What is mill rate in SAP RE-FX - Flexible Real Estate Management?

SAP Term: mill rate

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: A figure used in calculating property tax. The mill rate is set by the community dependent on the land type such as, agricultural or forestry usage. The basic property tax amount is multiplied by the mill rate to determine the property tax.

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• Key Concepts: 
  Mill rate is a term used in SAP RE-FX Flexible Real Estate Management to refer to the rate of taxation applied to real estate. It is calculated by dividing the total amount of taxes levied on a property by its assessed value. This rate is then used to calculate the amount of taxes due on a property. 
  
  How to use it: 
  In SAP RE-FX, mill rate is used to calculate the amount of taxes due on a property. To do this, the assessed value of the property is multiplied by the mill rate. This will give you the total amount of taxes due on the property. 
  
  Tips & Tricks: 
  When calculating mill rate, it is important to remember that it is based on the assessed value of the property and not its market value. This means that if the assessed value of a property changes, then so will its mill rate. 
  
  Related Information: 
  Mill rate is just one of many terms used in SAP RE-FX Flexible Real Estate Management. Other terms include lease term, rent index, and occupancy cost. Understanding these terms can help you better understand how SAP RE-FX works and how it can be used to manage real estate investments.