How do you calculate mills in property taxation?

In property taxation, mills are used to represent the amount of tax per $1,000 of assessed value. To find the property tax amount, you typically take the assessed value of the property and multiply it by the mill rate, which is expressed in mills. Since a mill is defined as one-thousandth of a dollar, multiplying the assessed value by the mill rate (which must be converted into a dollar amount) gives the correct property tax amount. Therefore, calculating mills involves multiplying the assessed amount by the mill rate, leading to the correct choice of multiplying by 1,000 to determine the tax due.

This understanding of mills is essential for anyone working in property taxation or real estate, as it affects how much property owners will owe and how that total is assessed and communicated. It is critical to correctly interpret the mill rate in the context of property taxation to apply the correct calculations when estimating taxes due on assessed properties.