property tax millage rate

What Does Property Tax Millage Rate Mean?

A millage rate is the tax rate used to calculate local property taxes. The millage rates represent how much $1,000 of a property’s assessed value will be taxed annually for each taxing entity with jurisdiction over it, where 1% equals .001 or 10 mills. Assigned millages are applied to the total taxable value of properties to arrive at their annual tax amount depending on which government agency controls them and the land use type.

Homeowners have to keep track of the millages at all levels because they work together when calculating what a homeowner owes. For example, school boards use their own rates based on property values within that area, which is why it can be tricky for people who live in different places: some areas are more expensive than others and rate higher taxes.

Different agencies may each charge their own millage rates depending on how much revenue those departments need; schools typically set theirs according to the total value of homes inside district boundaries derived from neighborhood statistics– this is one reason homeowners want clear data about every agency before deciding where to buy or invest so there are no surprises later.

Property taxes depend on the value of your property, both how much it is worth and where it’s located. The rates will vary depending on which local government sets them (i.e., city, county). Your deed might tell you what millage rate classification applies to your property.


How are Property Tax Millage Rates Determined?

The millage on property taxes is proportional to the level of services one’s property receives from their town. Each service has a certain amount that they charge for its availability. Depending on where you live in relation to public transportation, for instance, might mean more or less tax assessed through a mill rate dedicated to a regional transportation district.

Calculating Property Tax Millage Rates

Your property’s annual taxes are calculated using the tax assessed value and total assigned millage rate. A home’s taxable assessment is a percentage of its market value; this can be as little as 10% or less in some cities. Millages vary by municipality, too: Some charge 100% mills for every $1,000 worth of your house, while others might only charge you 50%. Understanding how these factors affect your property will help you make informed decisions regarding property tax liability.

Consider a warehouse with a market value of $2,000,000 in an area where the tax-assessed value equals 50% of the market value. As a result, the homeowner property tax has a basis of $1,000,000. If the total millage rate is 50 mills (50/1000), for every $1,000 assessed value, $50 in property taxes is due. Therefore, the homeowner owes $50,000 in property taxes: ($1,000,000 x 5%).

Where Do We See Millage Rates Problems

A potential source of error on your property taxes is the assessment of the use of wrong property tax millage rate by the taxing authority. Different types pf personal and real property have different millage rates – and a warehouse may have a different rate from a homestead residence. A forklift may have a different millage rate than computer software. Errors in millage rate assignment can cost an unwitting taxpayer hundreds or thousands of dollars in additional taxes. 

You should review your local rate structure, your property tax bill, and the assignment of the rate to each piece of property. You can often file for reconsideration, appeal, correction and often a refund for open tax periods. If you need assistance, please contact us.

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