Real Estate Communications Group: REJournals.com; “New Five-Year Incentive In Cook County Expands Availability Of Property Tax Relief,” 9/16/14

Jeanine Marie Herzeg's Property Tax Legal Blogs

Attorney in Chicago, IL

Jeanine Marie Herzeg

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Serving Chicago, IL

  • Serving Chicago, IL

  • Free initial consultation, Credit cards accepted

Senior Property Tax Analyst & Administrator at firm Sarnoff & Baccash

Serving Chicago, IL

Free initial consultation, Credit cards accepted

What is the Class 7c
Incentive?

The Class 7c Incentive or Commercial Urban Relief Eligibility (“CURE”) is a new
five-year commercial property tax Incentive in Cook County that is targeted to
help commercial property owners throughout the County by reducing a property’s
tax burden by essentially 60% for three years; 40% in year 4 and 20% in year 5
of the Incentive period. This new Incentive reduces a property’s assessment
level from 25% of market value to 10% for three years before it increases to
15% in year 4 and 20% in year 5. This five year Incentive is renewable for one
additional five year period.

What is the Class 7c
Incentive?

The Class 7c Incentive or Commercial Urban Relief Eligibility (“CURE”) is a new
five-year commercial property tax Incentive in Cook County that is targeted to
help commercial property owners throughout the County by reducing a property’s
tax burden by essentially 60% for three years; 40% in year 4 and 20% in year 5
of the Incentive period. This new Incentive reduces a property’s assessment
level from 25% of market value to 10% for three years before it increases to
15% in year 4 and 20% in year 5. This five year Incentive is renewable for one
additional five year period.

How Does a Property
Qualify?

Commercial property qualifies for a Class 7c Incentive if there is new
construction, substantial rehabilitation or occupation of abandoned property
that has been vacant and unused for greater than 12 continuous months. In
addition, an applicant must secure a Resolution/Ordinance from the municipality
in which the property is located supporting and consenting to the Class 7c
Incentive, and must file this Resolution/Ordinance along with a Class 7c
Eligibility Application with Cook County. The County will review each
Application and make a finding stating whether the conditions of the Class 7c
Incentive have been satisfied, including the following four mandatory
eligibility factors:

1) A
‘Real Estate Tax Analysis’ showing that the assessed value, equalized assessed
value or taxes on the subject property have declined or remained stagnant due
to the depressed condition;

2) A
showing of ‘Viability and Timeliness’ of the project/development;

3) ‘Assistance
and Necessity’- a showing that the project/development will not occur without
the Incentive and that the Incentive will assist in the development/project;

4) A
showing that the project/development will reasonably result in ‘Increased Tax
Revenue and Employment.’

Where Does the Class
7C Incentive Apply?

Unlike the current Class 7a and 7b Incentives which, in addition to other
mandatory eligibility factors, require the location of the property within a
specifically designated area, the Class 7c Incentive can be located anywhere
throughout Cook County.

The Class 7c Incentive is a new way for commercial property
owners in Cook County to reduce their taxes and stay competitive. This new
Incentive is just another way Cook County is working to help property owners,
just like it has already done with the expanded Class 6b Incentive.

Zachary A. Kafitz and James B. Sarnoff are Attorneys with
SARNOFF & BACCASH, a Chicago law firm that concentrates in property
taxation.

Tags |  rel=”nofollow” >Commercial Real
Estate,  rel=”nofollow” >jimmy
sarnoff,  rel=”nofollow” >sarnoff
& baccash,  rel=”nofollow” >zach
kafitz

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reproduction of this article not permitted without authorization from the Real
Estate Publishing Group. For information on reprint or electronic pdf of this
article contact Mark Menzies at 312-644-4610 or  rel=”nofollow” >menzies@rejournals.com

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New five- year incentive in Cook County expands availability of property tax relief

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