A millage rate, often specific to a defined geographic area like a zip code or county, determines the property tax levied on real estate. This rate, expressed as dollars per $1,000 of assessed value, is multiplied by the property’s assessed value to calculate the annual property tax. For instance, a rate of 10 mills on a property assessed at $200,000 would result in a $2,000 annual property tax. Geographic identifiers, such as the five-digit code exemplified, help pinpoint the applicable rate for a given property.
Understanding local millage rates is crucial for homeowners, prospective buyers, and investors. These rates directly impact property ownership costs and can vary significantly between locations, even within the same state or county. Variations often reflect differences in local government budgets and the funding of public services like schools, libraries, and emergency services. Historical rate analysis can offer insights into trends and potential future adjustments, aiding in long-term financial planning.
