What is referred to as the taxable value of a property?

The taxable value of a property is determined as the assessed value of the property after applying any applicable exemptions. This means that when assessing a property's tax liability, you start with its assessed value, which is what the local appraisal district believes the property is worth for tax purposes. From this assessed value, any exemptions that the property owner qualifies for—such as homestead exemptions, age exemptions, or disability exemptions—are subtracted.

The result is what's known as the taxable value, which is the amount that will be used to calculate the property taxes owed. Therefore, subtracting these exemptions from the assessed value directly reflects the portion of the property's value that is subject to taxation.

Other choices provide different contexts or definitions that do not align with the concept of taxable value. For instance, the fair market value of the property reflects its market price but does not account for exemptions or assessed value calculations; it is more a measure of what the property could sell for in the current market. Net operating income refers to a property’s income from operations minus operating expenses, which pertains to the income-generating capability of the property rather than its taxability. Thus, the option about subtraction of exemptions from assessed value accurately defines the taxable value.