Level of Assessment
In the State of Illinois in all countries except Cook County, Real Property is assessed at 1/3 of Market Value. (Market Value multiplied by 0.3333) Conversely than the estimated Market Value the assessor has placed on a property except farmland can be calculated by multiplying the total assessed value by 3 or dividing it by 0.3333. Farmland is an exception because it is assessed according to the income producing capabilities of carious soil types.
The State of Illinois Department of Revenue definition of "Market Value" is paraphrased as follows: The most probable price in terms of money the property would bring exposed for sale for a reasonable length of time in the open market in an arms length transaction between a willing and knowledgeable buyer and a willing and knowledgeable seller. (some examples of non market value sales: sale between related parties, forced sales due to foreclosure.)
The Tax Rate is determined by dividing the Levy (the amount of money the various taxing bodied budget against the property tax) by the Total Equalized Assessed Value of the Township. Equalized Assessed Value (EAV) is the Total Assessed Value minus all the exemptions.
Example: Levy = $8,000,000 EAV = 100,000,000
8,000,000/100,000,000 = Tax Rate of 0.08 or 8% or $8 per $100 of assessed value
Example 2: EAV = 30,000 x 0.08 = 2,400 Tax Bill