What term is used to describe a tax based on the value of real estate or personal property?

The term that describes a tax based on the value of real estate or personal property is "Ad Valorem tax." This type of tax is calculated as a percentage of the assessed value of the property, reflecting its current worth. The concept of "Ad Valorem," which is Latin for "according to value," means that the tax liability correlates directly with the value of the property being taxed. In the context of property tax administration, this differentiation ensures that property owners pay taxes in accordance with the value of their holdings.

Other tax types listed, such as income tax, are levied on earnings rather than property value, and flat tax refers to a fixed tax rate regardless of the income or property value. Revenue tax is somewhat ambiguous and does not specifically point to a property valuation method. Understanding these tax classifications is essential for effective property tax management and compliance.