NY- TAXATION AND ASSESSMENTS- STUDY
EXAM QUESTIONS WITH VERIFIED ANSWERS .
Property taxes are a reliable source of income for the state because they are difficult to conceal,
their value tends to remain steady, and people tend to pay them. - correct Answers -Property
values generally remain steady. Because people don't want to risk losing their home, they are
highly likely to pay their property taxes. Also, because property taxes are connected to tangible
property, they are very difficult to conceal.
Property taxes generate approximately ______ of local government revenue. - correct Answers -
One third
To calculate property taxes, multiply the ______ by the tax rate. - correct Answers -Assessed
Value
Gabe's home has an assessed value of $172,000, and his tax rate is .55%. What are the annual
taxes? - correct Answers -$946
Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the
assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be?
A. $105.79
B. $111.04
C. $191.37
D. $86.49 - correct Answers -A. $105.79
Monthly taxes are calculated by multiplying the assessed value by the tax rate and dividing by
12. First, take $201,500 (assessed value) x .63% (tax rate), which equals $1,269.45 in property
taxes for the entire year. Then divide $1,269.45 by 12 to find $105.79. Option A is the correct
answer.
Which of the following is a characteristic of a tax rate?
, A. If used to fund political campaigns, the amount cannot exceed 20% and must be repaid within
two years.
B. It is applied to the market value.
C. It is based on the most recent fiscal year's previous budget.
D. It is certified by the NYS Office of Real Property Tax Services, and it may be a separate tax
rate for homestead vs. non-homestead properties. (Correct) - correct Answers -Tax rate is applied
to assessed value, not market value, and the projected (not prior) fiscal year. It is not used to fund
political campaigns.
To ensure that assessments are fairly applied, the state tax law requires annual recalculation of
residential assessment ratios (RARs). Which of the following is a characteristic of a RAR?
A. RARs are only used in municipalities with fewer than five residential sales per year.
B. RARs are used in all municipalities.
C. RARs are used only when a homeowner requests it.
D. RARs are used by assessors use to determine equity. (Correct) - correct Answers -Assessors
use RARS to determine equity in all municipalities except those conducting revaluation projects
and those that have had fewer than five residential usable sales that year.
Tax assessors determine property values for each property within the assessor's ______, which
may be a city, town, village, county, or school district.
A. Taxing unit (correct)
B. Home district
C. Title search
D. Assessed values - correct Answers -In New York, property taxes are local taxes that are raised
locally and spent locally to finance local governments and public schools. Tax assessors
determine property values for each property within the assessor's taxing unit.
Otis is a tax assessor in New York. Which of the following do you know is true about his job?
A. He estimates the values of churches within state boundaries.
B. He's a federal government official.
C. He's paid based on the amount of taxes collected.
EXAM QUESTIONS WITH VERIFIED ANSWERS .
Property taxes are a reliable source of income for the state because they are difficult to conceal,
their value tends to remain steady, and people tend to pay them. - correct Answers -Property
values generally remain steady. Because people don't want to risk losing their home, they are
highly likely to pay their property taxes. Also, because property taxes are connected to tangible
property, they are very difficult to conceal.
Property taxes generate approximately ______ of local government revenue. - correct Answers -
One third
To calculate property taxes, multiply the ______ by the tax rate. - correct Answers -Assessed
Value
Gabe's home has an assessed value of $172,000, and his tax rate is .55%. What are the annual
taxes? - correct Answers -$946
Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the
assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be?
A. $105.79
B. $111.04
C. $191.37
D. $86.49 - correct Answers -A. $105.79
Monthly taxes are calculated by multiplying the assessed value by the tax rate and dividing by
12. First, take $201,500 (assessed value) x .63% (tax rate), which equals $1,269.45 in property
taxes for the entire year. Then divide $1,269.45 by 12 to find $105.79. Option A is the correct
answer.
Which of the following is a characteristic of a tax rate?
, A. If used to fund political campaigns, the amount cannot exceed 20% and must be repaid within
two years.
B. It is applied to the market value.
C. It is based on the most recent fiscal year's previous budget.
D. It is certified by the NYS Office of Real Property Tax Services, and it may be a separate tax
rate for homestead vs. non-homestead properties. (Correct) - correct Answers -Tax rate is applied
to assessed value, not market value, and the projected (not prior) fiscal year. It is not used to fund
political campaigns.
To ensure that assessments are fairly applied, the state tax law requires annual recalculation of
residential assessment ratios (RARs). Which of the following is a characteristic of a RAR?
A. RARs are only used in municipalities with fewer than five residential sales per year.
B. RARs are used in all municipalities.
C. RARs are used only when a homeowner requests it.
D. RARs are used by assessors use to determine equity. (Correct) - correct Answers -Assessors
use RARS to determine equity in all municipalities except those conducting revaluation projects
and those that have had fewer than five residential usable sales that year.
Tax assessors determine property values for each property within the assessor's ______, which
may be a city, town, village, county, or school district.
A. Taxing unit (correct)
B. Home district
C. Title search
D. Assessed values - correct Answers -In New York, property taxes are local taxes that are raised
locally and spent locally to finance local governments and public schools. Tax assessors
determine property values for each property within the assessor's taxing unit.
Otis is a tax assessor in New York. Which of the following do you know is true about his job?
A. He estimates the values of churches within state boundaries.
B. He's a federal government official.
C. He's paid based on the amount of taxes collected.
