What is the mill rate? The mill rate is the amount of tax payable per dollar of the assessed value of a property. The mill rate is calculated by dividing the amount of taxes levied by the municipality by the total assessed value of all taxable property in the municipality.
For example if the municipality of XYZ levied $100000 in taxes on all taxable property in the municipality and the total assessed value of all taxable property in the municipality was $10000000 the mill rate would be 1000 mills or 1% ($100000 ÷ $10000000).
One mill is equal to one-tenth of a cent or $0.001. In the example above a mill rate of 1000 mills would represent a tax of $1.00 for each $1000 of assessed value.
The mill rate is used by municipalities to calculate taxes on property. The mill rate is usually expressed as mills per dollar of assessed value. For example if the mill rate is 1000 mills this means that the tax on a property with an assessed value of $1000 would be $1000.
Municipalities may use different mill rates for different types of property such as residential commercial or industrial. The mill rate may also be different for different classes of property such as vacant land or farmland.
Municipalities may adjust the mill rate depending on the needs of the municipality. For example a municipality may raise the mill rate to generate more revenue for capital projects such as new roads or a new community centre.
What is the purpose of the mill rate? The mill rate is one way that municipalities can generate revenue to pay for the services they provide to residents and businesses. The mill rate is also a way to distribute the tax burden fairly among different types of property owners.
How is the mill rate calculated? The mill rate is calculated by dividing the amount of taxes levied by the municipality by the total assessed value of all taxable property in the municipality.
The mill rate is usually expressed as mills per dollar of assessed value. For example if the mill rate is 1000 mills this means that the tax on a property with an assessed value of $1000 would be $1000.
Municipalities may use different mill rates for different types of property such as residential commercial or industrial. The mill rate may also be different for different classes of property such as vacant land or farmland.
What is the difference between the mill rate and the tax rate? The mill rate is the amount of tax payable per dollar of the assessed value of a property. The tax rate is the amount of tax payable as a percentage of the assessed value of a property.
For example if the mill rate is 1000 mills and the assessed value of a property is $100000 the tax payable would be $100000. If the tax rate is 2% the tax payable on the same property would be $2000.
