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Kentucky IAAO Residential Evaluation Specialist
(RES) Exam ACTUAL QUESTIONS AND ANSWERS
LATEST UPDATE THIS YEAR
Kentucky IAAO Residential Evaluation Specialist (RES) Exam, covering Kentucky property tax law (KRS
Chapters 132, 133, 136), appraisal methodology, assessment administration, and the role of the
Property Valuation Administrator (PVA).
1. A property owner in McCracken County appeals their assessment, claiming the property should be
tax-exempt as a religious institution. The property is owned by a church extension fund that leases it to
a local congregation under a triple-net lease. According to a recent Kentucky Supreme Court decision,
what is the likely outcome?
A) The property is automatically exempt because the owner is a religious institution
B) The property is exempt because the lessee is a church
C) The property is not exempt because the owner does not occupy it for religious worship
D) The property is exempt regardless of occupancy under Section 170 of the Kentucky Constitution
Answer: C
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Rationale: The Kentucky Supreme Court held that a church extension fund that does not occupy the
property for religious worship is not entitled to a religious exemption even if the lessee is a church .
2. A PVA in a rural Kentucky county is assessing a 15-acre tract used for growing tobacco and raising
cattle. Which type of value must be used for ad valorem tax purposes under Kentucky law?
A) Highest and best use value
B) Fair cash value (market value)
C) Agricultural use value
D) Replacement cost
Answer: B
Rationale: Kentucky law requires all property not exempt to be assessed at 100% of fair cash value,
estimated at the price a property would bring at a fair voluntary sale .
3. A homeowner receives a notice of assessment showing that the property value increased by 25%
compared to the previous year, even though no improvements were made and the neighborhood has
declined. What is the most likely reason?
A) The PVA made an error
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B) The property was previously under-assessed, and the Department of Revenue required equalization
C) The tax rate increased automatically
D) The homeowner failed to file a homestead exemption
Answer: B
Rationale: The Department of Revenue monitors local PVAs and may require revaluation or impose an
equalization increase when sales/assessment ratios fall below state standards .
4. A residential appraiser is valuing a single-family home in Louisville. Which approach is most commonly
used for this property type?
A) Cost approach
B) Income approach
C) Sales comparison approach
D) Subdivision development approach
Answer: C
Rationale: The sales comparison approach is preferred for single-family homes because it relies on recent
sales of similar, comparable properties .
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5. A home with an updated kitchen and bathrooms but a floor plan that is outdated and poorly laid out
is experiencing what type of depreciation?
A) Physical deterioration
B) Functional obsolescence
C) Economic obsolescence
D) External obsolescence
Answer: B
Rationale: Functional obsolescence occurs when design or layout features decrease the property’s utility
or appeal, even if the components are in good condition .
6. A taxpayer in Kentucky wants to appeal their property assessment. According to KRS 133.225, which
of the following must be explained on the Department of Revenue’s public website?
A) The specific tax rate applied to the property
B) The process for appealing assessed values of real property
C) The name of the previous property owner
D) The amount of delinquent taxes owed
Answer: B
Kentucky IAAO Residential Evaluation Specialist
(RES) Exam ACTUAL QUESTIONS AND ANSWERS
LATEST UPDATE THIS YEAR
Kentucky IAAO Residential Evaluation Specialist (RES) Exam, covering Kentucky property tax law (KRS
Chapters 132, 133, 136), appraisal methodology, assessment administration, and the role of the
Property Valuation Administrator (PVA).
1. A property owner in McCracken County appeals their assessment, claiming the property should be
tax-exempt as a religious institution. The property is owned by a church extension fund that leases it to
a local congregation under a triple-net lease. According to a recent Kentucky Supreme Court decision,
what is the likely outcome?
A) The property is automatically exempt because the owner is a religious institution
B) The property is exempt because the lessee is a church
C) The property is not exempt because the owner does not occupy it for religious worship
D) The property is exempt regardless of occupancy under Section 170 of the Kentucky Constitution
Answer: C
, Page 2 of 141
Rationale: The Kentucky Supreme Court held that a church extension fund that does not occupy the
property for religious worship is not entitled to a religious exemption even if the lessee is a church .
2. A PVA in a rural Kentucky county is assessing a 15-acre tract used for growing tobacco and raising
cattle. Which type of value must be used for ad valorem tax purposes under Kentucky law?
A) Highest and best use value
B) Fair cash value (market value)
C) Agricultural use value
D) Replacement cost
Answer: B
Rationale: Kentucky law requires all property not exempt to be assessed at 100% of fair cash value,
estimated at the price a property would bring at a fair voluntary sale .
3. A homeowner receives a notice of assessment showing that the property value increased by 25%
compared to the previous year, even though no improvements were made and the neighborhood has
declined. What is the most likely reason?
A) The PVA made an error
, Page 3 of 141
B) The property was previously under-assessed, and the Department of Revenue required equalization
C) The tax rate increased automatically
D) The homeowner failed to file a homestead exemption
Answer: B
Rationale: The Department of Revenue monitors local PVAs and may require revaluation or impose an
equalization increase when sales/assessment ratios fall below state standards .
4. A residential appraiser is valuing a single-family home in Louisville. Which approach is most commonly
used for this property type?
A) Cost approach
B) Income approach
C) Sales comparison approach
D) Subdivision development approach
Answer: C
Rationale: The sales comparison approach is preferred for single-family homes because it relies on recent
sales of similar, comparable properties .
, Page 4 of 141
5. A home with an updated kitchen and bathrooms but a floor plan that is outdated and poorly laid out
is experiencing what type of depreciation?
A) Physical deterioration
B) Functional obsolescence
C) Economic obsolescence
D) External obsolescence
Answer: B
Rationale: Functional obsolescence occurs when design or layout features decrease the property’s utility
or appeal, even if the components are in good condition .
6. A taxpayer in Kentucky wants to appeal their property assessment. According to KRS 133.225, which
of the following must be explained on the Department of Revenue’s public website?
A) The specific tax rate applied to the property
B) The process for appealing assessed values of real property
C) The name of the previous property owner
D) The amount of delinquent taxes owed
Answer: B
