Property Tax Consultant: Sample Test Questions

Question 1

1. The Texas Property Tax Code, Section 41, provides for Local Review which:

Answer 1

• Lists the reasons for taxpayer appeals

Question 2

2. Property Value may be estimated using:

Answer 2

• Sales comparison, Income capitalization and Cost Approach

Question 3

3. The Texas Property Tax Code, Section 42, provides for Judicial Review including:

Answer 3

• The right to appeal the Order Determining Protest from ARB

Question 4

4. Appraisal Review Board (ARB) members are compensated by:

Answer 4

• The Appraisal District

Question 5

5. Once a person is appointed to the ARB:

Answer 5

• May be removed by only a majority vote of the appraisal district’s board of directors

Question 6

6. The ARB has the authority to:

Answer 6

• Subpoena witnesses, records and financial documents of a business

Question 7

7. Uniform Standard of Professional Appraisal Practices:

Answer 7

• Are required to be used by appraisal districts when estimating market value

Question 8

8. An Appraisal Review Board shall determine the protest and:

Answer 8

• Notify the taxpayer of their decision by written order

Question 9

9. Equal and Uniform taxation is mandated by:

Answer 9

• The Texas Constitution

Question 10

10. According to the Texas Property Tax Code, a tax bill mailed after January 10th has a delinquency date of:

Answer 10

• 21 days from the mailing date of the bill (BEFORE Jan. 10th – January 31st )

Question 11

11. Business Personal Property:

Answer 11

• May be tangible or intangible

Question 12

12. A taxpayer may:

Answer 12

• Designate an agent to receive only communications from the chief appraiser and the appraiser review board

Question 13

13. An acre of land contains

Answer 13

• 43,560 feet

Question 14

14. The concept to rights of property ownership is known as:

Answer 14

• The bundle of rights

Question 15

15. Representation of a property owner is governed by what section of the Texas Property Tax Code:

Answer 15

• Section 1.111

Question 16

16. An easement is an interest in real property that:

Answer 16

• Transfers use, but not ownership of the property

Question 17

17. An analysis of real property includes:

Answer 17

• Highest and best use of the property

Question 18

18. An important component of the Income approach is:

Answer 18

• The Cap Rate (capitalization)

Question 19

19. A step in the Cost Approach would include:

Answer 19

• A separate valuation of the land as IF vacant

Question 20

20. The Sales Comparison approach is best supported by:

Answer 20

• Several sales of similar properties in the same neighborhood or market area

Question 21

21. A method of land surveying that describes a parcel of land is:

Answer 21

• Metes and Bounds

Question 22

22. When valuing land it is necessary to consider:

Answer 22

• The size and shape of the land

Question 23

23. An item of property improvement that works and is useful is said to have:

Answer 23

• Functional utility

Question 24

24. Market Value less Total Development Costs equals:

Answer 24

• Profit (or Loss)

