Real Estate Math
An Illinois property has an assessed value of $75,000, an equalization factor of 3.0, and a tax rate of $9.50 per $100 of EAV. What are the annual property taxes?
A$7,125
B$21,375✓ Correct
C$23,750
D$6,750
Explanation
Step 1: EAV = Assessed Value × Equalization Factor = $75,000 × 3.0 = $225,000. Step 2: Tax per $100 of EAV = $9.50. Annual taxes = ($225,000 ÷ 100) × $9.50 = 2,250 × $9.50 = $21,375. Property tax rates in Illinois are sometimes expressed per $100 of EAV rather than as a percentage. $9.50 per $100 = 9.5% tax rate.
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