ad valorem tax
1
7.7
- noun
- /æd vəˈloʊrəm tæks/
- Formal
:
impuesto ad valorem
- The company had to pay an ad valorem tax based on the increased value of their new machinery.
Examples
-
Do you know what an ad valorem tax is?
Blog text (27) -
This means a lot of these lots will wind up going back to the city, and we will lose the ad valorem taxes.
Blog text (2) -
BTW, private property absolutely owned is constitutionally protected, whereas estate ownership is not and is subject to ad valorem taxes.
Blog text (9) -
Ms. Ceccotti also dissented from a proposal to adjust the priority of ad valorem taxes.
Academic text (2017) -
It's fundamentally unfair because two homeowners with homes of equal value right next door to one another can pay wildly disparate rates of ad valorem tax.
Blog text (8) -
Many local governments utilize an ad valorem tax to finance public services from the value added to properties.
-
An ad valorem tax is often applied to luxury goods in order to reflect their higher market value.
Synonyms
20
5.0
A tax added to the price of goods and services
6
4.0
A tax added to the price of goods and services each time a business makes or sells them
1
5.5
A tax added to the price of goods and services that you pay when you buy them
A tax added to the price of goods and services that businesses charge customers
Surface Forms
Morphology
ad + valorem + tax
The phrase literally composes Latin elements 'ad valorem' (meaning 'according to value') with 'tax', so the overall sense 'a tax based on value' is directly derivable from the parts. However, 'ad valorem' is a Latin technical term rather than ordinary English vocabulary, so an average B1 learner is unlikely to recognize those constituents without prior exposure; the term is therefore only partially transparent.
Etymology
Ad valorem tax comes from the Latin words ad and valorem, which mean 'according to value'. Think of a price tag where the tax grows as the price goes up, so this tax is 'based on the value' of the item.