ad valorem tax


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Ad valorem tax

A type of tax calculated based on percentage of gross or stated value. For example, VAT.

Ad Valorem Tax

A tax calculated as a percentage of the value of an asset. Most property taxes are ad valorem taxes because the property owners owe a given percentage of the market value the property. Value-added taxes are another common example.

ad valorem tax

A tax that is computed as a percentage of the value of specific property. For example, many states levy an annual tax on the market value of an investor's securities as of a certain date. Also called property tax.

ad valorem tax

a TAX which is levied as a percentage of the price or value of a unit of OUTPUT. See VALUE ADDED TAX. Compare SPECIFIC TAX.

ad valorem tax

a TAX that is levied as a percentage of the price of a unit of output. See SPECIFIC TAX, VALUE-ADDED TAX.

ad valorem tax

Literally means “according to the value.”A tax placed upon property and calculated with reference to the value of the property. Ad valorem taxes usually have a super-priority, so that a sale for unpaid taxes will transfer title into the buyer, free and clear of any mortgages or other liens. On the other hand, lienholders are generally given the right to redeem property from tax sales, and regain all rights simply by reimbursing the purchaser for the sale price plus accrued interest.

References in periodicals archive ?
where [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] denotes the monopoly reaction to variations in the ad valorem tax rate and where [micro] = (a + [Alpha])d + [Beta] c.
The ad valorem tax achieves the ex post optimum on average if d = 0 and for sure if c [Phi] = de, or f = b + (de/c).
As in the case of competition, however, this comparison is largely irrelevant because the ad valorem tax is never dominated by both other policies at once.
Using equations (2) and (14) to compare the quota and ad valorem tax reveals that the ad valorem tax achieves higher (lower) expected welfare whenever [Phi] [is less than] ([is greater than]) [[Phi].
Comparing the two tax forms, equations (13) and (14) show that the specific tax achieves higher (lower) expected welfare than the ad valorem tax whenever [Phi] [is less than] ([is greater than]) [[Phi].
The ad valorem tax is never dominated by both other policies at once, and its relative welfare performance improves as uncertainty increases.
Thus, the range of marginal damage slopes for which the quota is the most preferred policy is smaller under monopoly than it is under competition, while the range of marginal damage slopes for which the specific tax is preferred to the ad valorem tax is larger under monopoly.
An equiproportional ad valorem tax between a pair of commodities i and j is optimum if the sum of the price elasticities of both demand and supply equals their product.
Since an ad valorem tax on gross demand prices is often practiced, it is appropriate to calculate the optimum tax ratios so that the excess burden is minimized.
In this paper, we prove that the Ramsey optimum taxation rule under the demand ad valorem tax is exactly the same as that under the supply ad valorem tax proved by Ramsey in 1927.
If a majority of the court were to adopt the central theme of the dissenting opinions, then any debt obligation that could potentially be paid from ad valorem tax revenues would be subject to the same referendum requirement currently applicable only to debt obligations directly pledging the power to levy taxes, an interpretation that would effectively undermine a powerful and effective tool to provide much needed infrastructure in the state.
In other words, the funds are measured by the ad valorem tax revenues attributable to increased taxable values, but they are not required to be appropriated from ad valorem taxes.