ad valorem taxes

Ad valorem taxes are taxes based on the value of an item or property. For example, property taxes are calculated as a percentage of a property's assessed value. The higher the value, the higher the tax due. This system ensures that taxes are proportional to the worth of what’s being taxed, such as real estate, cars, or goods. It’s a common way for governments to generate revenue, and it helps ensure that those with more valuable assets contribute more toward public services.