Ad Valorem Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Ad Valorem, written in plain English, along with examples of how it is used.

What is Ad Valorem?

adj. latin phrase for “according to the value.” It is used in reference to certain duties, called ad valorem duties, which are levied on commodities at certain rates per centum on their value. Ad-valorem taxes can be property tax, duties on imported items. Typically these are imposed at the time of a transaction or sometimes in connection with a significant event (eg. inheritance tax).