Definition: Ad valorem means according to value. An ad valorem property tax is calculated by applying a tax rate to the property's taxable value.
Example
At an illustrative 10 mills, a $200,000 taxable value produces $2,000 of ad valorem tax.
Keep the distinction clear
Ad valorem describes the basis of the levy, not the taxable value itself. A non-ad valorem assessment may use a different basis, such as a service unit or frontage.
Related terms
Taxable Value · Millage · Special Assessment
Keep studying
Homestead Exemptions and Property-Tax Math
References: Florida Department of Revenue: the property tax system
Pronunciation (US): ad vuh-LOR-uhm (capitals show stress)
Pronunciation reference: Merriam-Webster
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