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What is Ad Valorem Tax?

Ad valorem tax is based on the value of the item being taxed. In most cases, property taxes and personal property such as vehicles, boats, etc., fall into this category. It is based on the value of real estate or personal property. Typically, it is imposed at the time of a transaction, but may be imposed on an annual basis as with real estate or with a specific event such as an inheritance tax or a tariff.

Is a person responsible for Ad Valorem tax in the state where their boat is located?

Case Details: The boat is on a lake in a different  state from the resident state. It was not properly assessed.

While laws vary from state to state in most cases the law states that Ad Valorem tax is due on property registered, used and stored in that state. Therefore, the boat would be eligible for taxation. If it has not been properly assessed then you would need to write a letter appealing the assessment to the assessor in the county the boat is located.

Can the Ad Valorem tax for vehicle tag renewal be deducted while filing the annual tax returns? 

In most cases these taxes are deductible. Check the Ad Valorem tax law on Schedule A line 7 of the Internal Revenue Service tax codes.

Is it legal for a landlord to add a share of the Ad Valorem tax on to the rent?

This practice is typically uncommon, as it is generally included in, not added to, the cost of the rent. However, it is not illegal as long as it is written in your lease or rental agreement and you have agreed to it.

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