IAAO 101 - Review Questions and Answers 2023 with
complete solution
The property tax is an ____ __________ tax, meaning it is based on value.
ad valorem
The assessor is responsible for the _______, ________, and __________ of all
taxable property.
discovery
listing
valuation
The taxable location of personal property is referred to as its __________.
situs
An estimate of value, usually in writing, of an adequately described property, as
of a given date, is termed ___ ___________.
an appraisal
A jurisdiction's tax rate is determined by dividing the _________ to be derived
from property tax by the total _________ ____________ of the taxing jurisdiction.
budget
assessed valuation
The type of value usually estimated by the assessor is __________ value.
market
The _________ ________ _________ reflects the ratio between the current tax bill
and the property value.
effective tax rate
In order for a property to have value, it must have ______, _______, ________ and
__________ __________ _________.
utility
scarcity
desirability
effective purchasing power
The use that generates the highest net return to a property over a reasonable time
period is called ________ _______ _________ _________.
highest and best use
The principle of __________ states that maximum value of a neighborhood is
attained when the uses of land are perfectly complementary.
balance
Which appraisal principle affirms that land cannot be valued on the basis of one
use while improvements are valued on the basis of another?
Consistent use
List the four tests that the appraiser must make in the analysis of the highest and
best use.
Legally permissible
Physically possible
Financially feasible
Most productive
, _______ ________ is a parcel of land and any structures or improvements that are
permanently affixed thereto.
Real estate
Property is considered ________ if it can be moved without causing any damage
or change to either the item of property or the structure to which it is attached.
personal
Assessment level times the tax rate equals the _________ ______ ________.
effective tax rate
____________ is the point at which the forces of supply and forces of demand
meet.
Equilibrium
List the two types of highest and best use analysis.
A. As if vacant.
B. As if improved.
The typical life cycle of a neighborhood includes ________, ________, _______
and ___________.
growth
stability
decline
revitalization
What elements of the marketplace are most likely to contribute to a change in
demand?
Consumer tastes and preferences
Consumer income
Price of related commodities
Consumer expectations
Price of the commodity
Market value is defined as the most probable price of a property in terms of
money, assuming
A. Buyer and seller are typically motivated
B. A reasonable time is allowed for exposure in the open market.
C. Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto.
D. All of the above.
________ refers to the amount of goods that producers are willing to sell at a
given price during a specified time period.
Supply
Ownership of all legal rights to property is limited by government in four ways:
Taxation
Police Power
Eminent domain
Escheat
An assessed value not statutorily at 100 percent of market value is known as a
_________ assessment.
fractional
complete solution
The property tax is an ____ __________ tax, meaning it is based on value.
ad valorem
The assessor is responsible for the _______, ________, and __________ of all
taxable property.
discovery
listing
valuation
The taxable location of personal property is referred to as its __________.
situs
An estimate of value, usually in writing, of an adequately described property, as
of a given date, is termed ___ ___________.
an appraisal
A jurisdiction's tax rate is determined by dividing the _________ to be derived
from property tax by the total _________ ____________ of the taxing jurisdiction.
budget
assessed valuation
The type of value usually estimated by the assessor is __________ value.
market
The _________ ________ _________ reflects the ratio between the current tax bill
and the property value.
effective tax rate
In order for a property to have value, it must have ______, _______, ________ and
__________ __________ _________.
utility
scarcity
desirability
effective purchasing power
The use that generates the highest net return to a property over a reasonable time
period is called ________ _______ _________ _________.
highest and best use
The principle of __________ states that maximum value of a neighborhood is
attained when the uses of land are perfectly complementary.
balance
Which appraisal principle affirms that land cannot be valued on the basis of one
use while improvements are valued on the basis of another?
Consistent use
List the four tests that the appraiser must make in the analysis of the highest and
best use.
Legally permissible
Physically possible
Financially feasible
Most productive
, _______ ________ is a parcel of land and any structures or improvements that are
permanently affixed thereto.
Real estate
Property is considered ________ if it can be moved without causing any damage
or change to either the item of property or the structure to which it is attached.
personal
Assessment level times the tax rate equals the _________ ______ ________.
effective tax rate
____________ is the point at which the forces of supply and forces of demand
meet.
Equilibrium
List the two types of highest and best use analysis.
A. As if vacant.
B. As if improved.
The typical life cycle of a neighborhood includes ________, ________, _______
and ___________.
growth
stability
decline
revitalization
What elements of the marketplace are most likely to contribute to a change in
demand?
Consumer tastes and preferences
Consumer income
Price of related commodities
Consumer expectations
Price of the commodity
Market value is defined as the most probable price of a property in terms of
money, assuming
A. Buyer and seller are typically motivated
B. A reasonable time is allowed for exposure in the open market.
C. Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto.
D. All of the above.
________ refers to the amount of goods that producers are willing to sell at a
given price during a specified time period.
Supply
Ownership of all legal rights to property is limited by government in four ways:
Taxation
Police Power
Eminent domain
Escheat
An assessed value not statutorily at 100 percent of market value is known as a
_________ assessment.
fractional
