Ace the Illinois Real Estate Exam 2025 – Unlock Your Property Pro Potential!

To determine the real estate tax due on the property, we need to follow a series of calculations based on the provided information about the market value, assessment ratio, equalizer, and tax rate.

First, we calculate the assessed value of the property. The property has a market value of $140,000, and it is assessed at 30% of this market value. Therefore, the assessed value is calculated as follows:

Assessed Value = Market Value × Assessment Ratio

Assessed Value = $140,000 × 0.30 = $42,000

Next, we apply the equalizer to the assessed value. The equalizer adjusts the assessed value to ensure fairness in taxation and takes into account any discrepancies in property assessments. In this case, the equalizer is 1.5:

Adjusted Assessed Value = Assessed Value × Equalizer

Adjusted Assessed Value = $42,000 × 1.5 = $63,000

Now we arrive at the property’s adjusted assessed value of $63,000. The next step is to calculate the actual tax due based on the tax rate, which is given as $5.00 for every $100.00 of assessed value. To find the tax, we can