The mill levy is the tax rate used to calculate the tax bills of individual properties within a tax area or district. Each taxing authority determines how much revenue they require from property taxes and divides that by the total assessed value of the properties within their established boundaries, as supplied by the assessor. The resulting tax rate is multiplied by 1,000 to come up with the mill levy.
Example:
Property Tax Revenue Needed..........$2,500,000.00
/ Total Assessed Value.................... $31,350,000.00
= Tax Rate........................................ 0.079745
x 1,000............................................. 1,000
= Total Mill Levy................................ 79.745