Elk Grove Village to charge for business tax breaks

Elk Grove Village will start charging a fee to companies applying for a Class 6B status adjustment with the county, a tax break that offers expanding businesses significant savings.

The $500 fee will cover the village’s costs of putting the information together for the applicant, Elk Grove Village Mayor Craig Johnson said.

“We’ve done quite a few 6Bs. We never charged,” Johnson said. “Every other (neighboring) town has been charging for it.”

Elk Grove Village has 3,600 businesses. Last year, the village granted 30 6Bs to manufacturing businesses.

“Most 6Bs we’ve granted, I’ve seen them come through 200 to 300 jobs,” Johnson said.

Eligibility requirements for 6B status are new construction, substantial renovation or purchase of buildings that have been vacant for a period of time.

Property approved for Class 6B exemption allows the property owner to have the assessment level lowered for a period of 12 years. The assessment schedule is 10 percent of fair market value for 10 years, then 15 percent in the 11th year, and 20 percent in the 12th year.

Industrial property is currently assessed at 25 percent of fair market value in Cook County. All 6B status changes must be approved by the county.

“The advantage to the business owner is it actually becomes a significant savings in tax dollars,” Johnson said.

The fee goes into effect June 1.