​Chicago is being reassessed this year. Assessment increases for commercial taxpayers have gone through the roof. The Assessor started four months late but he wants to finish on time – in December. That means he will decide a record number of tax appeals in about half of the normal amount of time!
 
Also, the assessing officials are becoming tougher. They now require more and better documentation to even consider lowering your assessment. The bar for successful appeals has been raised.
 
But there is good news: You can get good relief in this environment. But we need your help to do so. Here’s what you can do to make it easier for us to get the best results for you.
 

• Get us documents in 7 days. We only have 30 days to file an appeal with all evidence, including appraisals. By the time we write you to request documents, a week has already passed. Many of our clients send us their evidence within days of the appeal deadline. That doesn’t give us enough time to do a good job. Please give us all documents within 7 days so we can do the best job for you.
• Give us all the documents we ask for. During the appeal process, the assessing officials ask for certain documents. If you don’t provide all of them, they may deny your appeal because of a lack of complete evidence. They have a huge caseload. They’re very busy and get quite frustrated if they aren’t given all documents that their rules require. When they’re faced with inadequate evidence, the easiest thing to do is deny your appeal. Don’t let that happen. 
• Be legible and complete. We often receive documents that have been xeroxed to the point of being unreadable, have illegible handwriting or are incomplete. If the assessing officials can’t make sense of a document, it’s as if you submitted nothing. You probably won’t win your appeal.
• Make sure the documents are correct. The assessing officials are scrutinizing documents and comparing them to what you’ve submitted in prior years. They’re looking for inconsistencies. When documents appear to be misleading or incorrect, they aren’t considered and your appeal will probably be denied. Make sure the documents you provide are truthful, correct and complete – especially rent rolls, vacancy affidavits and profit-and-loss statements.
• Approve appraisals in 3 days. If we ask you for authorization to order an appraisal, it’s because we think one is necessary. We believe it’ll result in tax savings that are significantly more than the cost of the appraisal. We need to order them quickly to obtain them during the Assessor’s strict 30-day filing window. So, please authorize appraisal requests within 3 days.

 
The bottom line: Get your documents to us fast
 
The odds of you winning your tax appeal and reducing your property taxes are much higher if you provide us with correct, complete and legible documents within 7 days. And, the reverse is true, of course.
 
Please help us to help you by giving us all the documents we request within 7 days.
 
Our staff thanks you!!

You may have heard that property taxes on commercial properties in Cook County are on the rise. But you may not know why this is happening or what you can do about it.
 
As part of a new series of messages that aims to reveal the truth about property taxes, we’re going to take a closer look at this situation. We’ll tell you what’s going on and arm you with the knowledge you need to lower your property taxes.
 
What happened?
 
In Cook County, the Assessor and the Chicago Tribune have been vocal in their belief that commercial property owners have not been paying their fair share of taxes, causing homeowners to pay more. There's also a growing public mindset that the wealthy should pay a greater share of taxes.
 
As a result, we have seen commercial assessments skyrocket, with little relief coming from appeals to the Assessor, but with significant adjustments coming from the Board of Review.  But overall, commercial assessments have risen much more than in past years and the commercial tax base is growing.
 
The impact
 
As a result of these trends, commercial property taxes are rising in Cook County. In addition, the tax appeal process has been steadily becoming more challenging to navigate. Due to a barrage of criticism from the Assessor and the press, assessing officials are overreacting and asking for more (and sometimes unnecessary) documentation and records to justify tax relief. Their mindsets have changed. They are simply less willing to grant as much relief as they have in the past.
 
The bottom line is that outcomes of appeals have become less favorable and predictable than in the past.
 
Here are your options in Cook County to get maximum relief from high commercial property taxes:
 
1. The Cook County Assessor’s office. The current Assessor is steadfastly defending his assessments and denying most commercial appeals. So you may not find much relief here. Many attorneys are bypassing appeals to the Assessor altogether. We continue to file appeals with the Assessor’s office but are being more selective.
 
