Investor Glossary-ad valorem taxInvestor Glossary-ad valorem taxInvestor Glossary-ad valorem taxInvestor Glossary-ad valorem taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Ad Valorem Tax

The HTML to link to this page
 

An ad valorem tax is a tax based on a calculated percentage of the value of property or goods. The "ad valorem" in ad valorem tax is a Latin term meaning "according to value." Many local governments derive a majority of their revenue from various ad valorem taxes. Legislatures set the size of the ad valorem tax rate and tax assessors determine the value of property that will be subject to such an ad valorem tax. Property taxes assessed on real estate properties are a type of ad valorem tax. An ad valorem tax can also be imposed on imported goods (i.e. import tariffs) or certain transferred property (i.e. inheritance tax). The ad valorem tax may be imposed at the time of purchase or on a periodic basis (i.e. annual basis). If imposed at the time of purchase, an ad valorem tax can be considered the equivalent of a sales tax or a value added tax (i.e. VAT).



Rate this ad valorem tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use