PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Ad valorem tax
Ad valorem tax is a tax based on property value.
Finance and Closing
Georgia taxes and closing math
Define, distinguish, apply, retrieve
Official exam outline plus authoritative Georgia or federal references where the topic has a controlling rule. Independent educational resource, not affiliated with GREC or PSI.
Continue from definition to exam-ready recall.
1,300+ Georgia and national questions, detailed explanations, spaced review, readiness tracking, Math Coach, and offline study. $59.99 once with no subscription.
passgeorgiarealestate.com/download
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.
Memory cue: 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.
Which statement correctly explains Ad valorem tax?
- A
The assessment ratio is the percentage of fair market value used to establish taxable assessed value.
- B
Assessed value is the taxable value produced by applying the legal assessment ratio to fair market value before subtracting any exemption the problem or jurisdiction directs.
- C
A millage rate is a property-tax rate stated in mills, with one mill equal to $1 of tax for each $1,000 of taxable assessed value.
- D
Ad valorem tax is a tax based on property value.
Ad valorem tax is correct. 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. 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. Georgia property is generally assessed at 40 percent of fair market value unless a different statutory class or program applies.
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