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Provides for Tax Relief for Certain Business Classifications

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Full Text of Legislation
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Date Introduced: 4/15/2009
Date Passed:
4/15/2009

Sponsors:
Beavers, Collins, Gorman, Goslin, Maldonado, Moreno, Murphy, Silvestri, Sims, Steele, Suffredin
Co-Sponsors:
Beavers

Summary:

Provides for tax relief for certain business classifications meeting certain criteria in order to prevent them from going out of business.


Activity Log:

4/15/2009
This final version of a proposed ordinance that had been amended numerous times was passed by the Board.

Full Text of Legislation:

09-O-26

ORDINANCE

Sponsored by

THE HONORABLE Joan Patricia Murphy, William M. Beavers,

Earlean Collins, ElizabethLiz” Doody Gorman, Gregg Goslin,

Roberto Maldonado, Joseph Mario Moreno, Peter N. Silvestri,

Deborah Sims, Robert B. Steele and Larry Suffredin

COUNTY COMMISSIONERS

Co-Sponsored by

THE HONORABLE JERRY BUTLER, COUNTY COMMISSIONER

 

AN ORDINANCE AMENDMENT PROVIDING PROPERTY TAX RELIEF

TO CERTAIN BUSINESS CLASSIFICATIONS

 

BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 74 Taxation, Sec. 74-70 of the Cook County Code is hereby enacted as follows:

 

Sec. 74-70.      Class 8a Designation / Assessment Class

 

Class 8a.          Real estate that is used primarily for industrial or commercial purposes, which real estate would qualify for a class 8 designation  pursuant to Sec. 74-62 thru Sec. 74-64, except for the fact that the qualifying use of the property prior to application for the incentive does not comply with the definition of abandoned property provided for in Sec.74-62(b), can receive a designation as a class 8a property so long as the applicant can show that it has complied with all of the requirements necessary to receive a class 8 designation per Sec. 74-62 thru Sec. 74-64, except for meeting the definition of abandonment provided for in Sec. 74-62(b), but  only when the Cook County Board of Commissioners provides a resolution or ordinance in support of such designation absent abandonment.

 

(1)        The Cook County Board of Commissioners may only provide such a resolution or ordinance in support of class 8a designation absent abandonment when:

 

a.         an applicant who collects or transmits sales tax has obtained from the municipality in which the real estate is located or the Cook County Board of Commissioners, if the real estate is located in an unincorporated area, an agreement to abate a portion of the local government’s sales tax generated by the industrial or commercial enterprise located on such real estate and such abatement of sales tax must cover the period of time for which the applicant would qualify for this Class 8a incentive; and

 

b.         applicant can demonstrate to the satisfaction of the Cook County Board of Commissioners that due to national and regional economic conditions beyond its control the industrial or commercial enterprise has undergone a significant reduction in net operating income of at least 40% in the year it makes application for this incentive as compared to the average net operating income of the industrial or commercial enterprise in the prior three years; and

 


c.         applicant provides objective and credible evidence including, but not limited to, an economic impact study that demonstrates to the satisfaction of the Cook County Board of Commissioners that the ongoing industrial or commercial enterprise is not economically viable and as such it will cease operations within sixty-days of the submission of an eligibility application for class 8a designation to the Cook County Assessor, and thereafter the property will become vacant and unused for an extended period of time of at least twenty-four months; and

 

d.         applicant provides objective and credible evidence including, but not limited to, an economic impact study that demonstrates to the satisfaction of the Cook County Board of Commissioners that designation as a class 8a property will allow the industrial or commercial enterprise to be economically viable and thereby continue its operations so that the industrial or commercial enterprise can continue to occupy and fully utilize the real estate for an extended period of time.

 

(2)        Such a resolution or ordinance must contain:

 

a.         a finding that the Cook County Board of Commissioners has determined that industrial or commercial enterprise has undergone a significant reduction in net operating income of at least 40% in the year it makes application for the incentive as compared to the average net operating income of the industrial or commercial enterprise in the prior three years; and

 

b.         a finding that the Cook County Board of Commissioners has determined that class 8a designation of the property is necessary for the ongoing industrial or commercial enterprise to continue its operations and that without such designation the industrial or commercial enterprise would not be economically viable causing the property to become vacant and unused; and

 

c.         a statement by the Cook County Board of Commissioners that it supports and consents to the designation of the property as a class 8a property absent an abandonment requirement; and

 

d.         a statement by the Cook County Board of Commissioners that it supports and consents to the application made to the Cook County Assessor requesting designation as a class 8a property absent an abandonment requirement.

