Taxes & Closing Costs

    Ad Valorem Tax

    A property tax based on the assessed value of real estate, set as of January 1 and paid in arrears in Florida.

    Ad valorem means according to value. An ad valorem tax is a property tax based on the just, or assessed, value of the real estate, determined by the county property appraiser as of January 1 each year.

    In Florida these taxes are paid in arrears, and the bill is figured by multiplying taxable value by the millage rate and dividing by 1,000.

    On the exam

    Ad valorem taxes are value-based, assessed as of January 1, and paid in arrears.

    Exam trap

    Ad valorem is based on value, unlike a special assessment, which is based on the benefit a property receives.

    Tested in

    Taxes Affecting Real Estate (3% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.