TAXES & ASSESSMENTS - NY SALESPERSON EXAM
QUESTIONS WITH ACCURATE ANSWERS .
Market value - correct Answers -Probable sales price if the property were listed today and a willing seller
and buyer were involved in the transfer of ownership. Used in preparing a comparative market analysis
for a seller.
Assessed value - correct Answers -A percentage of market value; the amount of property value to which
the tax rate is applied.
Ad valorem - correct Answers -Tax is levied based on value
Tax rate - correct Answers -Determined by the budgetary needs of the local government and is used to
calculate the amount of real property tax, certified by the NYS Office of Real Property Tax Services, and
it may be a separate tax rate for homestead vs. non-homestead properties
general property tax - correct Answers -assessed value x tax rate
Tax assessor - correct Answers -estimate the value of real property within the boundaries of a city, town,
or village, and to turn that estimated value into an assessment, required yearly to assess all properties at
a fair and uniform percentage of market value
tax assessor residential, vacant, farm properties assessment - correct Answers -determines market value
by checking other properties in the area that have sold recently
tax assessor income-producing properties assessment - correct Answers -uses the income approach
method
tax assessor unique properties assessment - correct Answers -uses the cost approach method
, abatement - correct Answers -temporary reduction in the level of taxation for a specified number of
years (3,5,7,10), existing properties pay the usual property tax only on the property's pre-improvement
value, whereas new properties pay a reduced property tax rate during the abatement period
Level of assessment (LOA) - correct Answers -percentage of market value (or full market value) (LOA of
10% means that assessments are made at 10% of the market value. An LOA of 100% is an assessment at
full value)
residential assessment ratios (RARs) - correct Answers -Assessors use to determine equity., measure the
overall ratio of the total assessed value of residential property in a community compared to the full
market value of the residential property
Community-wide reassessment - correct Answers -Occurs when market values increase or decrease, or
when a community decides to go from a fractional level of assessment to full assessment (100%)
Reassessment on sale - correct Answers -Sale may trigger a reassessment of property values
(For example, neighborhood homes established at $250,000, with no moves in or out for several years.
Then one property owner sells at $325,000, demonstrating a market value increase for the
neighborhood, which can prompt a reassessment for all homeowners)
Assessment review - correct Answers -Homeowners who feel their properties are assessed unfairly may
appeal to the assessment review board and, if successful, this may lead to reassessment at a lower value
Improvements to a property - correct Answers -when discovered during the building permit process or
otherwise, will often lead to a reassessment
Approved assessing units - correct Answers -(taxing jurisdictions that have completed a property
reevaluation and are certified by the NYS Office of Real Property Tax Services) may establish separate
tax rates for homestead vs. non-homestead properties
homestead - correct Answers -legal life estate, used for residential or agricultural purpose
QUESTIONS WITH ACCURATE ANSWERS .
Market value - correct Answers -Probable sales price if the property were listed today and a willing seller
and buyer were involved in the transfer of ownership. Used in preparing a comparative market analysis
for a seller.
Assessed value - correct Answers -A percentage of market value; the amount of property value to which
the tax rate is applied.
Ad valorem - correct Answers -Tax is levied based on value
Tax rate - correct Answers -Determined by the budgetary needs of the local government and is used to
calculate the amount of real property tax, certified by the NYS Office of Real Property Tax Services, and
it may be a separate tax rate for homestead vs. non-homestead properties
general property tax - correct Answers -assessed value x tax rate
Tax assessor - correct Answers -estimate the value of real property within the boundaries of a city, town,
or village, and to turn that estimated value into an assessment, required yearly to assess all properties at
a fair and uniform percentage of market value
tax assessor residential, vacant, farm properties assessment - correct Answers -determines market value
by checking other properties in the area that have sold recently
tax assessor income-producing properties assessment - correct Answers -uses the income approach
method
tax assessor unique properties assessment - correct Answers -uses the cost approach method
, abatement - correct Answers -temporary reduction in the level of taxation for a specified number of
years (3,5,7,10), existing properties pay the usual property tax only on the property's pre-improvement
value, whereas new properties pay a reduced property tax rate during the abatement period
Level of assessment (LOA) - correct Answers -percentage of market value (or full market value) (LOA of
10% means that assessments are made at 10% of the market value. An LOA of 100% is an assessment at
full value)
residential assessment ratios (RARs) - correct Answers -Assessors use to determine equity., measure the
overall ratio of the total assessed value of residential property in a community compared to the full
market value of the residential property
Community-wide reassessment - correct Answers -Occurs when market values increase or decrease, or
when a community decides to go from a fractional level of assessment to full assessment (100%)
Reassessment on sale - correct Answers -Sale may trigger a reassessment of property values
(For example, neighborhood homes established at $250,000, with no moves in or out for several years.
Then one property owner sells at $325,000, demonstrating a market value increase for the
neighborhood, which can prompt a reassessment for all homeowners)
Assessment review - correct Answers -Homeowners who feel their properties are assessed unfairly may
appeal to the assessment review board and, if successful, this may lead to reassessment at a lower value
Improvements to a property - correct Answers -when discovered during the building permit process or
otherwise, will often lead to a reassessment
Approved assessing units - correct Answers -(taxing jurisdictions that have completed a property
reevaluation and are certified by the NYS Office of Real Property Tax Services) may establish separate
tax rates for homestead vs. non-homestead properties
homestead - correct Answers -legal life estate, used for residential or agricultural purpose
