Texas Property Tax Consultant EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!!

Texas Property Tax Consultant EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!! Functional obsolescence - Answer- A flaw in construction, materials or design is known as (Income Producing) Personal Property - Answer- Property not permanently attached to real estate and other assets such as inventories, furniture, and machinery Capitalization Rate - Answer- The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. Net Operating Income - NOI - Answer- Net operating income equals all revenue from the property minus all reasonably necessary operating expenses. Aside from rent, a property might also generate revenue from parking and service fees, like vending and laundry machines. special use property - Answer- property that is taxed on 100% of market value less any exemptions except Escheat - Answer- Ownership passed to state if there are no heirs Principle of Balance - Answer- Holds that value is created and maintained in proportion to balance in the four factors in production. Ad Valorem - Answer- Taxed according to value For omitted BPP, how many years may a chief appraiser go back and add to the appraisal roll - Answer- 2 proceeding years An acre of land contains - Answer- 43,560 square feet Legal Description - Answer- Used to describe the physical location of real property, may be metes and bounds, surveys, or lot and block What is real property according to the Texas Property Tax Code? - Answer- land, improvements, a mine or quarry, minerals in place and standing timber Highest and Best Use (definition, meeting certain conditions) - Answer- The reasonably probable use of property that results in the highest value. This simple definition will serve as a point of departure for examining the concept in the rest of this chapter. To be reasonably probable, a use must meet certain conditions: physically possible (or it is reasonably probable to render it so). legally permissible (or it is reasonably probable to render it so). financially feasible. A taxing unit may elect to allow for split payments, with equal payments due before... - Answer- December 1 and July 1 Effective gross income (EGI) definition - Answer- The anticipated net income from all operation of the real property adjusted for vacancy and collection losses. (DOESN'T INCLUDE EXPENSES) Income capitalization approach definition - Answer- Analyzes the property's capacity to generate future income to indicate the present value. This method of estimating market value is generally used on property that is leased. Chattel - Answer- Personal Property Appraisal Roll - Answer- A listing of all appraisal records, as changed by order of the ARB and approved by that board, constitute the appraisal roll for the district. A listing of all appraisal records within an appraisal district. Depreciation - Answer- Loss of usefulness and value due to physical deterioration, functionality, or economic conditions. Gross Rent Multiplier (GRM) - Answer- A number, that when multiplied by a property's gross rents, producers an estimate of market value. Appraisal districts may use a gross rent multiplier primarily on residential property that is not owner occupied in lieu of other appraisal methods if it produces the best estimate of fair market value. The multiplier is derived from interest and risks rates common to the area much like the rates used in the income approach to value. Cost Approach to Value - Answer- Method of estimating market value based on current cost to replace, less depreciation. Using the cost approach to estimate market value is one of three acceptable appraisal methods. Once the current cost to replace the improvements is established, depreciation is deducted and the value of the land is added to estimate current market value Comparable Sales or Market Approach - Answer- Method of estimating market value using sales of comparable properties. Comparable sales approach, or market approach, is one of the three acceptable appraisal methods for estimating market value. In single property appraisals, recent sales of like properties are located and adjusted to the subject property for age, size, amenities and other characteristics that effect value. Mass appraisal techniques used by the appraisal district employ the same concept applying comparable sales within an area to other properties within the same assigned area. Intangible Personal Property - Answer- May not be perceived by the senses: cash, accounts receivable, stocks, contracts, and copyright Life Cycle of a Market - Answer- Growth, Stability, Decline Revitalization Metes and Bounds - Answer- A method of land description that identifies a parcel by specifying its shape and boundaries Parcel - Answer- A specific property made unique by its description of metes and bounds, lot and block, abstract survey, or other characteristics Mass Appraisal - Answer- The method by which a group of comparable properties may be appraised based on the characteristics of the entire property class Residential Mass Appraisal - Answer- Begins by defining areas with like influences such as school district, construction type and age. Sales within the subject area may then be used to appraise the entire area with relatively few adjustments Plat - Answer- A map that shows the location and boundaries of individual parcels of properties Realty - Answer- Real property Receprocity - Answer- An arrangement by which one state honors licenses issued by another state and vice versa Rendition - Answer- An annual report filed with the appraisal district that reflects the name and address of the property owner, the type and location of the property, and the owner's opinion of market value.