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 Utah, ad valorem taxes are property taxes based on the assessed value of real and tangible personal property. The county assessors are responsible for determining the value of property within their jurisdictions, which includes both real estate and tangible personal property used by businesses, such as furniture, equipment, and inventory. The assessed value is then used to calculate the property tax owed by the property owner. The tax rates are set by various taxing entities, such as school districts, cities, and the county itself, and are applied to the assessed value of the property. It's important for business owners in Utah to report their tangible personal property to the county assessor for assessment. Failure to do so can result in penalties. The revenue from ad valorem taxes is used to fund local services such as schools, roads, and public safety.