What does the term "mill" refer to in real estate valuation?

The term "mill" in real estate valuation refers to one thousandth of a dollar. This measurement is commonly used to express property tax rates and other financial calculations in the context of real estate.

To understand this in a practical sense, when property tax rates are quoted in mills, it indicates how many mills per dollar of assessed value are being charged. For instance, a tax rate of 20 mills means that for every $1,000 of assessed property value, $20 in taxes is owed. This system provides a straightforward method for calculating taxes owed based on property valuations, making it easier for owners and assessors to understand and apply.

This concept is grounded in the broader usage of fractions in financial terms, allowing for clarity and precision in assessments and transactions. Understanding this terminology is essential for anyone working within real estate finance, property taxation, or appraisal.