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ad valorem tax

An ad valorem tax is a tax that is calculated as a percentage of the value of something—such as tangible (physical) personal property (goods in a warehouse, office furniture, computer and telephone systems, inventory, etc.).

For example, county tax assessors often place a value on a business's tangible personal property and assess an ad valorem tax on the property.

In Minnesota, ad valorem taxes are primarily applied to real property, which includes land and buildings, rather than tangible personal property. Minnesota does not generally impose a state-wide ad valorem tax on tangible personal property for businesses, such as goods in a warehouse, office furniture, computer and telephone systems, or inventory. Instead, the state relies on other forms of taxation for revenue, such as income tax, sales tax, and specific business taxes. However, local jurisdictions may have specific rules and exceptions, so it's important for businesses to check with their local county assessor's office for any applicable local property taxes or fees that could be considered similar to ad valorem taxes on personal property. It's also worth noting that certain types of personal property, such as motor vehicles, are subject to a form of ad valorem tax when they are registered.

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Demystifying Ad Valorem Tax: What You Need to Know

In the confusing world of taxation, one term often whispered with both curiosity and confusion is "ad valorem tax." It's not your everyday tax, and understanding it is essential in today's financial landscape.

Taxes

ad valorem tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Minnesota State Code

Taxes

ad valorem tax

Minnesota State Code

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