Real estate taxes are one of the largest operating expenses for income producing properties; especially for commercial and industrial properties located in Cook County. In an effort to reduce the property tax burden and to inspire development, the Cook County Board of Commissioners created tax incentive programs available to prospective buyers of vacant property and available to current owners who plan to construct new improvements on their property. These incentive programs can offer significant real estate tax reductions, with some property tax bills being reduced by up to 60%. Current owners or developers of property located in Cook County should become familiar with these incentive opportunities.
The tax incentives created by the Board of Commissioners are the Class 6b and Class 8 Tax Incentives, which are available for industrial properties, and the Class 7a, Class 7b and the new Class 7c Tax Incentives, which are available for commercial properties. These tax incentives last for ten years, escept for the Class 7c Tax Incentive which lasts only for 5 years. The Tax Incentives can be obtainable by fulfilling the eligibility requirements and filing a Tax Incentive application and corresponding tax appeal with the Cook County Assessor’s Office. You can visit the Cook County Assessor’s Office website to find the mandatory eligibility requirements for each incentive and the necessary forms that need to be submitted with the Assessor’s Office: http://www.cookcountyassessor.com/PdfForms/Incentive-Forms.aspx.
Each of the available incentives have their own set of eligibility requirements, For example, the Class 7a and 7b Tax Incentives are only available for commercial properties located in areas determined to be “in need of commercial development,” and the Cook County Assessor’s Office requires a tax incentive application to be filed with their office prior to any vacant property being occupied or any new construction commencing. These requirements are mandatory and every property owner or prospective buyer should become familiar with the tax incentive requirements and consult with legal counsel before entering into a purchase or construction contract. Additionally, the Cook County Assessor’s Office requires all incentive applications to include a passed resolution from the local municipality In which the property is located that supports and consents to the Tax Incentive being granted for the property. Owners and buyers seeking the Tax Incentive must make a formal request to the local municipality for the supporting resolution as part of the process for obtaining the tax incentive. The local municipality will most likely have its own requirements for passing a resolution supporting the Tax Incentive, and such requirements could me more or less extensive than what is required by the Assessor’s Office.
As indicated above, property owners and developers who intend to seek the above-referenced Tax Incentives should plan and coordinate with their counsel, along with the representatives from the local municipality, in the initial stages of the real estate project or venture. If you have more questions regarding available property tax incentives or to discuss future real estate projects, please contact:
Anthony M. Ochs at:
firstname.lastname@example.org or (312) 368-0100