What Is Ad Valorem Property Taxes

Property taxes are known as an ad valorem (“according to value”) tax. They are based on the assessed value of your home. Oregon defines your property’s assessed value as the lower of its real market value (RMV) or its maximum assessed value (MAV).

What is an example of an ad valorem tax is?

An ad valorem tax is a tax that is based on the assessed value of a property, product, or service. The most common ad valorem tax examples include property taxes on real estate, sales tax on consumer goods, and VAT on the value added to a final product or service.

How do you figure out the ad valorem tax?

Ad Valorem taxes are calculated based on the vehicle’s assessed value. This is determined by multiplying the market value times the corresponding Property Classification. The assessed value is then multiplied by the Millage rate.