What does the term "exempt properties" imply in relation to property taxes?

The term "exempt properties" in relation to property taxes refers to properties that are not liable to pay certain taxes. When a property is considered exempt, it may still be subject to taxation, but the owner may receive specific benefits such as a reduction in their overall tax obligations, or they may not be required to pay certain types of taxes due to their property’s status or use.

For example, properties owned by non-profit organizations, government entities, or those used for religious or educational purposes often receive tax-exempt status. This means that while they might still be on the tax rolls, they are not required to contribute to local taxes in the same way taxable properties are. Hence, this aligns with the understanding that the owner is released from some tax obligations.

The other options imply various conditions about taxation that do not accurately capture the essence of what "exempt properties" means. Completely free from taxation suggests no financial responsibility whatsoever, which is not typically the case. Valued at a lower amount mischaracterizes the purpose of exemption, focusing instead on assessment rather than liability. Lastly, stating that exempt properties include only residential buildings restricts the definition and does not encompass all possible exempt property categories, which can include various property types.