How is a mill (tax) rate calculated?

A mill rate, or tax rate, is calculated by dividing the budgetary needs of a government entity by the total assessed value of the properties within its jurisdiction. This calculation provides a way to determine how much tax revenue needs to be generated per unit of assessed property value. When using the total assessed value as the denominator, the result is expressed in mills, where one mill represents one-tenth of a cent.

The focus of this calculation is on funding community services and obligations, as the budget represents the financial requirement to meet those needs. Essentially, the mill rate determines how much property tax is levied on owners based on the assessed value of their properties, translating the budgetary requirements into a per-thousand-dollar assessment rate.

Other options indicate different financial metrics and calculations that do not directly relate to the formulation of a mill rate within property taxation, making them unsuitable for this context.