Suburban Industrial Building<sup>1</sup>

Suburban industrial building
Over $1.2 Million in tax savings and refunds

Suburban Industrial Building<sup>1</sup>

back to results pageResults

Suburban Industrial Building1

Highlights

Property Type: Suburban industrial building1

Savings: Over $1.2 Million in tax savings and refunds

Location:  Northwest suburban Cook County, Illinois

Description:  12,000 square foot industrial building

Key Results:

  • Convinced Assessor that building was used for industrial purposes and eligible for class 6(b) tax incentive
  • Obtained class 6(b) tax incentive for 12-years
  • Obtained renewal of class 6(b) incentive for another 12 years
  • Reduced underlying assessed market value
  • Over $1.2 Million in tax savings and refunds

The Challenge

Elliott & Associates has represented the owner of a 12,000 square foot industrial building for over 17 years.   Like all commercial taxpayers in Cook County, this client experiences high property taxes that are 2 to 3 times greater than in the collar counties.   In this case, properties in neighboring DuPage County (only a few miles away) were substantially lower.  The client was aware that Cook County offers generous tax incentives for industrial property owners (called 6b) that would reduce his assessment substantially (by about 55%) for 12 years2.  The client contacted the Assessor about the incentive, but was discouraged from pursuing it because the Assessor perceived his business to be construction services rather than industrial use (manufacturing and/warehousing).

Our Approach

Elliott pursued a 6b tax incentive for the client.  We convinced the County to award the incentive by demonstrating that a substantial portion of the building was used for manufacturing and warehousing of concrete products used in residential, commercial and road construction.  This qualified as an industrial use for which class 6(b) was eligible.  The incentive was awarded in 2000 and was renewed in 2010 for another 12 years.

We also reviewed the underlying valuation of the property (before the incentive was applied) and believed it was excessive.  We filed several assessment appeals over the years to the Cook County Assessor, Cook County Board of Review, Property Tax Appeal Board and Circuit Court that caused the underlying assessed market value, and resulting tax bills, to be reduced and refunds to issue.  These benefits were in addition to the savings resulting from the Class 6b tax incentive.

Results

 The 6b incentive was awarded in 2000 and renewed in 2010 for 12 more years and has saved the client over $900,000 to date.  Reductions in the underlying market value of the property have saved the client an additional $300,000 to date.  For this client taxes are generally on par with taxes for comparable properties in neighboring DuPage County.


 1Similar but not actual building

2Assessments were reduced by 60% for the first 10 years, 40% in year 11 and 20% in year 12