What is a typical feature of an ad valorem tax on personalty?

An ad valorem tax is levied based on the assessed value of property, which in this case refers to personal property (personalty). A typical feature of such a tax is that it considers the characteristics of the property being taxed, including its age, which affects its value. In the context of automobiles, the value of a vehicle typically depreciates over time, which means that older vehicles often have a lower assessed value than newer ones. This depreciation directly influences the amount of ad valorem tax owed; thus, the tax on automobiles indeed considers the vehicle's age. This reflects a common practice in taxation, where the tax liability is proportionate to the current market value of the property.

The other options do not accurately represent typical features of ad valorem taxes. While some states do impose taxes on intangibles, this is not a standard feature for all states; hence, that choice lacks universality. The assertion that taxes on personal use property are higher than those on business property can vary widely by jurisdiction and is not a typical feature of ad valorem taxation. Lastly, while intangibles may generate revenue, the claim about them producing considerable revenue due to property value is not necessarily a hallmark of how ad valorem taxes function, as they