Hawaii county real property tax assessors use standard appraisal approaches to estimate market value for assessment purposes. Which of the following is NOT a recognized approach to value that Hawaii county assessors may use when determining a property's assessed value?
Correct Answer
C) The assessed value inheritance approach, carrying forward the prior owner's tax basis
The 'assessed value inheritance approach' is not a recognized appraisal methodology used by Hawaii county assessors or by any standard appraisal practice. Hawaii county assessors use the three standard approaches to value: (1) the sales comparison approach, (2) the income approach, and (3) the cost approach. Hawaii does not use a California-style Proposition 13 system where assessed value is based on purchase price and carried forward; Hawaii reassesses properties regularly at market value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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