True or False: One mill levied by a municipality generates one dollar in tax revenue for the municipality per $1,000 in assessed value of the taxed property.
Municipalities collecting property taxes must set an annual property tax or millage rate. A “mill” is a unit of measure equal to 1/1000, and is expressed decimally as 0.001.
From the municipality’s perspective, each mill of property taxes charged generates $1 of property tax revenue for every $1,000 of taxable property located in the municipality. From the property owner’s perspective, each mill creates $1 of tax liability for every $1,000 of the assessed value of taxable real and personal property owned in the municipality.