Tax Levy
The total amount of property tax revenue a city authorizes to collect in a given year, calculated by applying the mill rate to the total assessed value of all taxable property.
How It Works
The levy is the product of the city's mill rate and the aggregate assessed value of property within city limits. Many states impose levy limits that restrict how much the total levy can increase from year to year, regardless of property value growth. This constrains city revenue growth even when the tax base is expanding.
Related Terms
- Property Tax — A tax levied on real estate (land and buildings) based on assessed value. Property taxes are the single largest revenue source for most U.S. city governments.
- Mill Rate (Millage Rate) — The property tax rate expressed as dollars per $1,000 of assessed property value. One mill equals $1 of tax per $1,000 of assessed value.
- Assessed Value — The value assigned to a property by a government assessor for the purpose of calculating property taxes, which may differ from market value.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.