New Cook County Ordinance for 6B Real Estate Tax Incentives...
Cook County's Board of Commissioners recently passed Ordinance 13-0-36 with the intention of reducing the impact of vacant industrial real estate and establishing an emergency relief program creating new opportunities for owners to qualify. The Class 6B incentive reduces Cook County's ordinance level of assessment on qualifying industrial property from 25% to 10% of its fair cash value. Reductions in real estate taxes for qualifying properties are significant.
Generally, there are three circumstances that can lead to qualification of industrial property for the 6B incentive. Newly constructed properties, properties under substantial rehabilitation and occupation of "abandoned" properties are still the pre-qualification circumstances. The new ordinance now allows for a shorter time span to qualify on vacant property and has created a new circumstance for occupied property showing evidence of hardship.
Prior to the new ordinance, an industrial building had to be vacant for 24 months in order to qualify if there was no purchase for value. The new ordinance created the Temporary Emergency Economic Recovery Modification (TEERM) Program. This program allows for a building to qualify for the incentive if there has been no purchase for value and the property has remained vacant for at least 12 months. In this scenario, the local municipality can pass a resolution in support based on special circumstances justifying the property is deemed abandoned. It also requires validation from the Cook County Board of Commissioners. This program eases the burden on property owners with a vacant property. Now owners that do not want to sell will not have to wait 24 months to qualify for the incentive. It will allow these owners to competitively lease their properties when real estate taxes are reduced because of the ordinance level change.
The new ordinance also created the Sustainable Emergency Relief (SER) Program. This program creates another qualification for the 6B incentive. Now a building that is not vacant can qualify for the incentive. If a property has been occupied by the same industrial enterprise for at least ten years and the occupant can show evidence of hardship and demonstrate that participation in the program is necessary to continue operations at the current location and maintain staff, it is possible to qualify for the incentive. The local municipality must pass a resolution and the County Board must approve it.
Our firm has extensive experience in assisting owners of industrial property obtain 6B incentive status. If interested in knowing more about the new 6B Real Estate Tax Incentive and how to qualify please give us a call.
Direct all inquires to Anthony Farace and Joseph F. Locallo, III at 312-255-8550.