Ad Valorem

Business, Legal & Accounting Glossary

Definition: Ad Valorem

Quick Summary of Ad Valorem

In proportion to the estimated value of the goods or transaction concerned.

What is the dictionary definition of Ad Valorem?

Dictionary Definition

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.

Full Definition of Ad Valorem

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.

Examples of Ad Valorem in a sentence

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Ad Valorem. Payroll & Accounting Heaven Ltd. July 31, 2021
Chicago Manual of Style (CMS):
Ad Valorem. Payroll & Accounting Heaven Ltd. (accessed: July 31, 2021).
American Psychological Association (APA):
Ad Valorem. Retrieved July 31, 2021, from website:

Definition Sources

Definitions for Ad Valorem are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 18 Views.