ad valorem tax

ad valorem tax

noun
a tax levied according to the value of the property, merchandise, etc., being taxed.

Origin:
1690–1700

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Encyclopedia Britannica
Encyclopedia

ad valorem tax

any tax imposed on the basis of the monetary value of the taxed item. Literally the term means "according to value." Traditionally, most customs and excises had "specific" rates; the tax base was defined in terms of physical units such as gallons, pounds, or individual items

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Encyclopedia Britannica, 2008. Encyclopedia Britannica Online.
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