What is the definition of a mill in terms of taxation?

The definition of a mill in the context of taxation refers to an expression of a tax rate in 1/1000ths of a dollar. Specifically, this means that one mill is equivalent to 0.001, or one-tenth of a cent. Tax rates are often expressed in mills to facilitate straightforward calculations, especially when determining property taxes. For example, if a property tax is set at 20 mills, this translates to a tax rate of $20 per $1,000 of assessed property value. This method allows for easy comparison and understanding of tax rates across different jurisdictions.

The other options do not accurately convey the precise meaning of a mill. While some mention aspects related to taxation or property, they do not define the term itself as it is used in tax legislation and policy. Understanding this definition is crucial for applying knowledge of tax rates and calculations in various financial contexts.