An ad-valorem tax (Latin: by value) is a tax based on the value of real estate or personal property. An ad-valorem tax is typically imposed at the time of a transaction (a sales tax or value-added tax (VAT)), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax or tariffs). A related concept is the fixed-rate tax, in which the tax base is the quantity of something, regardless of its price. For example, in the United Kingdom, a tax on the sale of alcoholic drinks is calculated on the quantity of alcohol in the drink, rather than its price. Latin is an ancient Indo-European language originally spoken in Latium, the region immediately surrounding Rome. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation A tax is a financial charge or other levy imposed on... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... Personal property is a type of property. ... A sales tax is a consumption tax charged at the point of purchase for certain goods and services. ... Value added tax (VAT) is a sales tax levied on the sale of goods and services. ... Property tax, millage tax is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. ... The examples and perspective in this article or section may not represent a worldwide view. ... A tariff is a tax on foreign goods. ...
Ad-valorem duties are important to those importing goods into the United States of America because the amount of duty owed is often based on the value of the imported commodity. Ad-valorem taxes (mainly real property tax and sales taxes) are a major source of revenues for state and municipal governments, especially in jurisdictions that do not employ a personal income tax. This article needs to be cleaned up to conform to a higher standard of quality. ...
"Ad-valorem" is used frequently to refer to property values by county tax assessors. In many states, the central appraisal district sends certified values to the county tax assessor, who determines the final tax rate to be imposed on the property. Other states use a state tax commission, which notifies the appropriate taxing authorities of the assessed value of property within their billing jurisdiction.
Ad valorem tax relates to a tax with a rate given as a proportion of the price. An example would be the state of Tennessee having a 6% sales tax on the purchase of food. Virtually all state and local taxes on restaurant meals and clothing are ad valorem.
Feeds |
Contact