How is the millage rate calculated?

The millage rate is calculated by dividing the budget by the net assessment of the property. This calculation reflects how much tax revenue is needed to meet the budget for public services, such as education and infrastructure. The net assessment represents the total assessed value of all properties within a jurisdiction after exemptions and deductions. By dividing the budget by this net assessment, the jurisdiction can determine how many dollars per $1,000 of property value need to be collected to achieve the necessary funds. This allows for a transparent and fair method of determining property tax obligations based on the services required by the community.

While other options reference aspects of the assessment and taxation process, they do not accurately describe how the millage rate itself is computed. For instance, multiplying the net assessment by the tax rate would give the actual tax amount levied, rather than the millage rate. Comparatively, assessed value divided by fair market value pertains to the assessment ratio, and tax revenue divided by total property value relates more to overall tax effectiveness rather than the specific calculation of the millage rate.