PROPERTY TAX CONSULTANT (TX)
EXAM QUESTIONS WITH CORRECT
ANSWERS
Chattel - Correct Answers -Personal Property
Highest and Best Use - Correct Answers -That use of a parcel of land which will
produce the highest return on the investment
Ad Valorem - Correct Answers -Taxed according to value
Appraisal Roll - Correct Answers -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.
Depreciation - Correct Answers -Loss of usefulness and value due to physical
deterioration, functionality, or economic conditions.
Gross Rent Multiplier (GRM) - Correct Answers -A number, that when multiplied by a
property's gross rents, producers an estimate of market value. Appraisal districts may
use a gross rent multiplier primarily on residential property that is not owner occupied in
lieu of other appraisal methods if it produces the best estimate of fair market value. The
multiplier is derived from interest and risks rates common to the area much like the
rates used in the income approach to value.
Cost Approach to Value - Correct Answers -Method of estimating market value based
on current cost to replace, less depreciation. Using the cost approach to estimate
market value is one of three acceptable appraisal methods. Once the current cost to
replace the improvements is established, depreciation is deducted and the value of the
land is added to estimate current market value.
Preferred Method of Appraisal for newly constructed or Unique properties - Correct
Answers -Cost Approach
Comparable Sales or Market Approach - Correct Answers -Method of estimating market
value using sales of comparable properties. Comparable sales approach, or market
approach, is one of the three acceptable appraisal methods for estimating market value.
In single property appraisals, recent sales of like properties are located and adjusted to
, the subject property for age, size, amenities and other characteristics that effect value.
Mass appraisal techniques used by the appraisal district employ the same concept
applying comparable sales within an area to other properties within the same assigned
area.
Three Acceptable Appraisal Methods - Correct Answers -Cost Approach, Market
Approach, Income Approach
The cost approach to value includes the cost to replace the improvement less
depreciation plus - Correct Answers -the value of the land
Forms used by the appraisal district are developed by - Correct Answers -The Texas
State Comptroller, Property Tax Division
The highest and best use of a property - Correct Answers -will produce the highest
return on the investment
Income Approach to Value - Correct Answers -Method of estimating market value based
on the monetary returns that a property can be expected to produce
Preferred Method of Appraisal for Commercial properties - Correct Answers -Income
Approach
Income Producing Personal Property - Correct Answers -Property not permanently
attached to real estate and other assets such as inventories, furniture, and machinery
Intangible Personal Property - Correct Answers -May not be perceived by the senses:
cash, accounts receivable, stocks, contracts, and copyright
Legal Description - Correct Answers -Used to describe the physical location of real
property, may be metes and bounds, surveys, or lot and block
Life Cycle of a Market - Correct Answers -Growth, Stability, Decline Revitalization
Metes and Bounds - Correct Answers -A method of land description that identifies a
parcel by specifying its shape and boundaries
NOI (Net Operating Income) - Correct Answers -Gross income less operating expenses,
vacancies, and collection losses
Parcel - Correct Answers -A specific property made unique by its description of metes
and bounds, lot and block, abstract survey, or other characteristics
Mass Appraisal - Correct Answers -The method by which a group of comparable
properties may be appraised based on the characteristics of the entire property class
EXAM QUESTIONS WITH CORRECT
ANSWERS
Chattel - Correct Answers -Personal Property
Highest and Best Use - Correct Answers -That use of a parcel of land which will
produce the highest return on the investment
Ad Valorem - Correct Answers -Taxed according to value
Appraisal Roll - Correct Answers -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.
Depreciation - Correct Answers -Loss of usefulness and value due to physical
deterioration, functionality, or economic conditions.
Gross Rent Multiplier (GRM) - Correct Answers -A number, that when multiplied by a
property's gross rents, producers an estimate of market value. Appraisal districts may
use a gross rent multiplier primarily on residential property that is not owner occupied in
lieu of other appraisal methods if it produces the best estimate of fair market value. The
multiplier is derived from interest and risks rates common to the area much like the
rates used in the income approach to value.
Cost Approach to Value - Correct Answers -Method of estimating market value based
on current cost to replace, less depreciation. Using the cost approach to estimate
market value is one of three acceptable appraisal methods. Once the current cost to
replace the improvements is established, depreciation is deducted and the value of the
land is added to estimate current market value.
Preferred Method of Appraisal for newly constructed or Unique properties - Correct
Answers -Cost Approach
Comparable Sales or Market Approach - Correct Answers -Method of estimating market
value using sales of comparable properties. Comparable sales approach, or market
approach, is one of the three acceptable appraisal methods for estimating market value.
In single property appraisals, recent sales of like properties are located and adjusted to
, the subject property for age, size, amenities and other characteristics that effect value.
Mass appraisal techniques used by the appraisal district employ the same concept
applying comparable sales within an area to other properties within the same assigned
area.
Three Acceptable Appraisal Methods - Correct Answers -Cost Approach, Market
Approach, Income Approach
The cost approach to value includes the cost to replace the improvement less
depreciation plus - Correct Answers -the value of the land
Forms used by the appraisal district are developed by - Correct Answers -The Texas
State Comptroller, Property Tax Division
The highest and best use of a property - Correct Answers -will produce the highest
return on the investment
Income Approach to Value - Correct Answers -Method of estimating market value based
on the monetary returns that a property can be expected to produce
Preferred Method of Appraisal for Commercial properties - Correct Answers -Income
Approach
Income Producing Personal Property - Correct Answers -Property not permanently
attached to real estate and other assets such as inventories, furniture, and machinery
Intangible Personal Property - Correct Answers -May not be perceived by the senses:
cash, accounts receivable, stocks, contracts, and copyright
Legal Description - Correct Answers -Used to describe the physical location of real
property, may be metes and bounds, surveys, or lot and block
Life Cycle of a Market - Correct Answers -Growth, Stability, Decline Revitalization
Metes and Bounds - Correct Answers -A method of land description that identifies a
parcel by specifying its shape and boundaries
NOI (Net Operating Income) - Correct Answers -Gross income less operating expenses,
vacancies, and collection losses
Parcel - Correct Answers -A specific property made unique by its description of metes
and bounds, lot and block, abstract survey, or other characteristics
Mass Appraisal - Correct Answers -The method by which a group of comparable
properties may be appraised based on the characteristics of the entire property class
