PTA Part 2 - Final Exam

Question 1

Rural land valuation seeks to achieve an estimate of market value that most heavily result in

Answer 1

a standard value per acre

Question 2

In areas where the residential development has been carved into winding streets and cul-de-sacs with similar size
lots, what preferred method of evaluation would be used:

Answer 2

the site value with adjustments for size, shape, easements, or other constraints

Question 3

The municipal Master Plan and Zoning generally requires front, rear, and side set backs for building lots in each zone. These areas form the inside section we refer to as :

Answer 3

a building envelope

Question 4

From the early 1900’s until the late 1960’s, the preferred layout of a development was based upon a grid with streets being parallel and set distances apart. This type of layout is often found in older cities. A method of quickly calculating land value for this type of layout is:

Answer 4

value of front foot

Question 5

When valuing land by the front foot method, an adjustment is made for the depth. After a depth factor is applied to the base cost per front foot, the result is know as :

Answer 5

effective front foot value

Question 6

You have researched and found four sales of comparable properties in the same neighborhood as your subject property. You are now ready to proceed with the necessary adjustment to develop the value of the subject property using the market approach to valuation. Therefore:

Answer 6

the comparable properties are adjusted to the characteristics of the subject.

Question 7

There are three recognized approaches to value. Which one is not:

a: market
b: ratio
c: income
d: cost

Answer 7

ratio

Question 8

Who certifies the tax list after a revaluation?

Answer 8

Assessor

Question 9

You are developing the cost for a house that is listed as
1 1/2 story. The measurement of the first floor is recorded as 26x40 feet. The half story is directly over the first floor. Calculate the square footage you will use to locate in the cost table the base cost per square foot of the half story.

Answer 9

1,040 square feet

Question 10

There are base specifications described for each building class in the Appraisal Manual for New Jersey Assessors. The foundation for residential dwellings is described with a crawl space as the standard. The dwelling you are appraising is built with part of the building over a basement and part of the building on a slab. What type of adjustment will be necessary for each?

Answer 10

basement - addition

slab - minus

Question 11

Calculate the square foot of living area if the dwelling measures 24 feet by 40 feet with a porch that is 10 feet by 8 feet, an attached garage that is 14 feet by 12 feet, and a rear deck that is 12 feet by 10 feet.

Answer 11

960 square feet

Question 12

The Appraisal Manual for NJ Assessors was developed in 1975. Certain base cost information has been updated, however the base cost is developed is not a current value. What additional factor must be applied to adjust the value to current cost?

Answer 12

base cost x current cost conversion factor.

Question 13

A property is assessed at $210,000 an the tax rate in he municipality is $2.25 per hundred. This property sells for $262,500. The average weighted ratio for the district is 84.56 and the effective tax rate is $1.90 per hundred. Calculate the assessment-sale ration for this property.

Answer 13

80.00

Question 14

A residential property sells for less than typical market due to location adjoining a gas station. What type of depreciation does this represent?

Answer 14

economic

Question 15

The sales and sampling period for the assessment-sales ratio study includes only those sales recorded from July 1 to June 30 and deemed to be usable for a ratio study. Review the information given below and determine if the sale would be usable or non-usable:
Grantor: HALE, John & Mary Grantee: HALE, Mary
13 Apple Lane 13 Apple Lane
Orvis, NJ 08888 Orvis, NJ 08888
Deed Date: 01-04-01 Deed Date: 01-07-01
Sale Price: $100 RTF 0.00 RTF Code E

Answer 15

Non-usable

Question 16

The sale ratio program is administered by the State, Which is the primary data collection form?

Answer 16

SR1A

Question 17

The method of statistically analyzing the assessment-sales ratio data to determine the uniformity of assessment result in a

Answer 17

Coefficient of Deviation

Question 18

Additional since passage of c. 123 PL 1973, adjustments to assessments are made within a 15% corridor developed from the Director’s Ratio. Develop the lower limit and upper limit of the corridor if the district has a Director’s Ratio of $82.03

Answer 18

Lower Limit Upper Limit
69.73 94.33

82. 03*.85=69.73
83. 03*1.15=94.33

Question 19

When are the taxes due and payable on added and omitted assessments?

Answer 19

November 1 following the filing of the lists

Question 20

A 1930’s colonial house in a quality neighborhood has been updated extensively. How would you define the age for depreciation purposes?

Answer 20

effective

Question 21

Mr. Gilbert owned a 50 x100 lot that was assesses at a $52,000 for the 2000 tax year. He contracted with a builder and had a single-family dwelling constructed. the house was completed on August 4, 2000 and he moved in. The assessor determined the value of the newly constructed house to ne $108,000. what is the pro-rated added assessment for the improvement.

