Property tax, millage tax, or ad valorem tax relies upon the fair market value of the property being taxed. The property tax rate is often given as a percentage. It may also be expressed as per mill, which is also known as a millage rate or mill levy.
Property taxes are imposed by the state, counties, cities, and all other taxing entities that levy ad valorem tax and/or special assessments. The millage rate is usually determined by county commissioners, city council members, and school board members, respectively. The taxes fund budgets for schools, police, fire stations, hospitals, trash or waste collection, sewers, roads and sidewalk maintenance, parks, libraries, and miscellaneous expenditures.
Property tax applies to both real and personal property. Real and Personal property are subject to the same levy rate. The characteristic that distinguishes real property and personal property is mobility. Some real property examples include; land, structures, improvements to land, and certain equipment affixed to land or structures. Some personal property examples include; automobiles, aircraft, watercraft, mobile homes, trailers, heavy trucks, commercial machinery and office equipment.
Non-ad valorem, non-mill levy or special assessments may often be confused with ad valorem property tax. Special assessment relies upon a special enhancement called a “benefit” for its justification.
By state law, the County Treasurer is responsible for the billing, collection and distribution of taxes based on the tax roll received.