What is a millage rate?

• A. A fixed fee regardless of value
• B. The rate expressed as mills used to determine taxes
• C. A flat tax amount
• D. A percentage tax rate

Answer: (B)

A millage rate is the rate used to calculate property taxes, and it’s expressed in mills per thousand dollars of the property's assessed value. One mill equals $1 in tax for every $1,000 of assessed value. To calculate the tax, multiply the assessed value by the millage rate (in mills) and divide by 1,000. For example, if the assessed value is 200,000 and the millage rate is 25 mills, the tax would be (200,000 / 1,000) × 25 = 200 × 25 = 5,000.

This shows why the correct description is that the millage rate is the rate expressed as mills used to determine taxes. It isn’t a fixed fee, a flat tax amount, or a simple percentage rate; it’s a value-based rate expressed per thousand dollars of assessed value.