Oregon County Assessment And Taxation Appraisal Test

Front 1

When was Measure 5 Passed?

Back 1

Measure 5 passed in 1990

Front 2

When was Measure 50 Passed?

Back 2

measure 50 passed in 1997

Front 3

What did Measure 5 do?

Back 3

Measure 5 cut tax ratesby introducing tax rate limits

Front 4

What did Measure 50 do?

Back 4

cut taxes
introduced max assessed value as the taxable value limit estab. for each property, and replaced most tax levies with permanent tax rates.

Front 5

The amount of property tax you pay is based on what two things?

Back 5

1-assessed value of property
2-amount of taxes each taxing district is authorized to raise.

Front 6

What is RMV?

Back 6

Real market value is typically the price your property would sell for in a transaction between a willing buyer and seller on jan 1

Front 7

How is original RMV set?

Back 7

appraisal of property using physical inspection and comparison of market data of similar properties

Front 8

Updates to RMV ?

Back 8

study of trends of similar properties.

Front 9

What is MAV?

Back 9

Maximum assessed value is the taxable value limit established for each property

Front 10

how is original MAV set?

Back 10

MAV was set in the 97-98 tax year which was the 95-96 minus 10 percent

Front 11

What is the limited increase for MAV?

Back 11

MAV is limited to an increase of 3% annually, or under special restricions such as new property or inprovements

Front 12

For what reasons can taxes increase?

Back 12

annual MAV increase, new constrution or property event, passage of voter approved levy

Front 13

What is the value of real property for tax purposes?

Back 13

What a willing buyer would typically pay a willing seller for it.

Front 14

What is the Sales Comparison Approach to Value also known as Market Approach

Back 14

obtain actual sales info on properties similar to appraisal property, analyze this info and arrive at estimate value.

Front 15

Market data is info about property prices that include what?

Back 15

offers to buy or sell property and actual sale prices

Front 16

What type of market data is effective in making a good estimate of value?

Back 16

comparable data, like properties with similar features

Front 17

What is a comparable property?

Back 17

similar property which can be compared to subjet property, has similar features and has reacently sold.

Front 18

What is the best comparable property?

Back 18

the property that is most like the one being appraised

Front 19

sales comparison approach must consist of how many comps/properties

Back 19

subject property and at least 2 or more comparable properties.

Front 20

when can you use the Sales Comparison Approach?

Back 20

when you are able to find comparable sales information.

Front 21

to use the sales comparison approach you must have which two conditions?

Back 21

1- there must be comparable properties
2- there must be sales or market data on such properies

Front 22

Which approach is most perferred and why?

Back 22

Sales comparison because it works more often than Incom approach and cost approach

Front 23

What is the income approach to value?

Back 23

Income approach is based on the potential income that the property could earn for its owner.

Front 24

What is the premis behind the income approach?

Back 24

an investor typically will not pay more for an income property than it is worth to them. (if you could earn 6% by placing your money in the bank, would you invest knowing you would only earn 4%)

Front 25

If you can confirm what the income is or estimate what it could be, what valuation process would you use?

Back 25

Income approach to value

Front 26

In order to use the Income appropach the property must what?

Back 26

show proof of ability to produce income.

Front 27

When should you not use the income approach?

Back 27

When the property lacks the ability to produce an income (single family)

Front 28

What is the cost approach to value?

Back 28

'what would it cost to build a sturcture like this'?

Front 29

What must you first determine inorder to estimate the value of a property on a cost basis

Back 29

You must first determine how much it would cost to replace it

Front 30

What is the second step in determining the Cost approach

Back 30

after finding the replacement cost you must deduct the amount the market recognizes as depreciation caused by age and wear

Front 31

What must you do in determining the Cost Approach?

Back 31

you have to estimate replacement cost then you have to measure market depreciation.

Front 32

What is a problem with using cost approach?

Back 32

most inididuals would not have a home replaced exactly as it is now.

Front 33

When would using the Cost approach out weigh the use of income/market approach?

Back 33

When there is not enough data to support the other approaches to value. Also, new construction and special purpose buildings (hospitals, nursing homes, industrial manufacturing)

Front 34

What gives the appraiser the best estimate of value.?

Back 34

using more than one approach

Front 35

Lot sizes are compared by what measurement?

Back 35

Square footage

Front 36

Construction costs are given by what measurement?

Back 36

Price per square foot

Front 37

Area is the space contained in what?

Back 37

a closed figure

Front 38

Area is measured in what?

