Which statement best describes taxable value?

• A. Taxable value is the portion of value subject to tax after applying exemptions and deductions.
• B. Taxable value equals the assessed value.
• C. Taxable value is the market value of the property.
• D. Taxable value is the replacement cost of improvements.

Answer: (A)

Taxable value is the portion of value that is actually taxed after exemptions and deductions are subtracted. The assessor may determine an assessed value, but exemptions (like homeowner or senior exemptions) and any deductions reduce that amount to the base used for calculating taxes. Taxes are then computed by applying the tax rate to this taxable value. This differs from market value, which is how much the property would sell for, and from replacement cost, which is the cost to rebuild improvements. So the statement that taxable value is the value remaining after exemptions and deductions best describes what taxable value represents.