Ad Valorem is a specific tax that depends upon any item’s assessed value, including any personal properties or real estate. The commonest taxes in this category include property tax which is imposed upon property or real estate. The Latin phrase translates into according to value.
The Ad Valorem tax depends upon the property’s assessed value. The commonest examples include real estate property taxes. This is the meaning of ad valorem.
This tax is levied in the form of property taxes on real estate. These are payable across the world and by all property owners to the Government, through its municipal or other authorities. This tax is based on the property’s assessed value, as mentioned. The taxation will be influenced by the item’s assessed/determined value. The real estate values of properties are assessed periodically by public authorities or assessors. These current values determine the rate of taxation on the same. These taxes are mostly imposed by municipalities and other Government agencies, including regional authorities, districts, etc.
