Which property is immune from ad valorem taxes (not assessed) unless it is leased to a private business?

• A. Fully exempt property
• B. Immune property
• C. Greenbelt property
• D. Homestead property

Answer: (B)

Immune property is property that is protected from ad valorem taxes because it is owned by a government entity or used for a public purpose. That immunity remains as long as the property serves government or public functions. If the property is leased to a private business, the immunity typically ends for the leased portion, and the private user would be responsible for the taxes on the private use. This is why immune property fits the described situation: it isn’t taxed unless the property is leased to a private entity for private business purposes. Fully exempt property would be tax-free regardless of use, greenbelt property involves a special agricultural assessment, and homestead property is exempt for a owner-occupied residence but not immune in the same sense.