Mixed Deck — All CAE Topics Flashcards

What quality assurance measure supports applied methods and techniques?

Answer: Regular self-assessment, peer review, and adherence to established standards

Ongoing quality assurance through self-assessment, peer review, and standards adherence ensures continuous improvement.

A building has an effective age of 15 years and a total economic life of 60 years. Using the age-life method, what is the percentage of accrued depreciation?

Answer: 25%

Age-life depreciation equals effective age divided by total economic life: 15 ÷ 60 = 25%.

How is the coefficient of dispersion (COD) calculated in a ratio study?

Answer: Average absolute deviation of ratios from the median ratio, divided by the median ratio, times 100

COD measures uniformity as the average absolute deviation from the median expressed as a percentage of the median.

Which of the following is a payment made by a tax-exempt entity to a local government in place of property taxes?

Answer: PILOT

PILOTs are voluntary or negotiated payments in lieu of taxes from exempt owners.

What is the significance of the 'assessment freeze' remedy in some property tax appeals?

Answer: It prevents the assessor from increasing the value for a set number of years following a successful appeal

An assessment freeze remedy following a successful appeal prevents the assessor from raising the property's value back up for a specified period, protecting the taxpayer's win.

A house has only one bathroom for five bedrooms, and adding a second bath would cost less than the value it adds. How is this deficiency classified?

Answer: Curable functional obsolescence

It is a design inadequacy (functional), and it is curable because the cost to fix it is less than the value gained.

An assessor subtracts the depreciated cost of the improvements from an improved property's sale price to estimate land value. What is this method called?

Answer: Extraction (abstraction) method

Extraction estimates land value by subtracting the depreciated improvement value from the total sale price.

A 30-year-old house has been extensively renovated and shows the condition and utility of a 15-year-old house. Its 15-year figure is called its:

Answer: Effective age

Effective age reflects the property's condition and utility compared with similar properties, not its actual years since construction.

Which cost estimate uses modern materials and design to build a structure with the same utility as the subject?

Answer: Replacement cost

Replacement cost builds equal utility with current materials and standards, while reproduction cost builds an exact replica.

How should challenges in assessment and evaluation be addressed?

Answer: Apply systematic problem-solving, seek expert guidance when needed, and document decisions

Systematic problem-solving combined with appropriate consultation and documentation ensures challenges are addressed effectively.

The IAAO acceptable range for the overall level of assessment (median ratio) in a ratio study is:

Answer: 0.90 to 1.10

IAAO standards recommend that the median assessment ratio fall between 0.90 and 1.10.

Under the USPAP Ethics Rule, an appraiser must disclose prior services involving the subject property performed within what period before accepting an assignment?

Answer: Three years

USPAP requires disclosure of any services regarding the subject property performed within the three years prior to accepting the assignment.

Which is the best reason to provide assessment information online through a parcel search portal?

Answer: It improves access and lets owners verify their data and compare properties

Online access increases transparency and helps owners catch data errors early.

Which document is typically required to initiate a formal assessment appeal in most U.S. jurisdictions?

Answer: A written petition or complaint form filed with the review board by the appeal deadline

A formal written petition or complaint form, filed with the appropriate board by the statutory deadline, is the required document to initiate most property tax appeals.

What is the function of a Board of Equalization?

Answer: Ensure uniform and fair property assessments

A Board of Equalization ensures fair and equitable property assessments by reviewing and correcting inconsistencies.

What is the main purpose of state-level assessment equalization?

Answer: To adjust for different assessment levels across jurisdictions so taxes and state aid are distributed fairly

Equalization factors bring jurisdictions with different assessment levels to a common basis.

A property owner requests information that state law classifies as confidential, such as income and expense statements filed by another owner. The assessor should:

Answer: Decline to release it and explain the confidentiality provision

Confidential data provided by owners must be protected as required by law even though most assessment records are public.

An assessor raises values only on parcels that recently sold and leaves unsold similar parcels unchanged. What is this practice called, and why is it a problem?

Answer: Sales chasing, because it makes ratio study results look more uniform than they really are

Sales chasing makes ratio statistics look better than they are, so the study no longer reflects how the unsold parcels are assessed.

Under the IAAO Standard on Ratio Studies, the acceptable range for the overall level of assessment (median ratio) is:

Answer: 0.90 to 1.10

IAAO standards call for the median ratio to fall between 0.90 and 1.10.

Record retention schedules for assessment documents are generally determined by:

Answer: State or local records retention laws and policies

Retention periods are set by applicable public records laws and approved schedules.