What is the definition of a mill in relation to my tax bill?
A mill represents $1 for every $1,000 of the taxable value of your property. In Michigan, taxable value is approximately 50 percent of the market value; though if your home has appreciated substantially in value while you have owned it, you may find that the taxable value, due to caps or assessments increases, is considerably less than 50% of market value. If a home sells for $100,000, the taxable value would be $50,000. Each mill levied on this property would cost $50 annually (before any applicable state or federal tax credits or deductions). Under the new state funding system, the annual increase in the taxable value of your property is capped at the rate of inflation, or five percent, whichever is less. Over the past several years in South Redford, the annual increase in taxable value of the residential property has averaged approximately 1.5 – 2.3 %.
