How Do You Spell VALOREM?

Pronunciation: [vˈalɒɹəm] (IPA)

"Valorem" is a term used in finance and law to refer to taxes or other charges calculated as a percentage of the value of property or goods. The word is spelled "vuh-LORE-um" (vəˈlɔːrəm) in IPA phonetic transcription, with the primary stress on the second syllable. The "v" is pronounced as a voiced labiodental fricative, the "a" as a short "uh" sound, and the "o" as a long "oh" sound. The final "um" is pronounced as a schwa sound followed by an "m" sound.

VALOREM Meaning and Definition

1. Valorem, derived from the Latin term "ad valōrem," meaning "according to value," is an adjective that pertains to or describes an assessment or taxation system based on the value of a specific item or property. This term is commonly used in the context of customs duties and taxes levied on goods imported into a country.

   In a customs or tax context, a valorem tax is usually expressed as a percentage of the total value of the goods being imported. It is often used as an alternative to specific taxes, which are levied based on a fixed quantity or unit of the goods, regardless of their actual value. A valorem tax aims to create a fair and proportionate taxation system, as it taxes higher-priced goods at a higher rate compared to less expensive items.

   The use of valorem taxes in international trade allows governments to generate revenue while protecting domestic industries from underpriced imports. By assessing duties on a percentage basis, the tax can adapt to fluctuations in market values, providing a flexible approach to taxation.

   Furthermore, valorem is employed in various economic analyses and discussions where taxes or fees are based on the value of a specific asset, such as real estate or investments. In these scenarios, the valorem concept helps in understanding how changes in market values can influence the overall taxation or assessment calculations.

2. According to the value; in finance, a term used to denote the market value of commodities imported, and liable to a customs rate according to such ascertained value.

   Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.

Etymology of VALOREM

The etymology of the word valorem comes from Latin. It is a combination of the adjective vale meaning worth or value, and the noun orem, which is an ablative form of or meaning by means of or through. Thus, valorem can be translated as by means of value or through worth.