Property taxes are classified as ad valorem taxes. Other types of taxes employed by governmental bodies are income, sales or excise, and value-added tax (a form of sales tax). The words “Ad Valorem” are based on the Latin words of Ad, meaning “according to” and Valorem, meaning “value”. Therefore, an ad valorem tax is a tax levy that is apportioned among taxpayers according to the value of each taxpayer’s property. Property taxes are a means for local governmental bodies to pay for services they provide to taxpayers.
