Guide for Commercial Analysts at the BOR

Guide for Analysts at the Cook County Board of Review

Mission Statement

The Cook County Board of Review (BOR) is dedicated to ensuring fair and equitable property tax assessments for all taxpayers. Our mission is to provide a transparent, efficient, and accessible process for the review and adjudication of property tax appeals, ensuring that all assessments are accurate and reflect the true market value of properties within Cook County.

Standard Approach to Adjudicating Commercial Property Tax Appeals

1. Overview and Objectives

Ensure Fair Assessments: All commercial property assessments must reflect accurate market values.

Provide Clear Guidelines: Establish clear procedures for analysts to follow, ensuring consistency and fairness.

Enhance Transparency: Maintain transparency in the adjudication process, fostering trust and accountability.

2. Assessment of Mixed-Use Buildings

Documentation Requirements:

Submit a completed Non-Hotel form with percentage owner-occupied/leased, number of commercial/residential units, market value/assessed value history, and income/expense history.

Provide a rent roll showing commercial and residential units with current rents or asking rental rates if vacant, including square footage and related leasing rates.

Appraisal Submission:

Must be considered and analyzed for valuation.

Include recent sales of comparable properties in the neighborhood for uniformity.

Income is no longer applicable to 2-11/2-12 properties.

Uniformity:

Ensure the greatest weight is given to uniformity and always check for it.

3. Assessment of 3-18's/Mixed Use Apartment Buildings

Rent Roll Submission:

Show square footage of commercial units for accurate valuation.

Allows analysts to see if it's market rent based on $/sf.

4. Assessment of 5-99's/Commercial Condos

Disclosure Requirements:

Total units in the building, associated PIN numbers, percentage of ownership of each unit, and all recent sales within the building.

Condo Valuation:

Should be considered/performed when there are recent sales within the subject building.

Appraisals:

Check against recent sales within the building itself.

5. Assessment of Nursing Homes

Income and Expense Ratios:

Use most recent income and measure historical expense ratios.

Expense ratios should be based on actual expenses with an allowance for FFE, but not to exceed 90%.

6. Assessment of Co-Ops (2-13's)

Valuation Considerations:

Consider recent sales in high-value Co-Ops, adjusting for differences in location, views, amenities, age, and condition.

Comparative Income/Expense Valuation:

May be considered, but adjustments listed must be taken into account.

7. Vacancy Procedures

Required Documentation:

Vacancy affidavit, attempts to lease, and interior pictures of vacancy.

Valuation Adjustments:

If going below appraised value due to vacancy, the property must be listed for lease.

8. Income Analysis

Disclosure Requirements:

Type of lease(s) in place, tenant’s obligations, and the latest full year of income supported by the rent roll.

9. Issue Spotting

Red Flags:

If the standard income/expense formula indicates a market value significantly below prior or market levels, prompt for further verification of data points, rental rates, and PGI submitted.

10. One-Note Guidelines

Written Explanation:

Explain how/why the decision was made, avoiding cut-and-paste evidence without context.

Inclusions in One-Note:

Commissioner/Analyst name, building description, township with tri-year, owner occupancy, historical market value with comparison units, income history, detailed rent roll, PGI calculation, and appraisal details.

11. Bench Hearings

Procedures:

Do not give a final market value decision at the hearing.

Attach a detailed One-Note if dissenting on an Analyst’s Hearing File and notify the Attorney of any changes.