Property Tax Updates

Article 1: Cook County Offers New Property Tax Incentive to Promote Commercial Development

The Class 7c incentive—the Commercial Urban Relief Eligibility (“CURE”)—is a new five-year commercial property tax incentive intended to encourage rehabilitation and redevelopment of vacant or abandoned commercial properties in the City of Chicago and suburban Cook County. The Cook County Board of Commissioners approved the incentive for projects that would not otherwise be economically feasible without assistance. The Class 7c incentive fills the large gap left by the Class 7a and 7b programs. This new program incentivizes redevelopment of properties before blight occurs, while still ensuring that the property is in actual need of assistance.

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Article 2: Tennessee—Sales and Use Tax:

Voters in Fayette County, Tennessee, approved a referendum that increases the local sales tax rate from 2.25% to 2.75% effective April 1, 2015. The rate applies to all taxable sales of tangible personal property made on or after April 1, 2015, as well as to sales of taxable services by sellers. The corresponding local consumer use tax rate also increases to 2.75% effective April 1, 2015.

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Article 3: Indiana Property Tax

Indiana State Senate Bill 436, targeted at changing how “special purpose” properties are valued, The bill appears to have strong bi-partisan support.

The bill proposes that “special purpose” property is valued according to the taxpayer’s federal tax records. It states that only the cost approach should be used for appraisal purposes and improvement costs should be dictated by the federal tax depreciation records of the owner. Essentially, the bill eliminates the application of economic or functional obsolescence and more importantly the market and income approaches.

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