A Cook County home has a market value of $590,000 and qualifies for the Illinois Senior Citizens Homestead Exemption, which reduces equalized assessed value by $8,000. If the applicable tax rate is 8%, what is the estimated annual property tax after the exemption is applied?
Correct Answer
D) $4,080.00
Cook County residential property is assessed at 10% of market value under Illinois law. $590,000 × 10% = $59,000 equalized assessed value (EAV). The Senior Citizens Homestead Exemption reduces EAV by $8,000: $59,000 − $8,000 = $51,000 taxable EAV. Applying the 8% tax rate: $51,000 × 0.08 = $4,080.00.
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Related Topics & Key Terms
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Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.
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