ad valorem

[New Latin ad valōrem : Latin ad, to, according to + Late Latin valōrem, accusative of valor, 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.

According to value. See Ad Valorem Tax.

According to value.

The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. Real property taxes that are imposed by the states, counties, and cities are the most common type of ad valorem taxes. Ad valorem taxes can, however, be imposed upon personal property. For example, a motor vehicle tax may be imposed upon personal property such as an automobile.

An article of commerce may be subjected to an ad valorem tax in proportion to its value, which is determined by assessment or appraisal.

Duties, taxes on goods imported or brought into this country from a foreign country, are either ad valorem or specific. An ad valorem duty is one in the form of a percentage on the value of the property, unlike a specific duty that is a fixed sum imposed on each article of a class, such as all Swiss wristwatches, regardless of their individual values.

See: taxation.