Let us make Cook County Property Tax Incentives work for you.
Sandrick Law, a division of KSN, is one of the most experienced property tax incentive firms with the largest filings of property tax incentives in the area.
If you are interested in learning how SLF/KSN can help provide all necessary Property Tax Incentive related guidance on your next project, please complete the contact form below or contact SLF/KSN attorney Bill Sandrick directly at 312-867-1515 or wsandrick@ksnlaw.com.
Property Tax Incentives Summary
In Cook County, all Commercial and Industrial property is assessed for property tax purposes at 25% of taxable fair market value. Application of one of the Cook County Assessor’s Office Tax Incentives reduces that 25% level of assessment (LOA) to 10%. This has the practical effect of reducing your total tax liability by 60% over the term of the Incentive. The below example illustrates how this benefit is applied.
Non Incentive property
- Assessor FMV: $1,000,000
- C/I LOA: 25%
- Assessed Value: $1250,000
- Eq. Tax Rate: x 60%
- Total Tax Liability: $150,000
Incentive property
- Assessor FMV: $1,000,000
- C/I LOA: 10%
- Assessed Value: $100,000
- Eq. Tax Rate: x 60%
- Total Tax Liability: $60,000
The reduced level of assessment (LOA) and term of each Incentive is identical; they all reduce the LOA to 10% for the first 10 years of the Incentive with a 2 year phase out of 15% in year 11 and 20% in year 12. (7c Incentives have a shorter term of 8-10 years total). If not renewed, they will expire in year 13 and the property will be assessed as a regular commercial/industrial property at 25% LOA. Luckily, almost all incentives are renewable in year 10. If renewed, the term “resets” and the year of renewal will be year one of the renewal period, to be renewed a second time in year 10 of the second term (year 20).
Property Tax Incentives Eligibility
To be eligible for a Cook County Property Tax Incentive, an applicant typically will qualify by meeting one of the following criteria:
- New construction
- Substantial rehab of improvement (generally we discourage as it applies to increase in FMV only)
- Re-occupancy of building that is vacant at Closing (change of ownership)
- Re-occupancy of a building that was vacant for 12 consecutive months (change of ownership not required)
- Long-term occupant of Industrial building demonstrating hardship (6b SER)
All Incentives must be approved by the local municipality. Whether the project is new construction, purchase of a vacant building or re-occupying of a previously empty structure, local municipal support is an absolute requirement for any Incentive. Depending on the circumstances and duration of vacancy prior to re-occupancy, a second resolution from the Cook County Board of Commissions may also be required. It is imperative to have knowledgeable and experienced advisors throughout the whole process to ensure success.
Ready to Start?
At SLF/KSN, we receive new Incentive project inquiries every week. Our process begins by obtaining all relevant information from both the client and the county regarding salient assessment information. We then schedule a meeting to begin to discuss options and projections. The goal of this initial review is to give our clients enough accurate information to decide whether to continue their due diligence. The next step is beginning dialogue with the local municipalities and begin determining goals and options.
