A property in Illinois has a fair market value of $300,000. The assessment level is 33⅓%, and the property qualifies for a $6,000 homestead exemption. If the tax rate is $8.50 per $100 of assessed value, what is the annual property tax?
Correct Answer
A) $8,010
Assessed value: $300,000 × 33⅓% = $100,000. After exemption: $100,000 - $6,000 = $94,000. Tax: ($94,000 ÷ $100) × $8.50 = $8,010.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
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.
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