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Ad Valorem Tax Example. Ad valorem taxes are generally levied on both real property and personal property. An example of an improvement is a garage added to a single-family home or a road built on a parcel of land.

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Ad valorem taxes are paid annually. Ad valorem taxes are calculated as a percentage of the assessed value of the property being taxed. Ad Valorem tax simply means a tax charged by state and municipal governments that depends on the assessed value of the asset such as real assets or personal property.

Examples VAT, sales tax, stamp duty, consumption taxes.

Lands adjacent to these facilities, commonly referred to as auxiliary mining lands, are subject to assessment of Ad Valorem Tax administered by the county.

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The tax is usually expressed as a percentage. An ad valorem tax is a tax levied on property according to its value. An ad valorem tax (Latin for "according to value") is a tax based on the value of a transaction or of property, which may be real estate or personal property.

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