 

(3)        When the real estate is located in an incorporated area of the county, and designation as a class 8a property is sought using the provisions of this section, the municipality in which the real estate is located must provide to the Cook County Assessor a resolution or ordinance that contains the following:

 

a.         a finding by the municipality that it has determined that class 8a designation of the property is necessary for the ongoing industrial or commercial enterprise to continue its operations and that without such designation the industrial or commercial enterprise would not be economically viable causing the property to become vacant and unused; and

 

b.         a statement by the municipality that it supports and consents to the action by the Cook County Board of Commissioners to support designation of the property as a class 8a property; and

c.         a statement by the municipality that it supports and consents to the class 8a application to the Cook County Assessor; and

 

(4)        Real estate receiving a class 8a designation pursuant to the provisions of this section shall be assessed at the lowest percentage of market value provided for in Section 74-64 (11), however the term of the incentive will be limited to five years only and such class 8a designation shall not be renewed.

 

a.         after the initial application has been approved and granted, if the subject real estate receiving the class 8a designation pursuant to the provisions of this section is sold or the applicant transfers ownership of any portion of the property at any time prior to the five year term of the 8a classification, then the property’s 8a classification shall be subject to an eligibility review by the Cook County Board of  Commissioners, the municipality, and the Assessor under the procedures set forth in this Ordinance for the remainder of the 5 year term.

 

(5)        In order for real estate to qualify for a class 8a designation an eligibility application must be made to the Cook County Assessor.

 

(6)        Class 8a designation can not be applied to real estate unless the following has occurred: application is made to the Cook County Assessor; all required municipal and county ordinances and resolutions are provided to the Cook County Assessor; and the Cook County Assessor determines that the real estate which is the subject of the application for a class 8a designation would qualify for designation as a class 8 property but for the inability to comply with the definition of abandonment pursuant to Sec.74-62(b).

 

(7)        The Cook County Assessor may adopt rules consistent with this section to determine eligibility for the benefits provided under class 8a.

 

(8)        Upon receipt of an eligibility application for a class 8a designation, the Cook County Assessor shall forward such application and any supporting documentation provided with such application to the Cook County Board of Commissioners or its designee for consideration as to whether the County Board will provide a resolution or ordinance in support of a class 8a designation absent abandonment.

 

(9)        Real estate receiving a class 8a designation pursuant to the provisions of this section shall not be eligible for a class 8a designation for any year prior to the assessment year for which an application for the designation is made to the Cook County Assessor.

 

(10)      The Cook County Board of Commissioners or its designee may adopt rules consistent with this section that may be needed to ensure proper review of information, data and documents submitted in support of a request to the County Board for a resolution or ordinance in support of a class 8a designation as provided for in this section.

 


(11)      Applicants for a class 8a designation of property can only make such an application for the following assessment years 2008, 2009, 2010, 2011, 2012, 2013 and the Cook County Assessor shall not designate any real estate as class 8a property for assessment year 2018 or thereafter.

 

(12)      Real estate that receives a designation as a class 8a incentive property will lose such designation and the corresponding reduced level of assessment, if the industrial or commercial enterprise located on the property ceases operations and the subject real estate becomes vacant and unused.

 

(13)      Real estate that receives a designation as a class 8a incentive property will lose such designation and the corresponding reduced level of assessment upon termination of the required partial sales tax abatement by local government.

 

(14)      This Section 74-70 of the Real Estate Classification Ordinance will become effective upon passage.

 

Sec. 74-70.      Definitions.

 

Sales tax means the Retailers’ Occupation Tax, the Service Occupation Tax and or the Use Tax.

 

Secs. 74-72 – 74-99 Reserved.

 

Approved and adopted this 15th day of April 2009.

 

TODD H. STROGER, President

Cook County Board of Commissioners

 

Attest:  DAVID ORR, County Clerk

 


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