A Missouri farmer owns a 200-acre tract used exclusively for growing soybeans. The county assessor determines the true market value of the farmland is $800,000. Which assessment ratio will the assessor apply when calculating the property's assessed value for tax purposes?
Correct Answer
A) 12%, because the property is classified as agricultural
Missouri law classifies agricultural and horticultural property separately from residential and commercial property. Agricultural real property is assessed at 12% of its true (market) value under Missouri's tiered assessment system. For this 200-acre soybean farm, the assessor applies the 12% agricultural ratio to the $800,000 market value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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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:
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- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
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- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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