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In real estate, a "mill" is a way of expressing the amount of property tax that is owed on a piece of real estate. One mill is equal to one-tenth of a penny, or 0.001 dollars. So if you own a property that is assessed at $100,000 and the tax rate is 10 mills, you would owe $1,000 in property taxes per year.
Let's say you own a home that is assessed at $200,000 and the property tax rate is 5 mills. To calculate your property tax, you would take the assessed value ($200,000) and divide it by 1,000 to convert it to "thousands" ($200). Then, you would multiply that number by the tax rate (5 mills or 0.005) to get your annual property tax bill. In this case, your property tax bill would be $1,000 (0.005 x $200,000).
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh, the mill, the mill, it's a curious thing,
A way to calculate property tax, let me sing.
One mill is one-tenth of a penny, it's true,
A small amount, but it adds up, too.
If your property's worth a hundred grand,
And the tax rate is 10 mills, you understand,
You'll owe a thousand dollars each year,
It's something to budget, don't you fear.
So when you're buying a home, take care,
Consider the mill rate, if you dare,
It may seem small, but it's no joke,
It's important to consider, before you go broke!