For Industrial & Commercial Properties
About the Class 8 Property Tax Incentive:
The Class 8 property tax incentive promotes industrial and commercial development in areas of Cook County that are “experiencing severe economic stagnation.” In Blue Island, property located in Bremen, Calumet, and Thornton townships are eligible for Class 8 without any application for certification of an area. Any new construction, significant rehabilitation, or reutilization of abandoned buildings developed or reoccupied for industrial or commercial use may qualify for the Class 8.
Qualifying buildings will be assessed at 10% of market value for 10 years, 15% in the 11th year and 20% in the 12th year. This is a significant reduction from the standard assessment level of 25% for industrial and commercial properties. The incentive is renewable per the conditions outlined in the Cook County Class 8 Eligibility Bulletin.
Qualifying for the Class 8 Incentive:
To qualify for the Class 8 Incentive, one of the following circumstances must apply:
- New Construction – The reduction applies to both land and facilities.
- Expansion of existing facilities – The reduction applies only to the expansion and the land under the expansion. With vertical expansion, the reduction covers added square footage and a portion of the land.
- Substantial rehabilitation of existing facilities – The reduction applies to the added value of the rehabilitation, but not the land.
- Purchase and use of facilities that have been vacant for at least 2 years – The reduction applies to both land and facilities. This provision does not mean that a facility must be tax-delinquent to qualify, but only that the owner has not utilized it or has not leased it for 24 consecutive months.
♦♦ Individual Class 8 applications for properties located within an eligible Class 8 areas, must be filed prior to the commencement of construction, rehabilitation or reoccupation.♦♦
Requesting a Class 8 Tax Incentive:
To request a Class 8 incentive for a property located within the City of Blue Island, please read and complete the following steps:
- Download, read and complete an application packet.
- Please be sure to carefully read the instructions in the Cook County Class 8 Eligibility Bulletin included with the packet before completing your application.
- Submit a letter of request [Sample Letter of Request] for a resolution of support for the Class 8 status to the City of Blue Island Community Development Department. Your request should include the following items:
- Brief description of the company
-Address and tax parcel number or numbers of the new site
-Size of the proposed building
-Number of current employees
-Number of employees after construction or rehabilitation
-Explanation of why the Class 8 status is needed for the site
- An aerial image of the entire property.
- (Images can be accessed from www.cookcountyassessor.com, Google or GoogleEarth, or provide another medium that best displays an aerial view of the site.)
- A copy of your completed Cook County Class 8 Application Form.
Differences between Class 6B & 8 Property Tax Incentives:
- No difference between actual benefits received
For both Class 8 and Class 6B incentives, qualifying properties are assessed at 10% during the first 10 years, 15% during the 11th year and 20% during the 12th year.
- Commercial vs. Industrial Development
The Class 6B incentive applies to industrial developments only, while the Class 8 incentive may apply to both commercial and industrial projects.
- Location of development
Class 6B incentive applies to industrial development throughout all of Cook County; Class 8 incentive applies to industrial and commercial development in areas of Cook County that are experiencing severe economic stagnation, in Blue Island this includes properties located in Bremen, Calumet and Thornton Townships.
- Cook County Living Wage Ordinance
To receive Class 6B tax incentive, an application must show proof of compliance with the Living Wage Ordinance. For the Class 8 incentive, the Living Wage requirement applies to industrial applicants.