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The basic responsibilities of the assessor are to ___________ all taxable property.
The basic responsibilities of the assessor are to ___________ all taxable property.
One of the steps an assessor must take in the discovery of property is to
One of the steps an assessor must take in the discovery of property is to
The property tax is a/an _____________ tax, meaning it is based on value.
The property tax is a/an _____________ tax, meaning it is based on value.
Actual value = $175,000; assessment level = 20 percent; tax rate = 92.8 mills. Calculate the property tax for the residence.
Actual value = $175,000; assessment level = 20 percent; tax rate = 92.8 mills. Calculate the property tax for the residence.
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If a tax rate is $13.30 per $100, the decimal equivalent would be
If a tax rate is $13.30 per $100, the decimal equivalent would be
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____________ divided by the assessed value equals the tax rate.
____________ divided by the assessed value equals the tax rate.
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Assessment level times the tax rate equals the
Assessment level times the tax rate equals the
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Given the following, compute a tax rate using dollars per hundred:
Budget $6,000,000; Market Value $800,000,000; Assessment level 50%; Non-property tax revenue $1,000,000
Given the following, compute a tax rate using dollars per hundred: Budget $6,000,000; Market Value $800,000,000; Assessment level 50%; Non-property tax revenue $1,000,000
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________________ is the physical land and everything permanently attached to it.
________________ is the physical land and everything permanently attached to it.
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Which of the following is a governmental restriction to the "bundle of rights"?
Which of the following is a governmental restriction to the "bundle of rights"?
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Which of the following is a basic right associated with the ownership of property?
Which of the following is a basic right associated with the ownership of property?
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In order for a property to have value, it must have utility, scarcity, desirability, and effective purchasing power. The economic forces that determine scarcity are
In order for a property to have value, it must have utility, scarcity, desirability, and effective purchasing power. The economic forces that determine scarcity are
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______________ is the point at which the forces of supply and demand meet--the point of balance.
______________ is the point at which the forces of supply and demand meet--the point of balance.
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A _____________ interest is ownership of all the rights in a property, except those reserved by the government, and with no private encumbrances.
A _____________ interest is ownership of all the rights in a property, except those reserved by the government, and with no private encumbrances.
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In the appraisal process, data collection requires the assessor to collect
In the appraisal process, data collection requires the assessor to collect
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Which of the following is not one of the four great forces by which value is created, maintained, modified, or destroyed?
Which of the following is not one of the four great forces by which value is created, maintained, modified, or destroyed?
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A ________________ may be defined as an area of complementary land uses in which all properties are similarly influenced by the four forces affecting value.
A ________________ may be defined as an area of complementary land uses in which all properties are similarly influenced by the four forces affecting value.
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Given the following: Parcel A - Land value $50,000 Improvement value $150,000; Parcel B - Land value $100,000 Improvement value $300,000;
Subject property - Total value $300,000
Using the allocation method of land valuation, the land value for the subject would be
Given the following: Parcel A - Land value $50,000 Improvement value $150,000; Parcel B - Land value $100,000 Improvement value $300,000; Subject property - Total value $300,000 Using the allocation method of land valuation, the land value for the subject would be
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What element of the marketplace is likely to contribute to a change in demand?
What element of the marketplace is likely to contribute to a change in demand?
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What element of the marketplace is likely to contribute to a change in supply?
What element of the marketplace is likely to contribute to a change in supply?
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A township in the Public Land Survey System contains ___________ sections, with each section containing ___________acres.
A township in the Public Land Survey System contains ___________ sections, with each section containing ___________acres.
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The NE1/4NW1/4SE1/4SW1/4 contains _____________ acres.
The NE1/4NW1/4SE1/4SW1/4 contains _____________ acres.
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A land description system in which boundaries are described as distances between two semipermanent points or as lines following compass bearings is known as
A land description system in which boundaries are described as distances between two semipermanent points or as lines following compass bearings is known as
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The principle that states that market value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property is
The principle that states that market value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property is
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A parcel identifier links ownership records, tax maps, and assessment records. Thus, the identifier must be
A parcel identifier links ownership records, tax maps, and assessment records. Thus, the identifier must be
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Stratification is the first step in analyzing land sales, and the primary sort is by
Stratification is the first step in analyzing land sales, and the primary sort is by
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A 70' x 120' site with level ground and an average view and located south of Route 66 is being appraised. Sale 1 sold recently for $50,000, is 80' x 120', has hilly ground and a fair view, and is located north of Route 66. Sale 2 sold 4 months ago for $64,500, is 60' x 120', has level ground and a good view, and is located south of Route 66. Lots located south of route 66 are considered 10 percent more desirable than lots located north of Route 66. A good view is worth 15 percent more, and a fair view is worth 15 percent less. Level ground is worth 10 percent more than hilly ground. Lot sizes that vary more than 1,000 square feet require a 10 percent adjustment. Lot values have been increasing at a rate of 0.5 percent per month. The indicated value of the subject lot would be
A 70' x 120' site with level ground and an average view and located south of Route 66 is being appraised. Sale 1 sold recently for $50,000, is 80' x 120', has hilly ground and a fair view, and is located north of Route 66. Sale 2 sold 4 months ago for $64,500, is 60' x 120', has level ground and a good view, and is located south of Route 66. Lots located south of route 66 are considered 10 percent more desirable than lots located north of Route 66. A good view is worth 15 percent more, and a fair view is worth 15 percent less. Level ground is worth 10 percent more than hilly ground. Lot sizes that vary more than 1,000 square feet require a 10 percent adjustment. Lot values have been increasing at a rate of 0.5 percent per month. The indicated value of the subject lot would be
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The subject property is a duplex located on a 9,000-square-foot lot. The total value of this property is $280,000. There are two sales that are similar, and the improvement value is well documented. Sale 1 sells currently for $300,000, with an improvement value of $240,000. Sale 2 sold 12 months ago for $250,000, with a current improvement value of $220,000. The lot size for both Sale 1 and Sale 2 is 9,000 square feet. Values in this area have been increasing at a rate of 10 per cent per year. Using the allocation method of land valuation, the indicated value of the lot for the subject property would be
The subject property is a duplex located on a 9,000-square-foot lot. The total value of this property is $280,000. There are two sales that are similar, and the improvement value is well documented. Sale 1 sells currently for $300,000, with an improvement value of $240,000. Sale 2 sold 12 months ago for $250,000, with a current improvement value of $220,000. The lot size for both Sale 1 and Sale 2 is 9,000 square feet. Values in this area have been increasing at a rate of 10 per cent per year. Using the allocation method of land valuation, the indicated value of the lot for the subject property would be
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Given the following: Sale price $220,000; Cost new of improvement $260,000; Depreciation $90,000
The indicated land value would be
Given the following: Sale price $220,000; Cost new of improvement $260,000; Depreciation $90,000 The indicated land value would be
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The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates, and so on is
The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates, and so on is
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The appropriate map scale for urban areas is
The appropriate map scale for urban areas is
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A lot measures 242' x 1800'. What is the value of the lot if the land is worth $60,000 per acre?
