What is the Ad Valorem Tax?

An ad valorem tax is a real estate tax, of a specific parcel of property, based on the property’s value. Ad valorem is a Latin term meaning “to the value.”

The traditional method for calculating a parcel’s property tax assessment is to multiply the assessed value — after any adjustments or deductions for homestead owners, senior citizens, or similar available offsets — by the official tax “millage” rate and any equalizer rate.

For more information, see also the following entries:

• :Assessment:
• :Equalizer:
• :Homestead:
• :Millage:
• :Real Estate:
• :Real Estate Tax: