18-3: ASSESSED VALUE - CONCEPTS AND CALCULATIONS
EXAM QUESTIONS WITH VERIFIED SOLUTIONS .
Real estate agents should educate clients about property tax burden, but should NOT perform tax
calculations for clients. (T/F) - correct Answers -True,
to avoid being responsible for unforeseeable changes (such as reassessment)
Vincent helps a buyer, Benjamin, find a new home. Benjamin is on a pretty tight budget and asks Vincent
to help him calculate what his property taxes will be so he can create a budget. Vincent wants to be as
helpful as possible, so calculates Benjamin's property taxes. Evaluate Vincent's decision. - correct
Answers -Vincent made the wrong decision; he should show Vincent how to perform his own
calculations, not calculate Benjamin's property taxes for him.
Formula for calculating assessed value - correct Answers -Full market value x Uniform percentage =
Assessed value
What is Uniform Percentage? - correct Answers -percentage applied to full market value of every
property in a municipality;
assessed value is a percentage of the property's full market value;
every municipality uses the same uniform percentage, so each property is held at the same % standards
In which areas of NY do they allow class assessing instead of using uniform percentage of value? -
correct Answers -NYC and Nassau County
CLASS ASSESSING? - correct Answers -assessed based on property type (residential, commercial);
NYC property types are often mixed in small area, so they go by category instead of location
HOMESTEAD PROPERTY - correct Answers -residential dwelling that is eligible for separate tax rate or tax
benefits + protections (based on state)
1
EXAM QUESTIONS WITH VERIFIED SOLUTIONS .
Real estate agents should educate clients about property tax burden, but should NOT perform tax
calculations for clients. (T/F) - correct Answers -True,
to avoid being responsible for unforeseeable changes (such as reassessment)
Vincent helps a buyer, Benjamin, find a new home. Benjamin is on a pretty tight budget and asks Vincent
to help him calculate what his property taxes will be so he can create a budget. Vincent wants to be as
helpful as possible, so calculates Benjamin's property taxes. Evaluate Vincent's decision. - correct
Answers -Vincent made the wrong decision; he should show Vincent how to perform his own
calculations, not calculate Benjamin's property taxes for him.
Formula for calculating assessed value - correct Answers -Full market value x Uniform percentage =
Assessed value
What is Uniform Percentage? - correct Answers -percentage applied to full market value of every
property in a municipality;
assessed value is a percentage of the property's full market value;
every municipality uses the same uniform percentage, so each property is held at the same % standards
In which areas of NY do they allow class assessing instead of using uniform percentage of value? -
correct Answers -NYC and Nassau County
CLASS ASSESSING? - correct Answers -assessed based on property type (residential, commercial);
NYC property types are often mixed in small area, so they go by category instead of location
HOMESTEAD PROPERTY - correct Answers -residential dwelling that is eligible for separate tax rate or tax
benefits + protections (based on state)
1
