Property Tax Update
Spring 2000

Industrial and Multi-Unit Residential Benefit from New Classification Ordinance

Cook County Assessor Houlihan has proposed a revision in the County Classification Ordinance. The result will be beneficial to industrial and multi-unit residential property owners. The County Board appears likely to adopt the proposal.  Under the revised Ordinance, for the 2000 tax year, industrial property would be assessed at 33% of its fair market value instead of the current 36%. In 2001, the assessment level for multi-family residential properties would be reduced from 33% to 30%. That assessment level would decrease further, to 26%, in 2002.  The assessment level for most commercial property would remain unchanged at 38% of market value, at least for the year 2000.  We will keep you informed of the status of this proposal.

Industrial Incentive Extended 10 Years
Effective January 1, 2000, the Cook County Board approved an amendment to the Real Estate Classification Ordinance that contained major changes in the 6b incentive. Industrial property is normally assessed at 36% of its market value, however, under this incentive, industrial real estate is eligible for a 16% level of assessment.  The new amendment provides that the incentive assessment of 16% is renewable for an additional period of ten years.  The Class 6b incentive assessment is available to newly constructed industrial buildings, rehabbed industrial buildings and abandoned buildings which are reutilized.  It is most important that application be made to the Assessor’s Office for the Class 6b Incentive prior to any construction or occupancy of abandoned properties.  For more detailed information, please call our office. We have extensive experience in filing the application for clients.

Fisk Kart and Katz News

• We are pleased to announce the expansion of our offices to occupy the entire ninth floor of the Temple Building. We have also implemented the latest in office technology which enables us to better serve our clients into the new millennium.

• Bob Tonos was recently appointed Chairman of the Real Estate Taxation and Assessment Appeals Subcommittee of the Chicago Bar Association. This Subcommittee reviews and proposes legislation dealing with the assessment of real property in Illinois. Mr. Tonos was previously the legislative liaison for the Real Estate Taxation Committee.
• On June 21, 2000, Jim Regan will moderate a panel on the topic of real estate valuation and appraisal issues at the Real Estate Investment Association’s (REIA) monthly meeting.  If you are not a member of REIA but would like to attend as our guest, please call Linda Frattura at 312-726-1833.

American Property Tax Counsel News

• Marty Katz was presented with a leadership award at the recent APTC meeting in Naples, Florida for his efforts as a founding member and as APTC’s first President.
• John Garippa of Garippa and Davenport in New Jersey has been elected President of APTC to succeed Marty Katz who served as President for six years. James Popp of Popp & Ikard in Texas was elected Treasurer. Other members of the Executive Committee are Marty Katz, Stephen Paul of Baker & Daniels in Indianapolis and Stan Fineman of Wilkes, Artis, Hedrick and Lane, Chtd. in Washington, D.C.
• APTC announced that this year’s Seminar will address real estate tax issues relating to industrial properties and will be chaired by Jim Regan of Fisk Kart and Katz. The Seminar will be held at the Scottsdale Princess on November 10 - 11, 2000.
• APTC’s 1999 Seminar was held on November 12 - 13, 1999, where industry representatives and APTC members discussed property tax strategies for deregulated utilities and telecommunications companies.  The following topics were addressed:

1.  Defining the Boundary Between Taxable Property and Nontaxable Intangible Assets and Rights;
2.  Intangibles in a Changing Business and Legal Environment;
3.  Central v. Local Assessment - Jurisdictional Issues;
4.  Removing Intangible Value from Power Plant Valuations;
5.  Creating a Level Playing Field for Utilities and Telecommunications Companies.

If you would like to receive the Seminar program, please call 877-TAX-APTC or make your request on-line at www.aptcnet.com.

• APTC welcomes Elias, Books, Brown, Peterson & Massad, P.C. of Oklahoma City, OK, as a new member. This addition expands APTCs ability to serve property tax needs of our clients on a national basis.
• On March 21 - 24, 2000, the American Bar Association and the Institute for Professionals in Taxation hosted their annual Sales / Use Tax and Property Tax seminar at Le Meridien Hotel in New Orleans, Louisiana. Three APTC members participated in panel discussions.