1|Page
Kentucky IAAO Residential Evaluation Specialist
(RES) Exam ACTUAL VERIFIED QUESTIONS AND
ANSWERS LATEST UPDATE.pdf
The value of property depends, in part, on its relationship
to its surroundings. - Answer-Principle of Conformity
A property must be valued with a single use for the entire
property. - Answer-Principle of Consistent use
The value for a component of property depends on
contribution to the whole. - Answer-Principle of
Contribution
After a certain point, the addition of successive increments
of one agent of production decreases future incomes or
amenities. - Answer-Principle of Increasing/Decreasing
Returns
The value of lower priced property is increased by its
association with better properties of the same type -
Answer-Principle of Progression / Regression
,2|Page
Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property. -
Answer-Principle of Substitution
Net income remaining after the costs of labor,
management and capital have been paid. - Answer-
Principle of Surplus Productivity
The amount of goods that producers are willing to sell
under various conditions during a given period. - Answer-
Principle of Supply
Quantities of various goods that people are willing and
able to buy during some period, given the choices
available to them. - Answer-Principle of Demand
Property Tax is _________________ tax, meaning it is
based on value. - Answer-Ad Valorem
The assessor is responsible for
the__________________,________________ and
____________________ of all taxable property. - Answer-
Discovery, listing and valuation
,3|Page
An estimate of value, usually in writing, of an adequately
described property, as of a given date, is termed
____________________________ - Answer-an appraisal
A jurisdiction's tax rate is determined by dividing the
________________ to be derived from property tax by the
total assessed value of the taxing jurisdiction. - Answer-
budget
The type of value usually estimated by the assessor is
__________________ ________________ - Answer-
Market Value
The ___________ _______________ ______________
reflects the ratio between the current tax bill and the
property value. - Answer-Effective Tax Rate
In order for a property to have value, it must have
____________, ______________, _______________,
and ______________ - Answer-utility, scarcity, desirability
and effect purchasing power
, 4|Page
The use that generates the highest net return to a property
over a reasonable time perior is called its
______________ and ______________ use - Answer-
Highest and best
Multiply the assessment ratio by the tax rate to determine
the ______________ - Answer-Effective Tax Rate
Find the effective tax rate (ETR) expressed as a
percentage when the following is known:
Annual Real Estate Taxes: $ 8,000,000
Total Market Value $ 400,000
Assessment Ratio 50%
Tax Rate 4%
Assessed Value $200,000,000 - Answer-.05 x .04 = .02 or
2%
Find the effective tax rate (ETR) expressed as a
percentage when the following is known:
Total Budget: $ 200,000,000
Total Market Value $10,000,000,000
Assessed Value $ 2,500,000,000
Kentucky IAAO Residential Evaluation Specialist
(RES) Exam ACTUAL VERIFIED QUESTIONS AND
ANSWERS LATEST UPDATE.pdf
The value of property depends, in part, on its relationship
to its surroundings. - Answer-Principle of Conformity
A property must be valued with a single use for the entire
property. - Answer-Principle of Consistent use
The value for a component of property depends on
contribution to the whole. - Answer-Principle of
Contribution
After a certain point, the addition of successive increments
of one agent of production decreases future incomes or
amenities. - Answer-Principle of Increasing/Decreasing
Returns
The value of lower priced property is increased by its
association with better properties of the same type -
Answer-Principle of Progression / Regression
,2|Page
Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property. -
Answer-Principle of Substitution
Net income remaining after the costs of labor,
management and capital have been paid. - Answer-
Principle of Surplus Productivity
The amount of goods that producers are willing to sell
under various conditions during a given period. - Answer-
Principle of Supply
Quantities of various goods that people are willing and
able to buy during some period, given the choices
available to them. - Answer-Principle of Demand
Property Tax is _________________ tax, meaning it is
based on value. - Answer-Ad Valorem
The assessor is responsible for
the__________________,________________ and
____________________ of all taxable property. - Answer-
Discovery, listing and valuation
,3|Page
An estimate of value, usually in writing, of an adequately
described property, as of a given date, is termed
____________________________ - Answer-an appraisal
A jurisdiction's tax rate is determined by dividing the
________________ to be derived from property tax by the
total assessed value of the taxing jurisdiction. - Answer-
budget
The type of value usually estimated by the assessor is
__________________ ________________ - Answer-
Market Value
The ___________ _______________ ______________
reflects the ratio between the current tax bill and the
property value. - Answer-Effective Tax Rate
In order for a property to have value, it must have
____________, ______________, _______________,
and ______________ - Answer-utility, scarcity, desirability
and effect purchasing power
, 4|Page
The use that generates the highest net return to a property
over a reasonable time perior is called its
______________ and ______________ use - Answer-
Highest and best
Multiply the assessment ratio by the tax rate to determine
the ______________ - Answer-Effective Tax Rate
Find the effective tax rate (ETR) expressed as a
percentage when the following is known:
Annual Real Estate Taxes: $ 8,000,000
Total Market Value $ 400,000
Assessment Ratio 50%
Tax Rate 4%
Assessed Value $200,000,000 - Answer-.05 x .04 = .02 or
2%
Find the effective tax rate (ETR) expressed as a
percentage when the following is known:
Total Budget: $ 200,000,000
Total Market Value $10,000,000,000
Assessed Value $ 2,500,000,000
