The tax rate applied to a property's assessed value to determine the annual property tax bill. One mill equals one dollar of tax per $1,000 of assessed value. Understanding millage rates helps tenants verify that the tax amount passed through in CAM is calculated correctly.
Millage rate is set annually by local taxing authorities (county, city, school district, special districts). Total millage is the sum of all overlapping jurisdictions. Property tax equals assessed value multiplied by total millage rate divided by 1,000. Some jurisdictions apply exemptions (homestead, agricultural) that reduce the effective rate for qualifying properties. Commercial properties rarely qualify for exemptions, making their effective rate the full published millage.
A landlord calculates tax pass-throughs using the prior year's higher millage rate instead of the current year's rate, which was reduced by the county. Tenants overpay because they assume the landlord is using current figures.
Look up your building's millage rate on the county tax assessor's website. Multiply it by the assessed value to calculate what the tax bill should be. Compare this against the amount your landlord passes through. Discrepancies indicate an error or overcharge.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
