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 Oregon, ad valorem taxes are property taxes based on the assessed value of real and tangible personal property. The county assessors are responsible for valuing all taxable property within their jurisdictions at 100% of its real market value unless otherwise exempted. Businesses in Oregon must report their tangible personal property to the county assessor annually for tax assessment purposes. This includes items such as machinery, equipment, furniture, fixtures, and inventory. The tax rates are set by local taxing districts and are applied to the assessed value of the property. Taxpayers may be eligible for certain exemptions, deductions, or deferrals that can reduce the taxable value of their property. It's important for businesses to comply with reporting requirements and deadlines to avoid penalties. If a business owner disagrees with the assessed value, they may appeal to the county Board of Property Tax Appeals.