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Ad Valorem tax is generally used to refer to which type of tax?

Income Tax

Ad Valorem tax is generally used to refer to income tax because it is based on the value of income earned by an individual or business. Sales tax, on the other hand, is based on the price of goods and services purchased. Property tax is based on the value of real estate owned. Import tax, also known as customs duty, is a tax on goods imported into a country. It is not based on the value of income and therefore is not considered an ad valorem tax.

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Sales Tax

Property Tax

Import Tax

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