Texas Property Tax Consultant Exam Practice
Questions with Definitive Solutions
functional obsolescence - Answer A flaw in construction, materials or design is known as
(Income Producing) Personal Property - Answer Property not permanently attached to real estate and
other assets such as inventories, furniture, and machinery
Capitalization Rate - Answer The capitalization rate is the rate of return on a real estate investment
property based on the income that the property is expected to generate.
Net Operating Income - NOI - Answer Net operating income equals all revenue from the property minus
all reasonably necessary operating expenses. Aside from rent, a property might also generate revenue
from parking and service fees, like vending and laundry machines.
special use property - Answer property that is taxed on 100% of market value less any exemptions
except
Escheat - Answer Ownership passed to state if there are no heirs
Principle of Balance - Answer Holds that value is created and maintained in proportion to balance in the
four factors in production.
Ad Valorem - Answer Taxed according to value
For omitted BPP, how many years may a chief appraiser go back and add to the appraisal roll - Answer 2
proceeding years
An acre of land contains - Answer 43,560 square feet
Legal Description - Answer Used to describe the physical location of real property, may be metes and
bounds, surveys, or lot and block
, What is real property according to the Texas Property Tax Code? - Answer land, improvements, a mine
or quarry, minerals in place and standing timber
Highest and Best Use (definition, meeting certain conditions) - Answer The reasonably probable use of
property that results in the highest value.
This simple definition will serve as a point of departure for examining
the concept in the rest of this chapter.
To be reasonably probable, a use must meet certain conditions:
physically possible (or it is reasonably probable to
render it so).
legally permissible (or it is reasonably probable to
render it so).
financially feasible.
A taxing unit may elect to allow for split payments, with equal payments due before... - Answer
December 1 and July 1
Effective gross income (EGI) definition - Answer The anticipated net income from all operation of the
real property adjusted for vacancy and collection losses. (DOESN'T INCLUDE EXPENSES)
Income capitalization approach definition - Answer Analyzes the property's capacity to generate future
income to indicate the present value. This method of estimating market value is generally used on
property that is leased.
Chattel - Answer Personal Property
Appraisal Roll - Answer A listing of all appraisal records, as changed by order of the ARB and approved by
that board, constitute the appraisal roll for the district. A listing of all appraisal records within an
appraisal district.
Questions with Definitive Solutions
functional obsolescence - Answer A flaw in construction, materials or design is known as
(Income Producing) Personal Property - Answer Property not permanently attached to real estate and
other assets such as inventories, furniture, and machinery
Capitalization Rate - Answer The capitalization rate is the rate of return on a real estate investment
property based on the income that the property is expected to generate.
Net Operating Income - NOI - Answer Net operating income equals all revenue from the property minus
all reasonably necessary operating expenses. Aside from rent, a property might also generate revenue
from parking and service fees, like vending and laundry machines.
special use property - Answer property that is taxed on 100% of market value less any exemptions
except
Escheat - Answer Ownership passed to state if there are no heirs
Principle of Balance - Answer Holds that value is created and maintained in proportion to balance in the
four factors in production.
Ad Valorem - Answer Taxed according to value
For omitted BPP, how many years may a chief appraiser go back and add to the appraisal roll - Answer 2
proceeding years
An acre of land contains - Answer 43,560 square feet
Legal Description - Answer Used to describe the physical location of real property, may be metes and
bounds, surveys, or lot and block
, What is real property according to the Texas Property Tax Code? - Answer land, improvements, a mine
or quarry, minerals in place and standing timber
Highest and Best Use (definition, meeting certain conditions) - Answer The reasonably probable use of
property that results in the highest value.
This simple definition will serve as a point of departure for examining
the concept in the rest of this chapter.
To be reasonably probable, a use must meet certain conditions:
physically possible (or it is reasonably probable to
render it so).
legally permissible (or it is reasonably probable to
render it so).
financially feasible.
A taxing unit may elect to allow for split payments, with equal payments due before... - Answer
December 1 and July 1
Effective gross income (EGI) definition - Answer The anticipated net income from all operation of the
real property adjusted for vacancy and collection losses. (DOESN'T INCLUDE EXPENSES)
Income capitalization approach definition - Answer Analyzes the property's capacity to generate future
income to indicate the present value. This method of estimating market value is generally used on
property that is leased.
Chattel - Answer Personal Property
Appraisal Roll - Answer A listing of all appraisal records, as changed by order of the ARB and approved by
that board, constitute the appraisal roll for the district. A listing of all appraisal records within an
appraisal district.
