NJ Tax Assessors Exam - Terms and Concepts
Questions with Correct Answers
What are the three basic requirements of the assessor? Correct Answer-
Discovery, listing, and valuation
To find effective tax rate multiply the tax rate by ____? Correct Answer-
Assessment level
The six basic rights associated with property are ______? Correct
Answer-Sell, lease/rent, use, give away, enter or leave, refusal to do any
of the above
What are the three major classifications of property? Correct Answer-
Real property, personal property, intangible personal property
List the appraisal principles which form the foundation for highest and
best use analysis. Correct Answer-Anticipation, balance, change,
competition, conformity, consistent use, contribution, increasing and
decreasing returns, substitution, supply and demand, surplus
productivity
What are the four forces that influence value? Correct Answer-Physical,
economic, governmental, social
,Highest and best use is always the that use that would produce the
______ ____ of a property, regardless of its actual current use. Correct
Answer-Highest value
The four tests for highest and best use are _____ Correct Answer-
Legally allowable, physically allowable, financially feasible, maximally
productive
List the 7 major steps of the appraisal process. Correct Answer-1.
Definition of the problem,
2. Determination of the scope of the appraisal
3. Preliminary survey and analysis
4. Data collection and analysis
5. Highest and best use analysis
6. Application of the three approaches to value
7. Correlation/reconciliations of indicated values to derive final estimate
of defined value
What are the three approaches to value used by appraisers to estimate
value? Correct Answer-Cost, sales comparison, and income
The land identification system based on semi-permanent physical
features or bearings on a compass is known as ____ and ____. Correct
Answer-Metes and bounds
, Residential subdivisions are commonly described by the ____ and ____
system of land identification. Correct Answer-Block and lot
Name the 8 characteristics that affect land value. Correct Answer-
Frontage, width, depth, area, shape, topography, location, and off-site
improvements
What is the 40-30-20-10 rule? Correct Answer-This rule describes the
percentage of the value of each quarter of land based on its depth. The
first 25% of the land amounts to 40% of the assessed value, the next
25% represents 30% of the value, the next 25% represents 20%, and the
final 25% represents 10%.
Cost to produce an exact replica of a structure using the same materials,
construction standards, and quality of workmanship is known as
________ ____ ___ Correct Answer-Reproduction cost new
Cost to produce a structure with equivalent utility using contemporary
materials and standards is known as _________ ____ ___ Correct
Answer-Replacement cost new
Cost of a property when it was originally constructed is known as
__________ cost Correct Answer-Historical
The age of a property based on condition and utility is know as the
______ ___. Correct Answer-Effective age (EA)
