IAAO101 Exam 2023 with Complete Solutions

ad valorem - ANSWER-According to Value The basic responsibilities of an Appraiser to all taxable property. - ANSWER-1. Discovery 2. Listing 3. Valuation The taxable location of personal property is referred to as its' - ANSWER-Situs The type of value usually estimated by an Appraiser is the - ANSWER-Market Value The effective tax rate reflects the ratio between what - ANSWER-The current tax bill and the property value Assessment level times the tax rate equals - ANSWER-The effective tax rate _________ divided by the assessed value equals the tax rate. - ANSWER-Budget _________ is the physical land and everything permanently attached to it. - ANSWER-Real Estate Property tax is an _________. - ANSWER-ad valorem tax How do you calculate the Assessment Ratio of a property? - ANSWER-Assessed Value ÷ Market Value How do you calculate the Tax rate (%) ? - ANSWER-Budgeted Revenue (Minus any other revenue sources) ÷ Total Assessed Value of all property How do you calculate the Property Tax bill? - ANSWER-Tax rate X Assessed value of Property Fractional Assessment - ANSWER-An assessed value not statutorily at 100% of market value The six basic rights associated with property are: - ANSWER-SLUGER 1. Sell 2. Lease 3. Use 4. Give away 5. Enter or Leave 6. Refuse to do any of the above The four factors that influence/effect land values are: - ANSWER-PEGS 1. Physical (Environmental) 2. Economic 3. Governmental 4. Social _________ consists of movable items not permanently affixed to, or part of the real estate - ANSWER-Personal Property The four Governmental restrictions on property ownership: - ANSWER-TEPE 1. Taxation 2. Eminent domain 3. Police power 4. Escheat Private encumbrances: - ANSWER-1. Co-Owners 2. Condominium/Subdivision restrictions 3. Covenants 4. Mortgages 5. Easements 6. Liens and Judgements 7. Leases Value in use - ANSWER-Is the value of a property for a specific use Value in exchange - ANSWER-Is the amount an informed buyer would offer in exchange for a property under given market conditions Principle of Anticipation * - ANSWER-Present worth of future benefits Principle of Change * - ANSWER-The tendency of social and economic forces affecting supply and demand to alter over time Principle of Contribution * - ANSWER-The basis for applying the adjustments in the sales comparison approach Principle of Substitution * - ANSWER-Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable property Principle of Surplus Productivity * - ANSWER-Net income remaining after the cost of labor, management, and capital has been paid