Computation of Tax

Collar Counties

The real estate tax is composed of three elements and is computed as follows:

Total Assessed Valuation x State Equalization Factor x Local Tax Rate = Tax

Total Assessed Valuation

The valuation of a property for real estate taxation purposes is initially determined by the Assessor and subject to review and revision by the County Board of Review (See also Definitions). The assessed valuation is computed by multiplying the Assessor’s and/or Board’s finally determined market value by the assessment factor of 33.33%.

State Equalization Factor

Each year the Illinois Department of Revenue reviews the total assessed valuation of each county and examines assessments made by the local assessors to determine whether or not the assessments are based on an accurate analysis of real estate values within the county. If it is determined that the assessments are lower than values would indicate, an “equalization” factor is developed by the state. This factor is applied on a township-by-township basis in these counties.

Local Tax Rate

The local taxing districts (municipality, schools, park districts, police and fire departments, library boards, etc.) within each county submit their budgetary requests (tax levies) to their County Clerk each year. After the assessed valuations of each parcel within the County are finalized and the State Equalization Factor has been determined, a tax rate is then formulated in such amount that is necessary to meet each of those budgetary requests.