CAE CAE Tax Policy and Assessment Administration 3

Question 1

In the context of property tax, what does 'ad valorem' mean?

Accepted Answer

According to value

Answer

Ad valorem is a Latin term meaning 'according to value,' signifying that property taxes are based on the assessed value of the property.

Question 2

Which entity in most U.S. states is responsible for administering exemptions such as the homestead exemption?

Accepted Answer

Local county or municipal assessor

Answer

In most U.S. states, the local county or municipal assessor administers property tax exemptions, including the homestead exemption for owner-occupied residences.

Question 3

What is the primary purpose of a triennial reassessment cycle in a jurisdiction?

Accepted Answer

To ensure assessed values are periodically updated to reflect current market conditions

Answer

A reassessment cycle ensures that assessed values are periodically updated so they reflect current market conditions and maintain assessment uniformity.

Question 4

Which of the following is an example of a special assessment in property taxation?

Accepted Answer

A levy for sewer installation benefiting specific properties

Answer

A special assessment is a charge levied against specific properties that directly benefit from a public improvement, such as a new sewer line or road paving.

Question 5

What does the term 'tax increment financing (TIF)' involve in relation to property assessment?

Accepted Answer

Freezing the assessed value base and dedicating future tax increment to redevelopment

Answer

TIF freezes the base assessed value and dedicates any future increase in tax revenue (the increment) to fund redevelopment within a designated district.

CAE - Certified Assessment Evaluator Practice Test

CAE - Certified Assessment Evaluator Practice Test

CAE CAE Tax Policy and Assessment Administration 3