What is a mill and how does it relate to local revenue for school districts?

• A. A mill is $1 of tax per $1,000 of assessed property value; districts levy mills to raise local property tax revenue, which funds a portion of operating budgets.
• B. A mill is tax rate in percentages; mills determine state funding.
• C. A mill is a loan program for infrastructure; mills generate revenue from sales tax.
• D. A mill is the amount of property tax cap; mills reduce local revenue.

Answer: (A)

A mill is a unit of property tax rate equal to $1 for every $1,000 of assessed property value. School districts use a millage rate measured in mills and apply it to the property's assessed value to generate local property tax revenue. This revenue funds a portion of the district’s operating budget, alongside state and federal funds. For example, if a property is assessed at $200,000 and the district levies 25 mills, the local taxes from that property would be 25 × (200,000/1,000) = $5,000. This illustrates how local revenue is raised to support day-to-day operations. The other descriptions misdefine what a mill is or how it functions: it is not a percentage tax rate, not a loan program, and not a tax cap.