Assessment and Evaluation Flashcards

A 40-year-old house has been renovated thoroughly and kept in excellent condition. Compared with its chronological age, its effective age is most likely:

Answer: Lower

Effective age reflects condition and utility, so a well-kept property can have an effective age below its actual age.

How does replacement cost differ from reproduction cost?

Answer: Replacement cost builds equivalent utility with modern materials and design

Reproduction cost is an exact duplicate, while replacement cost gives the same utility using current methods.

When is a depreciation item considered curable?

Answer: When the cost to cure it is less than or equal to the value it would add

Depreciation is curable when it makes economic sense to fix it.

In most U.S. assessment appeals, who generally carries the burden of proof?

Answer: The taxpayer, because the assessor's value is presumed correct

Assessments generally carry a presumption of correctness that the appellant must overcome with evidence.

Under IAAO standards, what COD range is acceptable for newer or fairly homogeneous single-family residential properties?

Answer: 5.0 to 10.0

IAAO recommends a COD of 5.0 to 10.0 for newer or homogeneous single-family homes and up to 15.0 for older or mixed areas.

For property tax purposes, which item is generally classified as tangible personal property instead of real property?

Answer: Movable business equipment and machinery

Movable business equipment that is not permanently attached is usually assessed as tangible personal property.

Which statistic uses regression to measure vertical equity in assessments?

Answer: Price-related bias (PRB)

PRB regresses the percentage difference from the median ratio on value, and IAAO considers −0.05 to +0.05 acceptable.