Property tax, also called millage tax, is a tax on property that the owner must pay. They are usually collected by local governments and are based on a standardized value of a property. Property tax money is usually used for schools, community safety and local infrastructure. Millage rates refer to the "mill": one one-thousandth of a dollar. The millage rate is the amount of taxes levied per $1,000 of property value. For example, if the millage rate is 3 mills (or 3 tenths of a penny), a property valued at $300,000 would be a tax of $900.