure attached to it
40
real estate
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
Triangle computation of area

5. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
specific tax
net income
assessor and Board of Review
Form L-4154

6. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
are not
Income / rate
Divide the sales price by the gross rent
October 31

7. A consumer must want the product for it to have value
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
desirability
northeast corner with section 1 and proceed west to section 6
# of acres times 43 -560 divided by known dimension

8. _ are used to value income-producing residential property
July and December BOR
$421 -052
gross rent multipliers
Site/location

9. _ is a loss in value caused by factors outside the property
potential income; vacancy - bad debt and operating expenses
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
economic obsolescense
first Monday in June

10. Equity within the 83 counties of the state is the responsibility of the _
State Tax Commission
50%; usual selling price
partial estate
Rectangular computation of area

11. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
exempted
to hear appeals of the tentative taxable value
Taxable Value x Millage Rate = Tax Bill
July and December BOR

12. The rights of ownership removed by government are _
utility - scarcity - desirability - transferability
12
power to tax - eminent domain - police power - escheat
value in use

13. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
tangible or intangible
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
electors
market value; existing property

14. is the rent a property could command on the open market
exempt
market rent
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
are

15. The formula for calculating value is _
Income / rate
County Board of Commissioners
income / value
General Property Tax Act

16. If a business fails to file a personal property statement - the assessor shall _
estimate the assessment
desirability
local government unit
Private Forest Reserve

17. _ is used to adjust the cosst approach to market value for residential properties
specific tax
Economic condition factor
utility - scarcity - desirability - transferability
first Monday in June

18. Management costs in timber-cutover include _ which are usually the largest expense in this classification
local government unit
taxes
1 rod
agricultural personal property; exempt

19. Definition of ad valorem
Form L-4024
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
taxation - eminent domain - and police powers
at value

20. Enacted in 1893
$1 per acre
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
Michigan General Property Tax Act
northeast corner with section 1 and proceed west to section 6

21. 1 mile =
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
Open Meetings Act
Income / rate
5 -280 lineal feet

22. Used to value the income stream of a property
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
partial estate
real estate
income approach

23. 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.
track land sales
sales comparison approach
3/4 Proposal
by contacting one of the parties to the transaction (buyer - seller - or realtor)

24. Formula used to calculate taxes is _
real property
ground floor area
beginning value the following year
Taxable Value X Millage Rate

25. Michigan's Constitution provides for _ of taxation
direct sales comparison
uniform rates
agricultural personal property; exempt
General Property Tax Act

26. The definition of the economic principle of highest and best use is _
County Board of Commissioners
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
partial estate
5 -280 lineal feet

27. The value of vacant land is estimated using _
utility - scarcity - desirability - transferability
sales prices of other parcels similar to the property being appraised
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
Form L-4025

28. It is necessary to have an evening meeting unless the residents...
County Board of Commissioners
Form L-4046
demand one
first Monday in June

29. Members of the Board of Review must be _ of the township
electors
are not
Michigan General Property Tax Act
potential income; vacancy - bad debt and operating expenses

30. Who may ask for establishment of an industrial facility tax exemption district?
5 -280 lineal feet
$421 -052
Rectangular survey; metes and bounds; platted or recorded subdivision
the property owner or lessee - or the local government may begin the process of its own volition

31. Buildings on leased lands _ personal property
are
cost - sales comparison (market) - and income
estimate the assessment
value in use

32. Initial survey point for Michigan at the intersection of two streets
assessor and Board of Review
Genesee County
Triangle computation of area
estimate the assessment

33. CAMA system should estimate replacement cost new less depreciation in the _ approach
Income / rate
cost
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
Economic condition factor

34. The BOR _ and _ the roll
640 acres
receives and reviews
Divide the sales price by the gross rent
potential income; vacancy - bad debt and operating expenses

35. Tax day
assessor and Board of Review
40
December 31
General Property Tax Act

36. March Board of Review begins
real and personal
Tuesday following First Monday
direct sales comparison
not standard depth

37. Special assessments must _ the properties in the district
owners and interested parties of the property to be assessed
directly benefit
State Tax Commission
never depreciated

38. The income approach calculates the _ of a future income stream
The Land Residual
present worth
5 -280 lineal feet
income approach

39. Computer assisted mass appraisal
CAMA
ground floor 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
desirability

40. The CAMA system should be able to select comparable sales - make adjustments to the comps - and come up with an estimate of market value for the subject in the _ approach
sales comparison
exempted
market comparison approach; cost approach
Rectangular survey; metes and bounds; platted or recorded subdivision

41. 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
Front foot
$421 -052
July; July Board of Review

42. _ is the rent actually received for a property
contract rent
physical - functional - and economic
5 -280 lineal feet
location - time of sale - finanical terms of sale - physical differences - and restrictions of use

43. _ was designed to provide for the exemption from certain taxes; to levy and collect a specific tax from the owners of properties so exempted; and to provide for the transfer of the exemption certificates; also prescribes the power and dute of the STC
Industrial Facility Tax Abatement
directly benefit
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
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

44. The capitalization rate includes the _ - _ and the _
electors
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
discount rate - recapture rate - effective tax rate
tangible or intangible

45. Value is determined by _
cost approach
General Property Tax Act
1 rod
utility - scarcity - desirability - transferability

46. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
Private Forest Reserve
Form L-4024
depreciation
CAMA

47. _ 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.
3/4 Proposal
General Property Tax Act
March BOR
expenses not allowable

48. IFT's affect only the building value...
never the land
Tuesday following First Monday
owners and interested parties of the property to be assessed
life estate

49. _ measures value in exchange; it is based on the principle of substitution
soil survey; land value
never depreciated
direct sales comparison
1 rod

50. Notice of special assessment public hearings must be given to _
owners and interested parties of the property to be assessed
fee simple
local government unit
present worth