Ad valorem tax

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An ad valorem tax is a tax imposed on the value of assets like personal property and real estate. This form of taxation is one of the major forms of government revenue. They can also be levied as duty on imported items.

Literally, Ad valorem means “according to value” in Latin. [1]. The ad valorem tax, which is levied on ownership of assets, is differs from most other taxes as it is not imposed based on transactions but on ownership. The sales tax and the value added tax are transactional taxes while property tax is an ad valorem tax.

Contents

Property tax

Property tax is calculated by the public tax assessor on a periodic basis after assessing the value of the property and the improvements made on it. The form of taxation varied between countries and jurisdictions. The ad valorem tax is computed and levied on an annual basis.

Common Misspellings

  • Ad Volorem, Ad Volorem Tax
  • Ad Volerem, Ad Volerem Tax
  • Ad Valoreum, Ad Valoreum Tax
  • Ad Voloreum, Ad Voloreum Tax

See also

Further reading

References

  1. ↑ http://www.answers.com/topic/ad-valorem-tax
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