Your property tax bill will always have ad valorem tax assessments, but sometimes, your tax bill will also include non-ad valorem tax assessments. What exactly are ad valorem and non-ad valorem taxes?
Ad valorem property tax is a tax based on the assessed value of a property. It is your standard property tax. Ad valorem taxes are calculated using the value of a property and millage rates. Each county and municipality have their own “millage rate.” One mill is equal to $1,000 of the property’s value. For example, on a $100,000 property, one mill would generate $100. The tax year for ad valorem taxes begins on the first day of January and ends on the last day of December.
Non-ad valorem taxes are more like a fee than a tax. Non-ad valorem taxes are fees assessed by local governments (county, municipality, or special district) that pay for improvements or services to the property, such as drainage, lighting, or paving. Non-ad valorem taxes are not calculated based on the value of the property, instead they are calculated based on the improvement or service provided that benefits the property. Non-ad valorem taxes, if assessed, will be included on your tax bill and added up with the ad valorem tax to equal your total property tax assessment. The tax year for non-ad valorem taxes begins on the first day of October and end on the last day of September.