Economic Definition of ad valorem tax. Defined.
Offline Version: PDF
Term ad valorem tax Definition: A tax that is specified as a percentage of value. Sales, income, and property taxes are three of the more popular ad valorem taxes devised by government. The total ad valorem tax paid increases with the value of what's being taxed.
« ad valorem tariff | AD-AS analysis »
Permalink: https://glossary.econguru.com/economic-term/ad+valorem+tax