What formula is used to calculate a tax bill?

To calculate a tax bill, the formula that is used is the product of the assessed value of the property and the millage rate. This is based on the principle that property taxes are determined by the value of the property as assessed by a local authority and then multiplied by a rate set by the local government, known as the millage rate, which represents the amount of tax per thousand dollars of assessed property value.

Using the assessed value ensures that the calculation reflects the value assigned to the property, while the millage rate dictates the tax burden applied to each assessed dollar of value. This understanding is crucial for appraisers and property owners alike, as it helps in determining potential tax liabilities accurately.

Other options do not correctly define the formula for calculating a tax bill. The combination of assessed value and millage rate, as represented in the correct answer, directly relates to how property taxes are calculated based on local taxation policies.