What are Mill Levies Used For?
Mill levies allow for the calculation of property tax liabilities by factoring in the value of the property being taxed. The property tax liability is computed by multiplying the value of a property times the mill rate, and dividing by 1,000.
Who Establishes Mill Levies?
Governing authorities establish mill levies, often updating them on an annual basis. The exact creator of mill levies varies by country; for instance, in the U.S.A, mill levies are established by state and local governments.
What is Taxed by Mill Levies?
Mill levies generally tax real estate (land), buildings and major personal property like automobiles and boats.
Do Mill Levies Change Based on Property Value?
Generally speaking, mill levies, which are the rates of property taxation, are not affected by property value. The overall tax burden, however, is greatly impacted by property value.
What are the Effects of Mill Levies?
Higher mill levies increase government tax revenue, at the cost of dissuading homeowners and businesses from moving to the area or improving property. Lower mill levies encourage population and economic growth, while cutting property tax revenue.