Assessor - correct answer Any person responsible for the valuation of real property for ad valorum taxation purposes
Duties and Responsibilities of an
... [Show More] Assessor - correct answer Discovering, Listing, Valuing
Clean & Green - Act 319 - correct answer Has two values, Value in Use and Value in Exchange
An Assessor is accountable to whom? - correct answer Himself, taxpayers and all taxing authorities
In order for an assessor to accomplish the task of discovering property, the assessor needs what? - correct answer An adequate mapping system ( GIS) showing every parcel of land.
Last day to submit an appeal - correct answer September 1
All appeals must be heard and decided by what date? - correct answer October 31st
Last day to apply for the Homestead/Farmstead Exclusion - correct answer March 1st
Last day to apply for the Clean and Green program for the next tax year - correct answer June 1st
Date that public notice must be given that tax rolls are open for public inspection - correct answer July 1st
STEB must certify to all assessment Office their CLR's by which date? - correct answer July 1st
All notice of appeal decisions must be mailed - correct answer November 15th
Assessors Certification Date - correct answer November 15th
Levels of appeal process - correct answer 1. County Board of Assessment Appeals, 2. Court of Common Pleas of Pennsylvania, 3.Commonwealth Court of Pennsylvania, 4.Superior Court of Pennsylvania
Assessors are charged with the responsibility of administering what? - correct answer A uniform and equitable assessment system
March 17th 1987 - correct answer The Assessors Certification Act required that all persons responsible for the valuation of real property for ad valorem taxation purposes be certified to do so by he State Tax Equalization Board.
Has three years from the start of employment to become certified
March 17, 1992 - correct answer The responsibility to certify assessors shifted from the State Tax Equalization Board to the State Board of Certified Real Estate Appraisers.
State Board of Certified Real Estate Appraisers - correct answer The state board certification body
To be certified by the State Board of Certified Real Estate Appraisers, the assessor must: - correct answer 1. Possess a high school diploma, or its equivalent, or two years of assessing experience
2. Shall be at least 18 years of age
3. Shall be a resident of this Commonwealth for at least six months
4. Successfully completed a minimum of 90 hours of the basic course of study of the International Association of Assessing Officers (IAO) or the Assessors Association of Pennsylvania (AAP)
5. This act does not apply to counties of the First Class (Philadelphia Counties)
How often must an assessor recertify? - correct answer Every two years.
June 30 Odd number years (license runs out)
July 1 odd number of years (starts a new license year)
Example: July 1, 2009 to June 20, 2011
To become re-certified the assessor must accumulate how many hours of continuing professional education credits? - correct answer 28 hours
7 hours must be on USPAP (Uniform Standards of Professional Appraisal Practice)
2 hours must be on Assessor's Certification Act (Act 28 of 1992)
The State Board of Certified Real Estate Appraisers approves the courses or activities necessary to comply with the re-certification requirements
ASB - correct answer Appraisal Standards Board
An appraiser must perform assignments with what? - correct answer Impartiality, Objectivity and Independence, without accommodation of personal interest
How long must an appraiser retain his/her workfile? - correct answer 5 years after preparation or 2 years after final disposition of any judicial processing.
Whichever expires last!
Workfile must include the following: - correct answer 1. Name of the client and the identity, by name or type, of any intended users
2. True copies of any written reports, documents on any type of media
3. Summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification
4. All other date, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with this Rule and all other applicable Standers, or references to the location(s) of such other
To have a successful assessment office the assessor must have? - correct answer The trust of those he or she serves
The assessor and his staff should always consider themselves what? - correct answer Good will ambassadors of the taxation process and county government
As assessment office must have which legally required materials readily available and easily accessible to the public? - correct answer 1. property record cards
2. maps
3. Tax duplicates
4. alphabetical index
Title 53 Purdons - correct answer The volume that has pertinent court cases and taxation laws for Pennsylvania assessment.
Ad valorem - correct answer At value.
The ad valorem tax is one which is based on the value of tangible and intangible property.
Article VIII Section 1 - correct answer This is known as the uniformity clause of the Pennsylvania constitution.
Provides that all persons and property (tangible and intangible) be assessed and taxed uniformly as a class.
Uniformity!
Mill - correct answer one dollar of tax per every one thousand dollars of assessed value
Assessment X Millage Rate = - correct answer Taxes to be paid by the taxpayer
Base Year Market Value X Predetermined Ratio= - correct answer Assessment
Real Estate - correct answer The physical land and everything permanently attached to it.
Strictly Tangible
Tangible - correct answer What you can see and touch
Real Property - correct answer Sum of the tangible and intangible rights in lands and improvements to land. It refers to the interest, benefits and rights inherent in the ownership of physical real estate.
