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.

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Importantly, the court noted that ad valorem taxes can be assessed on government-owned land.
Government-owned land leased to private parties may be assessed for ad valorem taxes
16) Further, if the bond covenants of a special hospital district legally obligate the district to levy ad valorem taxes to provide the funds necessary to operate the hospital, the referendum requirement applies because the district indirectly obligated itself to exercise its tax powers.
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.
This requirement makes it clear that the power to compel the levy of ad valorem taxes is not given to the bondholder because the separate legal entity holding the tax-increment funds has no taxing power.
Miami Beach: receded, revised, and reaffirmed
The result that market power strengthens the case for specific taxation contrasts markedly with analyses of specific and ad valorem taxes as revenue instruments under imperfect competition.
See, for example, Pogue and Sgontz [28] for computations of optimal specific taxes, and Phelps [27] for ad valorem taxes.
The assumptions that usually underlie these calculations (demand, supply, and marginal damage are known with certainty, markets are constant-cost and competitive) insure that specific and ad valorem taxes yield identical outcomes.
Comparing specific and ad valorem Pigouvian taxes and output quotas
The bill would also limit payment of unpaid ad valorem taxes to six year pay-outs, beginning at the date of assessment and prohibit any "balloon" payments.
Bankruptcy bill passes in House; cities receive higher priority in recovery of ad valorem taxes

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