NYC CITY ASSESSOR (PROMOTION)
FINAL EXAM 2026/2027 QUESTIONS AND
ANSWERS
1. Which property classification in New York City includes most residential properties with
one to three units?
A. Tax Class 2
B. Tax Class 3
C. Tax Class 1
D. Tax Class 4
Answer: C
Conceptual Explanation: Tax Class 1 primarily consists of residential properties with one
to three units, including vacant land zoned for residential use in certain areas.
2. According to New York State Real Property Tax Law (RPTL) Section 581, how must
cooperatives and condominiums be valued for assessment purposes?
A. Based on the sum of individual unit sales prices
B. Based on the market value of the underlying land only
,C. By using the replacement cost new minus depreciation
D. As if they were income-producing rental apartment buildings
Answer: D
Conceptual Explanation: RPTL 581 requires that cooperatives and condominiums (except
for certain ‘small’ buildings) be valued as if they were rental properties, regardless of their
status as owner-occupied units.
3. What is the primary purpose of a ‘Transition Assessment’ in NYC Tax Classes 2 and 4?
A. To provide a permanent discount for commercial tenants
B. To phase in assessment increases over a five-year period
C. To adjust the tax rate for inflation annually
D. To exempt non-profit organizations from property taxes
Answer: B
Conceptual Explanation: For Class 2 and Class 4 properties, assessment increases (other
than those resulting from physical improvements) are phased in equally over five years
through transition assessments.
4. In the Income Capitalization Approach, which formula is used to calculate the Overall
Capitalization Rate (Ro)?
A. Ro = Property Value / Net Operating Income
B. Ro = Potential Gross Income / Operating Expenses
, C. Ro = Net Operating Income / Property Value
D. Ro = Debt Service / Equity
Answer: C
Conceptual Explanation: The basic IRV formula states that Rate = Income / Value (Ro =
NOI / V).
5. Which program provides a tax exemption for the new construction of multi-family
residential buildings in NYC?
A. ICAP
B. J-51
C. STAR
D. 421-a
Answer: D
Conceptual Explanation: The 421-a program is a partial tax exemption for new multi-
family residential construction, often requiring a percentage of affordable units.
6. What does the ‘Coefficient of Dispersion’ (COD) measure in the context of mass appraisal?
A. The average assessment ratio of all properties
B. The total tax revenue generated per square foot
C. The relationship between land value and building value
FINAL EXAM 2026/2027 QUESTIONS AND
ANSWERS
1. Which property classification in New York City includes most residential properties with
one to three units?
A. Tax Class 2
B. Tax Class 3
C. Tax Class 1
D. Tax Class 4
Answer: C
Conceptual Explanation: Tax Class 1 primarily consists of residential properties with one
to three units, including vacant land zoned for residential use in certain areas.
2. According to New York State Real Property Tax Law (RPTL) Section 581, how must
cooperatives and condominiums be valued for assessment purposes?
A. Based on the sum of individual unit sales prices
B. Based on the market value of the underlying land only
,C. By using the replacement cost new minus depreciation
D. As if they were income-producing rental apartment buildings
Answer: D
Conceptual Explanation: RPTL 581 requires that cooperatives and condominiums (except
for certain ‘small’ buildings) be valued as if they were rental properties, regardless of their
status as owner-occupied units.
3. What is the primary purpose of a ‘Transition Assessment’ in NYC Tax Classes 2 and 4?
A. To provide a permanent discount for commercial tenants
B. To phase in assessment increases over a five-year period
C. To adjust the tax rate for inflation annually
D. To exempt non-profit organizations from property taxes
Answer: B
Conceptual Explanation: For Class 2 and Class 4 properties, assessment increases (other
than those resulting from physical improvements) are phased in equally over five years
through transition assessments.
4. In the Income Capitalization Approach, which formula is used to calculate the Overall
Capitalization Rate (Ro)?
A. Ro = Property Value / Net Operating Income
B. Ro = Potential Gross Income / Operating Expenses
, C. Ro = Net Operating Income / Property Value
D. Ro = Debt Service / Equity
Answer: C
Conceptual Explanation: The basic IRV formula states that Rate = Income / Value (Ro =
NOI / V).
5. Which program provides a tax exemption for the new construction of multi-family
residential buildings in NYC?
A. ICAP
B. J-51
C. STAR
D. 421-a
Answer: D
Conceptual Explanation: The 421-a program is a partial tax exemption for new multi-
family residential construction, often requiring a percentage of affordable units.
6. What does the ‘Coefficient of Dispersion’ (COD) measure in the context of mass appraisal?
A. The average assessment ratio of all properties
B. The total tax revenue generated per square foot
C. The relationship between land value and building value