2. The Cook County Board of Review. Fortunately, the Board is granting substantial relief to commercial property owners, although not as much as in the past. This makes the Board the most valuable appeal route. But, unfortunately, because of the huge assessment hikes coming from the Assessor and capped relief from the Board, commercial assessments are growing more than in the past.
 
3. The State of Illinois Property Tax Appeals Board or Circuit Court. Taxpayers have a third option: filing appeals to the State of Illinois Property Tax Appeals Board (PTAB) or Circuit Court. If you win here, you’ll be rewarded with a tax refund plus interest. You have greater leverage in these third-level appeals – especially if you are willing to take a case to trial – and a better opportunity to secure a fair tax bill. This makes these level 3 appeals extremely valuable, but they take more time to resolve.
 
What can you do about it?
 
The assessment environment has changed. Old approaches are increasingly ineffective. To achieve a fair tax bill, you need a knowledgeable attorney with a strategic plan designed to work in today’s environment. Here are three factors to keep in mind for best results:
 
First, your attorney should be aware of how the environment is changing and what can be done to win in it. 
 
Second, your attorney should know the law and appraisal theory, as well as how to use those tools to your advantage. They must be willing to appeal relentlessly through all stages of the appeal process.
 
Finally, you need to stay the course, be patient and have reasonable expectations of what success looks like today. You may not get as much relief from the Assessor as in years past. You should get good relief from the Board, but your assessment today may grow more than in the past. And, you may need to pursue third-level appeals to get the relief you truly deserve.
 
The right legal partner can help you develop a strategic plan designed to achieve success in today’s environment, relentlessly pursue fair taxes on your behalf and guide and educate you each step of the way.
 
Stay tuned for more common-sense advice on how to get the best results in today’s challenging tax environment.

​Thank you to IREM for allowing us to our partner, Michael Elliott, speak on the latest challenges and trends for commercial property owners and managers as it relates to property taxes. 

Understanding the complicated property tax laws and preparing a strategic appeals plan are two factors needed by commercial property owners and managers to successfully appeal tax assessments in Cook County. Earlier today, Michael J. Elliott, founding partner of the
Elliott & Associates Attorneys, P.C., shared that advice during an informative webinar, “Financial Self Defense,” hosted by IREM Chicago. More than 25 members, Industry Partners and guests participated in the webinar. Mr. Elliott shared a wide range of insight and information, including thoughts on a Chicago Tribune and Pro Publica investigative report called “The Tax Divide,” appeals practices through the office of current Cook County Assessor Fritz Kaegi, the impact of the COVID-19 pandemic, property appraisals, and relevant upcoming legislation in Springfield. He also cited seven ways to win a tax appeal – with one factor being patience. ​

You may receive a notice from the Assessor stating that your assessment is being reduced due to COVID but that may not mean a reduction in your tax bill. Why? Read the full Crain's article here. 
 
UPDATED 11/19/2020 – If you are not a Crain’s member, Alby Gallun, the author of the article, also was interviewed in a podcast. You can click here to listen. 

Leading Lawyer magazine names Elliott & Associates partner Mike Elliott #5 Real Estate Tax attorney in Illinois and #3 in the Suburban Real Estate category.

Super Lawyers selects Elliott & Associates attorney Lauren Elliott to the Illinois Super Lawyer Rising Star list for the second year In a row.  

Question:
How do the Cook County Tax incentives work?

Answer: ​
Cook County offers tax incentives to owners of commercial and industrial property.  These incentives reduce taxes by 60% for 10 years and gradually increase back to market in years 11 and 12.  Here’s how they work.     

The most common incentives are known as Class 6b (industrial property) and Class 8 (commercial and industrial property).  They apply when property owners build new buildings, substantially rehabilitate or expand existing buildings and re-occupy vacant buildings (referred to as “abandoned property” in the law).   For commercial properties, Class 8 also requires that the property be located in a blighted area[1].  Class 6b does not include the blight requirement.
 
Recent modifications to the law have relaxed the vacancy requirement and allow industrial businesses who have operated in the same location for 10 years or more and can demonstrate an economic hardship to obtain an incentive.  As a result of these changes, more properties will qualify for these incentives.
 
