Which tax type is based on the value of the property being taxed?

Ad Valorem Tax is based on the value of the property being taxed, making it the correct answer. The term "ad valorem" translates from Latin to "according to value." This type of tax is typically applied to real estate and personal property, where the amount of tax owed is calculated based on the assessed value of the property.

Municipalities and local governments commonly use ad valorem taxes to generate revenue for public services such as schools, emergency services, and infrastructure. The assessment of property values is usually performed by local assessors, who determine the worth of the property based on various factors including location, size, and condition.

In contrast, other tax types listed are not directly based on property value. Special Sales Tax typically refers to a tax applied to the sale of certain goods, whereas a General Tax is a broader category that does not necessarily correlate with property value specifically. The Mill Levy is a way of expressing the tax rate applied to property values but is not itself a tax type; rather, it is a formula used to calculate the amount of ad valorem tax owed based on property value. Hence, the distinction of ad valorem tax as the correct answer lies in its clear linkage to property value assessment.