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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 Alabama, ad valorem tax, also known as property tax, is levied on both real property (land and buildings) and tangible personal property (such as goods in a warehouse, office furniture, computer and telephone systems, inventory, etc.) used in a business. The county tax assessors are responsible for determining the value of such property annually and assessing the tax based on that value. The rate of the ad valorem tax varies by county and the type of property. It is calculated as a percentage of the assessed value of the property, which is typically set at a certain percentage of its fair market value. Business owners are required to report their tangible personal property to the county tax assessor's office for assessment. Exemptions and deductions may apply to certain types of property or for certain taxpayers, which can reduce the taxable value. The revenue from ad valorem taxes is used to fund local services such as schools, roads, and public safety.

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Taxes

ad valorem tax

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Alabama State Code

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Taxes

ad valorem tax

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