ad valorem tax

Related Terms
Charge levied as a percentage of value of the item it is imposed on, and not on the item's quantity, size, weight, or other such factor. Value added tax (VAT) and, generally, import duties are ad valorem taxes.

Use 'ad valorem tax' in a Sentence

I was glad the ad valorem tax did not have anything to do with how big it was because it was huge.
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The ad valorem tax resulted in less tax paid on the high quantity of low cost goods that were shipped.
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The shipper wasn't worried about the weight of the item being sent, but since they were subject to ad valorem tax, he was overly concerned about the item's value.
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