What is a Millage Rate? (Property Tax Question)

[Zack Thiesen]

I'm doing a deep dive on PA property taxes and how they work in different areas and came across Dauphin County's millage rates one-sheet for 2020. There is a number in the end column labeled "TOTAL" and an example at the bottom of the sheet that reads:

"Example: Assessment ($1,000) X Millage Rate (1 Mill or .001) = Real Estate Tax Amount ($1)"

Although, the number from the "TOTAL" column can't possibly be the Millage Rate (Tax Rate?), can it??? I'm seeing 25-37...  unless you pay $1300/mo in prop taxes on your $65k property that rents for $900/month then I must be reading this incorrectly. Even some the other numbers you think it could be don't seem correct when entered into that equation. There is also a great sentence that reads "The charges are included in the above Municipal Rates if applied uniformly to every property; however, some municipalities randomly apply such charges of varying rates."

And seeing tax histories on different properties they are completely different from year to year, sometimes doubling or halving. 

Is there a simpler way to understand tax rates by city or county? It's difficult to imagine making an investment somewhere that you wouldn't know whether your costs would double, or triple etc from year to year. But I am probably missing something. 

Any info is appreciated!

[Steve Babiak]

Originally posted by :

...  In PA there are 3 components to the yearly taxes, municipal, school and county. ...  

FYI - In Montgomery County, a few years ago another component was added to the property tax bills - funds directed specifically for the Montgomery County Community College (MC3). Apparently, although the funds for MC3 were always built into the county component in the years prior to that, the county failed to deliver those funds to MC3 as the county was supposed to be doing.