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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. _ is the rent actually received for a property
first Monday in June
contract rent
specific tax
potential gross income

2. In July and December - the BOR may meet to _
agricultural personal property; exempt
correct clerical errors and mutual mistakes of fact; they may also hear poverty appeals that were not heard at the March BOR
power to tax - eminent domain - police power - escheat
3/4 Proposal

3. - restrictions (zoneing - etc.) - and improvements on the site When valuing property - the assessor should consider _
the property owner or lessee - or the local government may begin the process of its own volition
Site/location
July; July Board of Review
income approach

4. Formula used to calculate taxes is _
Front foot
branches
General Property Tax Act
Taxable Value X Millage Rate

5. The three principal steps in the cost approach are _
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
Capitalizaiton rate
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
soil survey; land value

6. The formula for using a gross rent multiplier to determine market value is _
GRM X MARKET RENT = MARKET VALUE
supervisor
The Land Residual
income / value

7. The value of vacant land is estimated using _
sales prices of other parcels similar to the property being appraised
replacement cost
exempt
Form L-4024

8. March Board of Review begins
General Property Tax Act
Tuesday following First Monday
Rectangular survey; metes and bounds; platted or recorded subdivision
Taxable Value x Millage Rate = Tax Bill

9. Equity within the county is the responsibility of the _
electors
County Board of Commissioners
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
Michigan Constitution

10. The Board of Review was created by the _ of 1893
Number 1
value in use
cost - sales comparison (market) - and income
General Property Tax Act

11. Special assessment districts are commonly used for _
uniform rates
sales comparison
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
Front foot

12. The income approach calculates the _ of a future income stream
median
43 -560 square feet
present worth
income / value

13. A consumer must be able to purchasee the property
assessor and Board of Review
transferability
power to tax - eminent domain - police power - escheat
effective gross income

14. _ are used to value income-producing residential property
by contacting one of the parties to the transaction (buyer - seller - or realtor)
income approach
gross rent multipliers
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines

15. Unknown dimension formula
percent good
1 rod
# of acres times 43 -560 divided by known dimension
physical - functional - and economic

16. Report of Taxable Valuations Including Additions - Losses and Totals as approved by BOR;
estimate the assessment
Form L-4025
track land sales
Form L-4154

17. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of 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
Form L-4022
fee simple - partial estate - and life estate
December 31

18. A platted subdivision is described by _
operating expenses
lots and blocks
12
Rectangular computation of area

19. _ is estimating the cost of a building of similar design and utility
Industrial Facility Tax Abatement
Form L-4260
sewers - paving - curbing - sidewalks - grading and widening streets - parks - bridges - and water and sewer lines
Replacement cost

20. Special assessments are not levied on all real and personal property that...
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
Income / rate
track land sales
benefits from the special assessment

21. The Commercial Forest Act permits an owner to put property into a program that permits payment of a _ in lieu of the ad valorem rates
Michigan General Property Tax Act
specific tax
power to tax - eminent domain - police power - escheat
Income / rate

22. Economic condition factors (are/are not) applied to land and buildings
are not
sales comparison
a plus adjustemnt for the fireplace to the comp
power to tax - eminent domain - police power - escheat

23. The second meeting of the BOR is held to _
is
Interest or discount
hear appeals from taxpayers or their agents
partial estate

24. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
are not
income / 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
median

25. In a cost approach program - the computer system should estimate _ less _
demand one
property record cards and assessment maps
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
replacement cost new; depreciation

26. Half the base times the height
true cash value
Triangle computation of area
is
Replacement cost

27. Capped value is _

28. The definition of the economic principle of highest and best use is _
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
power to tax - eminent domain - police power - escheat
lots and blocks
Rectangular computation of area

29. Public rights-of-way are _
exempt
tangible or intangible
County multipliers
Rectangular survey; metes and bounds; platted or recorded subdivision

30. _ 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.
expenses not allowable
Taxable Value x Millage Rate = Tax Bill
desirability
expenses allowable

31. Two types of maps that are used in valuing agricultural land are _ maps and _ maps
December 31
market comparison approach; cost approach
real and personal
soil survey; land value

32. The _ must approve the application for an IFT before the State Tax Commission approves the application
Form L-4154
local government unit
to hear appeals of the tentative taxable value
Headlee Amendment

33. Equity within the 83 counties of the state is the responsibility of the _
12
State Tax Commission
percent good
electors

34. _ includes the discount rate - recapture rate - and the effective rate.
Capitalizaiton rate
potential income; vacancy - bad debt and operating expenses
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974
Reproduction cost

35. The three categories of depreciation are _
physical - functional - and economic
Capitalizaiton rate
uniform rates
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

36. The four basic steps in the sales comparison approach is _
discount rate - recapture rate - effective tax rate
the property owner or lessee - or the local government may begin the process of its own volition
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
at value

37. Applications for IFT districts must be received by the State Tax Commission by _ to be acted on for the following year
replacement cost new; depreciation
October 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
income

38. _ are those expenses necessary for generating income. This includes reserves for replacements - accounting fees - advertising costs - maintenance costs such as lawn care - snow removal - repairs - trash removal - utilities - and a maintenance manager
never the land
Reproduction cost
Tuesday following Third Monday
expenses allowable

39. The _ to value is best used for mass appraisals being done by the assessor.
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property
Cost Approach
depreciation
$1 per acre

40. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
specific tax
median
income / value
cost

41. The highest degree of ownership
Rectangular survey; metes and bounds; platted or recorded subdivision
July and December BOR
February 20
fee simple

42. Proposal A had the immediate result of _ property taxes in the state
reducing
Federal Northwest
May 1
Replacement cost

43. The formula for calculating tax bills is _
Private Forest Reserve
Taxable Value x Millage Rate = Tax Bill
utility - scarcity - desirability - transferability
Front foot

44. If the subject property has a fireplace and air-conditioning and the comp has only air-conditioning - what adjustment would be made to what property?
percent good
direct sales comparison
Divide the sales price by the gross rent
a plus adjustemnt for the fireplace to the comp

45. July Board of Review begins
Taxable Value x Millage Rate = Tax Bill
Tuesday following Third Monday
never depreciated
local government unit

46. The formula for calculating value is _
State Tax Commission
receives and reviews
real property
Income / rate

47. Approved by voters in 1978
43 -560 square feet
replacement cost new; depreciation
Headlee Amendment
ground floor area

48. Taxable personal property includes all property not expressly _
exempted
direct sales comparison
typical farm buildings
demand one

49. The BOR _ and _ the roll
receives and reviews
county multipliers
never depreciated
at value

50. Michigan Tax Tribunal Appeals of special assessments are first appealed to the _ or _ and then to the _
Triangle computation of area
Township Board; City Council
General Property Tax Act
specific tax