A Cook County residential property has a market value of $250,000.00. The equalized assessed value equals the assessed value. If the applicable tax rate is 6.50%, what is the estimated annual property tax?
Correct Answer
A) $1,625.00
$1,625.00 is correct. Under Illinois law (35 ILCS 200/9-150), Cook County residential property is assessed at 10% of market value. Step 1 — Assessed Value: $250,000 × 10% = $25,000. Step 2 — Because the problem states EAV equals assessed value, no equalization adjustment is needed: EAV = $25,000. Step 3 — Apply the tax rate: $25,000 × 6.50% = $1,625.00. The 10% Cook County residential assessment level is the critical distinction from downstate counties, which use one-third (33.33%).
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Related Topics & Key Terms
Key Terms:
Related Concepts
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
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