ad valorem

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Ad Valorem

According to value.

The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. Real property taxes that are imposed by the states, counties, and cities are the most common type of ad valorem taxes. ad valorem taxes can, however, be imposed upon Personal Property. For example, a motor vehicle tax may be imposed upon personal property such as an automobile.

An article of commerce may be subjected to an ad valorem tax in proportion to its value, which is determined by assessment or appraisal.

Duties, taxes on goods imported or brought into this country from a foreign country, are either ad valorem or specific. An ad valorem duty is one in the form of a percentage on the value of the property, unlike a specific duty that is a fixed sum imposed on each article of a class, such as all Swiss wristwatches, regardless of their individual values.

Cross-references

Taxation.

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 place "caps" (maximums) on the percentage of value (as under Proposition 13 in California) or "parcel taxes" which establish a flat rate per parcel.

ad valorem

adjective according to value, appraised, appraisement, assessable, assessment, charge, chargeable, charged, dutiable, duty, evaluated, excisable, imposition, leviable, levy, ratable, taxation, valorization, value added tax, valued at
Associated concepts: ad valorem tax

ad valorem

‘according to the value’, often used in the context of taxes and duties.

AD VALOREM. According to the value. This Latin term is used in commerce in reference to certain duties, called ad valorem duties, which are levied on commodities at certain rates per centum on their value. See Duties; Imposts; Act of Cong. of March 2, 1799, s. 61 of March 1, 1823 s. 5.

References in periodicals archive ?
One disadvantage of the ad valorem tax policy is that computing the optimal tax rate in equation (4) requires more information than computing the specific tax or quota; to set these latter policies optimally, one needs to know only the value of expected demand.
Shaw will be responsible for the administrative management of Coastal's ad valorem tax department in Houston, which handles the property taxes that the company pays on real and personal assets such as refineries, pipelines and retail outlets.
Given a set of linear demand and supply functions an ad valorem tax v based on the gross demand price [P.
The 'BBB' rating is based upon the unlimited ad valorem tax pledged to repay the bonds, the substantial tax base presently within the district, reserve funds in place to make up shortfalls in property tax revenues or developer contributions, and oversight by the City of Peoria.
The 'BBB' rating on the county's limited ad valorem tax bonds is based on the desirability of the oceanfront location, the short duration of the bonds, and the additional taxing capacity that exists under the maximum tax rate allowed by county ordinance.
The bonds are general obligations of the city, secured and payable from a limited ad valorem tax levied on taxable property within the city.
The bonds are ultimately secured by an unlimited ad valorem tax pledge of all taxable property within the district, encompassing most of Montgomery and Prince George's Counties, Maryland.
The bonds are direct obligations of the district, payable from a limited ad valorem tax levied against all taxable property in the district.
The bonds constitute direct obligations of the county payable from a continuing direct annual ad valorem tax limited to $0.
Fiscal 2006 is the first year of implementation of Proposition 1, which limits ad valorem tax revenue in a given year to the lesser of actual revenues from the preceding fiscal year plus 4.
For instance, 10 years after the constitutional revision, the court recognized there was no prohibition against a local government using ad valorem tax revenues when it was required to compute and set aside a prescribed amount, when available, for a discrete purpose.
The Michigan Association of Counties and other members of the coalition will continue to strive for the ad valorem tax in the Senate.