Personal Property - correct answer Moveable items not permanently affixed to, or part of, the real estate
Common Level Ratio - correct answer Weighted sales ratio that examines the relationship between the assessment and current sales price.
The ratio of the current existing assessments to the current validated sales price of properties that have sold. STEB sets this before July 1st.
STEB must certify the CLR by? - correct answer July 1st
STEB must certified the CLR on or before? - correct answer June 30th
Assessment/Sales Price - correct answer Common Level Ratio
Predetermined Ratio - correct answer A percentage of the appraised value set by the County Commissioners that determines the assessed value.
Methods used for discovery - correct answer 1. Deeds
2. Subdivision Plans
3. Aerial and Tax Maps
4. GIS
5. Building and Occupancy Permits
6. Field Reviews
Plotting a deed - correct answer Adjusting a tax map according to the new deed involves reading the description on the deed, making calculations, measuring the existing map and drawing new lines.
Field Review - correct answer The most widely used system to validate current information and discover new physical characteristics.
Listing/Inventorying - correct answer You record the property components and description for future reference
Value - correct answer The present worth of future benefits arising from the ownership of real property
Cost - correct answer The sacrifice made (in terms of money, time or labor) to acquire property
Price - correct answer The quantity of one thing which is exchanged for another; the amount of money paid, asked or offered where sale is contemplated; the money consideration which is expected or given in exchange for commodities or services. Sometimes value expressed in terms of money.
Market Value - correct answer The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer whereby:
1. Buyer and seller are typically motivated
2. Both parties are well informed or well advised, and asking in what thy consider their best interests
3. A reasonable time is allowed for exposure in the open market
4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto
5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
Market Price - correct answer The actual amount paid, or to be paid, for a property in a particular transaction
Deed - correct answer A written document under seal conveying real estate. Types: Warranty and Quit Claim
Warranty Deed - correct answer A deed in which the grantor warrants the title to be good and accurate and agrees to defend the title against all parties.
When a true owner of record transfers the ownership.
This is guaranteed.
1. Grantor has the right to convey the real estate
2. grantor is the owner of the real estate mentioned
3. That the land is free and clear of all encumbrances, liens, bargains, sales, taxes
4. That the grantee will have quiet enjoyment of the real estate and not be pout out by someone with a superior title
5. That the grantee has legal recourse against the grantor should there be any problem with the title.
Quit Claim Deed - correct answer The deed by which the grantor conveys only the interest he or she may have in the property
Fee Simple Title - correct answer The greatest degree of ownership. It is title free and clear of all liens & encumbrances. ...No taxes, no loans. Owner owns the bundle of rights
Ad Valorem - correct answer Latin for "according to value".
Ad Valorem Taxation - correct answer Taxes are levied according to the value of the property
Base Year - correct answer The year upon which real property values are based for the most recent countywide reassessment or other prior year for which the market value of all real estate of the county is based.
Tangible Property - correct answer Can be seen and touched. Consists of actual physical things.
Intangible Property - correct answer Cannot be seen or touched; it is evidence of ownership rights. Examples: stocks, bonds, mortgages and copy rights...rights you have as a owner.
Property - correct answer Can be tangible or intangible, and can be real or personal
Personal Property - correct answer Property that is tangible; it can be moved by its owner.
Chattel or fixture
Chattel - correct answer Personal property not permanently affixed to land
Fixture - correct answer personal property is permanently affixed to the land
Bundle of Rights - correct answer S- Sell
L- Lease
U-Use
G-Give away
E-Enter/leave
R-Refuse to do anything
Public Limitations - correct answer P-police power
E-escheat
T-taxation
E-eminent domain
Police Power - correct answer The right of the government to regulate the use of property for the public welfare in areas of safety, health, morals, zoning, building codes, traffic and sanitary regulations
Escheat - correct answer The right to have property revert to the state for nonpayment of taxes or when there are no legal heirs or a decedent who dies "intestate."
Intestate - correct answer A person who dies having made no will.
Eminent domain - correct answer The right to take property for public use provide that just compensation is paid.
Taxation - correct answer The right to tax property for the support of the government
Private Limitations of Ownership - correct answer 1. rights of other co-owners
2. condominium and subdivision restrictions
3. covenants, conditions and restrictions in the chain of title
4. easements and rights of way
5. liens and judgements
6. leases
Concepts of Value - correct answer Scarcity, Utility and Desirability
Utility - correct answer Subjective quality of property to instill a desire in someone's mind to own it.
Scarcity - correct answer Think of supply and demand. When there is an over supply, demand is small and the value will decrease.
When supply is scarce, and there is a large demand for that commodity, value will increase.
