Definitions for "Ad valorem tax"
Keywords:  valorem, levy, assessed, tax, imposed
A tax based on the value of real or personal property. Property taxes are the major source of revenues for local governing units. (See also: Mill Rate)
A tax that charges the value of something rather than its purchasing cost.If you are purchasing foreclosed homes, you will wish to know whether these homes are subject to this type of tax.If so, you could end up paying more in taxes than you had thought based on the discount price of your foreclosed property.
Annual taxes assessed on the basis of land value.