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PROPOSED ORDINANCE AMENDMENT
YOUTH EMPLOYMENT CLASSIFICATION
WHEREAS, areas of Cook County have seen substantial unemployment in the last few years, with youth between the ages of 16 and 24 experiencing the highest rate of unemployment at above 50%; and
WHEREAS, the Cook County Board has created property tax classifications to retain and encourage economic development in areas of need in Cook County; and
WHEREAS, these property tax classifications have also facilitated commercial and industrial development, with incentives that result in the reduction in property taxes offered for periods of 12 years; and
WHEREAS, applicants seeking these incentives comply with a list of requirements that include: location in identified blighted areas, increase employment opportunities and the need for public assistance to accomplish modernization, rehabilitation and development; and
WHEREAS, it is incumbent upon this body to seek long term solutions to the multifaceted impact of the economic hardships Cook County residents of all ages face.
NOW THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners, that Chapter 74 - Taxation, Article II - Real Property Taxation, Division 2 - Classification System for Assessment, Section 74, of the Cook County Code is hereby amended as follows:
Sec. 74-61. - Purpose.
The County Board finds and declares that:
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(10) The creation of a new property tax classification to encourage employment and increase employment opportunities for youth as defined in Sec. 74-62 (b) and contribute to the long-term economic development and growth of the real property tax base.
Sec. 74-62. - System established; terms defined.
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(b) Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:
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Youth means a person of age 16 to 24 of low- or moderate-income or belonging to a household of low- or moderate-income as defined in this Section.
Sec. 74-63. - Assessment classes.
Real estate is divided into the following assessment classes:
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(16) Class E. Real estate property used for industrial or commercial purposes not qualifying for any other classifications stated in this Section.
a. To be eligible for a Class E classification an applicant must prove intent to employ youth as defined in Sec. 74-62 for day-to-day operations of the business, part-time seasonal, part-time permanent, full-time permanent or full-time seasonal employment per year as follows:
1. The monetary value of the amount of employment hours per year corresponding to at least twice the monetary value of savings realized by this classification in the real estate assessment.
b. An applicant must obtain from the municipality in which the real estate is located or the County Board if the real estate is located in an unincorporated area, an Ordinance or Resolution expressly stating that the municipality or County Board, as the case may be, has determined that the incentive provided by Class E is necessary for economic development and/or youth employment to occur on that specific real estate and that the municipality or County Board, as the case may be, supports and consents to the Class E application to the Assessor. A certified copy of the Ordinance or Resolution must be filed at the time of application for the Class E classification. A copy of that Ordinance or Resolution, whichever is submitted, will be forwarded by the Assessor's Office to the Secretary of the Board for distribution to the members of the County Board from the affected districts.
c. To qualify for the Class E classification, an application for Class E classification must be filed with the Office of the Assessor.
d. The initial Class E classification shall continue for a period of 5 years for both industrial and commercial property complying with employment of youth as stated in this Section. This incentive may be renewed during the last year a property is entitled to a 90-percent assessment level, if the following requirements are met:
1. The taxpayer notifies the Assessor's Office of the taxpayer's intent to request renewal of the incentive from the municipality, or the County Board if the real estate is located in an unincorporated area;
2. The municipality in which the real estate is located or the County Board, if the real estate is located in an unincorporated area, adopts a Resolution expressly stating that the municipality or County Board, as the case may be, has determined that the industrial or commercial use of the property is necessary and beneficial to the local economy, and supports and consents to renewal of the Class E; and
3. A copy of that Resolution and a completed renewal application are filed with the Office of the Assessor before the expiration of the 90-percent assessment level period.
The number of renewal periods is not limited as long as the property continues to apply, qualifies for Class E and complies with the youth employment requirements stated in this Section. Any property which applies for Class E treatment on or before the adoption date of the ordinance from which this division is derived will be eligible for this renewal term at the end of their original incentive period subject to the above requirements. The notice of intent to request renewal which is filed with the Assessor's Office will be forwarded by the Assessor's Office to the Secretary of the Board for distribution to members of the County Board from the effected districts.
e. The Assessor shall review the application and supporting documentation to determine eligibility for the Class E classification. The Assessor may adopt rules consistent with the foregoing necessary to ensure proper review of all factors relevant to determine initial and continued eligibility for the benefits provided under the Class E classification.
f. The Assessor shall provide by rule for the filing of triennial reassessment reports by all Class E recipients as to the use of the property and the number of youth employed at the Class E site. Such reports shall be verified. Failure to file such reports within the time established by the Assessor's rules shall result in loss of the incentive for the period relating to the non-filing.
Sec. 74-64. - Market value percentages.
The Assessor shall assess, and the Board of Review shall review, assessments on real estate in the various classes at the following percentages of market value:
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(16) Class E: 90 percent for first 5 years and for any subsequent 5-year renewal periods.
Sec. 74-73. - Revocation or cancellation of incentive classification.
(a) The following Incentive Classifications are subject to revocation herein: Class 7c. and Class E.
(b) The incentive may be revoked under the following circumstances:
1. By rule, as provided by the Assessor;
2. By the County Board by Resolution or Ordinance;
3. By the County Board by Resolution or Ordinance at the request of the Municipality's submission of a Municipal Resolution or Ordinance; and
4. By request of the taxpayer to cancel.
In case of revocation or cancellation, the Incentive Classification shall be deemed null and void for the tax year in which the incentive was revoked or cancelled as to the subject property. In such an instance, the taxpayer shall be liable for and shall reimburse to the County Collector an amount equal to the difference in the amount of taxes that would have been collected had the subject property been assessed as a Class 5 property and the amount of taxes collected under the Incentive Classification as determined by the Assessor.
Effective date: This ordinance shall be in effect immediately upon adoption
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