Ad Valorem Tax Ordinances

What Is an Ad Valorem Tax?

An ad valorem tax is calculated based on the value of an item of property such as real estate or personal property. The Latin phrase ad valorem means "according to value." Ad valorem taxes are based on the assessed value of the item being taxed.

The most common ad valorem taxes are property taxes levied on real estate but they're also assessed as a component of car registration. They may extend to tax applications such as import duty taxes on goods from abroad.

 

Related Documents