Back 38

square units

Front 39

What is the formula in determining square units?

Back 39

Length times width

Front 40

What is the basic unit we use to measure? (feet or inches)

Back 40

feet

Front 41

To compute area all the dimensions must be given...

Back 41

in the same unit of measurement (both feet or both inches not combination of each)

Front 42

how are irregular lots measured?

Back 42

by creating seperate rectangular areas.

Front 43

in building diagrams, the side a figure rests on is called its what?

Back 43

Base

Front 44

The altitude of a figure is what?

Back 44

the line used to determine height of a figure

Front 45

What two conditions must an altitude line meet?

Back 45

must begin at the highest point opposite the base and be perpendicular to the base.

Front 46

formula for a triangle is what?

Back 46

Base times height divided by 2
B(H)/2

Front 47

When is the cost approach the most reliable?

Back 47

The cost approach is most reliable on properties that are new, show little depreciation, and make the highest and best use of the land. or the other approaches are not feasible.

Front 48

What is the "principle of subsitution?"

Back 48

'A buyer will not pay more for one property than for another that is available and equally desirable."

Front 49

What are the three basic elements to the cost approach?

Back 49

1- estimate of value of land
2- estimate of current new cost for structures
3-estimate of depreciation

Front 50

What is the formula for cost factor?

Back 50

V(value)= L(land)+(C(current cost of structures)-D(Depreciasion)

Front 51

What is replacement cost new?

Back 51

cost of constructing at current prices a building having utility equivalent to the building being appraised, but built with modern materials according to current standards, design and layout.

Front 52

what are two terms used in connection with depreciation?

Back 52

Functional Obsolescence and externalities

Front 53

Functional Obsolesence is ?

Back 53

inability of a structure to adequately perform the function for which it is currently employed. (losses caused from within the structure) poor foundation, lack of closet space, heating system etc

Front 54

what is Externalities refering to?

Back 54

loss in value resulting from conditions outside the property. (declining neighborhood by social changes, unemployment, traffic patterns, etc

Front 55

Physical depreciation?

Back 55

estimationg reduction in value of a structure because of normal wear and tear.

Front 56

what is the comparative or base cost method of estimating construction cost?

Back 56

groups similar buildings by design, type, and quality of construction. therefore, known cost develops an average unit cost. This in turn produces replacement cost factors by groups or class.

Front 57

What is quantity survey method of estimating constuction cost?

Back 57

complete cost itemization of all labor, materials, overhead and profit necessary for the construction of a building.

Front 58

What is the segregated cost or unit in place method of estimation construction cost?

Back 58

modification of quantity survey by combining unit costs for each portion of the building.

Front 59

What are indirect cost of construction?

Back 59

cost that are not directly related to the actual construction but are necessary in order for construction to take place i.e. permits.engineering fees, title fees, etc.

Front 60

What are direct cost of construction?

Back 60

related directly to the building of the structure: for example-material, labor, equip rental, and site cost

Front 61

A neighborhood exists because there is a strong homogeneous _________(detachment/grouping) of individuals, buildings, or business enterprises within, or as part of, a larger community

Back 61

grouping

Front 62

could a farming neighborhood boundary be formed by size of operation, type of ownership, soil, corps grown, or its land use?

Back 62

Yes

Front 63

What are the four general classifications of neighborhoods according to use?

Back 63

Residental, recreationa/seasonal, farming, and commercial/industrial

Front 64

What are three examples of what can depreciate value for most neighborhoods?

Back 64

1. people thinking the neighborhood is losing desirability.
2. change in zones
3. lack of zoning, architectural styles, or poor maintenance.

Front 65

What is a transitional neighborhood?

Back 65

A neighborhood that is changing from one form of neighborhood to another.

Front 66

What is the highest and best use(simplified)

Back 66

Highest and best use is that use which fully developes the sites potential

Front 67

Loss of value to an improvement in a neighborhood because the neighborhood was losing desirability, changing use, or lacking zoning, are all examples of a form of depreciation called

Back 67

Externalities
When loss of value occurs to an improvement from factors outside of the property , it is called externalities.

Front 68

What are some examples of factors that may improve the value to a residentail neighborhood?

Back 68

1. schools churches, recreation facilities, and other amenities.
2. a homogeneous population with a sense of civic responsibilies.
3. prestige and visual appeal
4. satisfactory transportaion facilites and good approaches
5. natural topographical and geopraphical advantages
6. conformity in land use and sensible zoning
7. good planning and adequate utilites

Front 69

What are some examples of factors that may improve the value of a commercial district?

