What term describes the actual amount of tax payable by the property owner, calculated by multiplying the taxable value by the millage rate?

• A. Millage rate
• B. Tax levy
• C. Tax bill
• D. Assessment

Answer: (B)

In property taxes, the amount you actually owe is the tax bill. It’s found by applying the local millage rate to the property's taxable value. The millage rate is the amount per thousand of taxable value, so you convert it to a multiplier (millage rate/1000) and multiply by the taxable value: Tax bill = (Taxable value × Millage rate) / 1000.

For example, if the taxable value is $200,000 and the millage rate is 15 mills, the tax bill would be $200,000 × 15 / 1000 = $3,000.

The other terms describe related ideas but aren’t the final amount due on a single property. The millage rate is the rate itself used in the calculation. The tax levy is the total amount of taxes that a taxing authority imposes across all properties. The assessment is the value assigned to the property for taxation, used as the starting point before applying exemptions and the millage rate.