by 
The Curious Bag
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A mill levy tax is a form of property tax. State and local governments establish the mill levy, or millage rate, and apply it to assessed property value to raise funds.
Function
In calculating the mill levy tax, one mill is worth $1 of $1,000 assessed property value. If the mill levy was 215, the millage rate of 0.215 would be multiplied by a property's value to determine the tax owed.
Fact
The term "millage rate" comes from the root word "mill," meaning "thousand."
Features
The mill levy tax funds both the state and local governments. The state's part typically funds public schools, while the local portion funds area programs and services.
Significance
A low millage rate can entice new residents to an area that is eager for development. On the other hand, high millage rates can drive away potential newcomers and keep an area unchanged.
Uses
School boards use millage rates to calculate the total property value within a school district. This information is then used to determine local school taxes.
Source:
Butler County Appraiser's Office
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