If you own a home, you have paid an ad valorem tax. If you own a car, same thing. In fact, if you've ever bought anything in the United States, you have paid an ad valorem tax. These taxes are based ...

Derived from the Latin term meaning “according to value,” an ad valorem tariff is a tax imposed on goods based on their value rather than their quantity or weight. This type of tariff is commonly used ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has ...

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.