So the tax rate is 25 mills per dollar. A mills is equal to <span>0.001
This means that the tax they pay is 25 x </span><span>0.001 = 0.025 per dollar of valuation. Since the acid value is 110,000, therefore the amount of tax they pay can be calculated as follows: amount of tax = 110,000 x 0.025 = $2,750 tax paid</span>