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 Indiana, ad valorem taxes are property taxes based on the assessed value of real estate or personal property. The state's Department of Local Government Finance oversees the assessment of property values, and county assessors are responsible for determining the value of tangible personal property for businesses within their jurisdictions. This includes items such as office equipment, machinery, inventory, and other physical assets used in a business. The assessed value is then used to calculate the property tax owed by the business. The tax rate is determined by the local taxing units and may vary depending on the location of the property within the state. It's important for businesses to report their personal property annually to the county assessor to ensure accurate assessment and compliance with state tax laws.