what is an ad valorem tax levy 
an ad valorem tax is levied on the assessed value of a piece of property usually real estate or a vehicle the phrase ad valorem means according to value so these tax burdens are distributed among the community according to the value of each taxpayer s property these taxes are a source of revenue for local governments and school districts 21the bottom linelevies are used by a taxing authority or a bank to seize property for an outstanding unpaid debt property can include cash cars houses and wages a levy differs from a lien because a lien only represents the claim used as security for the debt a garnishment directs an employer to move part of an individual s salary to a creditor 