Ad valorem taxes are taxes assessed according to:

• A. Value of the property
• B. Income level
• C. Property use
• D. Age of property

Answer: (A)

Ad valorem taxes are taxes assessed according to the value of the property. The term comes from Latin meaning “according to value,” and in practice the tax is calculated by applying a tax rate to the property's assessed value. So when value increases, the tax increases, and when value decreases, the tax decreases. A simple way to see it is value times the tax rate (often expressed as mills per dollar). For example, a home valued at $300,000 with a rate of 1% would result in $3,000 of annual tax. This approach contrasts with taxes based on income, use, or age, which do not scale directly with property value.