ad valorem Hear it!

ad valorem definition - finance
A Latin term that means “according to the value.” It frequently is used to refer to a way of assessing taxes on property or duties on goods in which a percentage of the value of the item is paid as the tax or duty.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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