A residential property in McLean County, Illinois has a market value of $480,000. The applicable tax rate is 5.50%, and no equalization adjustment is required. What is the estimated annual property tax?
Correct Answer
A) 8,800
Under 35 ILCS 200/9-145, residential property outside Cook County is assessed at one-third of market value. Step 1 — calculate assessed value (which equals EAV when no equalization adjustment applies): $480,000 ÷ 3 = $160,000. Step 2 — apply the tax rate: $160,000 × 5.50% = $8,800. Because the problem states no equalization adjustment is needed, assessed value and EAV are the same figure, and no additional multiplication step is required before applying the rate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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