What does the millage rate represent in ad valorem taxes?

The millage rate is a fundamental concept in ad valorem taxes, which are taxes based on the assessed value of real estate. Specifically, the millage rate indicates the amount of tax per thousand dollars of assessed property value. For example, if a property has an assessed value of $100,000 and the millage rate is 10 mills, the property tax owed would be $1,000 (10 mills x $100,000 ÷ 1,000).

Understanding the millage rate is crucial for property owners and local governments alike, as it directly influences how much tax is collected to fund public services such as education, infrastructure, and emergency services. Therefore, it provides a standardized measure for evaluating property taxes owed based on varying property values.

In this context, the other options do not appropriately describe the millage rate. The total tax base of a property refers to the overall value that is subject to taxation, which is not the same as the rate itself. The amount of revenue collected from property sales relates more to actual transactions rather than continuous taxation based on value. Lastly, the interest rate on property loans pertains to financing rather than taxation. This clear distinction illustrates why the millage rate as the rate at which taxes are assessed is the