Answer 21

Total value of new construction is $108,000. House was completed on August 4 and the value must be prorated for 4 months
108,000 divided by 12 times 4 = $36,000

Question 22

The Boro of Why is in the first year following the implementation of a revaluation. The ratio in the town is 100% and the tax ate is $2.15 per hundred. A building permit provides information that renovations an additional room were completed in July. The assessed value of the property appears on the January 10 Tax List as:
Land: $65,000
Improv: $100,000
Total: $165,000
The value attributable to the additions is $35,000. What is the amount of the prorated added assessment and what is the tax due on the added assessment?

Answer 22

Total value added is $35,000 which must be prorated.
35000 divided by 12 times 5 (months) = $14,583
$14,583 x tax rate .0215= $313.53

Question 23

The assessor is notified that there is a property left off the tax list due to a map change where a lot was missed. which list will the assessor use to correct this problem?

Answer 23

omitted assessment list

Question 24

when a property is acquired by the federal government it becomes exempt-

Answer 24

on the date of acquisition

Question 25

if a non profit group owns a real property and is claiming exemption from property tax they must file an Initial Statement with the assessor’s office on or before

Answer 25

November 1 of the pretax year

Question 26

A parcel of land owned by the State of NJ is on the Exempt Property List assessed at $26,000. the adjoin similar parcels are owned by private individuals and are assessed at $17,500 and $18,200. On April 20th the State owned parcel is purchased by one of the owners of one of the adjoining parcels for $9,500. When will the land become taxable?
What value will the assessor use for this previously exempt parcel of land?

Answer 26

May 1, $26,000

Question 27

In March 2005, a Charter School purchased a 12 acre parcel for their new building and intended to break ground the beginning of next year. They clearly intend to use the site for a school. What action should the assessor take on the Initial Statement filed on November 1, 2005?

Answer 27

deny the exemption for the following year

Question 28

Who is responsible for taking the necessary steps to authorize an abatement program in his municipality?

Answer 28

the elected municipal officials

Question 29

the quality of construction is differentiated in the value by :

Answer 29

Building Class

Question 30

Mr. Jay purchased a 24 acre farm in 1995 and continued farming under the Farmland Assessment Act. The last application for farmland assessment was filed on August 1, 1999. On January 6, 2000 Mr. Jan sold the farm to Golden Development Corporation who immediately began cutting roads for a housing development. Which years will the assessor rollback?

Answer 30

2000,1999,1998

Question 31

Once market value is established for farmland rollback, what is the next step?

Answer 31

apply ratio

Question 32

the property owner must file their Farmland Application by ______________ and the assessor must approve or disprove by ________________.

Answer 32

August 1

November 1

Question 33

For valuation purposes, Farmland is an exception to the “ same standard of value” that is used to value other property. The value of farmland is based on productivity. This means farmland is really valued according to :

Answer 33

the type of soil and the utility of the land

Question 34

The Tax Court is

Answer 34

a superior court dedicated to hearing all types of tax cases

Question 35

When a taxpayer files an appeal of the assessment of his property, there are certain conditions that must be met before the appeal will be heard. if certain conditions are not met, the attorney for the municipality may make a motion to dismiss the appeal. Which condition may trigger a motion to dismiss?

Answer 35

the property is subject to delinquent taxes

Question 36

a appeal may be filed by a taxpayer. An appeal may also be filed by the municipality. Who is responsible for meeting the burden of proof when an appeal is filed?

Answer 36

whom ever filed the appeal

Question 37

There are two basic appeal deadlines. The regular appeal deadline is _________ and appeal deadline for added and omitted (alternate method) assessment is _____________.

Answer 37

April 1 and December 1

Question 38

The data base from the assessment-sales ratio study is used to analyze the level of assessments in a municipality and also the uniformity of the assessment within the municipality. These two statistics are the ________and the_________ and are used to determine the need for revaluation.

Answer 38

ratio and the co-efficient of deviation

Question 39

A revaluation contract is subject to the approval of ____________.

Answer 39

the Director of the Division of Taxation

Question 40

An Initial Statement must be filed with the tax Assessor by ________ and a further statement must be filed ever __________year.

Answer 40

November 1 pretax year

3rd

Question 41

The request for public information falls under:

Answer 41

OPRA

Question 42

Determining value is one of the assessor’s responsibilities. The valuation date for assessments is:

Answer 42

January 1

Question 43

The sales ratio program used sales that are recorded during a fiscal year. A state fiscal year is twelve months and runs from _____________ to ______________.

Answer 43

July 1 to June 30

Question 44

The price at which, in the assessor’s judgments, each parcel of real property “would sell for at a fair and bona fide sale by contract on October 1 next preceding the date on which the assessor shall complete his assessments…..is defining:

Answer 44

true value