Desirability - correct answer A desire and means to own the property
Highest and Best Use - correct answer Use of a property that will generate the highest net return to the property over a reasonable period of time
Highest and Best Use Criteria - correct answer 1. Legally permissible
2. Physically possible
3.Financially feasible
4. Most productive
Principle of Anticipation - correct answer Implies that market value is the present worth of the anticipated future benefits derived from property.
The assessor should look at current actions of buyers to determine anticipated future benefits and not speculate.
Principle of Balance- Individual Property - correct answer Maximum market value is attained when the four agents of production attain a state of equilibrium
1. Land
2.Labor
3.Capital
4.Management
Agents of Production - correct answer 1. Labor
2. Management
3. Capital
4. Land
Principle of Balance- neighborhood - correct answer Maximum value is reached when the uses of land are perfectly complimentary. It works together with the principles of contribution, increasing and decreasing returns and surplus productivity
Principle of change - correct answer Market value is never constant because of the effect of PEGS
P- Physical
E- Economical
G- Governmental
S- Social
This principle also impacts the Principle of Anticipation
Principle of Competition - correct answer Excess profits breed ruinous competitions. Any neighborhood will only support a certain number of one type of support facility. Example: in any neighborhood, several gas stations can operate and be successful, but when one more gas station opens business, all the gas stations begin to suffer
Principle of Conformity - correct answer Maximum market value is attained when there is a reasonable amount of social and economic similarity in a neighborhood.
Example: if a neighborhood is predominantly well kept and two story Victorian homes with one small fair condition ranch style house in the middle of the neighborhood, the ranch style house will not achieve maximum market value.
Principle of Consistent Use - correct answer When valuing a property the appraiser must value the property as a unit and not value the components separately. It is improper to value the land for one use and the buildings for another use.
Principle of Contribution - correct answer Implies that value of individual property improvements depends on their contribution to the whole property. "Cost does not equal value"
Example: a property owner spends $15,000 to build a garage on his property and the assessor values the garage at $10,000, because the value of the entire property was only increased by $10,000
Principle of Increasing and Decreasing Returns - correct answer Implies that when successive increments of one agent of production are added to fixed amounts of the other agents of production, future net benefits (income or amenities) will increase to a certain point (point of decreasing returns), after which further increments of hat agent of production will decrease future net benefits
Principle of Progression and Regression - correct answer States that the values of properties with a lesser value are enhanced when associated with properties of a greater value (progression) and values of properties of a greater value will decrease when associated with properties of a lesser value (regression).
Principle of Substitution - correct answer Implies that the value of a property is set by cost of acquiring an equally useful and desirable substitute, providing no costly delay is experienced. No prudent buyer would pay more for a property when he could purchase an equally useful and desirable substitute, as long as he wasn't delayed in doing so.
Serves as the basis for cost, sales comparison and income--the approaches to value.
Principle of Surplus Productivity - correct answer net income remaining after the cost of the other agents of production have been satisfied is the income of the land .
Life cycle of a neighborhood - correct answer 1. Growth
2. Stability
3. Decline
4. Rehab
Trend - correct answer A series of changes that can be identified
Location - correct answer Most important physical force affecting neighborhoods
Physical Forces - correct answer Location, size of the neighborhood, topography, appearance, size, shape and lot area, street pattern, soil and subsoil conditions, drainage, hazards, climate, utilities, conformity of house, proximity to supporting facilities, nuisances, waste disposal, transportation and location of labor force
Economic Factors - correct answer Population growth, shifts and declines patterns of use, amount of vacant land, new construction, employment of resident, family income, ownership-tenancy ratio, turnover and vacancy, price levels, rent levels, lender attitudes and policies, foreclosure rate, insurance rates, competing commercial neighborhoods, business failure and turnover, and union attitudes.
Legal/Governmental Factors - correct answer municipal services, planning, zoning, building codes, deed restrictions, development regulations, taxes and special assessments
Social Forces - correct answer crime, population densities and characteristics of the residents
Sales comparison (market ) approach to value - correct answer Is an appraisal procedure where the market value of a property is estimated based on the concept of value in exchange. It is the process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sale price of the subject property.
The reliability of this approach is contingent upon:
1. the availability of comparative sales
2. the verification of the sales data
3. the number of adjustments necessary for different physical characteristics
4. the amount of non-typical conditions that affect the comparable sales
cost approach to value - correct answer this approach estimates value based on the proposition that the informed buyer would pay no more than the cost of producing a substitute property with the same utility as the subject providing no delays would be experiences. This approach to value generally sets the upper limit of value and is best suited to specialized or unique properties for which there are no comparable sales to use as a comparison
Income approach to value - correct answer the approach to value that converts anticipated benefits of ownership in real estate into a value estimate. This approach is widely used in [Show Less]