What is referred to as the mill rate?

The mill rate, often expressed as a fraction of one thousand, is the amount of tax payable per dollar of assessed value of property. It is typically used to calculate property taxes levied by local governments and other entities. The concept behind the mill rate is that it allows municipalities to determine the property taxes owed based on the assessed value of a property.

For example, if the mill rate is set at 10 mills, it means that for every $1,000 of assessed property value, the property owner would pay $10 in tax. This method provides a straightforward way to understand how much tax will be imposed based on the value of the property, making it easier for residents to calculate their property tax obligations.

In contrast, the other options relate to different taxation or fee concepts. An annual tax refers to the timing of when taxes are assessed and paid, the overall tax burden refers to the total taxes paid by residents which can include various forms of tax beyond property tax, and a flat fee implies a uniform charge to all property owners regardless of property value, which does not align with the concept of a mill rate that is based on varying property values.