The Class 7a classification is designed to encourage commercial development throughout Cook County by offering a real estate incentive for the development of new commercial facilities, the rehabilitation of existing commercial structures, and the commercial reutilization of abandoned buildings on properties that have been designated as blighted by the community. Additionally the project costs need to be less than $2 million.
The goal of Class 7a is to attract new business, stimulate expansion and retention of existing business and increase employment opportunities.
How It Works
Under the incentive provided by Class 7a, qualifying commercial real estate would be eligible for a reduced assessment from the date that new construction or substantial rehabilitation is completed and initially assessed or, in the case of abandoned property from the date of substantial re-occupancy.
Properties receiving Class 7a will be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in the 12th year. This constitutes a substantial reduction in the level of assessment and results in significant tax savings. In the absence of this incentive, industrial real estate would normally be assessed at 25% of its market value.
Real estate used primarily for commercial purposes", which is defined as: "Any real estate used primarily for buying and selling of goods and services, or for otherwise providing goods and services, including any real estate used for hotel and motel purposes."
New construction, substantial rehabilitation or reutilization of abandoned buildings
Location anywhere in Cook County on properties that have been designated as "blighted" within the community.
Assessment levels reduced from the commercial rate of 25% for 12 years:
10% for 10 years
15% in Year 11
20% in Year 12
Return to 25% in Year 13
Application to the Assessor and municipal resolution must be filed before construction of new buildings, or the substantial rehabilitation or reoccupancy of existing buildings begins.
Municipal resolution in support of application is required.