What does the term "Ad Valorem" refer to in appraisal?

The term "Ad Valorem" is derived from Latin, meaning "according to value." In the context of appraisal, it specifically refers to taxes or assessments that are based on the value of property. This concept is fundamental in property taxation, where the amount of tax owed is directly proportional to the assessed value of the property. Appraisers use the principle of ad valorem to ensure that property values are accurately assessed so that the appropriate amount of tax is levied.

Understanding this term is crucial for those involved in real estate appraisal and assessment since it underlines the relationship between property value and taxation. The other options do not accurately capture the essence of what "Ad Valorem" signifies in the appraisal context. For instance, "Before value" and "From the market" do not convey the idea of value-based assessment, while "For the benefit of" lacks the direct connection to property valuation.