ad valorem tax


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ad valorem tax

[¦ad və¦lȯr·əm ′taks]
(petroleum engineering)
Property tax for oil-producing properties, assessed at a flat rate for each net barrel of oil produced.
References in periodicals archive ?
15) Similarly, the referendum requirement applies where a contractual nonsubstitution clause deprives a government of budgetary flexibility and would inevitably force it to spend ad valorem tax dollars under the contract.
If a majority of the court were to adopt the central theme of the dissenting opinions, then any debt obligation that could potentially be paid from ad valorem tax revenues would be subject to the same referendum requirement currently applicable only to debt obligations directly pledging the power to levy taxes, an interpretation that would effectively undermine a powerful and effective tool to provide much needed infrastructure in the state.
In other words, the funds are measured by the ad valorem tax revenues attributable to increased taxable values, but they are not required to be appropriated from ad valorem taxes.
Consequently, an ad valorem tax system becomes more attractive relative to a specific tax system as the marginal damage function becomes steeper.
First, it is only for the ad valorem tax that the optimal policy design under uncertainty differs from the design that is optimal when the expected demand curve holds with certainty.
An unexpected supply increase, for example, causes a reduction in the per-unit size of the ad valorem tax, which runs counter to the desired outcome when marginal damage is nondecreasing.
Proposition 1: The imposition of either a unit tax or an ad valorem tax will, in general, reduce the use of capital and level of output.
Suits and Musgrave [1953] demonstrated that an ad valorem tax is superior to a unit tax in terms of a larger tax yield or a smaller effect on the unregulated monopolist's price and output.
Since many taxes are levied in terms of the demand ad valorem taxes, we shall limit our analysis to the optimum ad valorem tax ratio of equation (15).
With a set of well-behaved linear demand and supply functions, the optimum ad valorem tax rate of commodity i is lower than that of commodity j if (i) the price elasticity of demand for commodity i (absolute value) exceeds that for commodity j and (ii) the price elasticity of supply for commodity i exceeds that for commodity j.
Proposition 1 was a city council initiative and targets only ad valorem tax revenue and water and sewer system rates.
Principal payout for the district's ad valorem tax supported bonds is well below average.