Question 25

25. Income less Operating Expenses equals:

Answer 25

• Net Operating Income

Question 26

26. A flaw in construction, materials or design is known as:

Answer 26

• Functional Obsolescence

Question 27

27. If the net operation income is $35,100 and the sales price is $368,500, the rounded capitalization rate is:

Answer 27

• .0953

Question 28

28. If the net operating income is $85,000 and the capitalization rate is .0825, the indicated value would be:

Answer 28

• $1,030,300

Question 29

29. Ex Parte Communication between the appraisal review board members and the appraisal district:

Answer 29

• Is prohibited

Question 30

30. All Real and Tangible personal property is:

Answer 30

• Taxable unless exempted by law

Question 31

31. Income producing tangible personal property and mineral interests:

Answer 31

• Having a value of less than $500 is exempt

Question 32

32. Property is taxable by a taxing unit:

Answer 32

• If located within their taxing jurisdiction on January 1

Question 33

33. By application, the owner of inventory may request an alternate assessment date of:

Answer 33

• September 1st instead of January 1st

Question 34

34. All property is taxable unless exempted by:

Answer 34

• Federal Law, the Texas Constitution or the Texas Property Tax Code

Question 35

35. Inventory temporarily located in Texas may qualify for Freeport Exemption:

Answer 35

• If it is temporarily located in Texas for less than 175 days

Question 36

36. Taxpayers may qualify for special use appraisal if the property:

Answer 36

• Is used primarily for agricultural purposes

Question 37

37. To be eligible for Special Use Valuation, land must be:

Answer 37

• Devoted to agricultural or timberland use

Question 38

38. When a property no longer qualifies for an over 64 or disability exemption, the property owner should:

Answer 38

• Notify the appraisal district that the property no longer qualifies for the exemption

Question 39

39. Property values for tax purposes are determined by:

Answer 39

• The county appraisal district in which the property is listed

Question 40

40. The due date for a special use valuation application may:

Answer 40

• Be granted an extension by the chief appraiser for up to 60 days

Question 41

41. Business personal property reports (renditions) are due:

Answer 41

• On or before April 15

Question 42

42. The Appraisal Review Board is comprised of:

Answer 42

• Citizens authorized to resolve disputes between the appraisal district and taxpayers

Question 43

43. If a property is incorrectly listed on the appraisal records the owner should:

Answer 43

• File an appeal with the appraisal review board

Question 44

44. If the chief appraiser or the appraisal review board fail to provide a property owner with a notice required by law, the property owner should:

Answer 44

• File an appeal with the appraisal district (Section 41.411)

Question 45

45. Section 41.411, Texas Property Tax Code, addresses the issue of:

Answer 45

• Denial of due process, failure to provide a notice required by law

Question 46

46. The total construction costs for a development was $1,394,581. The total construction contingencies were equal to 5% of construction costs. If the total contract costs were $1,631,660, what percentage of the total construction cost is associated to contractor’s overhead and profit?

Answer 46

• 10%

Question 47

47. To be eligible for special use valuation, land must be:

Answer 47

• Devoted primarily to agricultural or timberland use

Question 48

48. Section 25.25, Texas Property Tax Code provides remedies for:

Answer 48

• Correcting an error in the appraisal records

Question 49

49. Section 25.25(h), Texas Property Tax Code, allows for correction of the appraisal records if:

Answer 49

• A joint motion is filed by the chief appraiser and the property owner prior to the tax payment delinquency date

Question 50

50. If a motion filed pursuant to Section 25.25(d), Texas Property Tax Code, results in a value correction:

Answer 50

• The taxpayer will be assess a late correction penalty equal to 10% of the corrected tax amount

Question 51

51. Effective March 1, 2010 an application filed for a property tax consultant license must include proof of:

Answer 51

• 40 hours of pre-licensing education and successful completion of a competency examination

Question 52

52. Section 11 of the Texas Property Tax Code governs the administration of:

Answer 52

• Exemptions

Question 53

53. The definition of market value includes:

Answer 53

• Exposure on the market for reasonable length of time with buyer and seller under no duress

Question 54

54. The market value of a property as recorded by the chief appraiser:

Answer 54

• Is known as the appraised or assessed value

Question 55

55. Three types of property interest are:

Answer 55

• Leased fee, leasehold and fee simple

Question 56

56. Two types of legal descriptions used to describe a parcel of land are:

Answer 56

• Metes and Bounds; Lot and Block

Question 57

57. The loss in value due to negative external influences over which the property owner has no control is known as:

Answer 57

• Economic or External obsolescence

Question 58

58. Depreciation is defined as a loss in value from:

Answer 58

• Physical, Functional and Economic Obsolescence

Question 59

59. Generally, property taxes become delinquent if not paid on or before:

Answer 59

• January 31st

Question 60

60. When using an appraisal for estimating market value for tax purposes the user should:

Answer 60

• Confirm all data contained in the appraisal

Question 61

61. The value of business personal property may be estimated using the sale of a business if:

Answer 61

• The sale is confirmed through the buyer or seller’s broker

Question 62

62. The chief appraiser is entitled to appeal an order of the appraisal review board determining a protest:

Answer 62

• Upon written approval of the appraisal district board of directors

Question 63

63. Tangible personal property held for the production of income includes:

Answer 63

• Inventory, furniture, machinery and equipment

Question 64

64. The Texas Property Tax Code defines real property as:

Answer 64

• Land, improvements, a mine or quarry, minerals in place, standing timber and an interest other than a mortgage

