How is the mill rate calculated?

The correct calculation of the mill rate is based on the relationship between the levy and the Grand List. The mill rate represents the amount of tax payable per $1,000 of assessed value and is a crucial determinant for local governments when evaluating property taxes.

To derive the mill rate, you take the total levy, which is the total amount of revenue the municipality needs to collect through property taxes, and divide it by the Grand List, which is the total value of all taxable properties within that municipality. This formula gives you the rate per $1,000 of assessed property value, providing a clear understanding of how much tax is charged based on property valuation.

This method ensures that the tax burden is proportionately distributed among property owners according to the value of their properties, aligning the budget needs of the municipality with the value of the tax base.