Real Estate Math
An Illinois property's assessed value is $95,000. The equalization factor is 2.916 and the tax rate is 8.5%. What are the annual property taxes?
A$8,075
B$23,565✓ Correct
C$277,020
D$23,562
Explanation
Step 1: Calculate EAV = $95,000 × 2.916 = $277,020. Step 2: Calculate taxes = $277,020 × 0.085 = $23,546.70, approximately $23,565. The process: assessed value × equalization factor = EAV; EAV × tax rate = annual property taxes. This is the standard Illinois property tax calculation method.
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