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Ad valorem tax for car registration refers to a tax based on the value of your vehicle. This means that the tax amount varies according to the current market value of your car, which decreases as the vehicle ages. When you register your car, understanding the ad valorem for chg-1 is crucial, as it affects your annual registration fees. Using platforms like US Legal Forms can help you navigate the complexities of this tax, ensuring you have all the necessary documents for a smooth registration process.