IAAO Course 101 Workbook: Chapter 1 with 100% correct answers

Assessor The government official responsible for administrating the property tax system and for Establishing value for ad valorem tax purposes Requirements of the assessor Discovery , listing and valuation Discovery Location of all taxable property Listing Creating an inventory of the quantity, quality and important characteristics of all taxable property Valuation An estimate of the actual or market value of all taxable property Property tax Primary source of revenue for local governments Ad valorem According to value Forms of expressing tax rates Dollars per thousand, dollars per hundred and mills Formula for developing a tax rate Tax rate = Budget / AV Formula for developing an effective tax rate EAT Triangle Property Right of any person to possess, use, enjoy and dispose of a thing Real property Consists of the interest, benefits and rights inherent in the ownership of land and anything permanently affixed to it or legally defined as immovable Real estate Land and improvements permanently affixed thereto Property classes Residential, commercial, industrial and agricultural Residential property subclasses Single-family, townhouse and condominium Commercial property subclasses Multi family, retail, office and mixed use Industrial property subclasses Manufacturing, storage and parts distribution Agricultural property subclasses Grain farm, livestock, timber and pasture Personal property Consists of items not permanently affixed to, or part of, the real estate Intangible personal property Includes the rights over tangible and real and personal property Six basic rights associated with ownership of property (bundle of rights) SLUGER Governmental restrictions on property ownership PETE Police power The right to regulate the use of property for the public welfare in the areas of safety, health, morals, zoning, building codes, traffic and sanitary regulations Eminent domain The right to take property for public use provided just compensation is paid Taxation The right to tax property for the support of government Escheat The right of government to have property revert to the state for nonpayment of taxes or when there are no legal heirs of decedent who dies intestate (without a will) Private encumbrances on the ownership Rights of co-owners, condominium in subdivision restrictions, covenants, conditions and restrictions found in the chain of title, mortgages, easements and rights-of-way, liens and judgments and leases Types of estates in property Fee simple interest (fee simple absolute), lease hold interest, leased fee interest, possessory interest and life estate Lease hold interest The tenant or leasees interest Leased fee interest The landlord or leesors interest Possessory interest The right to possess and use a property Fee simple (absolute) interest The highest form of ownership