What is the first step to calculate the mill levy?

To determine the correct answer, it is essential to understand the concept of the mill levy and how it functions in property taxation. The mill levy, or mill rate, represents the amount of tax payable per one thousand dollars of assessed value of a property. The first step to effectively work with the mill levy calculation involves converting the mill rate into a usable figure for calculations.

Dividing the mill rate by 1000 allows you to express the mill rate as a decimal. This is crucial because it sets the framework for determining taxes owed based on property values. For example, if the mill rate is 25 mills, dividing this by 1000 results in 0.025. This decimal can then be applied to assessed or appraised values to compute the tax amount accurately.

Once the mill rate is expressed in this form, you can proceed to apply it to the property’s assessed value to find the final tax amount. This foundational step is what makes the calculation correct and applicable in further numerical applications relating to property tax.