Page |1
IAAO COURSE 101 REVIEW 2025| BRAND NEW
ACTUAL EXAM WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS|
GUARANTEED VALUE PACK| ACE YOUR
GRADES.
1. Tax Rate (def.) - correct answer - Percent of assessed value at which
each property is taxed in a given district.
2. Tax Rate (formula) - correct answer - Tax revenue (amount) / Assessed
value
3. Property Tax (formula) - correct answer - Subject assessed value / Tax
rate
4. Budget Revenue (formula) - correct answer - Total budget - Other taxes
5. Effective Tax Rate (def.) - correct answer - Reflects the relationship
between total property taxes on real property and the property's market
value.
, Page |2
6. Effective Tax Rate (formula) - correct answer - Assessment ratio (level)
X Tax rate
7. Jurisdictions tax rate is derived by (formula) - correct answer - Budget
revenue (budget -other taxes) / Assessed value
8. Assessment Ratio (def.) - correct answer - Estimated fractional
relationship between the assessed values and market values of a group
of properties.
9. Assessment Ratio (formula) - correct answer - Assessed value / Market
value
10. Neighborhood Life Cycle - correct answer - Growth, Stability, Decline
& Revitalization
11. Principle of Conformity - correct answer - Value of a property
depends on its relationship to its surroundings; maximum market value
is achieved when reasonable similarity among improvements in the
neighborhood.
, Page |3
12. Principle of Competition - correct answer - Created by the potential
for profits; availability must be in harmony with demand; if one or the
other is in excess prices will decrease or increase.
13. Principle of Balance - correct answer - Applied to an individual
property; maximum value is obtained when the four agents of production
are balanced - land, labor, capital and management.
14. Principle of Change - correct answer - Market value is never
constant; estimate of market value is only valid as of a specific date &
changes in the market will impact future value estimates.
15. Principle of Anticipation - correct answer - Value created by the
expected future benefits from the property; related to the Principle of
Change.
16. Principle of Consistent Use - correct answer - Property must be
valued with a single use for the entire property; land cannot be valued
with one use and improvements with another.
17. Principle of Contribution - correct answer - Value of component
depends on its contribution to the whole; basis for adjustments in the
sales comparison approach.
IAAO COURSE 101 REVIEW 2025| BRAND NEW
ACTUAL EXAM WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS|
GUARANTEED VALUE PACK| ACE YOUR
GRADES.
1. Tax Rate (def.) - correct answer - Percent of assessed value at which
each property is taxed in a given district.
2. Tax Rate (formula) - correct answer - Tax revenue (amount) / Assessed
value
3. Property Tax (formula) - correct answer - Subject assessed value / Tax
rate
4. Budget Revenue (formula) - correct answer - Total budget - Other taxes
5. Effective Tax Rate (def.) - correct answer - Reflects the relationship
between total property taxes on real property and the property's market
value.
, Page |2
6. Effective Tax Rate (formula) - correct answer - Assessment ratio (level)
X Tax rate
7. Jurisdictions tax rate is derived by (formula) - correct answer - Budget
revenue (budget -other taxes) / Assessed value
8. Assessment Ratio (def.) - correct answer - Estimated fractional
relationship between the assessed values and market values of a group
of properties.
9. Assessment Ratio (formula) - correct answer - Assessed value / Market
value
10. Neighborhood Life Cycle - correct answer - Growth, Stability, Decline
& Revitalization
11. Principle of Conformity - correct answer - Value of a property
depends on its relationship to its surroundings; maximum market value
is achieved when reasonable similarity among improvements in the
neighborhood.
, Page |3
12. Principle of Competition - correct answer - Created by the potential
for profits; availability must be in harmony with demand; if one or the
other is in excess prices will decrease or increase.
13. Principle of Balance - correct answer - Applied to an individual
property; maximum value is obtained when the four agents of production
are balanced - land, labor, capital and management.
14. Principle of Change - correct answer - Market value is never
constant; estimate of market value is only valid as of a specific date &
changes in the market will impact future value estimates.
15. Principle of Anticipation - correct answer - Value created by the
expected future benefits from the property; related to the Principle of
Change.
16. Principle of Consistent Use - correct answer - Property must be
valued with a single use for the entire property; land cannot be valued
with one use and improvements with another.
17. Principle of Contribution - correct answer - Value of component
depends on its contribution to the whole; basis for adjustments in the
sales comparison approach.
