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 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.
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.
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 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.
I am a real estate broker, property manager, and investor, located in Ann Arbor, Michigan. To each client, I bring close to a decade of experience in real estate, first as a real estate investor, then manager, and now love to share my experience and knowledge with property buyers and sellers as a real estate broker. Since attending the University of Michigan in 2005, I have lived in Ann Arbor ever since. My exceptional knowledge of the market as an investor and property manager provides a unique perspective and competitive advantage to my clients for selling and buying both residential and investment properties.
I have successfully managed investment properties in Ypsilanti and Kalamazoo and have conducted real estate transactions throughout southeast Michigan. Whether clients are looking for their first home, vacation homes, or the home of their dreams, I will be able to stay on top of the process, remove obstacles and make the real estate deals as pleasurable as possible. I enjoy working with people and finding ways to share a laugh or two in the process. I take pride in being available to my clients and being responsive to their needs.
In addition to my residential property expertise, and my multicultural background, I am capable of working with international investors and home buyers to make their international property purchases smoother and trouble-free. If you are interested in the acquisition of investment homes for your children while they attend the University of Michigan, as a property manager, investor, and broker, I will be able to help you make that reality come true.
I graduated from the University of Michigan and own and operate several businesses in Ann Arbor and Ypsilanti. In addition to my real estate experience, I am also a technology enthusiast and am always on the hunt to use technology and media to enhance the buying and selling experience.
If you are looking to make your first home purchase, or are trying to sell your home, give me a call and I can guide you through the services that I can offer you to help you start along the journey. I take great pride in my work and it would be an honor for me to represent you and your needs.
Yours truly, Vincent Zhang