RPA LEVEL 3 CORRECT FINALS ANSWERS AND
QUESTIONS SET A+
✔✔Which of the following best describes taxable value? - ✔✔Appraised value less the
total amount of exemptions that apply
✔✔____________ is not exempt under state law. - ✔✔Personal property used to
generate income within the state of Texas
✔✔The phase of the Tax Cycle in which the governing body sets the tax rate is: -
✔✔Assessment
✔✔_________ may not be protested by a property owner. - ✔✔Appraisal of a category
of property
✔✔In most counties, the appraisal review board must complete substantially all
hearings and approve the appraisal records by: - ✔✔July 20
✔✔If a taxing unit wants to generate a levy of $50,000 and its total taxable value is $20
million, what tax rate must it impose? - ✔✔$.25 per $100
✔✔Mr. Jones home has a appraised value of $400,000. The exemptions for his school
district are $40,000 general exemption and the 20% optional exemption. The school
districts tax rate is $1.10 per $100. What is Mr. Jones' tax amount? - ✔✔$3,080.00
✔✔______________ Refers to a document prepared by the collector that shows the
amount of delinquent tax, penalty, and interest due on a property. - ✔✔Tax certificate
✔✔What is the value limitation for binding arbitration? - ✔✔Residence homestead or
$5,000,000
✔✔In most countries, the Chief Appraiser must certify the appraisal role or certified
estimate to all the taxing jurisdictions by: - ✔✔July 25
,✔✔What date starts the Equalization Phase of the Tax Cycle? - ✔✔May 15
✔✔What date does the Chief Appraiser turn the records over to the Appraisal Review
Board? - ✔✔May 15 or soon afterwards as possible
✔✔In what phase of the Tax Cycle are the records approved by the ARB? -
✔✔Equalization
✔✔Who has control over the appraisal records during the Equalization Phase? -
✔✔Appraisal Review Board
✔✔When are tax bills due? - ✔✔Upon receipt
✔✔Who approves the tax roll? - ✔✔Governing Body
✔✔Who certifies the tax role? - ✔✔Chief Appraiser
✔✔A governing body is responsible for all of the following: - ✔✔Adopt a tax rate each
year
Approve a budget each year
Approve the tax role
✔✔"Accepted appraisal practice" means producing an estimate of value through: -
✔✔an orderly set of steps which eliminate bias and enable testing
✔✔What is a market-value transaction? - ✔✔An open-market, arms-length transaction
where both the buyer and seller are aware of all relevant components to the property
and are seeking to maximize their profit.
✔✔Land value may be estimated using the: - ✔✔Market or Income approach
✔✔Mike bought a house and a lot of $120,000. He spends $120,000 to paint the house
and make other repairs, and then sells the property for $150,000. What economic
principle explains the difference between the cost of the repairs and the increase in the
sale price? - ✔✔Contribution
✔✔Which of the following best explains the bundle of rights? - ✔✔Total ownership of
property consists of owning a number of distinct and separable rights
✔✔A value schedule will reflect the value of a structure would have if it were: - ✔✔100%
good
, ✔✔The chief appraiser must, under law, use the income approach when appraising: -
✔✔All commercial property
✔✔When using the cost approach to value, what should you remember to do? -
✔✔Account for indirect costs
✔✔Depreciation refers to an improvement's loss of value ______ - ✔✔from all causes
✔✔You must always adjust, or consider adjusting the value schedule to reflect the
subject property's: - ✔✔Depriciation
✔✔Most appraisal districts base value schedules for residential properties on a
combination of: - ✔✔Cost Approach and Market Approach
✔✔When the most probable use of a property is single-family residential, the use is: -
✔✔Consumptive
✔✔Calculate the area of a circle if the diameter is 25 feet: (Pi = 3.1415) - ✔✔490.88 Sq
ft
✔✔If a circle has a diameter of 40 feet, what is the square footage of 1/2 the circle? -
✔✔628.32
✔✔When a person owns property, the person has six basic rights. These are often
called the bundle of rights. Which of the following is the bundle of rights? - ✔✔Sell,
lease, use, give, enter, & refuse (SLUGER)
✔✔Choose the correct types of governmental restrictions that may limit the exercise of
the bundle of rights. - ✔✔Taxation, eminent domain, police power, escheat
✔✔What is escheat? - ✔✔Abandonment (dying with no will and no heirs with the
property being taken by the state government)
✔✔Cash equivalency analysis requires adjusting the sales price of a comparable when:
- ✔✔Seller pays points on the buyer's new loan to provide the buyer with a below
market interest rate
✔✔Sale Price = $125,000 Monthly Rent = $1,250. What is the Monthly GRM? - ✔✔100
(V=GR^m x r^m)
✔✔Explain "Value in use" - ✔✔Value is based upon a specific land use for the property
