What is the relationship between effective tax rate and market value as indicated by the formula 'Effective Tax Rate x Market Value'?

The correct choice highlights that the product of the effective tax rate and market value yields the amount of tax due. The effective tax rate reflects the proportion of the property's market value that is imposed as a tax, while the market value represents the worth of the property in the marketplace. Multiplying these two elements together allows for the calculation of the total taxes that are owed on the property.

Understanding the relationship in this context is essential for property assessment, as it allows assessors to determine the tax liability for property owners based on the value of their assets. This relationship underscores how tax assessments are directly linked to property values, and it is a critical concept in taxation and property assessment practices.

The other options lack relevance to this specific formula. Fair market value (as noted in one choice) is a separate concept that doesn’t directly involve tax calculation but rather the estimated price that a property would sell for on the open market. Taxable income and property depreciation, while related to financial assessments, do not pertain to the straightforward calculation of tax dues from the effective tax rate and market value relationship.