Incentives a foot for commercial property owners...
Last March we gave everyone a head's up about a new Cook County Board classification ordinance (Class 6A) that would give a real estate tax incentive to owners of retail centers with grocery store components in Cook County. Well, it appears that the Class 6A amendment to the ordinance will not make it out of the Cook County Board's Real Estate Tax Committee as originally proposed!
Rumor has it that the Cook County Board's Real Estate Tax Committee has expanded on the earlier version and will soon be voting on a new COMMERCIAL incentive and entitling it Class 6D, "Commercial Urban Relief Eligibility", or CURE for short.
So what would that mean?
Language similar to an incentive that now exists for industrial property owners (Class 6B) is being considered for Class 6D, indicating qualification for:
- All newly constructed commercial properties,
- Commercial properties to undergo substantial rehabilitation or,
- Commercial properties that have been vacant for 18 months or more.
The incentive as currently proposed will last seven years, with a gradual phase out and an option for renewal. The level of assessment (a significant factor in determining real estate tax) for qualifying properties will be reduced from 25% to 10% for the first five years, then phased out over the next two real estate tax years with an increase in the assessment to 15% in year six and 20% in year seven, with a return to 25% in year eight.
This incentive is still on the drawing board but it is supported by, among others, the Cook County Assessor's Office. Once enacted, attention to detail for all requirements will be required to enjoy the benefits proscribed.
We will be following this new proposed classification incentive as it travels through committee to enactment, hopefully, and we will continue to keep current on any new potential real estate tax saving opportunities for our clients.
If you have any questions about what other requirements are being considered for commercial Class 6D incentives give us a call for a status report on this exciting new development.