What does a tax rate represent?

A tax rate specifically indicates the percentage of a property's assessed value that is applied to calculate the property taxes owed. It serves as a multiplier to determine how much tax will be assessed based on the value of the property. This means that if a property is valued at a certain amount, the tax rate will dictate how much of that value is subject to taxation, directly influencing the amount of tax the property owner must pay.

The other choices represent different concepts: total tax liability refers to the final amount owed after applying the tax rate to the assessed value; market value is the estimated worth of the property itself; and the rate of depreciation concerns the decline in property value over time, unrelated to the tax rate. Understanding what a tax rate represents is crucial for property owners in order to assess their financial responsibilities regarding taxes on their real estate holdings.