1. What is Mil Rate?

Mil rate (millage rate) is a property tax rate expressed in "mils" per dollar of assessed property value. One mil equals one-tenth of a cent ($0.001) or $1 per $1,000 of assessed value. It's used to calculate property taxes based on municipal budgets.

2. How Does the Calculator Work?

The calculator uses the mil rate formula:

Where:

• \( \text{Budget} \) — Total municipal budget requiring funding through property taxes
• \( \text{Assessed Value} \) — Total assessed value of all taxable property in the municipality
• \( 1000 \) — Conversion factor to express the rate in mils

Explanation: The formula calculates how much tax rate is needed per $1,000 of assessed property value to generate the required budget revenue.

3. Importance of Mil Rate Calculation

Details: Accurate mil rate calculation is essential for municipal budgeting, ensuring adequate funding for public services while maintaining fair and equitable property taxation across all property owners.

4. Using the Calculator

Tips: Enter the total municipal budget and total assessed property value in the same currency units. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between mil rate and tax rate percentage?
A: Mil rate is expressed per $1,000 of assessed value, while tax rate percentage is expressed as a percentage of property value. 10 mils = 1% tax rate.

Q2: How often do mil rates change?
A: Mil rates typically change annually as municipalities adjust budgets and property assessments are updated.

Q3: What factors affect the mil rate?
A: Municipal budget requirements, total assessed property values, and state tax limitations all influence the final mil rate.

Q4: How does mil rate affect individual property taxes?
A: Individual property tax = (Assessed Value of Property / 1000) × Mil Rate

Q5: Are there limits on how high mil rates can be set?
A: Many jurisdictions have statutory limits on maximum mil rates to prevent excessive property taxation.