Taxable value is best described as what?

• A. The market value
• B. The assessed value minus any applicable exemptions; used for determining tax liability
• C. The exempt value
• D. The gross value

Answer: (B)

Taxable value is the amount of value that is actually subject to taxation. In Florida, the property appraiser first determines an assessed value for the property. From that assessed value, any applicable exemptions—such as the homestead exemption or other eligible exemptions—are subtracted. The result is the taxable value, and that amount is what the tax rate (millage) is applied to in order to determine the property tax liability. This is why market value isn’t used directly for taxes: it’s the gross selling value, not the amount taxed. Exemptions reduce the amount taxed, and the remaining figure (the taxable value) is the basis for the bill. For example, if the assessed value is 200,000 and you have a 50,000 homestead exemption, the taxable value would be 150,000, which is then multiplied by the tax rate to calculate the tax owed.