Back 69

1. the quantity and quality of purchasing power in the area
2. the 100 percent core area of the commercial district.
3. the visible direction of growth.
4. availability of land for new stores and customer parking
5. the location and character of competition.
6. the economic status of the trading area.

Front 70

What is quality class 1

Back 70

Basic Shelter--these houses do not meet minimum building code standards. Usually older and undersized; a basic shelter home of minimal quality

Front 71

What is quality class 2

Back 71

Low cost quality housing--falls below minimum building code standars, emphasis in on shelter and not style. Very simple, plain features with inexpensive quality of materials and workmanship.

Front 72

What is quality class 3

Back 72

Economy quality homes-- Built to meet minimum building code standards. Functional utility rather than style with little or no external ornamentation for this class.

Front 73

What is quality class 4

Back 73

Fair- Usually stock plans and meet current building codes. Workmanship and material are basic and fair with some curb appeal on front; side and rear plain.

Front 74

What is quality class 5

Back 74

Average quality--This is a larger home which reflects popular styling, design,and functional utility. Home will also have more interiaor and exterior onamentation. Average is based on a state or national basis and may differ from the norm for your area.

Front 75

What is quality class 6

Back 75

Good Quality- There is attention to appearance and detail; Ornamentation adn craftsmanship as well as having architectural style and design.

Front 76

What is quality class 7

Back 76

High Quality-- Custom design by professional home planners; and built by specialty contracters and may have architectrural supervision. Good architectural design features; with high quality materials and craftsmanship found in both interior and exterior.

Front 77

What is Quality Class 8

Back 77

Custom Estate Homes-Quality rather than cost is primary consideration. Superior detail throughout, having the highest quality of design, craftsmanship and material. A display of grandeur

Front 78

What are the two primary factors in determining neighborhood ratings?

Back 78

Function and quality

Front 79

A neighborhood offering obviously more function and quality than the average quality or good quality would be rated?_______(class5, 6, 7)?

Back 79

Class 7

Front 80

Neighborhoods or economical type homes are fully functional. Thes homes are currently built to meet specification of government financing programs. The homes (will/will not) meet current building code requirements?

Back 80

will

Front 81

Would you expect neighborhoods rated below class 3 to be near shopping facilities?

Back 81

Probably not. You may find a mom and pop grocery store where such items such as milk can be bought daily, but the inhabitants of this type of neightborhood must usually travel to shop.

Front 82

After you have observed the important factors of a neighborhood, you will need to relate them to the individual property to be appraised. When estimationg the value of improved real estate, the appraiser must analyze tow distinct entities. What are they?

Back 82

1. the land
2 the improvements on the land.

Front 83

how many square feet in an acre?

Back 83

43,560

Front 84

Four components of Highest and best use

Back 84

1. Legally permisible
2. physically feasible
3. Financially feasible
4. best possible use

Front 85

Why must you seperate the area of the garage from the rest of the house following measurement of the exterior property being appraised

Back 85

To isolate the cost of the living area from the garage area.

Front 86

Double checking measurements in the field to enure the fron and back dimentions are equal as well as the sides so that no errors in measurements is called what?

Back 86

Balancing and squareing up

Front 87

under improvement refers to what for a particular neighborhood?

Back 87

absence of standard features

Front 88

Over improvement refers to what for a particular neighborhood?

Back 88

excess of features

Front 89

In estimating the degree of over-improvements aor under improvement with real property you will meansure the return on the value of the portion or portions applied to the total real property. This is an example of the basic principle of (contribution/anticipation/subsitution)

Back 89

contribution--the prinicple of contribution is the principle of increasing and decreasing returns applied to the portion of portions of real property. It states that the value of any individual agen in production depends on how much it contributes to value by its presence, or detracts by its absence.

Front 90

What three seperate criteria must you base your judgements to properly class a house?

Back 90

1. class features
2. class illistration
3. base specifications

Front 91

What are class features?

Back 91

Class features are used as a general guide to obtain the proper classification through generalizations of exterior appearances

Front 92

What are class illistrations?

Back 92

Class illistrations or photographs provides a supplemental aid in identifying the appropriate replacement class through selecting a visual equivalent of the subject property.

Front 93

What are base specifications?

Back 93

base specifications provide the final aid in selecting the proper class by using a general breakdown of the interior and exterior component parts of a structure.

