Real estate taxes are computed using just a percentage of the property's value. Municipalities collect real estate taxes, also known as property taxes, to fund municipal operations, public schools, roads, police and firemen. The millage rate is the amount per $1,000 of property value used to calculate taxes.Millage rates vary by region, and are usually higher in cities than they are in less-developed areas.eal estate taxes are computed using just a percentage of the property's value. Municipalities collect real estate taxes, also known as property taxes, to fund municipal operations, public schools, roads, police and firemen. The millage rate is the amount per $1,000 of property value used to calculate taxes.