Ad valorem taxes are based on which of the following?

Ad valorem taxes are taxes based on the assessed value of property. This type of taxation means "according to value" in Latin, which signifies that the amount of tax owed is directly related to the value of the property. The assessed value is determined by a local government assessor, who evaluates the property based on various factors such as location, improvements, market trends, and the characteristics of the property itself.

This assessment provides a standardized basis upon which the taxation is calculated, ensuring fairness and consistency in how properties are taxed relative to one another. The tax rate, often expressed in mills (the millage value), is then applied to the assessed value to determine the total tax owed. The other options, such as replacement value or a broker's estimate of value, do not serve as the basis for ad valorem taxation, as they employ different methodologies to ascertain property value and are not used for tax assessments.