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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. One use of land value maps is to _
are not
determining the primary use of the property; in this case probably agricultural or residential
Michigan General Property Tax Act
track land sales

2. Deadline for filing personal property statements
May 1
fee simple - partial estate - and life estate
February 20
Form L-4260

3. The usual reference source regarding assessment and taxes
sales comparison
General Property Tax Act
agricultural personal property; exempt
State Tax Commission

4. 1 acre =
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
43 -560 square feet
discount rate - recapture rate - effective tax rate
tangible or intangible

5. Who may ask for establishment of an industrial facility tax exemption district?
Taxable Value X Millage Rate
reducing
the property owner or lessee - or the local government may begin the process of its own volition
real and personal

6. A depth factor chart is used to adjust lots that are _
not standard depth
value in exchange
Replacement cost
desirability

7. The CAMA system should be able to calculate the valuation of properties by direct capitalization in the _ approach
income
determining the primary use of the property; in this case probably agricultural or residential
supervisor
potential income; vacancy - bad debt and operating expenses

8. When measuring a house - you use _ measurements
exterior
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
supervisor
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines

9. Management costs in timber-cutover include _ which are usually the largest expense in this classification
October 31
taxes
Front foot
Form L-4154

10. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
July; July Board of Review
median
Industrial Facility Tax Abatement
are

11. Used to value the income stream of a property
cost
percent good
income approach
ground floor area

12. - The Building Residual - and the Direct Capitalization Capitalization techniques include the following:
Michigan General Property Tax Act
to hear appeals of the tentative taxable value
The Land Residual
expenses not allowable

13. The definition of the economic principle of highest and best use is _
market rent
uniform rates
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
Income / rate

14. The BOR _ and _ the roll
hear appeals from taxpayers or their agents
receives and reviews
Form L-4046
gross rent multipliers

15. Definition of ad valorem
Replacement cost
taxation - eminent domain - and police powers
at value
replacement cost new; depreciation

16. All meetings of the BOR are governed by the _
County multipliers
Open Meetings Act
track land sales
Form L-4154

17. _ includes the discount rate - recapture rate - and the effective rate.
county multipliers
General Property Tax Act
fee simple - partial estate - and life estate
Capitalizaiton rate

18. Ordinance established the laws that cover Michigan - Ohio - Indiana - Illinois - and Wisconsin
Federal Northwest
a plus adjustemnt for the fireplace to the comp
Form L-4022
sales prices of other parcels similar to the property being appraised

19. There are _ in a geographical township
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
by contacting one of the parties to the transaction (buyer - seller - or realtor)
potential gross income
36 sections

20. IFT's affect only the building value...
Summation Method- Bank of Investment Method - and Market Comparison Method
never the land
3/4 Proposal
Tuesday following First Monday

21. Net income is _ minus _
exempt
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
County multipliers
potential income; vacancy - bad debt and operating expenses

22. The right to use - occupy - and control a property for the length of the lessee's life
partial estate
exterior
life estate
Form L-4023

23. The three categories of depreciation are _
Circle computation of area
reducing
physical - functional - and economic
Federal Northwest

24. The definition of market value is _
Tuesday following First Monday
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
July and December BOR
present worth

25. The highest degree of ownership
fee simple
soil survey; land value
$421 -052
Township Board; City Council

26. The formula for calculating rate is _
sales comparison
income / value
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
northeast corner with section 1 and proceed west to section 6

27. True cash value is _
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
income approach
Board of Review; Michigan Tax Tribunal
reducing

28. The rights of ownership removed by government are _
power to tax - eminent domain - police power - escheat
sales comparison
income approach
Triangle computation of area

29. There are _ in a section
Form L-4023
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
640 acres
is

30. Unknown dimension formula
market rent
sales comparison approach
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
# of acres times 43 -560 divided by known dimension

31. Pole barns - silos - and large grain bins are considered _
typical farm buildings
Capitalizaiton rate
market comparison approach; cost approach
market value; existing property

32. Most taxpayers must appeal to the local _ before appealing to the _
sales comparison
exterior
physical - functional - and economic
Board of Review; Michigan Tax Tribunal

33. If there is a 40-acre parcel and all but the land surrounding the house is wooded - this property should be classified by _
determining the primary use of the property; in this case probably agricultural or residential
Number 1
net income
County Board of Commissioners

34. Deadline for filing Principal Residence Affidavits
General Property Tax Act
Income / rate
May 1
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

35. The government is authorized to levy taxes in the _
contract rent
demand one
Michigan Constitution
benefits from the special assessment

36. The market rent times the number of units availabe to rent is _
Michigan Constitution
depreciation
$1 per acre
potential gross income

37. Assessor Affidavit Regarding 'Uncapping' of Taxable Value; used when it is discovered that a property value should have been uncapped but wasn't
Form L-4054
12
cost
Economic condition factor

38. Inventory (is/is not) exempt
Tuesday following the second
utility - scarcity - desirability - transferability
is
Economic condition factor

39. The four basic steps in the sales comparison approach is _
exterior
power to tax - eminent domain - police power - escheat
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
July; July Board of Review

40. The Assessor or Equalization Director's Notice of Property Incorrectly Reported or Omitted from Assessment Roll; filed with STC when omitted property is discovered
sales comparison approach
Federal Northwest
Form L-4154
October 31

41. _ is estimating the cost of an exact duplication of the building
is
Summation Method- Bank of Investment Method - and Market Comparison Method
Reproduction cost
Headlee Amendment

42. Cost to construct improvement with the same functional utility of the subject
General Property Tax Act
specific tax
replacement cost
General Property Tax Act

43. _ measures value in exchange; it is based on the principle of substitution
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
direct sales comparison
hear appeals from taxpayers or their agents

44. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
discount rate - recapture rate - effective tax rate
Board of Review; Michigan Tax Tribunal
gross rent multipliers
Private Forest Reserve

45. It (is not necessary to use __________ when valuing agricultural property.
track land sales
net income
General Property Tax Act
county multipliers

46. Equity within the county is the responsibility of the _
February 20
County Board of Commissioners
market value; existing property
# of acres times 43 -560 divided by known dimension

47. Requires that the ratio of assessments to true cash value not exceed 50%
Michigan Constitution
uniform rates
July and December BOR
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974

48. Buildings on leased lands _ personal property
are
track land sales
Rectangular survey; metes and bounds; platted or recorded subdivision
never the land

49. Potential income minus vacancy - bad debt - and operating expenses is the _
directly benefit
GRM X MARKET RENT = MARKET VALUE
net income
uniform rates

50. Depreciation in the assessing process is expressed as a _
percent good
640 acres
sales prices of other parcels similar to the property being appraised
12