valuation based on the monetary worth of an asset, from the Latin phrase ad valorem meaning "to the value." It is a widely accepted basis for such tax assessments (ad valorem taxes) as sales taxes, property taxes, and import tariffs.
Latin for "according to value." An ad valorem tax is assessed on the value of goods or property (e.g., real estate and motor vehicles), not on the quantity, weight, extent, etc. An ad valorem real estate tax may be a deduction from Adjusted Gross Income (AGI) for an individual.Example: If the ad valorem tax rate is 1%, the tax would be $1 per $100 of assessed value.
Latin term meaning "according to value" and referring to a way of assessing duties or taxes on goods or property. As one example, ad valorem duty assessment is based on the value of the imported item rather than on its weight or quantity. As another example, the city of Englewood, New Jersey, levies an ad valorem property tax based on the assessed value of property rather than its size.
property taxes assessed according to the value of that property.
according to value.
