Ad Valorem tax is more commonly known as property tax. The basis for ad valorem taxation is the fair market value of the property, which is established as of January 1 of each year by the Houston County Assessor's Office. The tax is levied on the assessed value of the property which, by law, is established at 40% of fair market value. The amount of tax is determined by the tax rate (millage rate) levied by Mayor and Council each year (one mill is equal to $1 for each $1,000 of assessed value).
City taxes are normally mailed the first or second week in October and are due no later than December 20th of each year. If not paid by December 20th, interest in the amount of .7083 is assessed on the 1st of each month beginning in January. Penalty of 5 percent shall be imposed on any tax amount remaining due 120 days after December 20th. The aggregate amount of penalties imposed pursuant to this subsection shall not exceed an amount greater than 20 percent of the principal amount of the tax originally due ,and is calculated in 120 day increments. If a lien (or fifa) is placed against the property, a fee of $12 is added.