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Test your basic knowledge |
MCAO: Michigan Certified Assessing Officer
Start Test
Study First
Subject
:
certifications
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. Accurate _ and _ are necessary because assessments are only as accurate as the data used to calculate them
percent good
value in exchange
Economic condition factor
property record cards and assessment maps
2. The highest degree of ownership
estimate the assessment
market value; existing property
Taxable Value x Millage Rate = Tax Bill
fee simple
3. Equity within the county is the responsibility of the _
GRM X MARKET RENT = MARKET VALUE
County Board of Commissioners
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
typical farm buildings
4. May change assessment for current year
value in exchange
43 -560 square feet
adverse possession
March BOR
5. The right to use - occupy - and control a property for the length of the lessee's life
power to tax - eminent domain - police power - escheat
Board of Review; Michigan Tax Tribunal
life estate
State Tax Commission
6. is the rent a property could command on the open market
fee simple - partial estate - and life estate
market rent
power to tax - eminent domain - police power - escheat
electors
7. _ 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
market value; existing property
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
specific tax
Front foot
8. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
assessor and Board of Review
never the land
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
determining the primary use of the property; in this case probably agricultural or residential
9. There are _ in a section
640 acres
net income
potential income; vacancy - bad debt and operating expenses
ground floor area
10. Equity at the local level is the responsibility of the _
assessor and Board of Review
Township Board; City Council
Taxable Value x Millage Rate = Tax Bill
net income
11. The market rent times the number of units availabe to rent is _
fee simple - partial estate - and life estate
typical farm buildings
1 rod
potential gross income
12. Inventory (is/is not) exempt
owners and interested parties of the property to be assessed
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions
is
county multipliers
13. Michigan's Constitution provides for _ of taxation
uniform rates
Headlee Amendment
Capitalizaiton rate
replacement cost new; depreciation
14. 1 acre =
electors
Site/location
43 -560 square feet
5 -280 lineal feet
15. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
Economic condition factor
value in use
Form L-4025
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
16. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
Headlee Amendment
July and December BOR
Private Forest Reserve
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
17. In a cost approach program - the computer system should estimate _ less _
$421 -052
replacement cost new; depreciation
rate x value
discount rate - recapture rate - effective tax rate
18. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
percent good
to hear appeals of the tentative taxable value
36 sections
local government unit
19. Notice of special assessment public hearings must be given to _
are not
owners and interested parties of the property to be assessed
exempt
cost approach
20. _ is the rent actually received for a property
Rectangular computation of area
contract rent
cost
taxation - eminent domain - and police powers
21. Movable irrigation systems including pumps not an integral part of a well are _ and are _
sales comparison
agricultural personal property; exempt
sales comparison approach
depreciation
22. 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
1 rod
sales comparison
Circle computation of area
# of acres times 43 -560 divided by known dimension
23. Capped value is _
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24. Special assessments must _ the properties in the district
not standard depth
directly benefit
Summation Method- Bank of Investment Method - and Market Comparison Method
assessor and Board of Review
25. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
Form L-4023
real property
beginning value the following year
assessor and Board of Review
26. The first meeting of the BOR is held on the _
ground floor area
Michigan Constitution
February 20
Tuesday following; first Monday in March
27. Michigan's Constitution uses _ to determine assessments
true cash value
Form L-4260
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
partial estate
28. Cost to construct improvement with the same functional utility of the subject
true cash value
Income / rate
demand one
replacement cost
29. The four basic steps in the sales comparison approach is _
contract rent
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
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
reducing
30. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
GRM X MARKET RENT = MARKET VALUE
Site/location
Replacement cost
lots and blocks
31. July Board of Review begins
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
typical farm buildings
County multipliers
Tuesday following Third Monday
32. Net income is _ minus _
real and personal
State Tax Commission
Site/location
potential income; vacancy - bad debt and operating expenses
33. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
Cost Approach
sales comparison
$1 per acre
sales comparison approach
34. _ is a loss of utility and therefore of value from any cause
depreciation
are not
by contacting one of the parties to the transaction (buyer - seller - or realtor)
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
35. Approved by voters in 1978
Headlee Amendment
May 1
discount rate - recapture rate - effective tax rate
40
36. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
income / value
operating expenses
median
exempt
37. March Board of Review begins
Form L-4025
Summation Method- Bank of Investment Method - and Market Comparison Method
Tuesday following First Monday
income approach
38. Most taxpayers must appeal to the local _ before appealing to the _
Form L-4260
estimate the assessment
market comparison approach; cost approach
Board of Review; Michigan Tax Tribunal
39. In a residential neighborhood - the measurement usually used in developing cost is _
Michigan General Property Tax Act
Front foot
Capitalizaiton rate
Form L-4022
40. 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
real property
specific tax
are not
41. Used to estimate the cost of constructing improvements to the land
$1 per acre
taxes
net income
cost approach
42. The usual reference source regarding assessment and taxes
General Property Tax Act
February 20
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
physical - functional - and economic
43. IFT certificates are granted for _ years with a possible 2-year construction period
Industrial Facility Tax Abatement
Reproduction cost
12
electors
44. _ is estimating the cost of an exact duplication of the building
estimate the assessment
Reproduction cost
640 acres
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
45. The Board of Review was created by the _ of 1893
real estate
General Property Tax Act
Michigan Constitution
net income
46. The cost approach is used to estimate _ of an _
true cash value
Triangle computation of area
market value; existing property
General Land Office survey
47. Formula used to calculate taxes is _
power to tax - eminent domain - police power - escheat
Taxable Value X Millage Rate
Form L-4154
value in use
48. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
Form L-4022
beginning value the following year
Private Forest Reserve
# of acres times 43 -560 divided by known dimension
49. Value is determined by _
real property
Triangle computation of area
utility - scarcity - desirability - transferability
Form L-4022
50. Analysis for Equalized Valuation prepared by the county equalization department; submitted to the STC by the third Monday in April
real estate
Form L-4023
General Property Tax Act
Michigan Constitution