IAAO 101 - Review Questions And Answers With Complete Solution

IAAO 101 - Review Questions And Answers

With Complete Solution

The property tax is an ____ __________ tax, meaning it is based on value. - ad valorem

The assessor is responsible for the _______, ________, and __________ of all taxable property. -

discovery

listing

valuation

The taxable location of personal property is referred to as its __________. - situs

An estimate of value, usually in writing, of an adequately described property, as of a given

date, is termed ___ ___________. - an appraisal

A jurisdiction's tax rate is determined by dividing the _________ to be derived from property

tax by the total _________ ____________ of the taxing jurisdiction. - budget

assessed valuation

The type of value usually estimated by the assessor is __________ value. - market

The _________ ________ _________ reflects the ratio between the current tax bill and the property

value. - effective tax rate

In order for a property to have value, it must have ______, _______, ________ and __________

__________ _________. - utility

scarcity

desirability

effective purchasing power

The use that generates the highest net return to a property over a reasonable time period is

called ________ _______ _________ _________. - highest and best use

The principle of __________ states that maximum value of a neighborhood is attained when

the uses of land are perfectly complementary. - balance

Which appraisal principle affirms that land cannot be valued on the basis of one use while

improvements are valued on the basis of another? - Consistent use

List the four tests that the appraiser must make in the analysis of the highest and best use. -

Legally permissible

Physically possible

Financially feasible

Most productive

_______ ________ is a parcel of land and any structures or improvements that are permanently

affixed thereto. - Real estate

Property is considered ________ if it can be moved without causing any damage or change to

either the item of property or the structure to which it is attached. - personal

Assessment level times the tax rate equals the _________ ______ ________. - effective tax rate

____________ is the point at which the forces of supply and forces of demand meet. -

Equilibrium

List the two types of highest and best use analysis. - A. As if vacant.

B. As if improved.