New to the site and had a question with regards to ad valorem taxation. I'm from Indiana and was doing a little research with regards to property tax in my state. Governor Noah Noble (elected 1831), enacted the first ad valorem tax on property back in 1833.
Now, regarding: “ad valorem”, the Black's Law Dictionary, 6th edition, Lexicographers wrote:According to value. A tax imposed on the value of property. The more common ad valorem tax is that imposed by states, counties and cities on real estate. Ad valorem taxes, can however, be imposed upon personal property; e.g., a motor vehicle tax may be imposed upon the value of an automobile and is therefore deductible as a tax. A tax levied on property or an article of commerce in proportion to its value, as determined by assessment or appraisal. Callaway v. City of Overland Park, 211 Kan. 646, 508 P.2d 902, 907.
The part that strikes me, is within Indiana we call our property tax an ad valorem tax. This is taxation, at least in my opinion, on an objects value or maybe more accurately "potential" to create value with commerce. I believe a homestead deduction has to do with this. The deduction is removing part of your property appurtenant to the land that you claim to dwell in from taxation (the part that isn't used in commerce). In some states a monetary cap is imposed. Either way, the other part of the property (not your shelter) I believe is assumed by the municipality to be used in commerce (this used to be a farm, or now multiple unit dwelling, one in which you aren't living in). I believe this is why they can impose a tax, because really, by filing a homestead deduction, the property owner is basically claiming he/she is using his/her property other then the dwelling in commerce.
So the question comes in two parts. Were municipalities setup prior to 1871 (Corp U.S.) in other states, maybe you could use Colorado as an example? Was ad valorem taxation, even back then, imposed on all property, or just those using their property in commerce (farms, fishing, etc.). I seem to be stuck in my research. I believe strongly my taxation has to do with my claim as a resident within the state or municipality, and in doing so puts me under the umbrella of statutory/code imposition from that municipality, but I'm just trying to start at the beginning. Any response would be appreciated."