Ad valorem

A Latin term meaning "according to [the] value [of something]".  The term is used in taxation to designate taxes levied against property, real or personal, at a certain rate based upon the property's value. 

An ad valorem tax is levied according to the value of the property as determined by an assessment or appraisal.  Assessment on a regular basis is a common characteristic of an ad valorem tax.

 

 

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