QUESTIONS SET A+
✔✔Which of the following best describes taxable value? - ✔✔Appraised value less the
total amount of exemptions that apply
✔✔____________ is not exempt under state law. - ✔✔Personal property used to
generate income within the state of Texas
✔✔The phase of the Tax Cycle in which the governing body sets the tax rate is: -
✔✔Assessment
✔✔_________ may not be protested by a property owner. - ✔✔Appraisal of a category
of property
✔✔In most counties, the appraisal review board must complete substantially all
hearings and approve the appraisal records by: - ✔✔July 20
✔✔If a taxing unit wants to generate a levy of $50,000 and its total taxable value is $20
million, what tax rate must it impose? - ✔✔$.25 per $100
✔✔Mr. Jones home has a appraised value of $400,000. The exemptions for his school
district are $40,000 general exemption and the 20% optional exemption. The school
districts tax rate is $1.10 per $100. What is Mr. Jones' tax amount? - ✔✔$3,080.00
✔✔______________ Refers to a document prepared by the collector that shows the
amount of delinquent tax, penalty, and interest due on a property. - ✔✔Tax certificate
✔✔What is the value limitation for binding arbitration? - ✔✔Residence homestead or
$5,000,000
✔✔In most countries, the Chief Appraiser must certify the appraisal role or certified
estimate to all the taxing jurisdictions by: - ✔✔July 25
,✔✔What date starts the Equalization Phase of the Tax Cycle? - ✔✔May 15
✔✔What date does the Chief Appraiser turn the records over to the Appraisal Review
Board? - ✔✔May 15 or soon afterwards as possible
✔✔In what phase of the Tax Cycle are the records approved by the ARB? -
✔✔Equalization
✔✔Who has control over the appraisal records during the Equalization Phase? -
✔✔Appraisal Review Board
✔✔When are tax bills due? - ✔✔Upon receipt
✔✔Who approves the tax roll? - ✔✔Governing Body
✔✔Who certifies the tax role? - ✔✔Chief Appraiser
✔✔A governing body is responsible for all of the following: - ✔✔Adopt a tax rate each
year
Approve a budget each year
Approve the tax role
✔✔"Accepted appraisal practice" means producing an estimate of value through: -
✔✔an orderly set of steps which eliminate bias and enable testing
✔✔What is a market-value transaction? - ✔✔An open-market, arms-length transaction
where both the buyer and seller are aware of all relevant components to the property
and are seeking to maximize their profit.
✔✔Land value may be estimated using the: - ✔✔Market or Income approach
✔✔Mike bought a house and a lot of $120,000. He spends $120,000 to paint the house
and make other repairs, and then sells the property for $150,000. What economic
principle explains the difference between the cost of the repairs and the increase in the
sale price? - ✔✔Contribution
✔✔Which of the following best explains the bundle of rights? - ✔✔Total ownership of
property consists of owning a number of distinct and separable rights
✔✔A value schedule will reflect the value of a structure would have if it were: - ✔✔100%
good
, ✔✔The chief appraiser must, under law, use the income approach when appraising: -
✔✔All commercial property
✔✔When using the cost approach to value, what should you remember to do? -
✔✔Account for indirect costs
✔✔Depreciation refers to an improvement's loss of value ______ - ✔✔from all causes
✔✔You must always adjust, or consider adjusting the value schedule to reflect the
subject property's: - ✔✔Depriciation
✔✔Most appraisal districts base value schedules for residential properties on a
combination of: - ✔✔Cost Approach and Market Approach
✔✔When the most probable use of a property is single-family residential, the use is: -
✔✔Consumptive
✔✔Calculate the area of a circle if the diameter is 25 feet: (Pi = 3.1415) - ✔✔490.88 Sq
ft
✔✔If a circle has a diameter of 40 feet, what is the square footage of 1/2 the circle? -
✔✔628.32
✔✔When a person owns property, the person has six basic rights. These are often
called the bundle of rights. Which of the following is the bundle of rights? - ✔✔Sell,
lease, use, give, enter, & refuse (SLUGER)
✔✔Choose the correct types of governmental restrictions that may limit the exercise of
the bundle of rights. - ✔✔Taxation, eminent domain, police power, escheat
✔✔What is escheat? - ✔✔Abandonment (dying with no will and no heirs with the
property being taken by the state government)
✔✔Cash equivalency analysis requires adjusting the sales price of a comparable when:
- ✔✔Seller pays points on the buyer's new loan to provide the buyer with a below
market interest rate
✔✔Sale Price = $125,000 Monthly Rent = $1,250. What is the Monthly GRM? - ✔✔100
(V=GR^m x r^m)
✔✔Explain "Value in use" - ✔✔Value is based upon a specific land use for the property