Vacant Property
If property has been vacant long enough, the ordinance considers it “abandoned property” and incentives may apply.  Over the years, the definition of abandoned property has been expanded several times.  Recent changes to the law have continued the expansion allowing more taxpayers to take advantage of the vacancy provisions.
 
Under recent changes to the law, “abandoned property” includes:

• Property sold to a bona-fide purchaser that was vacant for at least 24 months prior to the sale. 
• Property sold to a bona-fide purchaser that was vacant for less than 24 months if there is a finding of “special circumstances” (more about that later).
• Property that has not been sold, but has been vacant for at least 24 months if there is a finding of special circumstances.
• Property that has not been sold, but has been vacant for at least 12 months if there is a finding of special circumstances.   This is a recent (non-permanent) change in the law that is called the TEERM Program.

The term “special circumstances” is not defined in the County ordinance, but typically means the property possesses some negative attribute (such as functional or economic obsolescence) that would justify granting the incentive.   The finding of special circumstances must be made by the municipality or the Cook County Board (if the property is in an unincorporated area).   Furthermore, the governmental officials may incorporate a “but-for test” meaning they may not support granting the incentive unless the taxpayer proves that the construction project or re-occupancy will not occur unless the incentive is granted. 
 
Applications for exemption under the TEERM program must be filed by November 30, 2018 and are not renewable.
 
Industrial Properties Without Vacancy
 Prior to the recent changes in the law, occupied industrial properties were not eligible for Class 6b incentives.  Under recent changes, however, occupied industrial properties may obtain an incentive under a program known as Class 6b SER Program if the municipality or County Board concludes a financial hardship exists and the business is not viable without the incentive.  The specific requirements of the SER Program are as follows: 

• An industrial enterprise must have occupied the property for at least 10 years;
• The industrial enterprise must prove the tax incentive is necessary for the business to “continue operations at the current location and maintain its staff” and without the incentive, the business would “not be economically viable causing the property to be in imminent risk of becoming vacant and unused.”
• The applicant does not receive any other tax incentives for the property.
• The municipality and the County Board find special circumstances exist and that the property is qualified for the SER Program.
• Application must be made before November 30, 2018.

 
The incentive under the SER Program is not renewable.

[1] The term “blighted area” means an area “certified as in need of substantial revitalization” under the Cook County Classification Ordinance.  This includes all properties located in Bloom, Bremen, Calumet, Rich and Thornton Townships and any property acquired through the Cook County Tax Reactivation Project.

Question:  
​You filed an appeal on my property and the assessment was reduced, buy my tax bill is higher than last year.  Where are the savings?

Answer:
​When your assessment is reduced because of a tax appeal, your taxes before exemptions will always be less than what they would have been had there been no reduction. You cannot see the savings by comparing this year’s bill to last year’s bill. You see the savings by comparing this year’s bill to the bill you would have received had your assessment not been reduced. 

​Your taxes are determined by the: assessed value, state equalization factor, and local tax rate.
 
Months before you received your bill, the Assessor placed an assessment on your property.  In a reassessment year, an assessment notice was mailed to you.
 
You contested that assessment and caused it to be reduced. The reduced assessment appeared on your tax bill and was used to compute your taxes.
 
But, since you won your appeal, you never saw the bill that would have been issued had the original assessment not be lowered.
 
The bill you received included the reduced assessment and not the original  Here’s what an actual tax bill looks like and  what the bill would have looked like had there been no assessment reduction.

​As you can see, the actual tax was lower than the tax that would have been billed had no reduction been obtained. That’s the savings.          
 
There are several factors that could have caused this year’s real estate tax bill to be greater than last year’s.

1. Equalizers and tax rates vary from year to year but tend to increase over time.
   
   1. This year’s equalization factor may have been higher than last year’s.
      
   2. This year’s tax rate could have been higher than last year’s.
2. Even if there was an assessment reduction, this year’s assessment may have been higher than last year’s assessment.

 
The tax savings that you realize because of an assessment appeal is the difference between the actual taxes billed and the taxes that would have been billed had no reduction been obtained. It is not the difference between this year’s taxes and last year’s taxes.