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Imagine you in charge of the complete property taxation process for a township in Illinois. You are observing four types of real estate property Property A: Market Value $ 400,000 (40 units) Property B: Market Value $ 750,000 (20 units) Property C: Market Value $ 2,000,000 (5 units) Property D: Market Value $ 340,000 (100 units) You would like to define the assessment value as 10% of the market value. The Equalization Factor for your township is 3.3. You are in the fortunate position that only your township is levying a property tax, so you do not have to worry about property taxes from any other entity. You receive the information that the township has a total budget of $2,000,000. Through various non-property tax related channels, it earns $1,300,000. The township itself owns 2 units of property C type (the administrative building and one used for community gatherings) and three of Property C type (it uses one property as a school, one as a kindergarten, and one for educational events for adults). There are no additional property tax exempted units of real estate. (30 Points)

Calculate the property tax levy the township has to raise. (2 Points)

Calculate the assessed value for each type of property. (8 Points)

Calculate the tax rate the township will have to raise (hint: do not forget about exemptions) (8 Points)

Please calculate the Millage rate for this example. (2 Points)

How much property taxes are owners of each type of real estate paying? (4 Points)

You notice that there is one veteran living in your township. You think that it is appropriate to thank her for her service. You therefore decide that this person should receive a veteran exemption of $50,000. The person is living in a type A property. Please calculate the new effective tax rate for this person. (6 Points)