Tax term basics: Millage rate and more

by Carrie Reynolds 03/19/2023

Millage rates are just one of the many specialized tax terms property owners are likely to encounter. While it's often used interchangeably to mean "tax rate," millage rates have some key differences. Here is a guide to understanding millage rates and a few other important pieces of property tax terminology:

Millage rates

Millage rate has nothing to do with mills or milling. Rather, the name comes from the Latin "millesimum," which means "one thousandth" (1/1000). Millage rate or mill rate means the amount per every $1,000 of a property's value. Multiple millage rates go into calculating property tax amounts.

Liens

A lien is a legal claim against your property. Liens are established when you neglect to pay your taxes. Tax liens can be applied to land and building property but also to other assets like motor vehicles.

Levies

A tax levy is a more significant penalty for neglecting your taxes in which the government can actually take ownership of your property to pay the debt. The IRS can seize and even sell your assets if they're levied. Fortunately, levies are not applied immediately, but can happen after a tax lien has been placed on property and not removed.

Ad valorem

Ad valorem is another tax term based on Latin roots. It means "according to value" and is used to convey the flexible value of individual properties and assets. Ad valorem is a percentage of the sale price or the assessed value of the asset.

These are just a few of the important tax terms property owners should know. Keep these in mind to better understand your own property taxes and better navigate the financial world.

About the Author
Author

Carrie Reynolds

I was born and raised in Florida and have lived in the North Florida area for over 30 years. I have been married for 17 years and we have 3 beautiful children. My husband is a professional caddy on the PGA tour and I was a teacher for 13 years before I began pursing my real estate career in 2011. I am happy to help buyers or sellers. Call me if you need help buying, selling, or building new construction. I specialize in several areas: Nocatee, Jacksonville Beach, Atlantic Beach, Neptune Beach, Ponte Vedra Beach, Southside of Jacksonville, and all of St. Johns County.