IAAO Course 101 Exam Review With
100% Correct And Verified Answers
Tax Rate (def.) - Correct Answer-Percent of assessed value
at which each property is taxed in a given district.
Tax Rate (formula) - Correct Answer-Tax revenue (amount)
/ Assessed value
Property Tax (formula) - Correct Answer-Subject assessed
value / Tax rate
Budget Revenue (formula) - Correct Answer-Total budget -
Other taxes
Effective Tax Rate (def.) - Correct Answer-Reflects the
relationship between total property taxes on real property
and the property's market value.
Effective Tax Rate (formula) - Correct Answer-Assessment
ratio (level) X Tax rate
Vendarsol
,Jurisdictions tax rate is derived by (formula) - Correct
Answer-Budget revenue (budget -other taxes) / Assessed
value
Assessment Ratio (def.) - Correct Answer-Estimated
fractional relationship between the assessed values and
market values of a group of properties.
Assessment Ratio (formula) - Correct Answer-Assessed
value / Market value
Neighborhood Life Cycle - Correct Answer-Growth,
Stability, Decline & Revitalization
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.
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.
Vendarsol
, 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.
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.
Principle of Anticipation - Correct Answer-
Value created by the expected future benefits
from the property; related to the Principle of
Change.
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.
Principle of Contribution - Correct Answer-
Value of component depends on its
contribution to the whole; basis for
Vendarsol
100% Correct And Verified Answers
Tax Rate (def.) - Correct Answer-Percent of assessed value
at which each property is taxed in a given district.
Tax Rate (formula) - Correct Answer-Tax revenue (amount)
/ Assessed value
Property Tax (formula) - Correct Answer-Subject assessed
value / Tax rate
Budget Revenue (formula) - Correct Answer-Total budget -
Other taxes
Effective Tax Rate (def.) - Correct Answer-Reflects the
relationship between total property taxes on real property
and the property's market value.
Effective Tax Rate (formula) - Correct Answer-Assessment
ratio (level) X Tax rate
Vendarsol
,Jurisdictions tax rate is derived by (formula) - Correct
Answer-Budget revenue (budget -other taxes) / Assessed
value
Assessment Ratio (def.) - Correct Answer-Estimated
fractional relationship between the assessed values and
market values of a group of properties.
Assessment Ratio (formula) - Correct Answer-Assessed
value / Market value
Neighborhood Life Cycle - Correct Answer-Growth,
Stability, Decline & Revitalization
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.
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.
Vendarsol
, 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.
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.
Principle of Anticipation - Correct Answer-
Value created by the expected future benefits
from the property; related to the Principle of
Change.
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.
Principle of Contribution - Correct Answer-
Value of component depends on its
contribution to the whole; basis for
Vendarsol
