Ad valorem property taxes are calculated based on the value of a property. The term “ad valorem” is a Latin phrase that means “according to value.” The value of the property is determined by an assessment of its market value, which is typically conducted by the local government’s tax assessor’s office.
The calculation of the ad valorem property tax is typically done by multiplying the assessed value of the property by the tax rate. For example, if a property is assessed at $100,000 and the tax rate is 1%, the property owner would owe $1,000 in property taxes.
It’s important to note that the tax rate is determined by the local government and can vary from jurisdiction to jurisdiction. In some areas, the tax rate may be fixed, while in others, it may be based on a percentage of the assessed value.
Additionally, some jurisdictions may offer exemptions or deductions for certain types of properties or property owners, such as senior citizens or veterans. It’s always a good idea to check with your local government’s tax assessor’s office for specific information about how ad valorem property taxes are calculated in your area.