What term describes an assessment method based on property value?

The term "ad valorem" translates to "according to value" in Latin, and it refers specifically to a method of assessment that is based on the value of the property. This principle indicates that property taxes are levied as a percentage of the property's assessed value, making it directly proportional to the value of the property itself.

In practical terms, ad valorem assessments ensure fairness in taxation since properties with higher values contribute more to the tax base, while those with lower values pay less. This model is commonly used in real estate taxation, where the local government assesses properties based on their current market value or other valuation methods aligned with this principle.

Other terms like uniform assessment refer to a flat rate irrespective of property value, market value is a separate concept that represents the price a property would sell for in a competitive marketplace, and depreciated value assesses the worth of a property after accounting for depreciation, which is not primarily focused on the initial value itself.