NYC CITY ASSESSOR (PROMOTION)
EXAM 2026/2027 QUESTIONS AND
CORRECT ANSWERS
1. When determining the Highest and Best Use (HBU) of a property, which of the following is
NOT one of the four fundamental criteria?
A. Physically possible
B. Legally permissible
C. Maximally productive
D. Socially desirable
Answer: D
Conceptual Explanation: The four criteria for HBU are physically possible, legally
permissible, financially feasible, and maximally productive. Social desirability is not a
standard appraisal test for HBU.
2. In the Income Capitalization Approach, if the Net Operating Income (NOI) remains constant
while the capitalization rate increases, what happens to the property value?
A. The value decreases
B. The value increases
,C. The value remains the same
D. The effect cannot be determined
Answer: A
Conceptual Explanation: Value = NOI / Rate. Since the rate is in the denominator, an
increase in the capitalization rate results in a lower indicated value.
3. Under NYC Department of Finance rules, which property type is categorized as Tax Class 1?
A. A four-unit apartment building
B. A three-family residential home
C. A vacant commercial lot
D. A utility-owned substation
Answer: B
Conceptual Explanation: Tax Class 1 includes one, two, and three-family residential
properties. Four-unit buildings are Class 2, and vacant commercial land is Class 4.
4. What is the standard assessment ratio applied to Tax Class 4 properties in New York City?
A. 45%
B. 20%
C. 6%
D. 100%
, Answer: A
Conceptual Explanation: In NYC, Tax Class 4 (commercial and industrial) and Tax Class 2
(multi-family) are generally assessed at 45% of market value, while Class 1 is assessed at
6%.
5. Which valuation method is most appropriate for a specialized property like a municipal
water treatment plant?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier Method
Answer: C
Conceptual Explanation: The Cost Approach is preferred for unique or special-purpose
properties where market sales or rental data are scarce or non-existent.
6. What is the statutory limitation on assessment increases for Tax Class 1 properties in NYC?
A. There is no cap for Class 1 properties
B. 8% per year or 30% over five years
C. 2% per year fixed
D. 6% per year or 20% over five years
Answer: D
EXAM 2026/2027 QUESTIONS AND
CORRECT ANSWERS
1. When determining the Highest and Best Use (HBU) of a property, which of the following is
NOT one of the four fundamental criteria?
A. Physically possible
B. Legally permissible
C. Maximally productive
D. Socially desirable
Answer: D
Conceptual Explanation: The four criteria for HBU are physically possible, legally
permissible, financially feasible, and maximally productive. Social desirability is not a
standard appraisal test for HBU.
2. In the Income Capitalization Approach, if the Net Operating Income (NOI) remains constant
while the capitalization rate increases, what happens to the property value?
A. The value decreases
B. The value increases
,C. The value remains the same
D. The effect cannot be determined
Answer: A
Conceptual Explanation: Value = NOI / Rate. Since the rate is in the denominator, an
increase in the capitalization rate results in a lower indicated value.
3. Under NYC Department of Finance rules, which property type is categorized as Tax Class 1?
A. A four-unit apartment building
B. A three-family residential home
C. A vacant commercial lot
D. A utility-owned substation
Answer: B
Conceptual Explanation: Tax Class 1 includes one, two, and three-family residential
properties. Four-unit buildings are Class 2, and vacant commercial land is Class 4.
4. What is the standard assessment ratio applied to Tax Class 4 properties in New York City?
A. 45%
B. 20%
C. 6%
D. 100%
, Answer: A
Conceptual Explanation: In NYC, Tax Class 4 (commercial and industrial) and Tax Class 2
(multi-family) are generally assessed at 45% of market value, while Class 1 is assessed at
6%.
5. Which valuation method is most appropriate for a specialized property like a municipal
water treatment plant?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier Method
Answer: C
Conceptual Explanation: The Cost Approach is preferred for unique or special-purpose
properties where market sales or rental data are scarce or non-existent.
6. What is the statutory limitation on assessment increases for Tax Class 1 properties in NYC?
A. There is no cap for Class 1 properties
B. 8% per year or 30% over five years
C. 2% per year fixed
D. 6% per year or 20% over five years
Answer: D
