What term describes a legal allowance to reduce the amount of property tax owed?

The term that describes a legal allowance to reduce the amount of property tax owed is "exemption." In the context of property taxation, an exemption reduces the assessed value of a property, which, in turn, lowers the amount of tax owed by the property owner. Various exemptions may exist, such as those for veterans, the elderly, or specific types of property that are considered low-income housing or agricultural land. These exemptions are designed to ease the tax burden on qualifying individuals or entities.

While other terms like deduction and amount may relate to financial figures, they do not specifically address the legal aspect of reducing taxable amounts in the same way that exemption does. Deduction often refers to an expense that can be subtracted from gross income to determine taxable income, whereas amount simply denotes a quantity without the specific legal implications tied to property taxes. Code, in this instance, may refer to legal statutes or regulations, but it does not convey the idea of a tax reduction allowance directly. Thus, exemption is the most accurate term to describe a reduction in property tax liability.