Importantly, the court noted that ad valorem taxes
can be assessed on government-owned land.
16) Further, if the bond covenants of a special hospital district legally obligate the district to levy ad valorem taxes to provide the funds necessary to operate the hospital, the referendum requirement applies because the district indirectly obligated itself to exercise its tax powers.
In other words, the funds are measured by the ad valorem tax revenues attributable to increased taxable values, but they are not required to be appropriated from ad valorem taxes.
This requirement makes it clear that the power to compel the levy of ad valorem taxes is not given to the bondholder because the separate legal entity holding the tax-increment funds has no taxing power.
The result that market power strengthens the case for specific taxation contrasts markedly with analyses of specific and ad valorem taxes as revenue instruments under imperfect competition.
See, for example, Pogue and Sgontz  for computations of optimal specific taxes, and Phelps  for ad valorem taxes.
The assumptions that usually underlie these calculations (demand, supply, and marginal damage are known with certainty, markets are constant-cost and competitive) insure that specific and ad valorem taxes yield identical outcomes.
The bill would also limit payment of unpaid ad valorem taxes
to six year pay-outs, beginning at the date of assessment and prohibit any "balloon" payments.
Three-quarters of general fund revenue is derived from ad valorem taxes
In addition, it pledges ad valorem taxes
levied on all taxable property within the village without limitation as to rate or amount.
Further assurance to bondholders is provided by the assessment collection process and a rigorous tax lien process; although the drainage taxes are not ad valorem taxes
, under Florida law non-ad valorem assessments may be collected in the same manner as ad valorem taxes
The bonds and COs are secured by a pledge of ad valorem taxes
levied annually within the limits prescribed by law against all taxable property.