How is the Tax Rate defined in relation to property taxes?

The Tax Rate is defined as a percentage of the assessed value of a property. This means that property taxes are calculated based on a portion of the property's market value as determined by appropriate assessments. When the tax rate is applied to a property’s assessed value, it results in the total amount of property tax that the owner is obligated to pay.

This approach ensures that property taxes reflect the value of the property, allowing for a more equitable distribution of the tax burden among property owners. It ties the tax obligation directly to the value of the asset, thereby ensuring that property owners contribute to local funding based on what their property is worth.

The other answer options do not accurately represent the concept of a tax rate. A flat fee per property does not account for the varying values of properties. A fixed annual revenue target does not correlate with individual property values, and calculating taxes as a total budget divided by taxable properties oversimplifies the process and does not effectively capture the relationship between property value and tax obligation.