ad valorem tax

ad valorem tax definition - business

ad valorem tax

A tax that is computed as a percentage of the value of specific property. For example, local governments typically levy an annual tax on real estate. Some states levy an annual tax on the market value of an investor's securities as of a certain date. Also called property tax. See also tax-exempt property.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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