Taxes that are assigned as percentages of total sales value are known as ________.

Question

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Ad valorem taxes are assigned as a percentage of the total sales value of a product or service. This means that the tax paid increases with the price or value of the item being taxed. Unit taxes are a fixed amount per unit of the product, excise taxes are applied to specific goods (such as alcohol or tobacco), and lump-sum taxes are a set amount of money to be paid regardless of income or sales.

Taxes That Are Assigned as Percentages of Total Sales Value