How is the value of property determined?
“Value” is a complicated concept with many definitions. The measurement of market value for tax purposes is the job of assessors, who use one or more of the three basic approaches to measure it:
- Market Data - comparing recent selling prices of similar properties
- Cost - coming up with a value of the cost of reproducing the property minus accrued depreciation plus land value
- Income - calculating the present worth of the income from an income-producing property.

Most real property in Illinois must be assessed based on its value on the open market; this value is the most probable sale price of a property in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably, allowing sufficient time for the sale and assuming that the transaction is not effected by undue pressures.

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1. What is property tax?
2. What is the history of the Illinois property tax?
3. What is considered property?
4. How is the value of property determined?
5. How are farm properties valued in Illinois?
6. Who must pay property taxes?
7. Who spends property taxes?
8. How important is the property tax compared to other taxes?