The formula to calculate the Mill Rate is:
\[ MLR = \frac{T}{AV} \]
Where:
Let's say the total taxes needed are $500,000 and the total assessed value is $25,000,000. The mill rate would be calculated as follows:
\[ MLR = \frac{500,000}{25,000,000} = 0.02 \]
So, the mill rate is 0.02.
The mill rate is a property tax rate that is applied to the assessed value of a property. It is used to calculate the amount of property tax owed. The mill rate is expressed as a ratio of the total taxes needed to the total assessed value of all properties in a given area. This metric is important for municipalities to determine the amount of revenue needed to cover public services and infrastructure.