The effective tax rate of a property is determined by which of the following?

The effective tax rate of a property is fundamentally defined by the relationship between the taxes assessed on the property and its market value. It is a ratio that illustrates how much in taxes a property owner pays in relation to the property's assessed worth. A higher effective tax rate might indicate that property taxes are high compared to the overall value of properties in that area, while a lower rate suggests a more favorable tax situation relative to property values.

This measure is crucial for appraisers and property owners alike, as it helps in understanding the tax burden associated with ownership and can influence investment decisions and property valuation. Factors such as income and expenses are important in other aspects of real estate analysis but do not directly relate to calculating the effective tax rate. Consequently, the relationship between property value and taxes is the key determinant in figuring out how much tax a property owner owes based on the property's assessed value.