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.
Answer: True.
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.
The Municipal Elected Officials Institute of Government offers the required course “Basic Budgeting and Municipal Finance” as an online, on-demand course. The next in-person courses are scheduled for February 2, 2022, the day following Hometown Legislative Action Day in Columbia.