Mill

What is a mill?

A mill is a unit of taxation used in property taxes that equals $1 for every $1,000 of taxable value of the property.

Deeper definition

The term mill also refers to the millage rate. To get the millage rate of a piece of property, tax assessors multiply the assessed value of the property by the millage levy. The millage levy is a combination of various taxes within a county, including the percent calculated for city taxes and taxes for schools.

Examples of the mill rate

When determining what the millage rate is, you must take into account the many different entities and agencies that levy a tax on properties within a county. Primarily, this includes county and school district taxes, as well as city taxes for those who live within the corporate limits of a nearby city.

The millage rate is determined by the various boards of the county, school and city. They determine how much money they need to run their governmental units.

For example, the county might impose a 10 mill rate, while the city requires residents to pay a 5 mill rate. Added together, residents would pay $1,500 on every $100,000 of the value of their property.

Many times, the mill rate goes up or down depending on the economy and the overall value of the properties in the region. That is where the assessed property value comes in. This amount goes up or down, depending on the overall condition of the property, property values in the area and if you make any improvements to the property.

 

Other Taxes Terms

Individual Taxpayer Identification Number (ITIN)

The Individual Taxpayer Identification Number (ITIN) is a tax term you should know.

Standard mileage rate

Standard mileage rate is an IRS term every taxpayer should know. Bankrate explains it.

Adjustments to income

Adjustments to income can reduce the amount of tax owe. Bankrate explains.

Adoption taxpayer identification number (ATIN)

What is an adoption taxpayer identification number? An adoption taxpayer identification number (ATIN) is temporarily given to children who are in the process of being adopted when the adopting family doesn’t have or doesn’t know the child’s Social Security number. When the adopting parents file their tax returns and list an adopted child as a […]

More From Bankrate