Which statement about the nominal tax rate is false?

The statement that the nominal tax rate is the tax due divided by the market value is accurate in its definition; thus, this understanding clarifies why it is considered false in this context. The nominal tax rate is typically described as the amount of tax owed expressed as a percentage of the assessed property value. It represents a straightforward calculation, aligning with the formula used in practice during assessments.

Moving on to other statements, the nominal tax rate is indeed a fixed percentage, as it does not fluctuate based on the assessed value but rather is a predetermined rate set by taxing authorities. The fact that it does not consider exemptions correctly reflects its nature; nominal rates are applied without accounting for deductions that may lower the taxable value. Additionally, the nominal rate can change annually, as tax rates may be reviewed and adjusted by governing bodies to meet budgetary needs or respond to changing economic conditions.

Therefore, understanding the correct definition and characteristics of the nominal tax rate clarifies why choosing the statement about it being the tax due divided by the market value might lead to confusion in this particular context.