Illinois Real Estate Practice Exam

What is the monthly real estate tax on a property valued at $325,000, assessed at 33% of market value, with a tax rate of 40 mills and an equalization factor of 1.1?

1. A. $311.25

2. B. $345.50

3. C. $393.25

4. D. $420.75

The correct answer is: C. $393.25

To determine the monthly real estate tax on the given property, we first need to calculate the assessed value, the taxable value, and then the tax amount. 1. **Assessed Value**: The property is valued at $325,000, and it is assessed at 33% of its market value. Thus, the assessed value is calculated as follows: \[ \text{Assessed Value} = \text{Market Value} \times \text{Assessment Ratio} = 325,000 \times 0.33 = 107,250 \] 2. **Equalized Assessed Value**: The equalization factor is used to adjust the assessed value to a standardized level. Thus, the equalized assessed value is: \[ \text{Equalized Assessed Value} = \text{Assessed Value} \times \text{Equalization Factor} = 107,250 \times 1.1 = 117,975 \] 3. **Tax Calculation**: The tax rate is given in mills (which represent a value of one-tenth of a cent per dollar of assessed value). A tax rate of 40 mills translates to: \[ \