Is property exempt from ad valorem taxation if it is used for producing asphalt sold to a government entity?

The property used for producing asphalt that is sold to a government entity is generally subject to ad valorem taxation. The rationale behind this is that ad valorem taxes are typically assessed based on the value of property, and the use of property for producing materials sold to a government does not automatically exempt it from taxation.

In many jurisdictions, exemptions from ad valorem taxation are specific and limited to certain categories, usually such as properties owned by government entities, certain nonprofit organizations, or properties used for specific public purposes. Here, the act of selling asphalt to the government does not transform the property into one that qualifies for exemption since the production process is a commercial activity intended for profit.

This understanding aligns with the broader principle of taxation where commercial use of property, regardless of the customer—government or otherwise—does not blanketly afford an exemption from taxes that would normally apply.