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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With A
  5. Ad Valorem Tax

Ad Valorem Tax

Definition of 'Ad Valorem Tax'

A tax which is proportional to the price of the item being taxed. This type of tax is often preferred since it is based on the value of the item being purchased.

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Related Terms

Tax ClaimAccelerated DepreciationAdvance Corporation TaxDouble Tax AgreementsTax AvoidanceTax ShieldCapital Gains TaxFiscal DragImputation SystemsIncidence of TaxModigliani & Millers (MM) Capital Structure TheoriesTax BreaksUnrelated Business Taxable IncomeACTAverage Tax RateCGTClassical Tax SystemCorporation TaxDTAEBITDA

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