2024 LATEST IAAO 101

Basic responsibilities of tax assessors - ANSWER Discover, List, and Value What are the rights of ownership? Bundle of rights - ANSWER Sell, Lease, Use, Give away, Enter or Leave, Right to not do anything. (S.L.U.G.E.R.) What are the Government restrictions placed on bundle of rights? - ANSWER T.E.P.E. Taxation, Eminent domain, police power, escheat In order for a property to have value, it must have? - ANSWER Utility, scarcity, desirability, and purchasing power. Anticipation - ANSWER Present worth of future benefits. Balance - ANSWER Maximum value is obtained when the four agents of production attain a state of equilibrium. Change - ANSWER The tendency of social economic forces affecting supply and demand to shift over time Competition - ANSWER Availability must be in harmony with demand. If one or the other is in excess, prices will increase or decrease. Conformity - ANSWER The value of property depends, in part, on its relationship to its surroundings. Consistent Use - ANSWER Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable property. Contribution - ANSWER The value for a component of property depends on its contribution to the whole. Increasing/Decreasing Returns - ANSWER After a certain point, the addition of successive increments of one agent of production decreases future incomes or amenities. Progression / Regression - ANSWER The value of a lower priced property is increased by its association with better properties of the same type and vice versa. Substitution - ANSWER Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable property. Surplus Productivity - ANSWER Net income remaining after the costs of labor, management, and capital have been paid Supply - ANSWER The amount of goods that producers are willing to sell under various conditions during a given period. Demand - ANSWER Quantities of various goods that people are willing and able to buy during some period, given the choices available to them. What is highest and best use? - ANSWER The use that generates the highest net return to the property over a reasonable time period. What is the criteria for highest and best use? - ANSWER Must be legally permissible, physically possible, financially feasible, and maximally productive. What are the 7 steps of the appraisal process? - ANSWER Define the problem, scope of work, preliminary survey and analysis, data collection and analysis, highest and best use, application of approach(es), reconciliation. The four forces or factors of value are? - ANSWER PEGS, Physical, Economic, Government, and Social What is the typical life cycle of a NBHD? - ANSWER Growth, Stability, Decline, and Revitalization Property tax is a what kind of tax? - ANSWER Ad Valorem The taxable location of personal property is referred to as its? - ANSWER Situs What are the two types of highest and best use analysis? - ANSWER As if vacant and as if improved. What is the point at which the forces of supply and forces of demand meet? - ANSWER Equilibrium What is the basis for adjustments in the sales comparison approach to value is the principle of? - ANSWER Contribution The ownership of all legal rights is known as? - ANSWER Fee Simple What are the 3 types of boundaries used to delineate neighborhoods? - ANSWER Natural, Political, Man-Made