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Ad Valorem

An ad valorem tax (Latin for "according to value") is a tax based on the value of real estate or personal property. It is more common than a specific duty, a tax based on the quantity of an item, such as cents per kilogram, regardless of price.

An ad valorem tax is typically imposed at the time of a transaction(s) (a sales tax or value-added tax (VAT), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax, surrendering citizenship, or tariffs). In some countries stamp duty is imposed as an ad valorem tax.

From Wikipedia under the GNU Free Documentation License
Mon Apr 23 11:53:18 2012

Adjective

ad valorem (not comparable)

  1. Measured by or in proportion to value.
Derived terms

From Wiktionary under the GNU Free Documentation License
Mon Apr 23 11:53:21 2012



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