Which type of value is most closely associated with the term ad valorem?

Ad valorem, a Latin term meaning "according to value," is specifically associated with assessed value. In the context of property taxation, ad valorem taxes are levied based on the assessed value of real estate. Each property is evaluated, and its value is determined for the purpose of calculating property taxes.

Assessed value refers to the dollar value assigned to a property, typically for taxation purposes, and it determines how much tax will be owed. The assessment process takes into account various factors such as the property’s location, condition, and the values of similar properties in the area. This assessed value is vital in the ad valorem tax system, as it directly correlates to the amount of taxes a property owner is responsible for paying.

Market value refers to the price a property would likely bring in a competitive and open market, while fair value generally implies an estimate of the asset's worth that reflects what it would sell for in a transaction, often involving moral and ethical considerations. Investment value reflects the specific value an investor places on a property based on their particular requirements and expectations for returns. These other types of values, while important in real estate appraisal and investment contexts, do not directly relate to the ad valorem taxation system the way assessed value does