In determining property taxes, what does the term 'millage rate' refer to?

The term 'millage rate' specifically refers to the rate per thousand dollars of property value used in calculating property taxes. It is expressed in mills, where one mill represents one-tenth of a cent or $0.001. For example, if a millage rate is set at 20 mills, this means that property owners will pay $20 in taxes for every $1,000 of their property's assessed value. This rate is crucial in determining how much an individual homeowner or property owner will owe in property taxes based on the assessed value of their property.

Understanding the millage rate helps taxpayers see how their property tax liabilities are calculated and enables local governments to raise revenue to fund essential services and infrastructure. The other choices do not accurately capture the meaning of 'millage rate' as they focus on different concepts related to property assessment and taxation.