Ad valorem tax

From Wikinvestor

An ad valorem tax (Latin for according to value) is a tax based on the value of real estate or personal property. 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).