Which value is used to determine a property owner's tax liability?

• A. Taxable value
• B. Assessed value
• C. Market value
• D. Exemptions

Answer: (A)

The amount used to determine tax liability is the taxable value. In Florida property taxes, the tax bill is calculated by applying the millage rate to the value that is actually subject to taxation, which is the assessed value after allowances for exemptions. Exemptions such as the homestead, senior, or disability exemptions reduce the amount taxed, so the taxable value is the figure used to compute taxes. For example, if the assessed value is $300,000 and exemptions total $50,000, the taxable value would be $250,000, and the tax would be based on that amount. Market value is the sale value, and exemptions themselves reduce taxes but are not the taxed amount separate from the taxable value.