Real Estate Math
An Illinois homeowner's annual property taxes are $8,500. The property is assessed at $85,000 and the equalization factor is 3.0. What is the tax rate?
A3.33%✓ Correct
B10%
C3.00%
D8.5%
Explanation
EAV = Assessed Value × Equalization Factor = $85,000 × 3.0 = $255,000. Tax Rate = Annual Taxes ÷ EAV = $8,500 ÷ $255,000 = 0.0333 = 3.33%. This is the effective tax rate applied to the EAV. Note that Illinois tax rates can vary significantly by location due to different combinations of local taxing bodies.
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