Legal Definitions - ad valentiam

Ad valentiam is a Latin phrase meaning "to the value" or "according to the value." It describes a calculation or action that is determined by, or proportional to, the monetary worth of something. This term is often encountered in legal and financial contexts, particularly when assessing taxes, duties, or damages.

Here are some examples to illustrate this concept:

• Customs Duties: Imagine a country that imposes an "ad valentiam" duty on imported luxury goods. If a shipment of designer handbags is valued at $50,000, and the ad valentiam duty rate is 15%, the importer would pay $7,500 in duties. If another shipment of identical handbags is valued at $100,000, the duty would be $15,000.

  This illustrates "ad valentiam" because the amount of duty paid is directly proportional "to the value" of the imported goods, rather than a fixed amount per item.

• Property Taxes: Many local governments levy property taxes "ad valentiam." This means the annual tax bill for a homeowner is calculated as a percentage of their property's assessed market value. A house assessed at $400,000 will incur a higher tax liability than a house assessed at $200,000, assuming the same tax rate.

  Here, the tax burden is determined "to the value" of the property, reflecting its worth in the market.

• Insurance Payouts: Consider an art collector whose rare sculpture, insured "ad valentiam," is stolen. The insurance policy specifies that the payout will be based on the appraised market value of the sculpture at the time of the theft. If the sculpture was independently appraised at $250,000, the insurance company would compensate the collector up to that amount.

  This demonstrates "ad valentiam" because the compensation provided by the insurance company is directly linked "to the value" of the lost item.