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IAAO 101 - QUESTIONS WITH ACCURATE ANSWERS
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IAAO 101 - QUESTIONS WITH ACCURATE ANSWERS
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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
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