An ad valorem tax is a tax based on the assessed value of an item such as real estate or personal property. This term is commonly used in the contexts of property tax, real estate transactions, and import duties.
An Agricultural Use Exemption is a classification for ad valorem tax purposes applied to land utilized for agricultural activities or as open space. This exemption reduces property tax liability provided the land remains in an undeveloped state.
Equalization ensures that property taxes are assessed fairly across properties with similar market values, helping maintain tax consistency within a given area or class of properties.
An exemption in real estate refers to certain portions of a property's value or income that are legally excluded from taxation, lowering the overall tax burden.
The Institute for Professionals in Taxation (IPT) is an organization dedicated to the uniform and equitable administration of ad valorem and sales and use taxes while minimizing the costs of tax administration and compliance. It emphasizes professional ethics and standards.
Intangible Personal Property refers to non-physical assets that hold value and cannot be seen or touched. It includes items like cash, accounts receivable, goodwill, patents, trademarks, and other non-tangible assets. These are typically exempt from ad valorem tax in most states.
A government levy based on the market value of privately owned property, commonly referred to as ad valorem tax or real estate tax.
Real estate tax is a levy on property that the owner is required to pay. This tax is usually a major source of revenue for local governments and is often assessed as an ad valorem tax, based on the property's value.
Reassessment is the process of revising or updating the value estimate of property for ad valorem tax purposes. It forms the basis for determining the property taxes homeowners and businesses owe to local government entities.
Tangible personal property refers to assets that can be seen, touched, and moved without great difficulty. This category excludes real estate and intangible assets.
Tax Exemption is a full or partial retraction of property from the tax base, resulting in a lower AD VALOREM tax for the property owner.
Unit value refers to the valuation of an entire business entity, such as a public utility or railroad. This valuation is crucial for purposes such as assessing property taxes.
