What does ad valorem tax mean?

ad valorem tax meaning in Law Dictionary

n extra charge placed on something this is certainly a share of the worth.

ad valorem tax meaning in Business Dictionary

Charge levied as a percentage of worth of the item it is imposed on, rather than in the product's volume, dimensions, fat, or other such aspect. Value added income tax (VAT) and, usually, import duties tend to be ad valorem taxes.

ad valorem tax meaning in General Dictionary

a tax levied from the distinction between a commodity's price before fees and its own cost of production

Sentence Examples with the word ad valorem tax

The state revenue is derived from a general property tax, a poll tax, an income tax, a tax on transfers of realty, an ad valorem tax on the average capital invested by merchants in their business, a privilege tax on merchants and many other occupations and businesses; a tax on litigation, levied on the unsuccessful party, a collateral inheritance tax, and fines and forfeitures.

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