Exam (elaborations)
IAAO 101 - QUESTIONS WITH ACCURATE ANSWERS
IAAO 101 - QUESTIONS WITH ACCURATE ANSWERS
[Show more]
Content preview
IAAO 101 - QUESTIONS WITH ACCURATE ANSWERSThe requirements of the assessor consist of the following Correct Ans -
Discovery, Listing, valuation
The property tax is an____________________ tax , that is , according to value .
Correct Ans - ad valorem
tax rate formula Correct Ans - Budget / assessed value
How tax rates are expressed . Correct Ans - 1. Dollars per $ 100 ( $
10 / $ 100 = $ 0.1 ) 2. Dollars per $ 1000 ( $ 10 / S1000 = $ 0.01 ) 3. Mill
rate - In general practice , a mill is 1/10 of a cent . There are 1000 mills /
dollar . ( 10 Mills - ,000 = 0.01 )
Assessed Value ( AV ) Correct Ans - =Assessment Ratio ( AR ) X
Market Value
The effective tax rate ( ETR ) is Correct Ans - the rate expressing
the ratio between the current tax bill and the property value .
Formula ETR Correct Ans -
Real property Correct Ans - Consists of the interest , benefits , and
rights inherent in the ownership of land and anything permanently
attached to the land or legally defined as immovable .
Real estate Correct Ans - Land , and Improvements permanently
affixed thereto
There are six basic rights (bundle of rights) associated with the ownership
of property (SLUGER) Correct Ans - a . The right to Sell . b . The
right to Lease or rent . c . The right to Use . d . The right to Give away . e .
The right to Enter or leave . f . The right to Refuse to do any of these .
There can be restrictions governmental place limitations on restrictions
the on bundle property . of rights . Correct Ans - support Taxation
of . The government . tax to right the property for the ) legal to the Police
use Eminent heirs state Escheat . The building , zoning the public provided
, of for welfare power . The just domain . The compensation to who
nonpayment right decedent of dies of of regulate is take government in
codes , traffic , and areas to the right right taxes to sanitary safety , the paid
. the when intestate or have ( without there property regulations . morals ,
property , health use of property for a are ) will . no revert for public
There can be governmental restrictions on property . These restrictions
place limitations on the bundle of rights . Correct Ans - (1)
Taxation. The right to tax the property for the support of the government.
( 2 ) Eminent domain . The right to take the property for public use
provided just compensation is paid . ( 3 ) Police power . The right to
regulate the use of property for zoning building codes , traffic , and sanitary
regulations the public welfare in the areas of safety , health , morals , ( 4 )
Escheat . The right of government to have property revert legal heirs of
decedent who dies intestate ( without a will ) . to the state for nonpayment
of taxes or when there are no
Principle of Anticipation Correct Ans - Value is created by the
expected future benefits to be derived from the property
Principle of Change Correct Ans - Market value is never constant
because physical ( environmental ) , economic , governmental , and social
forces are at work to change property and its environment . Because of this
principle , an estimate of market value is valid only as of a specific date .
Principle of Balance Correct Ans - principle specific value C.
Balance Applied to an individual property , maximum market value is
reached when the four agents of production ( land , labor , capital ,
management ) attain a state of equilibrium . The neighborhood and
individual properties achieve maximum market value when these
complementary uses are in balance .
Principle of Competition Correct Ans - Competition is created by
the potential for profits . Availability must be in harmony with demand . If
one or the other is in excess , prices increase or decrease .
Principle of Conformity Correct Ans - The value of a property
depends , to some extent , on its relation to its surroundings . Maximum
market value is achieved when there is a reasonable similarity among the
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$14.39. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now