Illinois Classification - Local Option

State

Illinois

Year

2021

Does State Classify

Yes

Different Ratios

Yes

Different Rates

No

Local Option

Yes

Special Exemptions

The level of assessment or rate on the highest class cannot be more than 2.5 times that of the lowest class.

Number of Classes

15

Property Classification

Assessment Ratio Description Name Notes Tax Rate
10Unimproved real estate, vacant land, minor improvements on vacant landClass 1 Vacant Land
10Farm, residential property with a house, apartment building with 6 or less units, condo, coops, government-subsidized housing, single room occupancy building. This class also includes Bed and Breakfast with six or fewer rentable units.Class 2 Residential Bed-and-breakfast properties that are owner-occupied and qualify for homeowner-type exemptions, will remain in this class, although identified as Class 10. Otherwise they are in class 5, assessed at 25%.
10This class includes apartment buildings with 7 or more units, including modern row houses in a single development or one or more contiguous parcels in common ownership. Class 3 Multi Family
20Real estate owned and used by a not-for-profit corporation in furtherance of the organization's purposeClass 4 Not For ProfitIf property is used for residential purposes, it is classified in the appropriate residential class.
25Real estate used for industrial purposes Class 5b
20Class 6A Industrial IncentiveIncentive provided for 8 years, subsequent years at 25%.
10Industrial development or redevelopment and abandon property. Class 6bLocal ordinance is required stating that the incentive is needed for development to occur. Assessment ratio of 10% is available for the first 10 years and any subsequent renewal period. If not renewed the assessment level is 15% in year 11 and 20% in year 12. The classification may be renewed, with the number of renewal period requests is not limited. Certain abandon property defined as abandoned under special circumstances may participate in Temporary Emergency Economic Recovery Modification (TEERM) program, the Sustainable Emergency Relief (SER) program, or the Critical Emergency Employee Modification (CEERM) program.
10Brownfields clean up and redevelopment of either industrial or commercial propertiesClass CTo be eligible for Class C, a "No Further Remediation Letter" must have been issued for the property. In addition, remediation costs must total at least $100,000. Assessment ratio of 10% is applied for the first 10 years, 15% in year 11 and 20% in year 12.
10Commercial development or redevelopment with costs under $2 million (7a) and with costs over $2 million (7b)Class 7a and Class 7bAssessment ratio of 10% is applied for the first 10 years, 15% in year 11 and 20% in year 12. After the 12-year period the real estate shall revert to the applicable classification. To qualify for either class, the property must be in an area designated as conservation, blighted or renewal area and that the real estate taxes have been declining during the last 6 years. The local government must pass an ordinance or resolution stating that the government supports the project. Classification in Class 7a and 7b may be renewed. The number of renewal period is not limited.
10Commercial Urban Relief Eligibility (CURE)Class 7cAssessment ratio of 10% is applied for the first 3 years, 15% in year 4 and 20% in year 5. This is renewable for one additional 5 year period. To qualify for this class, the property's assessed value must have declined in 3 of the past 6 years; the proposed project is viable and likely to add to the value of the property. The project application must be submitted to Economic Development Advisory Committee and the Assessor, and the local government must adopt an ordinance or resolution supporting the project.
10Commercial and industrial development in areas of severe economic stagnation, includes newly constructed and substantially rehabilitated buildings Class 8Assessment ratio of 10% is available for the first 10 years and any subsequent renewal period. If not renewed the assessment level is 15% in year 11 and 20% in year 12, and 25% in all subsequent years.
10Low-income multifamily apartments with 7 or more units that has undergone major rehabilitation or new constructionClass 9At least 35% of the units must be leased at rents affordable to low- or moderate-income persons or households. Assessment ratio of 10% is available for an initial 10 year period and is renewable upon application for additional 10-year periods.
10Landmark preservation for commercial, industrial non-profit and apartment properties that have undergone substantial rehabilitationClass LFor industrial and commercial property a minimum investment of 50% of the buildings assessed value must be made in an approved rehabilitation project. The land portion of the assessment is also eligible for the incentive the the building has been vacant or unused continuously for the prior 2 years. Assessment ratio of 10% is available for 10 years and may be renewed as long as property continues to qualify and request for designation is made. If not renewed the rate will be 15% in year 11, and 20% in year 12 and back to the regular assessment there after.
10Section 8 multifamily apartments with 7 or more unitsClass SAssessment ratio of 10% is available for the term of the Section 8 contract renewal under the mark up to market option.
25All real estate not included in classes 1, 2, 3, 4, 5b, 6b, C, 7a, 7b, 8, 9, S, or LClass 5a

Record ID

IL002_CL21

Footnotes

Counties with population over 200,000 or more are authorize to classify and tax property according to its use. Classification has been adopted only in Cook County. Several classes provide multi-year incentives. These classes, 6b, C, 7a and b, 8, 9, S and L, provide lower ratios in an initial period with higher ratios in subsequent years. The initial ratio is presented as the ratio below and future ratios are presented in the note for each class. Upon expiration or termination of the incentive, the property shall revert to the applicable classification.

Sources

35 Ill. Comp. Stat. §200/9-150;
Cook County Ordinance §74-63;
Cook County Ordinance §74-64 (in effect for 2021)
Ill. Const. Art. IX §4(b)
Cook County Assessor's Office, Definitions for the Codes for Classification of Real Property, April 2018
[https://www.cookcountyassessor.com/assets/forms/classcode.pdf Accessed 11/08/2022]
View Archived Source

Cook County Assessor's Office Class 6b Eligibility Bulletin
[https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/cls6bb.pdf Accessed 11/08/2022]
View Archived Source

Cook County Assessor's Office Class 7a Eligibility Bulletin, 2019
[https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/cls7ab.pdf Accessed 11/10/2022]
View Archived Source

Cook County Assessor's Office Class 7b Eligibility Bulletin
[https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/cls7bb.pdf Accessed 11/10/2022]
View Archived Source

Cook County Assessor's Office Class C Eligibility Bulletin 2018
[https://prodassets.cookcountyassessor.com/s3fs-public/form_documents/clscb.pdf Accessed 11/10/2022]
View Archived Source

Cook County Assessor's Office Class L Eligibility Bulletin
[http://www.cookcountyassessor.com/assets/forms/clslb.pdf Accessed 11/10/2022]
View Archived Source



Cook County Ordinance 18-4201 created CEERM program and removed the sunset provisions for TEERM and SER programs.

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