Ad Valorem

'According to value'. A method of taxation using the value of the thing taxed to determine the amount of tax. Taxes can be either 'Ad Valorem' or 'Specific'. Example: A tax of $5.00 per $1000.00 of value per house is 'Ad Valorem'. A tax of $5.00 per house (irrespective of value) is 'Specific'.