By James P. Regan, As published by GlobeSt.com, April 2003
Over the past decade Cook County’s industrial base has declined significantly. The chief culprit is Cook County’s real estate tax structure. Industrial properties in Cook County can expect to pay real estate taxes twice the amount paid in its five neighboring counties.
To offset the loss of industrial facilities to its neighbors, Cook County has a ten year incentive program for newly constructed and rehabbed plants and for reoccupied abandoned facilities. The incentive essentially reduces the real estate taxes to levels comparable to that of the surrounding counties. Since owners were relocating at the end of the incentive, the County extended the incentive for an additional ten years as long as the local municipality in which the property was located approved.
The problem is that revenue strapped municipalities are withholding such approval. With attractive opportunities outside Cook County the short term outlook is further erosion of the County’s industrial tax base.
James P. Regan is a partner in the Chicago law firm of Fisk Kart Katz and Regan, Ltd., the Illinois member of American Property Tax Counsel. He can be reached at jregan@proptax.com.