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 Mississippi, ad valorem taxes are levied on tangible personal property, which includes items like goods in a warehouse, office furniture, computer and telephone systems, and inventory. These taxes are based on the assessed value of the property. County tax assessors are responsible for determining the value of a business's tangible personal property for tax purposes. The assessed value is typically a percentage of the property's true value, and the ad valorem tax rate is applied to this assessed value to calculate the amount of tax owed. The specific percentage and tax rates can vary by county within Mississippi. Businesses are required to report their personal property annually to the county tax assessor's office for assessment. The revenue from ad valorem taxes is used to fund local services such as schools, roads, and emergency services.