NYC CITY ASSESSOR PROMOTION
FINAL EXAM PREP QUESTIONS AND
ANSWERS
1. Under RPTL Section 1805, what is the maximum allowable annual increase for the assessed
value of a Class 1 property, excluding physical improvements?
A. 6%
B. 20%
C. 8%
D. 45%
Answer: A
Conceptual Explanation: RPTL Section 1805 limits assessment increases for Class 1
properties (one-to-three family homes) to 6% in any one year and 20% over a five-year
period.
2. In the context of NYC property tax, which property type falls under Tax Class 3?
A. Commercial office buildings
B. Utility real property
,C. Vacant land in residential zones
D. Condominiums with more than three units
Answer: B
Conceptual Explanation: Class 3 is specifically reserved for utility real property, such as
power plants and equipment owned by utility companies.
3. Which valuation approach is most heavily weighted by the NYC Department of Finance
when assessing large income-producing commercial properties?
A. Cost Approach
B. Allocation Method
C. Sales Comparison Approach
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: For large commercial properties (Class 4), the Income
Capitalization Approach is the primary method because it reflects the property’s ability to
generate revenue, which is how investors value such assets.
4. What is the current target assessment ratio for Class 2, 3, and 4 properties in New York
City?
A. 45%
B. 25%
, C. 100%
D. 6%
Answer: A
Conceptual Explanation: While Class 1 properties are assessed at 6% of market value,
Class 2, 3, and 4 properties are assessed at 45% of their market value.
5. A ‘Transitional Assessment’ in NYC applies to which of the following?
A. Class 2 and Class 4 properties
B. Class 1 properties only
C. Newly constructed Class 3 properties
D. Only properties with active exemptions
Answer: A
Conceptual Explanation: Transitional assessments phase in changes in market value over
a five-year period and apply to Class 2 and Class 4 properties, but not to Class 1.
6. According to RPTL Section 581, how must most residential cooperatives and condominiums
be valued for assessment purposes?
A. Based on the sum of the individual unit sales prices
B. As if they were rental apartment buildings
C. Based on the replacement cost of the structure
FINAL EXAM PREP QUESTIONS AND
ANSWERS
1. Under RPTL Section 1805, what is the maximum allowable annual increase for the assessed
value of a Class 1 property, excluding physical improvements?
A. 6%
B. 20%
C. 8%
D. 45%
Answer: A
Conceptual Explanation: RPTL Section 1805 limits assessment increases for Class 1
properties (one-to-three family homes) to 6% in any one year and 20% over a five-year
period.
2. In the context of NYC property tax, which property type falls under Tax Class 3?
A. Commercial office buildings
B. Utility real property
,C. Vacant land in residential zones
D. Condominiums with more than three units
Answer: B
Conceptual Explanation: Class 3 is specifically reserved for utility real property, such as
power plants and equipment owned by utility companies.
3. Which valuation approach is most heavily weighted by the NYC Department of Finance
when assessing large income-producing commercial properties?
A. Cost Approach
B. Allocation Method
C. Sales Comparison Approach
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: For large commercial properties (Class 4), the Income
Capitalization Approach is the primary method because it reflects the property’s ability to
generate revenue, which is how investors value such assets.
4. What is the current target assessment ratio for Class 2, 3, and 4 properties in New York
City?
A. 45%
B. 25%
, C. 100%
D. 6%
Answer: A
Conceptual Explanation: While Class 1 properties are assessed at 6% of market value,
Class 2, 3, and 4 properties are assessed at 45% of their market value.
5. A ‘Transitional Assessment’ in NYC applies to which of the following?
A. Class 2 and Class 4 properties
B. Class 1 properties only
C. Newly constructed Class 3 properties
D. Only properties with active exemptions
Answer: A
Conceptual Explanation: Transitional assessments phase in changes in market value over
a five-year period and apply to Class 2 and Class 4 properties, but not to Class 1.
6. According to RPTL Section 581, how must most residential cooperatives and condominiums
be valued for assessment purposes?
A. Based on the sum of the individual unit sales prices
B. As if they were rental apartment buildings
C. Based on the replacement cost of the structure
