Chapter 1 Flashcards by Yvonne Duran

Assessor responsible of all taxable property

Discover, List, and Valuation

How well did you know this?

Not at all

Perfectly

Property tax meaning based on value

Ad Valorem Tax

How well did you know this?

Not at all

Perfectly

Adequate mapping system, preferably a geographic information system (GIS)

Discovery

How well did you know this?

Not at all

Perfectly

Creating an inventory of quantity, quality and important characteristics of all taxable property

Listing

How well did you know this?

Not at all

Perfectly

Assessed value at its market value or some sort of legally authorized fractional assessment thereof also known as the taxable value

Valuation

How well did you know this?

Not at all

Perfectly

The primary Revenue source for local government

Property tax

How well did you know this?

Not at all

Perfectly

Calculate tax rate

Budget/assessed value

How well did you know this?

Not at all

Perfectly

Calculate assessment ratio

Assessed value/market value

How well did you know this?

Not at all

Perfectly

Calculate tax bill (property tax)

Subject property value times tax rate

How well did you know this?

Not at all

Perfectly

Computing an effective tax rate

Assessment ratio times tax rate

How well did you know this?

Not at all

Perfectly

When calculating an effective tax rate you can use

The triangle E A T

How well did you know this?

Not at all

Perfectly

The right of any person to possess, use, enjoy and dispose of a thing

Property

How well did you know this?

Not at all

Perfectly

Consist of interest, benefits and rights inherent in the ownership of land and anything permanently attached to the land or legally Defined as movable

Real property

How well did you know this?

Not at all

Perfectly

Land and improvements permanently affixed thereto

Real estate

How well did you know this?

Not at all

Perfectly

Property classes

Residential
Commercial
Industrial
Agriculture

How well did you know this?

Not at all

Perfectly

Consist of movable items not permanently affixed to our part of the real estate

Personal property

How well did you know this?

Not at all

Perfectly

Six basic rights associated with the ownership of property

Slugger

Sell, lease, use, give, enter, refuse

How well did you know this?

Not at all

Perfectly

Governmental restrictions on property can be placed on bundle of rights

Pete

Taxation
Eminent domain
Police power
Escheat

How well did you know this?

Not at all

Perfectly

Rights of co owners
Condominium and subdivision
Covenants 
Mortgages
Easement 
Liens and judgements 
Leases

Private encumbrances

How well did you know this?

Not at all

Perfectly

Ownership of all legal rights to property is known as

Fee simple (fee simple absolute)

How well did you know this?

Not at all

Perfectly

A lease that conveys property rights from an owner (lessor) to a tenant (lesser)

Leasehold interest

How well did you know this?

Not at all

Perfectly

Landlord interest

Leases fee interest

How well did you know this?

Not at all

Perfectly

In order for property to have value it must have

(Used)

Utility
Scarcity
Desirability
Effective purchasing

How well did you know this?

Not at all

Perfectly

Value of property for a specific use

Value in use

How well did you know this?

Not at all

Perfectly

The amount an informed buyer would offer in exchange for a property under given market conditions

Value in exchange

Sacrifice made to acquire property

Cost

The amount asked, offered or paid for a property

Price

The monetary worth of property to buyers and sellers

Value

The most probable price which a property should bring in a Competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming price is not affected yet undue stimulus

Market value

``` Anticipation Balance Change Competition Conformity Consistent use Contribution Increase and decreasing returns Progression and regression Substitution Surplus productivity Supply and Demand ```

Principles of balance

Elements of demand

Demand = consumer

Elements of supply

Supply = producer

Estimate of value usually in writing of an adequately described property as of a given date

An appraisal

The type of value usually estimated by the assessor is

Market value

The ratio between the current tax bill and the property value

The effective tax rate

The use that generates the highest net return to a property over a reasonable time period is called its

Highest and best use

This principle States the maximum value of a Neighborhood is attained when the uses of land are perfectly complementary

The principle of balance

Which principle affirms that land cannot be valued on the basis of one use while improvements are valued on the basis of another

Consistent use

Four test that the appraiser must make in the analysis of the highest and best use

Legally permissible Physically possible Financially feasible Most productive

Property that can be moved without causing damage or change to either the item of property or to the structure to which it was attached

Personal

Assessment level times the tax rate equals

Effective tax rate

The forces at which the forces of supply and forces of demand meet

Equilibrium

Two types of highest and best use analysis

As if vacant | As if improved

The typical life cycle of a neighborhood includes

Growth Stability Decline Revitalization

``` Consumer tastes and preferences Consumer income Price is related commodities Consumer expectations Price of commodity ```

Elements in a market place

Amount of goods that producers are willing to sell at a given price during a specific time period

Supply

Appraisal process

Definition of the problem Scope of work Preliminary survey and planning Data collection and analysis Highest and best use Application if the data and 3 approaches Correlation/reconciliation

Basis for the adjustments in the sales comparison approach to value is the principle of

Contribution

Value is created by the expected future benefits to be derived from the property

Principle of anticipation

Determining the identity of the property to be appraised is a part of which step in the appraisal process

First

Three types of boundaries used to delineate neighborhoods are

Political man made Natural

Under the step in the appraisal process that is termed data collection and analysis, specific data include

Site data

Data and collection and analysis | General data

Neighborhood characteristics

Data collection and analysis | Specific data

Site Off site Improvement

Data collection and analysis | Comparative data

Cost Sales Income/expense

Steps in cost approach

Estimate land value as if vacant Estimate the total cost new of improvements as of the appraisal date Estimate the total amount of depreciation Subtract the total amount if depreciation from the cost new of primary improvements Estimate the total cost new of any accessory improvements and site improvements. Then estimate and deduct all depreciation from the total cost new of improvements Add site value to the depreciated cost of improvements to arrive at an indicated value by the cost approach

Steps in the sales comparison approach

Data collection and verification Analysis of market data to develop units of comparison and select attributes for adjustment Development if reasonable adjustments Application of adjustments to comparable sales Analysis of adjusted sale prices to estimate value of subject

Steps in the income approach

Estimate potential gross income (pgi) from market data Estimate vacancy and collection loss and then subtract it from potential gross income (pgi) Add miscellaneous income to arrive at effective gross income (EGI) Analyze and estimate operating expenses Subtract operating expenses from effective gross income to arrive at net operating income (NOI) Select an appropriate capitalization method, technique and rate Compute value by capitalizing the net operating income

Four forces or factors of value

``` (Pegs) Physical Economic Governmental Social ```

A geographic area typically encompassing a group of sub areas that are influenced to a great extent baby the same economic factors

And economic area

Comprises complementary land uses in which all properties are similarly influenced by the four forces affecting value and is sub area of an economic area

Neighborhood

One of the steps an assessor must take in the discovery of property is to

Conduct periodic on site inspections of the property

In the appraisal process data collection requires the assessor to collect

General data Specific data Comparative data

What element of the marketplace is likely to contribute a change in supply?

Entrepreneur expectations

Stratification is the first step in analyzing land sales and the Primary sort is by

Market area

The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates and so on is

Change

The _________unit would be the appropriate unit when pedestrian access is an important consideration

Front foot

When adjustments are being made to comparable sales, using the percentage adjustments in the direct sales comparison approach, the sequence of adjustments the appraiser must follow is

Financing, market conditions, location, physical characteristics

The land valuation method that replicates the actions of subdivides or developers is known as the

Anticipated use or development method