HIDALGO

An ad valorem tax is a tax based on the assessed value of an item, such as real estate or business personal property.

The Latin phrase ad valorem means "according to value." So all ad valorem taxes are based on the assessed value of the item being taxed.

Property ad valorem taxes—i.e. property taxes—are usually levied by local jurisdictions, such as counties, cities or school districts.

Ad valorem taxes are generally levied on both real property (land, buildings and other structures) and personal property (fixed assets and Inventory of businesses)