LATEST 2024 IAAO 101 - Review Questions

The property tax is an ____ __________ tax, meaning it is based on value. - ANSWER ad valorem The assessor is responsible for the _______, ________, and __________ of all taxable property. - ANSWER discovery listing valuation The taxable location of personal property is referred to as its __________. - ANSWER situs 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 _________ ____________ of the taxing jurisdiction. - ANSWER budget assessed valuation The type of value usually estimated by the assessor is __________ value. - ANSWER market 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 effective purchasing power The use that generates the highest net return to a property over a reasonable time period is called ________ _______ _________ _________. - ANSWER highest and best use The principle of __________ states that maximum value of a neighborhood is attained when the uses of land are perfectly complementary. - ANSWER 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? - ANSWER Consistent use List the four tests that the appraiser must make in the analysis of the highest and best use. - ANSWER Legally permissible Physically possible Financially feasible Most productive _______ ________ is a parcel of land and any structures or improvements that are permanently affixed thereto. - ANSWER 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. - ANSWER personal Assessment level times the tax rate equals the _________ ______ ________. - ANSWER effective tax rate ____________ is the point at which the forces of supply and forces of demand meet. - ANSWER Equilibrium List the two types of highest and best use analysis. - ANSWER A. As if vacant. B. As if improved. The typical life cycle of a neighborhood includes ________, ________, _______ and ___________. - ANSWER growth stability decline revitalization What elements of the marketplace are most likely to contribute to a change in demand? - ANSWER 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 - ANSWER 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.