July 6, 2021
BY LIZ BUTLER
Beginning August 1, 2021, any recipient of City of Chicago consent and support for a Cook County property tax incentive will be required to submit an annual report to the City’s Department of Planning and Development (“DPD”) by August 1 each year (“Annual Reporting Requirements”).
The Annual Reporting Requirements apply to recipients of City approval of Class 6b, Class 6b (special circumstances), Class 6b TEERM, Class 6b SER, Class 6b CEERM, Class 7a, Class 7b, Class 7c, Class 8, Class 8 TEERM, and Class 8 CEERM incentives (each, a “Property Tax Incentive”).
Recipients of City approval for a Property Tax Incentive must file an affidavit detailing the current status of the project for which the incentive was granted, certifying that the project meets any obligations or compliance requirements specified in the ordinance or resolution adopted by the City approving the tax incentive classification (or any redevelopment agreement entered into by the City and the recipient, as applicable). Additionally, the annual report must include:
- a jobs report providing anonymized information on each employee including the ZIP code of their primary residence, status as a full-time or part-time employee, total employment tenure in months, and a statement as to whether the employee’s wages are above or below the minimum base wage;
- any reports, affidavits, or other statements required to be filed with Cook County or the Cook County Assessor for the applicable annual period; and
- any other reports provided for in the ordinance or resolution adopted by the City approving the tax incentive classification (or any redevelopment agreement entered into by the City and the recipient, as applicable).
On or before October 1 of each year, DPD will forward the report to the Committee on Economic, Capital and Technology Development (“Committee”) and the alderman of the ward in which each property receiving a Property Tax Incentive is located.
The new reporting requirements result from an ordinance adopted by the Chicago City Council on September 9, 2020. The ordinance was sponsored and spearheaded by Alderman Gilbert Villegas, the current chairman of the Committee.
Failure to comply with the Annual Reporting Requirements could result in revocation of a Property Tax Incentive. In addition to the new reporting obligations, the City Council in 2020 adopted procedures for the revocation of these types of development incentives. Pursuant to the new requirements, the Committee may consider formal resolutions calling for the revocation of a Property Tax Incentive. Failure to submit the annual report is a factor that the Committee may consider when weighing the revocation of an Incentive.
If you have questions on how to comply with the new Chicago Annual Reporting Requirements, contact Liz Butler or any Elrod Friedman LLP attorney.