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 ?
820 (1998), in support of its holding that a lessee can hold a property interest sufficient to subject it to ad valorem tax liability.
(10) Now consider the welfare implications of switching from a unit tax with a tax rate [tau] to an ad valorem tax that maintains the same level of revenue.
Suits and Musgrave [1953] demonstrated that an ad valorem tax is superior to a unit tax in terms of a larger tax yield or a smaller effect on the unregulated monopolist's price and output.
Clearly, had we started with a smaller stock of the exhaustible resource and/or a larger stock of C[O.sub.2] in the atmosphere, then, from the above results the ad valorem tax and possibly even the specific tax would be falling throughout the time path.
The court held that, because Escambia County's proposed bonds might be payable from ad valorem tax revenues, the bonds were "payable from ad valorem taxation" and, thus, triggered the constitutional referendum requirement.
The tax increment financing concept may be summarized as follows: (1) the TIF district undertakes the project; (2) the project increases the assessed value of the taxable real property within the TIF district; (3) the increase in the taxable real property value results in an increase in the amount of ad valorem taxes collected within the TIF district; and (4) a portion of this increase in ad valorem taxes, or "tax increment," is pledged to finance the project.
Koenig [21] compares administered prices, a quota system, and a tax system in which both a specific and an ad valorem tax are applied to the externality-generating good.
Property Tax Valuation Services As many accountants know, an ad valorem tax is levied on the value of owned (and sometimes leased) property.
Under the bill, distilled spirits such as brandy, gin, and rum will be slapped a 22-percent ad valorem tax and a P30 specific tax per proof liter starting this year, which will increase by P5 annually until it reaches P45 in 2022.
Under SB 2197, an ad valorem tax equivalent to 25 percent of the net retail price per proof liter and a specific tax of P40 per proof liter will be imposed on distilled spirits starting this year.
To construct a secure 4.14-acre storage yard to expand existing storage area and installation of perimeter fencing with gates.The program for public ports is funded by the ad valorem tax paid by industries on the value of the barges utilizing Arkansas navigable waterways, the commission states.
Currently, there is House Bill 3365 pending in the House of Representatives which aims to impose an ad valorem tax on soft drinks, currently subjected only to 12 percent value added tax (VAT).