Question

Can someone please explain ad velorem tax?

Answer 1

First you can type into Google the term "ad valorem" and you will be led to Wikipedia with an answer. I have copied their answer here for you. An ad valorem tax (Latin for according to value) is a tax based on the value of real estate or personal property. It is more common than a specific duty, a tax based on the quantity of an item, such as cents per kilogram, regardless of price.

An ad valorem tax is typically imposed at the time of a transaction (a sales tax or value-added tax [VAT]), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax, surrendering citizenship,[1] or tariffs). In some countries stamp duty is imposed as an ad valorem tax.