Property Tax Consultant: Sample Test Questions Flashcards
- The Texas Property Tax Code, Section 41, provides for Local Review which:
• Lists the reasons for taxpayer appeals
- Property Value may be estimated using:
• Sales comparison, Income capitalization and Cost Approach
- The Texas Property Tax Code, Section 42, provides for Judicial Review including:
• The right to appeal the Order Determining Protest from ARB
- Appraisal Review Board (ARB) members are compensated by:
• The Appraisal District
- Once a person is appointed to the ARB:
• May be removed by only a majority vote of the appraisal district’s board of directors
- The ARB has the authority to:
• Subpoena witnesses, records and financial documents of a business
- Uniform Standard of Professional Appraisal Practices:
• Are required to be used by appraisal districts when estimating market value
- An Appraisal Review Board shall determine the protest and:
• Notify the taxpayer of their decision by written order
- Equal and Uniform taxation is mandated by:
• The Texas Constitution
- According to the Texas Property Tax Code, a tax bill mailed after January 10th has a delinquency date of:
• 21 days from the mailing date of the bill (BEFORE Jan. 10th – January 31st )
- Business Personal Property:
• May be tangible or intangible
- A taxpayer may:
• Designate an agent to receive only communications from the chief appraiser and the appraiser review board
- An acre of land contains
• 43,560 feet
- The concept to rights of property ownership is known as:
• The bundle of rights
- Representation of a property owner is governed by what section of the Texas Property Tax Code:
• Section 1.111
- An easement is an interest in real property that:
• Transfers use, but not ownership of the property
- An analysis of real property includes:
• Highest and best use of the property
- An important component of the Income approach is:
• The Cap Rate (capitalization)
- A step in the Cost Approach would include:
• A separate valuation of the land as IF vacant
- The Sales Comparison approach is best supported by:
• Several sales of similar properties in the same neighborhood or market area
- A method of land surveying that describes a parcel of land is:
• Metes and Bounds
- When valuing land it is necessary to consider:
• The size and shape of the land
- An item of property improvement that works and is useful is said to have:
• Functional utility
- Market Value less Total Development Costs equals:
• Profit (or Loss)
- Income less Operating Expenses equals:
• Net Operating Income
- A flaw in construction, materials or design is known as:
• Functional Obsolescence
- If the net operation income is $35,100 and the sales price is $368,500, the rounded capitalization rate is:
• .0953
- If the net operating income is $85,000 and the capitalization rate is .0825, the indicated value would be:
• $1,030,300
- Ex Parte Communication between the appraisal review board members and the appraisal district:
• Is prohibited
- All Real and Tangible personal property is:
• Taxable unless exempted by law
- Income producing tangible personal property and mineral interests:
• Having a value of less than $500 is exempt
- Property is taxable by a taxing unit:
• If located within their taxing jurisdiction on January 1
- By application, the owner of inventory may request an alternate assessment date of:
• September 1st instead of January 1st
- All property is taxable unless exempted by:
• Federal Law, the Texas Constitution or the Texas Property Tax Code
- Inventory temporarily located in Texas may qualify for Freeport Exemption:
• If it is temporarily located in Texas for less than 175 days
- Taxpayers may qualify for special use appraisal if the property:
• Is used primarily for agricultural purposes
- To be eligible for Special Use Valuation, land must be:
• Devoted to agricultural or timberland use
- When a property no longer qualifies for an over 64 or disability exemption, the property owner should:
• Notify the appraisal district that the property no longer qualifies for the exemption
- Property values for tax purposes are determined by:
• The county appraisal district in which the property is listed
- The due date for a special use valuation application may:
• Be granted an extension by the chief appraiser for up to 60 days
- Business personal property reports (renditions) are due:
• On or before April 15
- The Appraisal Review Board is comprised of:
• Citizens authorized to resolve disputes between the appraisal district and taxpayers
- If a property is incorrectly listed on the appraisal records the owner should:
• File an appeal with the appraisal review board
- 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:
• File an appeal with the appraisal district (Section 41.411)
- Section 41.411, Texas Property Tax Code, addresses the issue of:
• Denial of due process, failure to provide a notice required by law
- 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?
