1|Page
NJ Tax Assessors Exam - Terms and Concepts Exam
Complete Test , Practice Questions, Verified Answer Key,
and Study Guide for (Latest 2026 Edition)
What are the three basic requirements of the assessor?
......ANSWER......Discovery, listing, and valuation
To find effective tax rate multiply the tax rate by ____?
......ANSWER......Assessment level
The six basic rights associated with property are ______?
......ANSWER......Sell, lease/rent, use, give away, enter or leave, refusal
to do any of the above
What are the three major classifications of property?
......ANSWER......Real property, personal property, intangible personal
property
List the appraisal principles which form the foundation for highest and
best use analysis. ......ANSWER......Anticipation, balance, change,
competition, conformity, consistent use, contribution, increasing and
decreasing returns, substitution, supply and demand, surplus
productivity
pg. 1
,2|Page
What are the four forces that influence value? ......ANSWER......Physical,
economic, governmental, social
Highest and best use is always the that use that would produce the
______ ____ of a property, regardless of its actual current use.
......ANSWER......Highest value
The four tests for highest and best use are _____
......ANSWER......Legally allowable, physically allowable, financially
feasible, maximally productive
What are the three approaches to value used by appraisers to estimate
value? ......ANSWER......Cost, sales comparison, and income
The land identification system based on semi-permanent physical
features or bearings on a compass is known as ____ and ____.
......ANSWER......Metes and bounds
Residential subdivisions are commonly described by the ____ and ____
system of land identification. ......ANSWER......Block and lot
Name the 8 characteristics that affect land value.
......ANSWER......Frontage, width, depth, area, shape, topography,
location, and off-site improvements
pg. 2
, 3|Page
What is the 40-30-20-10 rule? ......ANSWER......This rule describes the
percentage of the value of each quarter of land based on its depth. The
first 25% of the land amounts to 40% of the assessed value, the next
25% represents 30% of the value, the next 25% represents 20%, and the
final 25% represents 10%.
Cost to produce an exact replica of a structure using the same materials,
construction standards, and quality of workmanship is known as
________ ____ ___ ......ANSWER......Reproduction cost new
Cost to produce a structure with equivalent utility using contemporary
materials and standards is known as _________ ____ ___
......ANSWER......Replacement cost new
Cost of a property when it was originally constructed is known as
__________ cost ......ANSWER......Historical
The age of a property based on condition and utility is know as the
______ ___. ......ANSWER......Effective age (EA)
Compare and contrast remaining economic life (REL) and economic life
(TEL). ......ANSWER......REL estimates the number of years remaining
during which improvements contribute to property. TEL is the total
number of years that improvements on land contribute to property
value.
pg. 3
NJ Tax Assessors Exam - Terms and Concepts Exam
Complete Test , Practice Questions, Verified Answer Key,
and Study Guide for (Latest 2026 Edition)
What are the three basic requirements of the assessor?
......ANSWER......Discovery, listing, and valuation
To find effective tax rate multiply the tax rate by ____?
......ANSWER......Assessment level
The six basic rights associated with property are ______?
......ANSWER......Sell, lease/rent, use, give away, enter or leave, refusal
to do any of the above
What are the three major classifications of property?
......ANSWER......Real property, personal property, intangible personal
property
List the appraisal principles which form the foundation for highest and
best use analysis. ......ANSWER......Anticipation, balance, change,
competition, conformity, consistent use, contribution, increasing and
decreasing returns, substitution, supply and demand, surplus
productivity
pg. 1
,2|Page
What are the four forces that influence value? ......ANSWER......Physical,
economic, governmental, social
Highest and best use is always the that use that would produce the
______ ____ of a property, regardless of its actual current use.
......ANSWER......Highest value
The four tests for highest and best use are _____
......ANSWER......Legally allowable, physically allowable, financially
feasible, maximally productive
What are the three approaches to value used by appraisers to estimate
value? ......ANSWER......Cost, sales comparison, and income
The land identification system based on semi-permanent physical
features or bearings on a compass is known as ____ and ____.
......ANSWER......Metes and bounds
Residential subdivisions are commonly described by the ____ and ____
system of land identification. ......ANSWER......Block and lot
Name the 8 characteristics that affect land value.
......ANSWER......Frontage, width, depth, area, shape, topography,
location, and off-site improvements
pg. 2
, 3|Page
What is the 40-30-20-10 rule? ......ANSWER......This rule describes the
percentage of the value of each quarter of land based on its depth. The
first 25% of the land amounts to 40% of the assessed value, the next
25% represents 30% of the value, the next 25% represents 20%, and the
final 25% represents 10%.
Cost to produce an exact replica of a structure using the same materials,
construction standards, and quality of workmanship is known as
________ ____ ___ ......ANSWER......Reproduction cost new
Cost to produce a structure with equivalent utility using contemporary
materials and standards is known as _________ ____ ___
......ANSWER......Replacement cost new
Cost of a property when it was originally constructed is known as
__________ cost ......ANSWER......Historical
The age of a property based on condition and utility is know as the
______ ___. ......ANSWER......Effective age (EA)
Compare and contrast remaining economic life (REL) and economic life
(TEL). ......ANSWER......REL estimates the number of years remaining
during which improvements contribute to property. TEL is the total
number of years that improvements on land contribute to property
value.
pg. 3
