PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Ad valorem tax is a tax based on property value.
Finance and Closing
Georgia taxes and closing math
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Ad valorem tax mean?
Ad valorem tax is a tax based on property value. Local property tax is calculated by applying the jurisdiction's millage rate to the property's taxable assessed value.
How do you separate the nearest exam answer?
Ad valorem means according to value. A special assessment commonly funds a specific improvement and need not be based on the property's market value.
What changes or stays the same in Georgia?
Georgia property is generally assessed at 40 percent of fair market value unless a different statutory class or program applies.
Two otherwise similar properties with different taxable assessed values owe different amounts under the same millage rate.
Do not confuse property tax with Georgia's transfer tax, which is triggered by a taxable conveyance rather than annual ownership value.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Two neighboring homes sit in the same tax district with the same millage rate. One has a taxable assessed value of $120,000 and the other $90,000. Why do they owe different property-tax bills?
- A
Each owner paid a different transfer tax at purchase
- B
The special assessment is split by each lot's value
- C
Ad valorem tax is based on each property's value
- D
The millage rate is set separately for each parcel
Ad valorem means according to value, so the same millage rate produces a larger bill on the higher taxable assessed value. Transfer tax is a one-time charge on a conveyance, not an annual tax. A millage rate applies across a taxing district, not parcel by parcel.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Finance and Closing complete lesson
https://www.passgeorgiarealestate.com/blog/georgia-property-tax-millage-calculations
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Official source for fair market value, the 40 percent assessment ratio, and ad valorem taxation.
https://dor.georgia.gov/property-tax-valuation