• 10%
- To be eligible for special use valuation, land must be:
• Devoted primarily to agricultural or timberland use
- Section 25.25, Texas Property Tax Code provides remedies for:
• Correcting an error in the appraisal records
- Section 25.25(h), Texas Property Tax Code, allows for correction of the appraisal records if:
• A joint motion is filed by the chief appraiser and the property owner prior to the tax payment delinquency date
- If a motion filed pursuant to Section 25.25(d), Texas Property Tax Code, results in a value correction:
• The taxpayer will be assess a late correction penalty equal to 10% of the corrected tax amount
- Effective March 1, 2010 an application filed for a property tax consultant license must include proof of:
• 40 hours of pre-licensing education and successful completion of a competency examination
- Section 11 of the Texas Property Tax Code governs the administration of:
• Exemptions
- The definition of market value includes:
• Exposure on the market for reasonable length of time with buyer and seller under no duress
- The market value of a property as recorded by the chief appraiser:
• Is known as the appraised or assessed value
- Three types of property interest are:
• Leased fee, leasehold and fee simple
- Two types of legal descriptions used to describe a parcel of land are:
• Metes and Bounds; Lot and Block
- The loss in value due to negative external influences over which the property owner has no control is known as:
• Economic or External obsolescence
- Depreciation is defined as a loss in value from:
• Physical, Functional and Economic Obsolescence
- Generally, property taxes become delinquent if not paid on or before:
• January 31st
- When using an appraisal for estimating market value for tax purposes the user should:
• Confirm all data contained in the appraisal
- The value of business personal property may be estimated using the sale of a business if:
• The sale is confirmed through the buyer or seller’s broker
- The chief appraiser is entitled to appeal an order of the appraisal review board determining a protest:
• Upon written approval of the appraisal district board of directors
- Tangible personal property held for the production of income includes:
• Inventory, furniture, machinery and equipment
- The Texas Property Tax Code defines real property as:
• Land, improvements, a mine or quarry, minerals in place, standing timber and an interest other than a mortgage
- The location where a person or corporation has legal residency is defined as:
• Domicile
- The difference between tangible personal property and intangible personal property:
• Determines the method by which the property should be appraised
- Mobile property, such as commercial vehicles may be taxed:
• By each taxing unit in which the property is used based on an allocation of the total market value
- The Texas Property Tax Code section that addresses renditions and other reports is:
• Section 22
- The loss of property value from any source is known as:
• Depreciation
- The chief appraiser shall deliver a clear and understandable written notice of the property owner’s appraised value:
• On or before May 30
- Unless otherwise specified, business personal property renditions are required to be filed by:
• Between January 1st and April 15th
- A property owner must file a written notice of protest with the ARB:
• Before June 1 or no later than 30 days after the date of the notice was delivered
- The appraisal district is required to make available all evidence it intends to present at the ARB hearing:
• Upon written request of the property owner made at least 14 days prior to the hearing
- 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:
• Of the tax in full or the undisputed amount of the tax
- A motion filed to correct an excessive appraisal pursuant to Section 25.25(d):
• Must be filed prior to the tax delinquency date
- 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:
• Without prior analysis of the facts and circumstances pertaining thereto
- The standard for passing the senior property tax consultant examination is:
• At least 70%
- The agency that governs the registration of property tax consultants is:
• The Texas Department of Licensing and Regulation (TDLR)
- 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:
• Has successfully completed the senior property tax consultant registration examination
- One requirement of an applicant for registration as a senior property tax consultant is:
• The performance of property tax consulting services for at least four of the seven years preceding the date of application
- The senior property tax consultant examination is intended to test the applicant’s knowledge of:
• The property tax system, principles of appraisal, accounting and law as they relate to property tax consulting services
- The designation of an agent must be made by:
• Written authorization using a form mandated by the Texas State Comptroller and signed by the property owner or his authorized representative
- An Appointment of Agent form provides for an appraisal office, an assessor or collector to:
• Mail notices and tax bills as directed by the taxpayer
- The median level of appraisal as defined in the Texas Property Tax Code, Section 1.12 is:
• The median appraisal ratio of a reasonable and representative sample of properties in an appraisal district
- 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:
• Less than $20,000
- 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:
• Of motor vehicle dealers, vessels, outboard motors, heavy equipment and manufactured housing
- If real property is valued using a method that includes the value of furniture, fixtures and equipment:
• The personal property is considered included and no business personal property value will be established except for inventory
- When a change of use occurs on land granted special use valuation for agricultural purposes:
• 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
- If an exemption applicable to property on January 1 terminates during the tax year, the property:
• May be granted the same exemption by written application to the appraisal district
- With the approval of the appraisal district board of directors, the chief appraiser isn’t required to send a notice of appraised value:
• If the value increase is less than $1,000
- 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:
• All required notices are delivered to property owners
- The taxable value of property must be:
• 100% of the appraised value less any qualified exemptions
- The steps used in the cost approach consist of:
• Estimating current cost to construct or reproduce the existing structure, less depreciation and adding the value of the land
- Two types of physical depreciation are:
• Curable and incurable
- The definition of useful life is:
• The period of time over which a structure may reasonably be expected to perform the function for which it was designed
- When applying the sales comparison approach to estimate market value:
• The appraiser should adjust sales to the subject based on size, age and other physical characteristics
- A person who acquires property after January 1st who qualifies for an over 65 exemption:
• May receive the exemption for the applicable portion of the tax year immediately upon approval of the filed exemption application
- Effective gross income less all operating expenses is known as:
• Net Operating Income
- Fixed expenses:
• Include taxes, insurance and maintenance
- To estimate the market value of property, the appraisal district shall:
• Apply generally accepted appraisal methods and techniques
- Assessed value less applicable exemptions is known as:
• Taxable Value
- The chief appraiser is appointed by:
• The appraisal district board of directors
- Most absolute exemptions from taxation require property to be:
• Used exclusively by the qualified exempt organization
- 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?
• $4,200
- 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 :
• Freeport Goods
- 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?
• $180,000
- Replacement cost new is defined as:
• The current cost of constructing an improvement of equivalent utility to the one being appraised
- 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:
• 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
- 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:
• Less than $500
- The Senior Property Tax Consultant’s Exam contains:
• 100 multiple choice questions
