The determination of property tax liability often relies on a rate expressed in mills. A mill represents one-tenth of one cent, or one-thousandth of a dollar. Therefore, a rate of one mill equates to $1 of tax for every $1,000 of assessed property value. As an illustration, if a property has an assessed value of $100,000 and the applicable rate is 10 mills, the property tax due would be $1,000 (10 mills x $100,000 / $1,000). This process converts the rate into a dollar amount to be levied against a property.
Understanding the establishment of property taxes allows for transparency in local government finance. These taxes typically fund essential public services, including education, infrastructure maintenance, and public safety. Historically, this method of taxation has provided a stable revenue stream for municipalities and counties, enabling them to provide services demanded by residents. It’s a fundamental aspect of local governance, connecting property ownership with the support of community resources.
