Cook County Tax Incentives
Schmidt Salzman & Moran, Ltd. has obtained millions of dollars of tax savings for its clients by securing the approval of tax incentive classification of their properties by the local municipality and the Assessor. These incentives are intended to substantially reduce the tax burden for qualifying properties by more than 60%. Their duration is dependent upon the type of incentive. Each of the available Cook County incentives is described in the Assessor’s Incentive Bulletins. The incentives, in addition to those available for landmark and environmentally remediated properties for which there are also substantial tax incentives, are summarized below:
Applicable to industrial properties. Requires new construction, substantial rehabilitation or reutilization and occupancy of abandoned properties throughout Cook County. Vacancy must be for at least 2 years for buildings owned by same owner, without any rehab; with new construction or substantial rehab, 2-year vacancy requirement may be shortened by resolution of the County Board.
Class 7a and 7b
Applicable to commercial properties. Also requires new construction, substantial rehabilitation or reutilization and occupancy of abandoned properties throughout Cook County. (See Firm Newsletter – Spring, 2009)
Applicable to industrial and commercial and properties. Generally, must be located in one of the following south suburban Cook County Tax Townships: Bloom, Bremen, Calumet, Rich or Thornton (See Township Map). As with the others, except for class 8a, it also requires new construction, substantial rehabilitation or reutilization and occupancy of abandoned property. The Class 8a incentive extends temporary (up to 5 years) tax relief to commercial and industrial property owners in these tax townships with dramatic loss of operating revenues caused by current economic conditions. (See Firm Newsletter – Summer, 2009)
Although this incentive for low and moderate income rental housing remains available, it has lost much of its impact since the assessment factor for all multi-unit apartment buildings is being reduced to the same level that the incentive provides (10% of market value). (See Firm Newsletter – Summer, 2008). A remaining potential benefit is a potentially more favorable market valuation of the property.