NYC CITY ASSESSOR (PROMOTION)
EXAMINATION PRACTICE TEST
QUESTIONS AND ANSWERS 2026/2027
1. In the context of NYC property tax, which property class includes most residential
properties with one to three units?
A. Class 3
B. Class 2
C. Class 1
D. Class 4
Answer: C
Conceptual Explanation: Class 1 primarily consists of one- to three-unit residential
properties, including condominiums that were originally built as single-family homes or
are in buildings with three or fewer units.
2. Which valuation method is most appropriate for a specialized property like a municipal
library or a power plant where comparable sales are scarce?
A. Cost Approach
,B. Income Capitalization Approach
C. Sales Comparison Approach
D. Gross Rent Multiplier
Answer: A
Conceptual Explanation: The Cost Approach is typically used for special-purpose
properties where there are no market comparables and no income stream to capitalize.
3. According to NYC tax law, what is the maximum percentage that the assessed value of a
Class 1 property can increase in a single year?
A. 2%
B. 6%
C. 8%
D. 20% over five years
Answer: B
Conceptual Explanation: For Class 1 properties, state law limits assessment increases to
no more than 6% in one year and no more than 20% over five years.
4. What is the primary difference between Market Value and Assessed Value in NYC?
A. Assessed value is always 100% of market value.
B. There is no difference; they are synonymous in NYC.
, C. Market value is determined by the Tax Commission, while assessed value is determined
by the Department of Finance.
D. Assessed value is a percentage of market value based on the property class level of
assessment.
Answer: D
Conceptual Explanation: Assessed value is calculated by applying a specific assessment
ratio (e.g., 6% for Class 1, 45% for Class 4) to the Department of Finance’s estimation of
market value.
5. Which of the following describes ‘Transitional Assessment’ for Class 2 and Class 4
properties?
A. A temporary exemption for new construction.
B. The practice of phasing in assessment changes over a five-year period.
C. A reduction in taxes for senior citizens.
D. The process of reclassifying a property from Class 4 to Class 2.
Answer: B
Conceptual Explanation: For Class 2 and 4 properties, increases in assessed value are
phased in over five years, known as transitional assessments, unless the increase is due to
physical improvements.
EXAMINATION PRACTICE TEST
QUESTIONS AND ANSWERS 2026/2027
1. In the context of NYC property tax, which property class includes most residential
properties with one to three units?
A. Class 3
B. Class 2
C. Class 1
D. Class 4
Answer: C
Conceptual Explanation: Class 1 primarily consists of one- to three-unit residential
properties, including condominiums that were originally built as single-family homes or
are in buildings with three or fewer units.
2. Which valuation method is most appropriate for a specialized property like a municipal
library or a power plant where comparable sales are scarce?
A. Cost Approach
,B. Income Capitalization Approach
C. Sales Comparison Approach
D. Gross Rent Multiplier
Answer: A
Conceptual Explanation: The Cost Approach is typically used for special-purpose
properties where there are no market comparables and no income stream to capitalize.
3. According to NYC tax law, what is the maximum percentage that the assessed value of a
Class 1 property can increase in a single year?
A. 2%
B. 6%
C. 8%
D. 20% over five years
Answer: B
Conceptual Explanation: For Class 1 properties, state law limits assessment increases to
no more than 6% in one year and no more than 20% over five years.
4. What is the primary difference between Market Value and Assessed Value in NYC?
A. Assessed value is always 100% of market value.
B. There is no difference; they are synonymous in NYC.
, C. Market value is determined by the Tax Commission, while assessed value is determined
by the Department of Finance.
D. Assessed value is a percentage of market value based on the property class level of
assessment.
Answer: D
Conceptual Explanation: Assessed value is calculated by applying a specific assessment
ratio (e.g., 6% for Class 1, 45% for Class 4) to the Department of Finance’s estimation of
market value.
5. Which of the following describes ‘Transitional Assessment’ for Class 2 and Class 4
properties?
A. A temporary exemption for new construction.
B. The practice of phasing in assessment changes over a five-year period.
C. A reduction in taxes for senior citizens.
D. The process of reclassifying a property from Class 4 to Class 2.
Answer: B
Conceptual Explanation: For Class 2 and 4 properties, increases in assessed value are
phased in over five years, known as transitional assessments, unless the increase is due to
physical improvements.
