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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.
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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. Notices of the decisions of the BOR must be mailed by the _
Number 1
first Monday in June
Form L-4054
May 1

2. The three categories of depreciation are _
northeast corner with section 1 and proceed west to section 6
present worth
physical - functional - and economic
expenses allowable

3. The difference between commercial and industrial property is _
Industrial Facility Tax Abatement
property record cards and assessment maps
sales prices of other parcels similar to the property being appraised
expenses not allowable

4. The government retains the following powers
Michigan General Property Tax Act
are
taxation - eminent domain - and police powers
Capitalizaiton rate

5. _ is used to adjust the cosst approach to market value for residential properties
transferability
soil survey; land value
5 -280 lineal feet
Economic condition factor

6. If a property owner has an agricultural use on 1/2 their property - they may designate a specific number of wooded acres as _
potential gross income
ground floor area
Private Forest Reserve
life estate

7. The middle of a ratio study where the ratios are ranked from lowest to highest or highest to lowest
Michigan General Property Tax Act
median
lots and blocks
Income / rate

8. Special assessments are not levied on all real and personal property that...
Number 1
County multipliers
benefits from the special assessment
Tuesday following the second

9. The Private Forest Reserve Act specifies that the property in the reserve be assessed on the ad valorem at _
$1 per acre
specific tax
Reproduction cost
transferability

10. Personal property forms must be approved by the _
County multipliers
cost approach
rate x value
State Tax Commission

11. _ is a loss of utility and therefore of value from any cause
sales prices of other parcels similar to the property being appraised
depreciation
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
July and December BOR

12. The formula for calculating income is _
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
General Land Office survey
36 sections
rate x value

13. Used to value the income stream of a property
Replacement cost
real property
first Monday in June
income approach

14. Personal property statements (are/are not) available to the public under the Freedom of Information Act.
Cost Approach
hear appeals from taxpayers or their agents
replacement cost
are not

15. Initial survey point for Michigan at the intersection of two streets
Private Forest Reserve
# of acres times 43 -560 divided by known dimension
soil survey; land value
Genesee County

16. 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
owners and interested parties of the property to be assessed
potential gross income; allowances; vacancy; rent loss; income; miscellaneous income
property record cards and assessment maps

17. 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
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
Form L-4046
Number 1

18. CAMA system should estimate replacement cost new less depreciation in the _ approach
the property owner or lessee - or the local government may begin the process of its own volition
cost
Industrial Facility Tax Abatement
beginning value the following year

19. Who may ask for establishment of an industrial facility tax exemption district?
3/4 Proposal
the property owner or lessee - or the local government may begin the process of its own volition
true cash value
expenses not allowable

20. The income approach calculates the _ of a future income stream
present worth
market rent
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

21. Economic condition factors (are/are not) applied to land and buildings
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
are not
income approach
Economic condition factor

22. A report of Real and Personal Property totals prepared by the county equalization department; submitted to STC by the third Monday in April
1 rod
Township Board; City Council
Form L-4024
Divide the sales price by the gross rent

23. The cost approach is used to estimate _ of an _
General Property Tax Act
Capitalizaiton rate
market value; existing property
branches

24. A report of Real and Personal Property Taxable Valuations prepared by county equalization; submitted to STC by fourth Monday in April
Reproduction cost
desirability
beginning value the following year
Form L-4046

25. Capped value is _

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26. One use of land value maps is to _
are not
supervisor
track land sales
Rectangular computation of area

27. The capitalization rate includes the _ - _ and the _
supervisor
desirability
is
discount rate - recapture rate - effective tax rate

28. Cost to construct improvement with the same functional utility of the subject
the property owner or lessee - or the local government may begin the process of its own volition
branches
Private Forest Reserve
replacement cost

29. 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
Genesee County
Economic condition factor
taxation - eminent domain - and police powers
specific tax

30. Two types of maps that are used in valuing agricultural land are _ maps and _ maps
potential gross income
Front foot
soil survey; land value
sales comparison approach

31. Formula used to calculate taxes is _
Taxable Value X Millage Rate
Tuesday following; first Monday in March
February 20
expenses allowable

32. Equity within the 83 counties of the state is the responsibility of the _
uniform rates
State Tax Commission
power to tax - eminent domain - police power - escheat
12

33. Not transfers of ownership
desirability
first Monday in June
sales comparison
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

34. IFT's affect only the building value...
$1 per acre
never the land
assessor and Board of Review
sales prices of other parcels similar to the property being appraised

35. When measuring a house - you use _ measurements
12
gross rent multipliers
location - time of sale - finanical terms of sale - physical differences - and restrictions of use
exterior

36. Movable irrigation systems including pumps not an integral part of a well are _ and are _
a plus adjustemnt for the fireplace to the comp
agricultural personal property; exempt
May 1
real property

37. The discount rate may be developed by the following:
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
County Board of Commissioners
Summation Method- Bank of Investment Method - and Market Comparison Method

38. The March Board of Review may change assessments - exemptions - and classification property. What additional authority were they given by Proposal A?
$421 -052
operating expenses
to hear appeals of the tentative taxable value
discount rate - recapture rate - effective tax rate

39. Number of acres in the E 1/2 of the W 1/2 of hte NW 1/4
Industrial Facility Tax Abatement
Interest or discount
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
40

40. Report of Assessment Roll Changes and Classification; includes assessed values of all eleven classes of property
real estate
Headlee Amendment
Form L-4022
adverse possession

41. When appraising a commercial building - you should remember that unlike building - land is...
Taxable Value x Millage Rate = Tax Bill
never depreciated
agricultural personal property; exempt
track land sales

42. Usually valuing farmland is done by the _ for the land values and the _ for the buildings.
Number 1
adverse possession
exempt
market comparison approach; cost approach

43. The three approaches to value
cost - sales comparison (market) - and income
market rent
potential income; vacancy - bad debt and operating expenses
receives and reviews

44. _ soil is considered the most productive
market comparison approach; cost approach
Number 1
are not
hear appeals from taxpayers or their agents

45. 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
Economic condition factor
sales comparison
Form L-4024
Michigan General Property Tax Act

46. Monday December Board of Review begins
cost
Tuesday following the second
State Tax Commission
Private Forest Reserve

47. Notice of special assessment public hearings must be given to _
Form L-4024
are not
owners and interested parties of the property to be assessed
select sales of comparable properties - list the sales - adjust the sales to the subject - and correlate and justify the value of the subject property

48. A platted subdivision is described by _
sales comparison approach
640 acres
lots and blocks
never depreciated

49. _ are used to value income-producing residential property
estimate the assessment
General Property Tax Act
gross rent multipliers
real estate

50. The estimated potential gross income less allowances for vacancy and rent loss plus other income or miscellaneous income is _
effective gross income
determining the primary use of the property; in this case probably agricultural or residential
40
Plant Rehabilitation and Industrial Development Districts - Act 198 of 1974