To compute the real property tax on a parcel of land, one must multiply what by the rate of mills?

To compute the real property tax on a parcel of land, you multiply the assessed value by the rate of mills. The assessed value is a predetermined percentage of the property's market value that the local government uses for tax purposes. The rate of mills is a way of expressing the tax rate; it represents the amount of tax per thousand dollars of assessed value.

When you apply this formula, you take the assessed value, which reflects the value assigned by the tax assessor, and multiply it by the mill rate, which determines how much tax is levied per thousand dollars of assessed value. This calculation is essential for determining a property owner’s tax liability.

The other options do not fit this calculation. Actual mills does not specify the assessed value component necessary for calculating taxes. Market value represents what the property could sell for but does not directly affect the computation since taxes are levied based on assessed values. Original cost refers to the purchase price of the property and does not factor into the tax calculation based on current assessments and rates.