Chapter 1: Basic Assessing Practices

Question 1

Assessing is defined as…

Answer 1

1. Estimating the value of property for taxation purposes.
2. To set or determine the amount of tax or fine.
3. To charge a person or property with a special payment as a tx or fine.
4. To appraise or evaluate.

Question 2

What is tax day?

Answer 2

December 31st

Question 3

Assessing officers duties include what 8 things?

Answer 3

1. Discovery
2. Inventory
3. Classify
4. Estimate
5. Calculate
6. Prepare
7. Notify
8. Defend/Support

Question 4

What is Discovery?

Answer 4

Locating and identify all taxable property

Question 5

What do Assessors determine?

Answer 5

Assessors determine value of property not tax.

Question 6

What are the 5 classifications of Property

Answer 6

Residential
Agricultural
Commercial
Industrial
Timber-Cutover

Question 7

What is Situs

Answer 7

Situs i s the specific location of property as of tax day.

Question 8

What is Property Tax

Answer 8

Property tax is an ad volorem tax, meaning tha the tax is levied according to the value of property.

Question 9

What is assessed value and state equalized value?

Answer 9

50% of the market value

Question 10

What is capped value?

Answer 10

A value based on the prior year’s taxable value.

Question 11

What is taxable value?

Answer 11

The lessor of state equalized value or capped value.

Question 12

One Mill =

Answer 12

One Mill is equal to 1/1000 of a dollar ($0.001)

Question 13

What is the capped value formula?

Answer 13

(prior year’s taxable value - losses) x CPI + additions = Capped Value

Question 14

What is CPI?

Answer 14

CPI is Consumer Price Index or Rate of Inflation (this changes each year)

Question 15

What are the three approaches to value?

Answer 15

1. Cost
2. Sales
3. Income

Question 16

What so the final step in value estimate?

Answer 16

Reconciliation give the final opinion of value.