IAAO 402 2023 Exam Questions with Complete Solution

IAAO 402 2023 Exam Questions with Complete Solution 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