How is taxable value derived from assessed value?

Taxable value is derived from assessed value by subtracting any exemptions that may apply to a property. Exemptions are reductions in the assessed value intended to lower the tax burden on eligible properties, such as those owned by senior citizens or veterans, or under certain programs that aim to promote affordable housing.

When determining the taxable value, starting from the assessed value—which reflects a property's value as determined by the assessor—applying the relevant exemptions results in the taxable value that will be used for calculating property taxes. This approach ensures that the taxes reflect the actual value that is subject to taxation after accounting for any legal exemptions.

In contrast, other options suggest adding exemptions or using market value instead of assessed value, which does not align with standard practices in property tax calculation. By focusing on the assessed value and correctly applying exemptions, the process illustrates a clear pathway to determining the taxable value accurately.