What does the mill rate represent in taxation?

The mill rate represents the amount of tax payable per $1,000 of assessed property value. Specifically, it is expressed in mills, with one mill equating to one-tenth of a cent. This means that for every $1,000 of assessed property value, a taxpayer would pay a certain number of mills in taxes.

For example, if a municipality has a mill rate of 20 mills, a property assessed at $100,000 would incur a tax liability of $20 (20 mills per $1,000 times 100). This concept is crucial for tax assessors and property owners alike, as it directly influences the amount of property tax owed, providing a straightforward mechanism for municipalities to budget and allocate resources based on property values.

In this context, the other options do not accurately convey the definition of the mill rate. Therefore, the understanding of the mill rate as one-tenth of a cent illustrates its fundamental role in the property taxation system.