Legal Framework: Section 318 Property Classifications

As a Commissioner of the Cook County Board of Review, I present this legal argument to contest the recent reclassification of properties categorized under Class 318 and 212 by the Cook County Assessor’s Office. The Assessor's attempt to reclassify these properties from residential to commercial for taxation purposes is in direct contradiction to the clear and explicit language of the Cook County Real Property Assessment Classification Ordinance, specifically Section 74-63.

1. Legal Framework: Cook County Real Property Assessment Classification Ordinance

The Cook County Real Property Assessment Classification Ordinance, Section 74-63, clearly outlines the rules for the classification of properties. Specifically:

Class 2 includes real estate used for residential purposes, such as buildings with no more than six living units or buildings used for both commercial and residential purposes where the building measures less than 20,000 square feet of above-grade space​.

Class 3 applies to all other real estate used for residential purposes that do not fall under other classifications​.

These provisions clearly indicate that properties like Class 212 and Class 318, which include mixed-use buildings with both residential and limited commercial space, should be taxed under residential rates so long as they meet the size and usage thresholds defined in the ordinance. The ordinance leaves no room for administrative flexibility or reinterpretation by the Assessor’s Office regarding the nature of these classifications.

2. Plain Language of the Ordinance: The Assessor’s Actions Violate Statutory Interpretation

The Assessor’s reclassification of these properties as commercial represents a clear misapplication of the ordinance. The language of the ordinance is clear: mixed-use properties that meet specific criteria—such as having fewer than six units or less than 20,000 square feet—must remain classified under residential rates, even if a portion of the property is used commercially.

Class 2(c) explicitly includes properties that are improved with both commercial and residential uses, provided they meet the size and unit requirements. These properties should continue to benefit from the residential rate of 10% under the ordinance.

3. Consistency and Legislative Intent

Historically, the Cook County Assessor’s Office has adhered to these provisions, consistently classifying these properties under residential tax rates. The current reclassification represents a significant and unjustified departure from this long-standing practice.

The legislative intent behind the ordinance is clear: mixed-use properties with a primary residential function should not be penalized with higher commercial tax rates. These classifications were designed to provide relief to property owners of small mixed-use buildings, encouraging residential and commercial coexistence in these structures.

4. Administrative Overreach

The Assessor's attempt to reclassify these properties without proper statutory backing constitutes administrative overreach. The Assessor's Office does not have the authority to unilaterally reclassify properties in contradiction to the ordinance. Such actions violate the principles of administrative law and constitute an arbitrary use of administrative discretion.

If the Assessor believes a change in classification rules is necessary, the proper process is through legislative action, not through administrative reinterpretation of the ordinance.

5. Financial Impact on Property Owners

The reclassification of these properties to commercial would significantly increase the tax burden on property owners, raising the assessment rate from 10% to 25%, thereby imposing a substantial financial strain on small mixed-use property owners. This reclassification is not only legally improper but would also disrupt the economic stability of small residential-commercial buildings across the county.

The ordinance's protective structure ensures that properties like Class 318 and Class 212 remain viable through appropriate taxation. By shifting to commercial rates, the Assessor is undermining the financial feasibility of these properties in a manner contrary to the ordinance's purpose.

6. Conclusion and Remedy Sought

In conclusion, based on the clear language of the Cook County Real Property Assessment Classification Ordinance, Section 74-63, the Assessor’s reclassification of properties under Class 318 and Class 212 is both improper and illegal. These properties must remain classified as residential under the 10% tax rate, as clearly defined by the ordinance.

I urge the Cook County Board of Review to overturn the Assessor’s decision, restore the proper residential classification for these properties, and ensure that property owners are not subjected to unfair and unlawful tax increases. The Assessor’s actions must be deemed invalid, and the ordinance’s plain meaning should be upheld.

This legal argument defends not only the integrity of the ordinance but also the rights of property owners to benefit from the residential tax rates that the law guarantees.