Front 94

ABSTRACT OF TITLE

Back 94

A summary of all recorded conveyances (such as deed and wills), and legal proceeding that give the names of the parties, the description of the land, and the agreements. Abstracts are arranged to show the history of ownerhip, describe the land and improvements, and give the name of past and present owners.

Front 95

ABUT

Back 95

to border, or touch; or share a common boundary with another property.

Front 96

ACCRETION

Back 96

A growth in size, especially by addition or accumulation. In land, the gradual and perceptible increase of riparian land by water depositon of mud, or sediment. An area formerly covered by water thus becomes dry land.

Front 97

ACCRUED DEPRECIATION

Back 97

The amount of depreciation, from any and all sources, that affects the value of the property in question on the effective date of apprasial.

Front 98

AD VALOREM

Back 98

Literally translated it means "according to the value" For property taxes, a tax based upon the value of the item being taxed.

Front 99

ADJUDICATED VALUE

Back 99

The value ordered by the BOPTA the DOR, or the Oregon tax court. adjudicated value becomes the property's real market value (RMV) and can be changed under certain conditions provided by statute

Front 100

AFTER-RATIO STUDY

Back 100

a ratio study designed to test whether or not a county's annual valuation program in produced values that meet the 100 percent of market value standard. Generally, the after-ratio study compares current year adjusted market values to current year arm length market studies.

Front 101

AGENT

Back 101

A person who has been given authority for another.

Front 102

ALLOCATION

Back 102

a method used to estimate land value in which an appraiser analyzes sales of improved properties to establish a typical ratio of site value to total property value and applies this ratio to a property being appraised or comparable sale being analyzed.

Front 103

ARITHMETIC MEAN

Back 103

A measure of central tendency also called the average or mean. The mean is the total of all the ratios or vaues (observation) in an array divided by the number of ratios or values in an array.

Front 104

ASSEMBLAGE.

Back 104

the combining of two or more parcels into one ownership or use.

Front 105

AVERAGE DEVIATION

Back 105

In statistics, the number obtained by subtracting the arithmetic mean of all the items from each item, adding up these differences without regard to sign, and dividing this sum by the number of items.

Front 106

BALANCE

Back 106

The principle of balance as used in appraising is that the greatest value in property will occur when the type and size of improvements and uses are proportional to each other as well as to the land.

Front 107

BASIC COST FACTOR

Back 107

The unit amount expressed in terms of dollars representing the cost proportioned to each unit of a base structure described by the specification. It may be eaxpressed as $20 per square-food, $35,000 per appartment, $5000 per parking space, etc.

Front 108

BENCHMARK

Back 108

in appraisal the standard or base from which estimates and comparisons are made. As part of a mass appraisal program there would be building class, depreciation, land landscape benchmarks, etc.

Front 109

CAPITALIZATION

Back 109

the conversion of income into value. See also direct capitalization and yield capitalization

Front 110

CAPITALIZATION RATE

Back 110

Any rate used to convert income into value.

Front 111

CPR (CHANGED PROPERTY RATIO)

Back 111

Under Measure 50 the practice of using the sale of a property to trigger a reappraisal of that property. The practice of appraising properties to the known sales price. If sales with such appraisal adjustments are used in a ratio study, the practice creates unrealistic uniformity and creates invalid appraisal results. By extension, any practice that causes the analyzed sample to misrepresent the assessment performance for the entire population as a result of acts by the assessor's office. A subtle, possibly inadvertent, variety of sales chasing occurs when the recorded property characteristics of sold properties are differentlly changed relative to unsold properties. Then the application of a uniform valuation model to all properties results in the recently sold prperties being more accurately appraised than the unsold ones.

Front 112

CODE AREA

Back 112

A geographic unit established by county assessors and identified by a code number, representing the combination of taxing districts in which a piece of property is located.

Front 113

COEFFICIENT OF DISPERSION (COD)

Back 113

a measure of uniformity, calculated two different ways. For assessment purposes it is the ratio of the average absolute deviation to the median expressed as percentage. In statistics, the ratio is created using the mean.

Front 114

COMPARATIVE UNIT METHOD.

Back 114

A method used to derive a cost estimate in dollars per square foot or cubic foot of area, based on known costs of similar structures adjusted fro time and physical differences.

Front 115

COMPRESSION

Back 115

a measure 5 term. the reduction in taxes required by the 1990 measure 5 tax limits. County assessors calculate compression as a dollar amount, but it can also be expressed as a tax rate. Compression is done on a property-by-property basis.