What is the term for the taxation method that is based on property value?

The taxation method that is based on property value is known as "Ad Valorem." This term originates from Latin, meaning "according to value." In the context of property taxation, it signifies that taxes are assessed based on the assessed value of the property. The idea is that the amount of tax levied is proportional to the value of the property being taxed. This system is commonly used for real estate taxes, where property owners pay a percentage of their property's appraised value.

Additionally, ad valorem taxes are typically used to fund local services such as schools, emergency services, and infrastructure, making it crucial for property owners to understand how their property values impact their tax liabilities. Other terms related to taxation, such as "property tax assessment," may refer to the process of determining that property value but do not specifically denote the tax method itself.