A licensee's client asks whether all Illinois property owners pay property tax calculated using a single fixed statewide rate. Which of the following best describes how Illinois property tax rates are actually determined?
Correct Answer
A) Each property's tax is calculated by applying the local composite tax rate to the property's equalized assessed value (EAV), so rates vary by taxing district.
Under 35 ILCS 200/1 et seq., Illinois property taxes are not set at a single statewide rate. Instead, each taxing district — such as a school district, municipality, or park district — calculates the levy it needs to fund its budget. That levy is divided by the total EAV of all taxable property in the district to produce the district's tax rate. A property's total tax bill reflects the combined (composite) rate of all overlapping taxing districts, meaning rates differ significantly from one location to another.
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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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