Property Tax Appeals and Incentives

Transcription

1 Property Tax Appeals and Incentives The Law Offices of Liston & Tsantilis, P.C. 33 N. LaSalle St., 28 th Floor Chicago, IL Brian Liston, Esq. and Peter Tsantilis, Esq.

2 How a Tax Bill is Determined Debt Service + Education Operating Expenses + Local Government Operating Expenses - Revenue From Non-Property Tax Sources = Budgeted Revenue to be Raised by Property Taxes Budgeted Revenue / Total Equalized Assessed Value of All Property = Tax Rate Tax Rate x Equalized Assessed Value of Individual Property = Tax Bill

3 The Appraisal Process

4 Consider Every Variable and Fight for the Lowest Possible Market Value! Market Value x Assessment Level* = Assessed Valuation x Equalization Factor = Equalized Assessed Value - Exemptions = Adjusted Equalized Value x Tax Rate = Tax Bill *Cook County varies by property type (10% - 25% as of 2009); all other counties %

5 Appeal! Prior to Assessment Notices Assessor After Assessment Notices Assessor (Stipulation) Board of Review (+/- 30 days from publication/mailing) State of Illinois Property Tax Appeal Board (Refund) (+/-30 days from certification of Board of Review decision) Circuit Court (Refund) Cook County: File within 165 days after the 1 st penalty date of the final installment of taxes for the year in question Non-Cook: File within 75 days Must pay all of the tax due within 60 days from the first penalty date of the final installment of taxes for that year Assessor s Certificate of Error (Refund) (practices/rules vary)

6 Cook County Incentives Class 2 and 3 S.R.O. Class 6b Class 7a/7b Class 8 Class 8a Class 9 Class C Class L Class S

7 Class 6b Property Type Industrial (Warehousing; Manufacturing; Distribution) Basic Requirements: New Construction Existing Building With a Purchase Greater than 2 years Vacancy at Closing Less than 2 years Vacancy at Closing (Special Circumstances) Existing Building Without a Purchase Vacant Greater than 2 Years Vacant for 1-2 Years (TEERM) SER Struggling Enterprise In business 10+ Years Hardship

8 Class C Property Type Industrial and Commercial Basic Requirements Submit application within one year of receipt of No Further Remediation Letter Present owners must demonstrate that they were not responsible, directly or indirectly, for the contamination Remediation costs must total $100,000 or at least 25% of market value of property as determined by the Assessor in the year prior to the remediation

9 Analysis of Incentive Based Tax Savings (12 Year Period) Year Fair Market Value Tax Rate Multiplier Estimated Tax Without the Incentive (25%) Estimated Tax With the Incentive (10%) 2017 $3,000,000 9% $180,124 $72, * $3,300,000 9% $198,136 $79, $3,300,000 9% $198,136 $79, $3,300,000 9% $198,136 $79, * $3,630,000 9% $217,950 $87, $3,630,000 9% $217,950 $87, $3,630,000 9% $217,950 $87, * $3,993,000 9% $239,745 $95, $3,993,000 9% $239,745 $95, $3,993,000 9% $239,745 $95, * $4,392,300 9% $263,719 $158,232 (15%) 2028 $4,392,300 9% $263,719 $210,975 (20%) Totals $2,675,054 $1,254, Year Tax Savings = $1,420,661!

10 Illinois State and Municipal Incentives Illinois Economic Development for a Growing Economy Program (EDGE) Tax Increment Financing (TIF) Real Estate Tax Rebate Sales Tax Rebate Enterprise Zone Employer Training Investment Program (ETIP) High Impact Business Program (HIB) Large Business Development Program (LBDP)