An ad valorem tax is a tax derived from the value of real estate or personal property.

An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. In the most common application of ad valorem taxes, which are municipal property taxes, the real estate of property owners is periodically assessed by a public tax assessor to determine its current value. Ad valorem taxes are generally levied on both real property (land, buildings and other structures) and major personal property, such as a car or boat. Ad valorem taxes represent a percentage of the assessed property value, which is commonly the property's fair market value. The most common ad valorem taxes are property taxes levied on real estate.

Ad Valorem Tax

A mill levy is the assessed property tax rate used by local governments and other jurisdictions to raise revenue to cover annual expenses.

The mill levy is a property tax. The tax levy for the county would be 0.01 (10 million/1 billion), and the tax levy for the city would be 0.05 (50 million/1 billion).
Add all the tax levies up, and you get a mill levy of 0.16 or 160 mills (one mill = 0.001). To determine what the mill levy will be, most jurisdictions use a percentage formula, which is known as an assessment ratio, to determine the property value for the mill levy. The mill levy is a property tax applied based on the assessed value of the property. Each year, the official assessed value of a property is usually set by a tax assessor and may be used to set the mill levy.

Mill Levy

The mill rate is the amount of tax payable per dollar of a property's value. 

The mill rate is the amount of tax payable per dollar of the assessed value of a property. The assessed tax value of the property is calculated using local real estate data and is usually a percentage of a property's fair market value, determined by multiplying the property's market value or appraisal value by an assessment ratio established by the local taxing authority. As used in property tax, 1 mill is equal to $1 in property tax levied per $1,000 of a property's assessed value. As used in relation to property tax, 1 mill is equal to $1 in property tax, which is levied per $1,000 of a property's determined taxable value. Some states have a homestead provision that exempts a specified dollar amount of a property's market value from assessment for property taxes.﻿﻿ For example, in a state with a $50,000 homestead provision, only $150,000 of a $200,000 home would be subject to property taxes.

Mill Rate

Property tax is an ad valorem tax assessed on real estate by a local government and paid by the property owner. 

Local Governments in Northeast More Reliant on Property Taxes than South and West.

States Should Continue to Reform Taxes on Tangible Personal Property.

Testimony before the House Ways and Means Select Revenue Measures Subcommittee.

With New SALT Limit, IRS Explains Tax Treatment of State and Local Tax Refunds.

Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. The local governing body will use the assessed taxes to fund water and sewer improvements, and provide law enforcement, fire protection, education, road and highway construction, libraries, and other services that benefit the community.﻿﻿ Deeds of reconveyance do not interact with property taxes.
Property owners pay property tax calculated by the local government where the property is located.
Property tax is based on the value of the property, which can be real estate or—in many jurisdictions—also tangible personal property. So here's the difference: Real estate taxes are taxes on real property only; property taxes can include both real property and tangible personal property. 2:04
The amount owners owe in property tax is determined by multiplying the property tax rate by the current market value of the lands in question. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax.

Property Tax

A tax lien certificate is a claim against property that has a lien placed upon it as a result of unpaid property taxes. 

Publication 594: The IRS Collection Process

A tax lien certificate is a certificate of claim against a property that has a lien placed upon it as a result of unpaid property taxes. After an investor places a winning bid for a specific tax lien certificate, a lien is placed on the property, and a certificate is issued to the investor detailing the outstanding taxes and penalties on the property. A tax lien certificate is a certificate of claim against a property that has a lien placed upon it as a result of unpaid property taxes. Negative aspects of tax lien certificates include the requirement for the investor to pay for the tax lien certificate in full within a very short period, usually one to three days. A tax lien certificate is a lien placed on your property for not paying your taxes.

Property Tax

More in Personal Finance

Terms in Property Tax

Ad Valorem Tax

Mill Levy

Mill Rate

Property Tax

Tax Lien Certificate