A lot measures 242' x 1800'. What is the value of the lot if the land is worth $60,000 per acre?
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The ______________ unit would be the appropriate unit when pedestrian access is an important consideration.
The ______________ unit would be the appropriate unit when pedestrian access is an important consideration.
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When adjustments are being made to comparable sales, using percentage adjustments in the direct sales comparison approach, the sequence of adjustments the appraiser must follow is
When adjustments are being made to comparable sales, using percentage adjustments in the direct sales comparison approach, the sequence of adjustments the appraiser must follow is
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The land valuation method that replicates the actions of subdividers or developers is known as the
The land valuation method that replicates the actions of subdividers or developers is known as the
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Study Notes
Basic Responsibilities of the Assessor
- Assessors are responsible for discovering and valuing all taxable property
Discovering Property
- Assessors must take steps to ensure they have discovered all taxable property
Property Tax
- Property tax is an ad valorem tax, based on value
Calculating Property Tax
- Property tax is calculated using the formula: Assessment level * Tax rate = Property tax
Tax Rate
- Tax rate is expressed in mills
- 1 mill = $1 per $1,000 of assessed value
- To convert a tax rate expressed per $100 to a decimal equivalent, divide the tax rate by 100
Calculating Tax Rate
- Tax rate can be computed using the formula: (Budget - Non-property tax revenue) / (Market value * Assessment level)
Real Property
- Real property includes the physical land and everything permanently attached to it
Bundle of Rights
- Bundle of Rights: Rights associated with real estate ownership
- Governmental restrictions limit the bundle of rights
Value of Property
- A property must have utility, scarcity, desirability, and effective purchasing power to have value
- Economic forces that determine scarcity include location, physical characteristics, and utility
Equilibrium
- Equilibrium is the point where supply and demand meet
Fee Simple Estate
- Fee simple estate is the ownership of all rights in a property, except those reserved by the government, with no private encumbrances
Data Collection
- Appraisers collect data regarding market trends, building costs, and comparable sales
- Appraisers analyze real estate markets to understand trends and determine the value of property
Influences on Value
- Value is created, maintained, modified, or destroyed by four forces: social, economic, governmental, and physical forces
Neighborhood
- Neighborhood is an area of complementary land uses, where properties are influenced similarly by the four forces affecting value
Allocation Method
- Allocation method is used to calculate the land value of a property
- It involves comparing the subject property to similar properties with known land values
Market Influences
- Changes in demand are driven by factors like income, population growth, and employment
- Changes in supply are driven by factors like construction costs, interest rates, and government regulations
Public Land Survey System
- Township contains 36 sections, with each section containing 640 acres
- NE1/4NW1/4SE1/4SW1/4 contains 10 acres
Metes and Bounds
- Metes and Bounds is a land description system that uses distances between semipermanent points or lines following compass bearings
Principle of Substitution
- The principle of substitution states that the market value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property
Parcel Identifier
- Parcel identifier links ownership records, tax maps, and assessment records
- It must be unique and stable
Stratification
- Stratification is the first step in analyzing land sales
- Sales are sorted by location, size, and date of sale
Comparable Sales Analysis
- Comparable sales are used to estimate the value of a property using the sales comparison approach
- Adjustments are made for differences in location, size, age, and other factors
Indicated Value of Subject Lot
- The value of the subject lot is calculated by adjusting the sales prices of comparable lots for differences in size, view, ground conditions, location, and time
Allocation Method of Land Valuation
- The allocation method of land valuation can be used to determine the value of the subject property's land
- It involves comparing the subject property to similar properties with known land values and improvement costs
Land Value
- Land value is calculated by subtracting the depreciated value of the improvements from the sale price of the property
Principle of Conformity
- The principle of conformity states that market value is determined by factors like zoning, rent controls, interest rates, and other economic conditions
Map Scales
- Urban areas require larger map scales for more detail
- When choosing a map scale, consider the purpose of the map and the area being mapped
Lot Value
- Lot value is calculated by multiplying the area of the lot by the value of the land per acre
Access Unit
- The appropriate access unit for pedestrian access is the street frontage
Sales Comparison Approach
- Adjustments must be made in the order of their importance, starting with the most important adjustment
Development Method
- The development method replicates the actions of subdividers and developers
- It is used to estimate the value of land based on its potential for development
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Description
This quiz is about the basic responsibilities of an assessor in real property taxation. It covers the duties of an assessor in evaluating taxable property.
