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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. Equity within the county is the responsibility of the _
desirability
sales comparison approach
income
County Board of Commissioners

2. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
# of acres times 43 -560 divided by known dimension
median
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
October 31

3. One use of land value maps is to _
real property
track land sales
rate x value
determining the primary use of the property; in this case probably agricultural or residential

4. 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 _
$421 -052
Michigan Constitution
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
contract rent

5. IFT certificates are granted for _ years with a possible 2-year construction period
Form L-4024
directly benefit
12
beginning value the following year

6. Cost to construct improvement with the same functional utility of the subject
replacement cost
specific tax
taxes
agricultural personal property; exempt

7. The definition of the economic principle of highest and best use is _
Form L-4154
cost - sales comparison (market) - and income
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
exterior

8. Depreciation in the assessing process is expressed as a _
branches
income / value
percent good
July; July Board of Review

9. True cash value is _
true cash value
economic obsolescense
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
Cost Approach

10. In July and December - the BOR may meet to _
taxes
December 31
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
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR

11. March Board of Review begins
Tuesday following First Monday
not standard depth
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
640 acres

12. Who may ask for establishment of an industrial facility tax exemption district?
discount rate - recapture rate - effective tax rate
electors
the property owner or lessee - or the local government may begin the process of its own volition
specific tax

13. Market value of property is _
640 acres
fee simple - partial estate - and life estate
true cash value
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

14. July Board of Review begins
March BOR
Divide the sales price by the gross rent
Tuesday following Third Monday
partial estate

15. Economic condition factors (are/are not) applied to land and buildings
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
are not
to hear appeals of the tentative taxable value
Divide the sales price by the gross rent

16. Used to value the income stream of a property
potential income; vacancy - bad debt and operating expenses
36 sections
income approach
Form L-4024

17. CAMA system should estimate replacement cost new less depreciation in the _ approach
soil survey; land value
cost
income / value
electors

18. 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 _
Rectangular computation of area
50%; usual selling price
Number 1
direct sales comparison

19. _ is the rent actually received for a property
contract rent
by contacting one of the parties to the transaction (buyer - seller - or realtor)
State Tax Commission
operating expenses

20. The rights of ownership (bundle of rights) enjoyed by the owner of real estate
is
fee simple
income
real property

21. Compares the property beign appraised to similar properties that have recently sold
sales comparison approach
Michigan Constitution
replacement cost new; depreciation
Headlee Amendment

22. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
contract rent
Form L-4025
uniform rates
never the land

23. Management costs in timber-cutover include _ which are usually the largest expense in this classification
adverse possession
determining the primary use of the property; in this case probably agricultural or residential
utility - scarcity - desirability - transferability
taxes

24. The three approaches to value
GRM X MARKET RENT = MARKET VALUE
State Tax Commission
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
cost - sales comparison (market) - and income

25. The Tuesday following the third Monday in _ is the _ meeting.
July; July Board of Review
Form L-4025
December 31
the prior year's taxable value minus losses times the lesser of 105% or the CPI (whichever is less) plus additions

26. The definition of market value is _
March BOR
Form L-4022
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
General Property Tax Act

27. The Board of Review was created by the _ of 1893
real and personal
never the land
Headlee Amendment
General Property Tax Act

28. The difference between commercial and industrial property is _
Industrial Facility Tax Abatement
State Tax Commission
exterior
median

29. Leased property is...
is
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
partial estate
640 acres

30. _ is a loss of utility and therefore of value from any cause
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
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
depreciation
Headlee Amendment

31. The discount rate may be developed by the following:
December 31
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
Summation Method- Bank of Investment Method - and Market Comparison Method
northeast corner with section 1 and proceed west to section 6

32. Taxable unless specifically exempted
are not
cost
real and personal
July; July Board of Review

33. Unknown dimension formula
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
# of acres times 43 -560 divided by known dimension
February 20
market comparison approach; cost approach

34. Inventory (is/is not) exempt
is
first Monday in June
Site/location
economic obsolescense

35. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
life estate
The Land Residual
median
receives and reviews

36. The return on the investment called in the capitalization rate is _
Private Forest Reserve
real estate
exempt
Interest or discount

37. The first meeting of the BOR is held on the _
Form L-4054
1 rod
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
Tuesday following; first Monday in March

38. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
directly benefit
potential income; vacancy - bad debt and operating expenses
taxation - eminent domain - and police powers
to hear appeals of the tentative taxable value

39. _ 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
CAMA
agricultural personal property; exempt
the property owner or lessee - or the local government may begin the process of its own volition
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

40. Effective gross income is the estimated _ less _ for _ and _ plus other _ or _
local government unit
never depreciated
income / value
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income

41. _ is estimating the cost of an exact duplication of the building
Reproduction cost
cost approach
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
supervisor

42. _ includes the discount rate - recapture rate - and the effective rate.
Capitalizaiton rate
Site/location
exempt
soil survey; land value

43. The government retains the following powers
gross rent multipliers
taxation - eminent domain - and police powers
physical - functional - and economic
determining the primary use of the property; in this case probably agricultural or residential

44. The cost approach is used to estimate _ of an _
property record cards and assessment maps
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
market value; existing property
value in exchange

45. You verify a sale _
General Property Tax Act
by contacting one of the parties to the transaction (buyer - seller - or realtor)
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
CAMA

46. Definition of ad valorem
County multipliers
General Property Tax Act
hear appeals from taxpayers or their agents
at value

47. The second meeting of the BOR is held to _
May 1
hear appeals from taxpayers or their agents
March BOR
GRM X MARKET RENT = MARKET VALUE

48. Convened to correct clerical errors - mutual mistakes of fact or qualified errors
potential gross income
median
real property
July and December BOR

49. Movable irrigation systems including pumps not an integral part of a well are _ and are _
property record cards and assessment maps
agricultural personal property; exempt
receives and reviews
reproduction cost

50. The _ determines the size for rates
ground floor area
value in use
$1 per acre
branches