IAAO 402 Exam Questions And Answers
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A $25000 homestead exemption is an example of a ________________________________. -
answerpartial exemption
Administratively, the functions of a property tax system are: - answerTo identify and link
taxable subjects (taxpayers) and taxable objects ...
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
Assure the appellant that the assessment in question is well below the legal standard.
Assure the appellant that her or his property is valued consistently with all other properties in
its class and than granting the appeal would reduce overall valuation uniformity.
Assure the appellant that the district's mass appraisal procedures meet or exceed all legal and
professional standards.
Because some school districts have more property wealth per pupil than others, states have
developed _______________________ systems to level this playing field. -
answer✔equalization
The characteristic of a tax system that reflects on the degree to which economic efficiency is
altered is _____________________________. - answer✔neutrality
Circuit breaker tax relief
programs_______________________________________________________. - answer✔often
target low income, elderly or disabled taxpayers.
Comparing state and local government revenue in 1927 to those in 2007, or any distant years
would be misleading without adjusting for _______________________________________,
_____________________________ and _________________________________________. -
answer✔price inflation
population growth
economic (income) growth
A comparison of actual tax collections to tax capacity results is something called
________________________________. - answer✔tax effort
Current market value assessment systems are more concerned with the
____________________________ of the property tax. - answer✔distribution
Federalism
is_____________________________________________________________________________
___________________________________________. - answer✔a form of government in which
power is constitutionally divided between a national government and state government.
____________________________, ___________________________,
____________________________ and _______________________________ are countries with
federal systems of government. - answer✔United States
Australia
Canada
Germany
__________________________ ________________________ is a tax on consumption (alcohol,
tobacco, gambling). This is considered inelastic - people are going to buy it no matter the cost. -
answer✔Sumptuary Tax
Democracies tend to be promoted by _______________________ economic systems. -
answer✔capitalist
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