IAAO 402 FINAL EXAM STUDY GUIDE || 2025/2026
COMPLETE QUESTIONS & CORRECT ANSWERS
|| 100% VERIFIED PASS <UPDATED>
A $25000 homestead exemption is an example of a ________________________________. -
ANSWER partial exemption
Administratively, the functions of a property tax system are: - ANSWER To identify and link
taxable subjects (taxpayers) and taxable objects (property)
Produce tax assessments
Collect taxes
All else being equal, when taxes rise, capitalization means that: - ANSWER property values
fall
All of the following are common examples of shared responsibilities between governments
EXCEPT: - ANSWER Property tax levy limits
,Property tax valuation programs which require states to assess railroads and counties to assess
other business property.
State provided collection assistance for local sales taxes
The International Fuels Tax Agreement (IFTA)
All of the following are possible advantages of a tax increment financing EXCEPT: - ANSWER
New businesses may become more competitive than previously existing businesses.
Start up costs may be lessened
Development of depressed areas may be facilitated
Bonding or financial leverage may be provided
Analytical studies that provide information in a neutral, non-judgmental way are
__________________________. - ANSWER positive
The _____________________ approach is purely factual without judgments. - ANSWER
positive
,The ________________ approach starting point includes value judgments. - ANSWER
normative
As a percentage of general revenue, which local governments rely most heavily on charges? -
ANSWER Special Districts (sewer, fire, cemetery)
Assessed value increases are more closely tied to tax and revenue increases in a
_____________________ driven system. - ANSWER rate
An assessment system in which fractional ratios are applied to appraised values is
_________________. - ANSWER classification
Assessment systems in which taxable value reverts to market value at time of sale are known as
_________________________________________________________. - ANSWER
acquisition value systems
An assessment system that underassesses residential property even though such
undersassessment is not permitted by law is providing a _____________________________. -
ANSWER de facto exemption
, Assume that a taxpayer has appealed her or his assessment and has assembled evidence that the
assessment is relatively higher than the assessments of comparable properties, which of the
following is the most professionally responsible way to deal with the appeal? - ANSWER
None of the above
Assure the appellant that the assessment in question is well below the legal standard.
Assure the appellant that her or his property is valued consistently with all other properties in its
class and than granting the appeal would reduce overall valuation uniformity.
Assure the appellant that the district's mass appraisal procedures meet or exceed all legal and
professional standards.
Because some school districts have more property wealth per pupil than others, states have
developed _______________________ systems to level this playing field. - ANSWER
equalization
The characteristic of a tax system that reflects on the degree to which economic efficiency is
altered is _____________________________. - ANSWER neutrality
COMPLETE QUESTIONS & CORRECT ANSWERS
|| 100% VERIFIED PASS <UPDATED>
A $25000 homestead exemption is an example of a ________________________________. -
ANSWER partial exemption
Administratively, the functions of a property tax system are: - ANSWER To identify and link
taxable subjects (taxpayers) and taxable objects (property)
Produce tax assessments
Collect taxes
All else being equal, when taxes rise, capitalization means that: - ANSWER property values
fall
All of the following are common examples of shared responsibilities between governments
EXCEPT: - ANSWER Property tax levy limits
,Property tax valuation programs which require states to assess railroads and counties to assess
other business property.
State provided collection assistance for local sales taxes
The International Fuels Tax Agreement (IFTA)
All of the following are possible advantages of a tax increment financing EXCEPT: - ANSWER
New businesses may become more competitive than previously existing businesses.
Start up costs may be lessened
Development of depressed areas may be facilitated
Bonding or financial leverage may be provided
Analytical studies that provide information in a neutral, non-judgmental way are
__________________________. - ANSWER positive
The _____________________ approach is purely factual without judgments. - ANSWER
positive
,The ________________ approach starting point includes value judgments. - ANSWER
normative
As a percentage of general revenue, which local governments rely most heavily on charges? -
ANSWER Special Districts (sewer, fire, cemetery)
Assessed value increases are more closely tied to tax and revenue increases in a
_____________________ driven system. - ANSWER rate
An assessment system in which fractional ratios are applied to appraised values is
_________________. - ANSWER classification
Assessment systems in which taxable value reverts to market value at time of sale are known as
_________________________________________________________. - ANSWER
acquisition value systems
An assessment system that underassesses residential property even though such
undersassessment is not permitted by law is providing a _____________________________. -
ANSWER de facto exemption
, Assume that a taxpayer has appealed her or his assessment and has assembled evidence that the
assessment is relatively higher than the assessments of comparable properties, which of the
following is the most professionally responsible way to deal with the appeal? - ANSWER
None of the above
Assure the appellant that the assessment in question is well below the legal standard.
Assure the appellant that her or his property is valued consistently with all other properties in its
class and than granting the appeal would reduce overall valuation uniformity.
Assure the appellant that the district's mass appraisal procedures meet or exceed all legal and
professional standards.
Because some school districts have more property wealth per pupil than others, states have
developed _______________________ systems to level this playing field. - ANSWER
equalization
The characteristic of a tax system that reflects on the degree to which economic efficiency is
altered is _____________________________. - ANSWER neutrality