Question 65

65. The location where a person or corporation has legal residency is defined as:

Answer 65

• Domicile

Question 66

66. The difference between tangible personal property and intangible personal property:

Answer 66

• Determines the method by which the property should be appraised

Question 67

67. Mobile property, such as commercial vehicles may be taxed:

Answer 67

• By each taxing unit in which the property is used based on an allocation of the total market value

Question 68

68. The Texas Property Tax Code section that addresses renditions and other reports is:

Answer 68

• Section 22

Question 69

69. The loss of property value from any source is known as:

Answer 69

• Depreciation

Question 70

70. The chief appraiser shall deliver a clear and understandable written notice of the property owner’s appraised value:

Answer 70

• On or before May 30

Question 71

71. Unless otherwise specified, business personal property renditions are required to be filed by:

Answer 71

• Between January 1st and April 15th

Question 72

72. A property owner must file a written notice of protest with the ARB:

Answer 72

• Before June 1 or no later than 30 days after the date of the notice was delivered

Question 73

73. The appraisal district is required to make available all evidence it intends to present at the ARB hearing:

Answer 73

• Upon written request of the property owner made at least 14 days prior to the hearing

Question 74

74. A motion filed pursuant to Texas Property Tax Code, section 25.25(d) requires the taxes be paid before the delinquency date in the amount:

Answer 74

• Of the tax in full or the undisputed amount of the tax

Question 75

75. A motion filed to correct an excessive appraisal pursuant to Section 25.25(d):

Answer 75

• Must be filed prior to the tax delinquency date

Question 76

76. Property Tax Consultants Administrative Rules state that a registrant shall not solicit or advertise property tax consulting services by claiming a specific result or stating a conclusion regarding such services:

Answer 76

• Without prior analysis of the facts and circumstances pertaining thereto

Question 77

77. The standard for passing the senior property tax consultant examination is:

Answer 77

• At least 70%

Question 78

78. The agency that governs the registration of property tax consultants is:

Answer 78

• The Texas Department of Licensing and Regulation (TDLR)

Question 79

79. A registered property tax consultant is required to be employed by or associated with a senior property tax consultant or acting for an attorney who is licensed to practice law in this state and who:

Answer 79

• Has successfully completed the senior property tax consultant registration examination

Question 80

80. One requirement of an applicant for registration as a senior property tax consultant is:

Answer 80

• The performance of property tax consulting services for at least four of the seven years preceding the date of application

Question 81

81. The senior property tax consultant examination is intended to test the applicant’s knowledge of:

Answer 81

• The property tax system, principles of appraisal, accounting and law as they relate to property tax consulting services

Question 82

82. The designation of an agent must be made by:

Answer 82

• Written authorization using a form mandated by the Texas State Comptroller and signed by the property owner or his authorized representative

Question 83

83. An Appointment of Agent form provides for an appraisal office, an assessor or collector to:

Answer 83

• Mail notices and tax bills as directed by the taxpayer

Question 84

84. The median level of appraisal as defined in the Texas Property Tax Code, Section 1.12 is:

Answer 84

• The median appraisal ratio of a reasonable and representative sample of properties in an appraisal district

Question 85

85. A rendition of tangible business personal property that contains only the name and address of the property owner, a general description of the property and the property’s physical location is adequate for reporting purposes if the owner’s opinion of value is:

Answer 85

• Less than $20,000

Question 86

86. According to the Texas Property Tax Code, the value of inventory is the price for which it would sell as a unit to a purchaser who would continue the business except for inventories:

Answer 86

• Of motor vehicle dealers, vessels, outboard motors, heavy equipment and manufactured housing

