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 Georgia, 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.) owned by businesses. The tax is calculated as a percentage of the fair market value of the property. Each county's tax assessor's office is responsible for assessing the value of tangible personal property for businesses located within their jurisdiction. Business owners are required to report their personal property annually to the county tax assessor, who then determines the property's value and assesses the tax based on that value. The specific rates and exemptions can vary by county, and there are deadlines and procedures for reporting, assessment, and appeals that must be followed. It is important for businesses to comply with these regulations to avoid penalties and ensure accurate taxation.