IAAO 402 FINAL EXAM STUDY GUIDE ||
2025/2026 COMPLETE QUESTIONS &
CORRECT ANSWERS || 100% VERIFIED PASS
<UPDATED>
1. Describe the major disadvantage of fractional assessment ratio (classification) systems. -
ANSWER Lessens system understadability
2. ____________________________________ and _____________________________
describe two means by which state governments restrict local governments' revenue
raising authority in your state. - ANSWER spending limitations
3. elections or super-majority required for new taxes etc
4. An example of a mechanism sometimes used to temporarily relieve property tax burden
is __________________________ _______________________. - ANSWER tax
deferral
,5. Exemptions often shift property taxes to less favorited property tax payers.
_________________________ is one way to prevent this type of shift without reducing
taxing district revenue. - ANSWER substitute funding such as revenue sharing, state
aide, user fees, or local non-property taxes.
6. Federalism in the US: - ANSWER enables the sharing of governmental powers
between states and the federal government.
7. Fiscal federalism: - ANSWER tends to create shared responsibilities of state and
federal and funding mechanisms
8. A form of economic incentive often used to revitalize depressed areas
is__________________________________________________. - ANSWER tax
increment financing
9. General equilibrium analysis is considered more difficult than partial equilibrium analysis
because: - ANSWER it attempt to account for behavioral and other changes due to a
higher tax
,10. General revenue is all government revenue except ___________________,
_____________________, and _______________________ revenue.
- ANSWER utility
liquor store
insurance trust
11. ________________________ and ____________________________ are two common
partial property tax exemptions. - ANSWER homestead
agricultural use value
12. Greater certainty about the law and great accessibility to non-lawyers is a claimed
advantage of which common legal system? - ANSWER civil law
13. How does a federal system of government differ from a unitary system of government? -
ANSWER In a unitary government, states derive their powers from the national
government. The system is hierarchical with the power of the national government
suppressing that of the states and the states serving like departments of the national
government.
14. United Kingdom
, 15. How do federal - state relations differ from state - local relations? How are they similar? -
ANSWER Differ:
16. No constitutional basis for local government and they derive their power from the states
(Dillon's Rule).
17. Similar:
18. States reside within the central government as localities reside within state governments.
19. States aide local governments with grants and indirect aid through the tax code in a
similar manner to the way national government aids state governments with grants and
indirect aid through the tax code.
20. If a supervisory agency discovered that a few local assessment districts are not fully
complying with a new requirement that all properties be reappraised every four years
instead of the previous six years, which of the following actions is least efficient and
effective? - ANSWER Proposing to assume responsibility for property appraisal
statement.
21. Initiating programs to ensure that all districts understand the new requirement.
2025/2026 COMPLETE QUESTIONS &
CORRECT ANSWERS || 100% VERIFIED PASS
<UPDATED>
1. Describe the major disadvantage of fractional assessment ratio (classification) systems. -
ANSWER Lessens system understadability
2. ____________________________________ and _____________________________
describe two means by which state governments restrict local governments' revenue
raising authority in your state. - ANSWER spending limitations
3. elections or super-majority required for new taxes etc
4. An example of a mechanism sometimes used to temporarily relieve property tax burden
is __________________________ _______________________. - ANSWER tax
deferral
,5. Exemptions often shift property taxes to less favorited property tax payers.
_________________________ is one way to prevent this type of shift without reducing
taxing district revenue. - ANSWER substitute funding such as revenue sharing, state
aide, user fees, or local non-property taxes.
6. Federalism in the US: - ANSWER enables the sharing of governmental powers
between states and the federal government.
7. Fiscal federalism: - ANSWER tends to create shared responsibilities of state and
federal and funding mechanisms
8. A form of economic incentive often used to revitalize depressed areas
is__________________________________________________. - ANSWER tax
increment financing
9. General equilibrium analysis is considered more difficult than partial equilibrium analysis
because: - ANSWER it attempt to account for behavioral and other changes due to a
higher tax
,10. General revenue is all government revenue except ___________________,
_____________________, and _______________________ revenue.
- ANSWER utility
liquor store
insurance trust
11. ________________________ and ____________________________ are two common
partial property tax exemptions. - ANSWER homestead
agricultural use value
12. Greater certainty about the law and great accessibility to non-lawyers is a claimed
advantage of which common legal system? - ANSWER civil law
13. How does a federal system of government differ from a unitary system of government? -
ANSWER In a unitary government, states derive their powers from the national
government. The system is hierarchical with the power of the national government
suppressing that of the states and the states serving like departments of the national
government.
14. United Kingdom
, 15. How do federal - state relations differ from state - local relations? How are they similar? -
ANSWER Differ:
16. No constitutional basis for local government and they derive their power from the states
(Dillon's Rule).
17. Similar:
18. States reside within the central government as localities reside within state governments.
19. States aide local governments with grants and indirect aid through the tax code in a
similar manner to the way national government aids state governments with grants and
indirect aid through the tax code.
20. If a supervisory agency discovered that a few local assessment districts are not fully
complying with a new requirement that all properties be reappraised every four years
instead of the previous six years, which of the following actions is least efficient and
effective? - ANSWER Proposing to assume responsibility for property appraisal
statement.
21. Initiating programs to ensure that all districts understand the new requirement.
