What value is used to determine property taxes according to ad valorem taxation?

In the context of ad valorem taxation, the assessed value is the correct answer because it represents the value assigned to a property by a government tax assessor for the purpose of calculating property taxes. This value is derived from the market value but may not be the same. It generally reflects a percentage of the property's market value and is standardized within a jurisdiction to ensure fair taxation based on property value.

Assessed value plays a critical role in property tax calculations, as local governments rely on this assessment to determine the amount of tax owed by property owners. By using the assessed value, municipalities can ensure that they are collecting tax revenue proportional to the value of properties within their jurisdiction.

While market value indicates the price a property would sell for on the open market, assessed value is specifically intended for taxation purposes. Fair market value is often used in real estate transactions and appraisals to determine sale prices, while book value refers to the value of an asset according to accounting principles, which is not relevant in the context of taxation.