IAAO 101 EXAM STUDY GUIDE
Responsibilities of the Assessor
Basic Responsibilities
• Assessing all taxable property
• Listing, valuing, and discovering properties
Discovery of Property
• Conducting periodic on-site inspections of properties
Property Tax Calculation
Ad Valorem Tax
• Property tax based on value
Calculating Property Tax
• Given: Actual value=$175,000; assessment level=20 percent; tax rate=92.8 mills
• Calculation: $175,000 * 20% * 0.0928 = $3248.00
Tax Rate Conversion
• Converting $13.30 per 100 to decimal: 0.1330
Effective Tax Rate
• Assessment level multiplied by the tax rate equals the effective tax rate
Calculating Tax Rate
• Given: Budget=$6,000,000; Market Value=$800,000,000; Assessment Level=50%; Non-
property tax revenue=$1,000,000
• Calculation: ($6,000,000 - $1,000,000) / ($800,000,000 * 0.50) = $1.25
Property Ownership
Definition of Real Estate
• Real estate includes physical land and permanent attachments
Property Rights
• Governmental restriction to the 'bundle of rights': eminent domain
Responsibilities of the Assessor
Basic Responsibilities
• Assessing all taxable property
• Listing, valuing, and discovering properties
Discovery of Property
• Conducting periodic on-site inspections of properties
Property Tax Calculation
Ad Valorem Tax
• Property tax based on value
Calculating Property Tax
• Given: Actual value=$175,000; assessment level=20 percent; tax rate=92.8 mills
• Calculation: $175,000 * 20% * 0.0928 = $3248.00
Tax Rate Conversion
• Converting $13.30 per 100 to decimal: 0.1330
Effective Tax Rate
• Assessment level multiplied by the tax rate equals the effective tax rate
Calculating Tax Rate
• Given: Budget=$6,000,000; Market Value=$800,000,000; Assessment Level=50%; Non-
property tax revenue=$1,000,000
• Calculation: ($6,000,000 - $1,000,000) / ($800,000,000 * 0.50) = $1.25
Property Ownership
Definition of Real Estate
• Real estate includes physical land and permanent attachments
Property Rights
• Governmental restriction to the 'bundle of rights': eminent domain
