What does the term Ad Valorem refer to in property taxation?

Ad Valorem is a Latin term that translates to "according to value." In the context of property taxation, this means that the tax assessed on a property is based on its value. Generally, properties are appraised periodically to determine their fair market value, which is then used as the basis for calculating property taxes. This system ensures that property owners pay taxes proportional to the value of their property, making it a fair approach to taxation. The other options, while related to value in some sense, do not accurately capture the core meaning of Ad Valorem in property taxation, which specifically emphasizes the connection between tax amounts and property value.