What is the mill?

Míra Milge is a way to express the property rate of real estate in a particular area. It refers to an amount that must be paid for a thousand dollars of the value of the property. Of course, for each currency unit, of course, it can work in the same way, not only in dollars. The difference is that Millage works by breaking the amount into a thousandths, while the percentage decomposes it with hundreds. Millage takes his name from mill , which comes from the Latin word for a thousandth; The equivalent term for the "percent" is permille . Millage is used in real estate tax evaluation, because it usually allows for easier calculation that uses the percentages. This is due to the general size of the numbers they encounter in dealing with house prices.

The way Millage speed is used is relatively simple. For example, in the local area, the Millage $ 12 may be USD (USD). This means that the homeer has to pay $ 12 for each thousand dollars for the taxable value of their assets. If this taxation isThe value of $ 50,000, then payable tax is $ 12 multiplied by 50, a total of $ 600. The rate can be informally referred to the use of "Mill": In this example, it would be described as a real estate tax rate "12 mills".

Real estate tax calculated by Millage is classified as ad valor tax. This means that it is based on value, in this case real estate than on the amount. If the property tax were based on a flat fee for home regardless of its value, it would be known as a specific obligation.

Phrases ad valor can also be used less formally to reference to the taxable value of the house. This is the number created by the tax assessor, which, despite the name, evaluates the values ​​of the property rather than the tax itself. As the value is evaluated, it may differ from location to location. Tonebouse necessarily correspond to the current market value of the property or have any directThe connection with the actual purchase price since the last selling of the house. In general, however, it will be in the same area as these numbers.

In most cases, the evaluation will include both the value of the soil itself and the value of buildings. The second value is sometimes referred to as the value of improvement, the idea is that the soil itself has not changed, but adding the building improved the overall value of the property. There may also be an account in some areas that have taken other personal assets owned by the owner of the property, such as especially valuable vehicles.