, Question 1
A mixed-use property in Manhattan has a total actual assessed value of $2.5
million. The building contains 10 residential condominium units and 5
commercial stores. Under NYC's cooperative and condominium abatement
program, the residential portion is eligible for a 17.5% abatement. If the
residential portion represents 70% of the total assessed value, what is the
correct abatement amount?
A. $306,250
B. $437,500
C. $175,000
D. $250,000
Correct Answer: A - $306,250
RATIONALE
Residential assessed value = 70% of $2.5M = $1.75M. Abatement =
17.5% of $1.75M = $306,250. Distractor B incorrectly applies 17.5%
to total AV; C applies 10%; D applies 14.28%.
Question 2
In a tax certiorari proceeding, the petitioner challenges the assessed value of a
commercial property using the income capitalization approach. The property
has a net operating income (NOI) of $500,000, and the applicable
capitalization rate is 8%. If the equalization rate is 45%, what is the correct
assessed value?
A. $2,812,500
B. $6,250,000
C. $4,500,000
D. $2,250,000
Correct Answer: A - $2,812,500
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, RATIONALE
Market value = NOI / cap rate = $500,.08 = $6,250,000.
Assessed value = market value × equalization rate = $6,250,000 × 0.45
= $2,812,500. Distractor B is market value; C misapplies 72% rate; D
uses 36% rate.
Question 3
Which of the following best describes the 'condition precedent' required for a
property owner to file a Article 7 petition in New York?
A. The owner must first file a grievance with the local assessor or board
of assessment review.
B. The owner must pay the disputed tax under protest before filing.
C. The owner must obtain an appraisal from a certified NYS appraiser.
D. The owner must file a notice of claim with the NYC Comptroller
within 90 days.
Correct Answer: A - The owner must first file a grievance with
the local assessor or board of assessment review.
RATIONALE
Under RPTL §706, a condition precedent to an Article 7 petition is the
timely filing of a grievance (complaint) with the assessor or BAR.
Paying under protest (B) is not required; C and D are not statutory
prerequisites.
Question 4
A property owner applies for the Senior Citizen Homeowners' Exemption
(SCHE) but has a household income of $60,000. For the 2024-2025 tax year,
the base income limit is $58,399. What is the correct determination?
A. The application must be denied because income exceeds the limit.
B. The exemption is granted at a reduced percentage based on the income
scale.
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, C. The exemption is granted at the full 50% assessed value reduction.
D. The application is granted but only for the portion of income below the
limit.
Correct Answer: B - The exemption is granted at a reduced
percentage based on the income scale.
RATIONALE
SCHE uses a sliding scale: incomes up to $58,399 receive 50%
exemption; from $58,400 to $65,000, the exemption percentage
decreases. At $60,000, a reduced exemption applies. A is incorrect
because the limit extends to $65,000; C applies only at or below
$58,399; D is not how the scale works.
Question 5
In the cost approach, an appraiser estimates replacement cost new (RCN) of
$1,200,000, physical deterioration of $200,000, functional obsolescence of
$150,000, and external obsolescence of $50,000. If land value is $300,000,
what is the indicated property value?
A. $1,100,000
B. $1,400,000
C. $1,250,000
D. $1,000,000
Correct Answer: A - $1,100,000
RATIONALE
Depreciated improvements = RCN - (physical + functional + external)
= $1,200,000 - $400,000 = $800,000. Add land value $300,000 =
$1,100,000. B omits depreciation; C subtracts only physical; D
subtracts land incorrectly.
Page 4
A mixed-use property in Manhattan has a total actual assessed value of $2.5
million. The building contains 10 residential condominium units and 5
commercial stores. Under NYC's cooperative and condominium abatement
program, the residential portion is eligible for a 17.5% abatement. If the
residential portion represents 70% of the total assessed value, what is the
correct abatement amount?
A. $306,250
B. $437,500
C. $175,000
D. $250,000
Correct Answer: A - $306,250
RATIONALE
Residential assessed value = 70% of $2.5M = $1.75M. Abatement =
17.5% of $1.75M = $306,250. Distractor B incorrectly applies 17.5%
to total AV; C applies 10%; D applies 14.28%.
Question 2
In a tax certiorari proceeding, the petitioner challenges the assessed value of a
commercial property using the income capitalization approach. The property
has a net operating income (NOI) of $500,000, and the applicable
capitalization rate is 8%. If the equalization rate is 45%, what is the correct
assessed value?
A. $2,812,500
B. $6,250,000
C. $4,500,000
D. $2,250,000
Correct Answer: A - $2,812,500
Page 2
, RATIONALE
Market value = NOI / cap rate = $500,.08 = $6,250,000.
Assessed value = market value × equalization rate = $6,250,000 × 0.45
= $2,812,500. Distractor B is market value; C misapplies 72% rate; D
uses 36% rate.
Question 3
Which of the following best describes the 'condition precedent' required for a
property owner to file a Article 7 petition in New York?
A. The owner must first file a grievance with the local assessor or board
of assessment review.
B. The owner must pay the disputed tax under protest before filing.
C. The owner must obtain an appraisal from a certified NYS appraiser.
D. The owner must file a notice of claim with the NYC Comptroller
within 90 days.
Correct Answer: A - The owner must first file a grievance with
the local assessor or board of assessment review.
RATIONALE
Under RPTL §706, a condition precedent to an Article 7 petition is the
timely filing of a grievance (complaint) with the assessor or BAR.
Paying under protest (B) is not required; C and D are not statutory
prerequisites.
Question 4
A property owner applies for the Senior Citizen Homeowners' Exemption
(SCHE) but has a household income of $60,000. For the 2024-2025 tax year,
the base income limit is $58,399. What is the correct determination?
A. The application must be denied because income exceeds the limit.
B. The exemption is granted at a reduced percentage based on the income
scale.
Page 3
, C. The exemption is granted at the full 50% assessed value reduction.
D. The application is granted but only for the portion of income below the
limit.
Correct Answer: B - The exemption is granted at a reduced
percentage based on the income scale.
RATIONALE
SCHE uses a sliding scale: incomes up to $58,399 receive 50%
exemption; from $58,400 to $65,000, the exemption percentage
decreases. At $60,000, a reduced exemption applies. A is incorrect
because the limit extends to $65,000; C applies only at or below
$58,399; D is not how the scale works.
Question 5
In the cost approach, an appraiser estimates replacement cost new (RCN) of
$1,200,000, physical deterioration of $200,000, functional obsolescence of
$150,000, and external obsolescence of $50,000. If land value is $300,000,
what is the indicated property value?
A. $1,100,000
B. $1,400,000
C. $1,250,000
D. $1,000,000
Correct Answer: A - $1,100,000
RATIONALE
Depreciated improvements = RCN - (physical + functional + external)
= $1,200,000 - $400,000 = $800,000. Add land value $300,000 =
$1,100,000. B omits depreciation; C subtracts only physical; D
subtracts land incorrectly.
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