iaao 101 with 100% correct answers

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