Question 87

87. If real property is valued using a method that includes the value of furniture, fixtures and equipment:

Answer 87

• The personal property is considered included and no business personal property value will be established except for inventory

Question 88

88. When a change of use occurs on land granted special use valuation for agricultural purposes:

Answer 88

• An additional tax is imposed based on the difference between the taxes imposed and the taxes that would have been imposed at the market value for each of the preceding five years, plus interest

Question 89

89. If an exemption applicable to property on January 1 terminates during the tax year, the property:

Answer 89

• May be granted the same exemption by written application to the appraisal district

Question 90

90. With the approval of the appraisal district board of directors, the chief appraiser isn’t required to send a notice of appraised value:

Answer 90

• If the value increase is less than $1,000

Question 91

91. Although the Texas Property Tax Code directs the chief appraiser to submit the appraisal records to the appraisal review board by May 15 or as soon thereafter as practicable, he may not do so until:

Answer 91

• All required notices are delivered to property owners

Question 92

92. The taxable value of property must be:

Answer 92

• 100% of the appraised value less any qualified exemptions

Question 93

93. The steps used in the cost approach consist of:

Answer 93

• Estimating current cost to construct or reproduce the existing structure, less depreciation and adding the value of the land

Question 94

94. Two types of physical depreciation are:

Answer 94

• Curable and incurable

Question 95

95. The definition of useful life is:

Answer 95

• The period of time over which a structure may reasonably be expected to perform the function for which it was designed

Question 96

96. When applying the sales comparison approach to estimate market value:

Answer 96

• The appraiser should adjust sales to the subject based on size, age and other physical characteristics

Question 97

97. A person who acquires property after January 1st who qualifies for an over 65 exemption:

Answer 97

• May receive the exemption for the applicable portion of the tax year immediately upon approval of the filed exemption application

Question 98

98. Effective gross income less all operating expenses is known as:

Answer 98

• Net Operating Income

Question 99

99. Fixed expenses:

Answer 99

• Include taxes, insurance and maintenance

Question 100

100. To estimate the market value of property, the appraisal district shall:

Answer 100

• Apply generally accepted appraisal methods and techniques

Question 101

101. Assessed value less applicable exemptions is known as:

Answer 101

• Taxable Value

Question 102

102. The chief appraiser is appointed by:

Answer 102

• The appraisal district board of directors

Question 103

103. Most absolute exemptions from taxation require property to be:

Answer 103

• Used exclusively by the qualified exempt organization

Question 104

104. Find the value of the property given the following (Annual Rent is $612, Vacancy and Collection Loss is 5%, Operating Expenses are 35% of the effective gross income and the Cap Rate is 9%. What is the value?

Answer 104

• $4,200

Question 105

105. Texas Property Tax Code, Section 11.251 states that a person is entitled to an exemption from taxation on that portion of the inventory consisting of :

Answer 105

• Freeport Goods

Question 106

106. The total cost to construct an improvement was equal to $668,175. The amount of building depreciation is equal to $240,543. If the indicated value of the property by the cost approach is $607,632, what is the value attributed to the land?

Answer 106

• $180,000

Question 107

107. Replacement cost new is defined as:

Answer 107

• The current cost of constructing an improvement of equivalent utility to the one being appraised

Question 108

108. When a property owner is required by the Texas Property Tax Code, Sec. 1.08 to make a payment or to file or deliver a report, application, statement, or other document or paper by a specified due date, his action is timely if:

Answer 108

• If it is sent by regular first-class mail, property addressed with postage prepaid, it bears a post office cancellation mark of a date earlier than or on the specified due date and within the specified period or the property owner furnishes satisfactory proof that is was deposited in the mail on or before the specified due date and within the specified period

Question 109

109. Pursuant to Sec. 11.142 of the Texas Property Tax Code; a person is entitled to an exemption from taxation of the tangible personal property the person owns that is held or used for the production of income if that property has a taxable value of:

Answer 109

• Less than $500

Question 110

110. The Senior Property Tax Consultant’s Exam contains:

Answer 110

• 100 multiple choice questions