Do you know what a mill levy is? It is the "tax rate" that is applied to the assessed value of a property. One mill is one dollar per $1,000 dollars of assessed value. The governing authority of taxing entities decides how many mills are required to fund their budgets. Examples of taxing entities (jurisdictions) are cities, townships, fire districts, school districts, cemetery districts and library districts.
Ad Valorem Tax is a tax based on the value of real estate or personal property. Ad Valorem Tax is typically imposed at the time of a transaction. Sales tax is a good example of Ad Valorem Tax.
Property tax is an Ad Valorem Tax on the value of property that the owner is required to pay annually. The tax is levied by the governing authority of the jurisdiction in which the property is located.
Special assessments are often confused with property tax. Special assessments are enchancements to jurisdictions such as; sidewalks, sewers, curbs, gutters, and street improvements, and are generally divided up between the property owners adjacent to the improvements with that jurisdiction.