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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 Ohio, tangible personal property taxes have been phased out for general business filers. This phase-out was completed in tax year 2008 under House Bill 66, which was enacted in 2005. As a result, most businesses in Ohio no longer pay a tax on tangible personal property such as goods in a warehouse, office furniture, computer and telephone systems, or inventory. However, certain public utilities and financial institutions may still be subject to a form of tangible personal property tax. Instead of the tangible personal property tax, Ohio has implemented the Commercial Activity Tax (CAT), which is a tax on gross receipts from business activities in Ohio. It is important for businesses to understand their tax obligations under current Ohio law, and they may wish to consult with an attorney to ensure compliance with state tax regulations.

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Demystifying Ad Valorem Tax: What You Need to Know

In the confusing world of taxation, one term often whispered with both curiosity and confusion is "ad valorem tax." It's not your everyday tax, and understanding it is essential in today's financial landscape.

Taxes

ad valorem tax

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Taxes

ad valorem tax

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