In New Mexico, what is the term for property tax assessed based on property value?

The correct term for property tax assessed based on property value in New Mexico is "Ad Valorem Tax." This type of tax is calculated as a percentage of the assessed value of the property, which means that as the value of the property increases or decreases, so too does the amount of tax owed. This approach is widely used in many jurisdictions because it directly correlates the amount of tax a property owner pays with the value of their property, thereby making it a fair system based on actual worth.

Sales tax refers to a different type of taxation applied to goods and services purchased, not to real estate itself. Transfer tax involves taxes levied on the transfer of property from one owner to another, typically at the time of sale, rather than on the ongoing ownership of property based on its assessed value. Special assessment tax is a different category of tax that may be levied for specific improvements or services that benefit a particular property, such as street improvements or sewer changes, rather than a broad-based tax measured by value.

Thus, Ad Valorem Tax is the most accurate term for property taxes derived from property value assessments.