Ad Valorem
The term Ad Valorem is Latin for "according to value". When associating the term Ad Valorem with timeshares, it refers to tax placed on the real estate or personal property. This comes in the form of property tax, which is how the state or government receive revenue from the timeshare industry. Unlike transaction tax, or sales tax, Ad Valorem is an ongoing tax while the timeshare ownership is in the owners' name.
Ad Valorem is based on the assessment of the value of a timeshare ownership, and is commonly found on most timeshares in the United States of America. The amount will vary from timeshare development to timeshare development, however remember that the amount will be divided equally between all timeshare owners, and these Ad Valorem taxes are usually found as part of the annual maintenance fees.
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