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 New York State, ad valorem taxes are primarily associated with real property taxes, which are taxes based on the assessed value of real estate property. However, New York generally does not impose ad valorem taxes on tangible personal property for general business owners. Instead, tangible personal property taxes are more commonly levied on specific industries, such as utilities or certain transportation companies, rather than across the board for all businesses. Local governments in New York have the authority to assess real property and administer property taxes, but they do not typically assess ad valorem taxes on the tangible personal property of most businesses. It's important for businesses to check with local tax assessors to understand any specific tangible personal property tax obligations they may have, as there can be exceptions or special districts with different rules.