NYC CITY ASSESSOR (PROMOTION)
EXAMINATION ACTUAL QUESTIONS
WITH VERIFIED ANSWERS
1. Under New York City real property tax law, what is the maximum percentage that the
assessed value of a Tax Class 1 property can increase in a single year, excluding physical
changes?
A. 5%
B. 20%
C. 8%
D. 6%
Answer: D
Conceptual Explanation: For Tax Class 1 properties (1-3 unit residential), the assessed
value increase is capped at 6 percent per year and 20 percent over a five-year period,
excluding increases due to physical improvements.
2. Which of the following property types is categorized under Tax Class 3 in New York City?
A. Vacant land in a commercial zone
B. Utility company property
,C. Large scale condominiums
D. Department stores
Answer: B
Conceptual Explanation: Tax Class 3 is specifically designated for property owned by
utility companies and special franchise property.
3. In the context of NYC assessments, what does a ‘Transitional Assessment’ represent for Tax
Class 2 and 4 properties?
A. The value of a property during construction.
B. The five-year phase-in of market value changes.
C. The immediate application of market value changes.
D. A temporary reduction for senior citizens.
Answer: B
Conceptual Explanation: For Class 2 and 4 properties, changes in market value are
phased in over a five-year period, creating a transitional assessment that differs from the
actual assessment until the phase-in is complete.
4. The ‘Highest and Best Use’ of a property must meet four criteria. Which of the following is
NOT one of those criteria?
A. Socially acceptable
B. Legally permissible
, C. Physically possible
D. Financially feasible
Answer: A
Conceptual Explanation: The four criteria for Highest and Best Use are: physically
possible, legally permissible, financially feasible, and maximally productive. Socially
acceptable is not a formal technical criterion in appraisal.
5. Which appraisal method is most heavily weighted by the Department of Finance when
valuing large income-producing commercial properties (Tax Class 4)?
A. Sales Comparison Approach
B. Cost Approach
C. Allocation Method
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: The Income Capitalization Approach is the primary method for
valuing commercial properties because their value is fundamentally driven by the income
they generate.
6. When using the Sales Comparison Approach, if a comparable property is superior to the
subject property in a specific feature, the appraiser should:
A. Add value to the subject property.
EXAMINATION ACTUAL QUESTIONS
WITH VERIFIED ANSWERS
1. Under New York City real property tax law, what is the maximum percentage that the
assessed value of a Tax Class 1 property can increase in a single year, excluding physical
changes?
A. 5%
B. 20%
C. 8%
D. 6%
Answer: D
Conceptual Explanation: For Tax Class 1 properties (1-3 unit residential), the assessed
value increase is capped at 6 percent per year and 20 percent over a five-year period,
excluding increases due to physical improvements.
2. Which of the following property types is categorized under Tax Class 3 in New York City?
A. Vacant land in a commercial zone
B. Utility company property
,C. Large scale condominiums
D. Department stores
Answer: B
Conceptual Explanation: Tax Class 3 is specifically designated for property owned by
utility companies and special franchise property.
3. In the context of NYC assessments, what does a ‘Transitional Assessment’ represent for Tax
Class 2 and 4 properties?
A. The value of a property during construction.
B. The five-year phase-in of market value changes.
C. The immediate application of market value changes.
D. A temporary reduction for senior citizens.
Answer: B
Conceptual Explanation: For Class 2 and 4 properties, changes in market value are
phased in over a five-year period, creating a transitional assessment that differs from the
actual assessment until the phase-in is complete.
4. The ‘Highest and Best Use’ of a property must meet four criteria. Which of the following is
NOT one of those criteria?
A. Socially acceptable
B. Legally permissible
, C. Physically possible
D. Financially feasible
Answer: A
Conceptual Explanation: The four criteria for Highest and Best Use are: physically
possible, legally permissible, financially feasible, and maximally productive. Socially
acceptable is not a formal technical criterion in appraisal.
5. Which appraisal method is most heavily weighted by the Department of Finance when
valuing large income-producing commercial properties (Tax Class 4)?
A. Sales Comparison Approach
B. Cost Approach
C. Allocation Method
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: The Income Capitalization Approach is the primary method for
valuing commercial properties because their value is fundamentally driven by the income
they generate.
6. When using the Sales Comparison Approach, if a comparable property is superior to the
subject property in a specific feature, the appraiser should:
A. Add value to the subject property.
