Effective tax rate (ETR) is calculated using which two factors?

The effective tax rate (ETR) is a crucial measure that allows property owners and potential buyers to understand the true tax burden associated with their property. It is calculated by taking the millage rate, which is the amount of tax payable per $1,000 of assessed value, and combining it with the assessment level, which is the ratio of assessed value to market value.

The millage rate represents how much tax will be levied for every $1,000 of assessed property value. Meanwhile, the assessment level provides insight into how property values are determined perhaps in relation to their market value. By using these two factors, one can effectively compute the ETR, providing a clearer picture of what property owners can expect to pay in taxes relative to their property's value.

This method of calculation is particularly important as it reflects the reality of property taxation in terms of both the established rates and the values determined by local governance. Other options listed do not accurately combine the necessary components to define the effective tax rate, as they either focus on irrelevant statistical measures or do not encompass the required financial components.