Business, Legal & Accounting Glossary
In proportion to the estimated value of the goods or transaction concerned.
Latin: According To Value
Denotes a tax, duty or commission calculated as a percentage of the total invoice value of goods or services. VAT (Value Added Tax) is an Ad Valorem tax.
adj. Latin for “based on value,” which applies to property taxes based on a percentage of the county’s assessment of the property’s value. The assessed value is the standard basis for local real property taxes, although some places “caps” (maximums) on the percentage of the value (as under Proposition 13 in California) or “parcel taxes” which establish a flat rate per parcel.
Ad valorem duties are often levied on the basis of a product’s value.
An ad valorem tax is a tax based on the value of real estate or personal property.
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This glossary post was last updated: 26th April, 2020 | 18 Views.