Mill Levy
Candlefocus EditorThe mill levy is calculated by taking the total taxable value divided by 1000. The taxable value of a property is determined by the local government and other authorities based on each property’s market value. For instance, if the property value is assessed at $250,000 and the mill levy rate is 24 mills, then the property owner’s property taxes will be $6,000 ($250,000 taxable value / 1000 x 24 mills = $6,000).
The mill levy is an invaluable source of revenue for local governments and other entities since it provides a stable source of income while other revenue sources, such as sales taxes, may fluctuate from year to year. Property tax dollars are used to support educational expenditures, pay for local government services, and fund infrastructure improvements.
In some instances, it is possible for a property owner to reduce their mill levy by lobbying for a lower rate or protesting their property’s assessed value. Property owners may also qualify for property tax exemptions or credits, depending on the jurisdiction.
The mill levy is an important part of local government revenue and is integral in financing vital public services. It is important for property owners to understand their mill levy rate and the assessed value used in calculating their property tax bill so they can make an informed decision when voting on elections.