When the assessor is to determine the rate, he proceeds in this way: First, he assesses each piece of property, usually not at its full market value. Then he determines the total value of all the property in his district. Next, he divides the total tax to be raised by the total value of the property in his district. The result is the rate of tax on the dollar.
Use of the Mill in Taxes.—When a tax is apportioned, it is usually found that if a few mills are paid on each dollar’s worth of property in the district, the aggregate amount is equal to the whole sum of tax needed. Consequently, we often hear of tax levies of so many mills on the dollar, as, 2 mills on the dollar, 5 mills on the dollar, etc.
The denomination of our money system called the mill has practically its only use in the levy of taxes.
Assessors make use of a [table] like the one given on the [following page]. This table is based on a tax levy of 9 mills on the dollar.
The following tax rates are equivalent:
16 mills (on the dollar);
1.6%;
$1.60 (on each hundred dollars).
Explanation of Table. The second column shows the tax at nine mills on the dollar, for values of $1 to $30. [878] The fourth column shows the tax for values of $40 and multiples of ten, to $600. The sixth column shows the tax for values of $700 and multiples of one hundred, to $10,000.
Tax Table