Friday, August 1, 2014

Cook County Property Tax Incentives

To attract new industry and increase economic and employment opportunities, Cook County offers several property tax incentives to encourage the development or revitalization of commercial and industrial properties.

Class 6(b), Class 7(a)/Class 7(b) and Class 8 incentives lower property tax burdens for new and expanding businesses. For qualifying projects, rates can be lowered by more than 50 percent for up to 12 years. The Class L incentive lowers the property tax rate for individually-designated Historic Landmarks or contributing buildings in a Historic Preservation district.

For Industrial Properties:

For Commercial Properties:

For Historic Landmarks:

  • -Class L

Class Descriptions

Class 6(b):Provides a reduced level of assessment to properties that are used primarily for industrial purposes where the owner has substantially rehabilitated an existing facilitty or reoccupied an abandoned one. The property receives a 16% assessment level for the first 10 years, 23% in the 11th year and 30% in the 12th year before returning to the full 36% industrial assessment level in the 13th year.

Class 6(c): Intended for contaminated or abandoned properties or contaminated vacant land that will be remediated and used for industrial purposes. The property receives a 16% assessment level for the first 10 years, 23% in year 11 and 30% in year 12, before returning to the full assessment level in year 13.

Class 7: For commercial properties located in areas in need of commercial development. As with Class 6, the incentive extends to new or substantially rehabilitated facilities or to reoccupied abandoned properties. The property receives a 16% assessment level for the first 10 years, 23% in the 11th year and 30% in the 12th year, before returning to the full 38% assessment level for commercial properties in the 13th year.

Class 7(a) and 7(b): Class 7(a) has a simpler application process and extends to commercial properties where the total development costs do not exceed $2 million. Class 7(b) has a somewhat lengthier application procedure and extends to properties where the total development costs exceed $2 million.

Class 8: For both commercial and industrial properties located in Bremen, Calumet and Thornton townships.  Class 8 provides a reduced level of assessment to properties where the owner has developed a new or substantially rehabilitated facility or has reoccupied an abandoned property.

Class L: Provides a reduced level of assessment for buildings in a multi-family rental residential, not-for-profit, commercial or industrial use (Class 3, 4 or 5a/b) where the owner has invested at least 50 percent of the building’s market value in rehabilitation. The building-portion receives a 16% assessment for the first 10 years, 23% in year 11 and returning to the full assessment level in year 13. The other portion of the assessment, the land-portion, is also eligible for the incentive if the building has been vacant or unused continuously for the previous two years.
[http://www.propertytax.com/pdf/Class_L_Bulletin_2002.pdf]