Ad Valorem is a Latin term meaning 'according to value.' It describes a tax whose amount is based on the value of a transaction or a property.
In the context of real estate, an assessment refers to the amount of tax or special payment due to a municipality or association, or an owner’s or lessee’s proportionate share of a common expense.
The Effective Date of the Appraisal, often referred to as the Appraisal Date, is the specific point in time at which the value of the property is assessed. This date is crucial for reflecting the property's market conditions and physical state at that particular time.
The International Association of Assessing Officers (IAAO) is a professional organization dedicated to promoting excellence in property appraisal, assessment administration, and property tax policy.
The tax base refers to the collective value of property, income, or other taxable assets and activities that are subject to taxation. It is crucial in determining tax revenues as it forms the basis upon which tax rates are applied.
