Select your state

Taxes

ad valorem tax

An ad valorem tax is a tax that is calculated as a percentage of the value of something—such as tangible (physical) personal property (goods in a warehouse, office furniture, computer and telephone systems, inventory, etc.).

For example, county tax assessors often place a value on a business's tangible personal property and assess an ad valorem tax on the property.

In Alaska, ad valorem taxes are property taxes based on the assessed value of property, which includes both real property (land and buildings) and tangible personal property (physical items like office furniture, equipment, and inventory). Municipalities in Alaska have the authority to levy property taxes, and the specific rates and exemptions can vary by locality. The state itself does not levy a statewide property tax. However, local governments assess tangible personal property used in a business annually. Taxpayers are required to report the value of their tangible personal property to the local assessor's office, which then calculates the tax based on the reported value and the local tax rate. It's important for businesses to accurately report their property to avoid penalties and ensure they are taxed correctly. Exemptions and tax relief programs may also be available, and businesses should consult with an attorney or their local tax assessor's office to understand their specific obligations and entitlements under Alaska's ad valorem tax laws.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Learn More

Articles

Demystifying Ad Valorem Tax: What You Need to Know

In the confusing world of taxation, one term often whispered with both curiosity and confusion is "ad valorem tax." It's not your everyday tax, and understanding it is essential in today's financial landscape.

Taxes

ad valorem tax

Individual & Family Legal Plan

Articles

Alaska State Code

Alaska State Code

Taxes

ad valorem tax

Articles