Ad valorem Taxes are levies on property and goods depending on their estimated market value. In the case of real estate, the local authorities would have to calculate the value of a property yearly and collect tax on it. In the case of goods, particularly imports, the amount of tax will be calculated based on a percentage of the value that is declared at the customs. This will make sure the tax payers are fair in terms of their holdings or transactions. Ad Valorem Taxes are popular in the ownership of property, vehicle registration, and international trade. They bring about equity and enable governments to raise revenue reflecting the actual market conditions and economic activity.