If you own a commercial property, you must pay property taxes on this real estate. The taxes paid by you on your property go to your local area to fund schools and other local initiatives.
How much you pay in property taxes can vary from year to year based on your property’s assessed value and changing tax rates. The following are some factors that can affect what you pay in property taxes on a piece of commercial real estate.
During an assessment, according to the Cook County Assessor’s Office, your property’s history will undergo a review. This review will look at the property’s tenants, class, business operations and external photography. Understanding your property’s characteristics can group it with other similar properties.
The assessment will also analyze the amount of income generated by your property and estimated expenses. In many cases, rent is the main source of income for commercial real estate. Expenses can include fees for professional services, repair costs, property management fees and insurance.
Most commercial properties have some level of vacancy. Your assessment may consider reductions in your property taxes when your building does not serve its intended use because of a situation outside of your control.
Once the assessment process is complete, the CCAO will determine your effective tax rate for your commercial property. If you do not agree with the amount of property taxes you must pay on a commercial property you own, you can dispute this taxation by asserting your legal rights.