What does the term "mill" express in taxation?

What does the term "mill" express in taxation?

• A. An expression of a tax rate in 1/1000ths of a dollar
• B. The percentage rate of property taxes based on assessed value
• C. A flat fee applied to all property owners
• D. The state income tax based on property value

Answer: (A)

The term "mill" refers to a method of expressing the tax rate as a fraction of a dollar, specifically in 1/1000ths. This means that one mill represents a tax of one-tenth of a cent for each dollar of assessed property value. For example, a millage rate of 10 mills would result in a tax of $10 for every $1,000 of property value. This terminology is commonly used in property taxation to simplify the calculation of taxes owed based on the assessed value of real estate. Understanding this concept is crucial for interpreting tax assessments and financial responsibilities related to property ownership, as it directly relates to how much tax will need to be paid based on property value.

The term "mill" refers to a method of expressing the tax rate as a fraction of a dollar, specifically in 1/1000ths. This means that one mill represents a tax of one-tenth of a cent for each dollar of assessed property value. For example, a millage rate of 10 mills would result in a tax of $10 for every $1,000 of property value. This terminology is commonly used in property taxation to simplify the calculation of taxes owed based on the assessed value of real estate.

Understanding this concept is crucial for interpreting tax assessments and financial responsibilities related to property ownership, as it directly relates to how much tax will need to be paid based on property value.