Ad Valorem Tax

Meaning of Ad Valorem Tax in the United States Tax System

U.S. and other Developed Countries International Tax Meaning

It is a tax on goods or property imposesd in some countries, like the United States, and expressed as a percentage of the sales price or assessed value of the item.

See Ad Valorem Tax and Ad Valorem Tax.

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What does Ad valorem tax mean in American Law?

The definition of Ad valorem tax in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

A tax on the value of something, ordinarily expressed as a percentage to be applied to that value, e.g., a tax of “8% on the value of steel shipped into the U.S.” The ad valorem tax may be contrasted with a “specific tax,” e.g., “$25 per ton of steel.” Customs duties are very commonly ad valorum taxes, but sales taxes and most property taxes are too, e.g., “the new property tax rate is 15 mills for each $1000 of assessed value.” The obvious problem with the administration of an ad valorem tax is that the property involved has to be valued, and that opens the way to error, corruption, and arbitrariness. (Other types of taxes, of course, have their own problems.)

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Ad Valorem Tax

Meaning of Ad Valorem Tax

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