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CarMax SUPERSTORES
Estimates of Property Taxes
The firm assisted
CarMax Superstores, a new, large, used-car dealership, in estimating
the property taxes it is likely to pay in locations in Hillside,
Tinley Park, Gurnee, Waukegan, and Chicago, Ill.
The methodology
provided estimates based on comparable facilities and construction
costs. These facilities were judged to be more like new-car dealers
than used-car dealers due to the scale and quality of CarMax’s
dealerships. Therefore, they were analyzed on a unit-assessment basis
to apply to the proposed facility which was larger in building and
land area. Impacts of locating in
Will
County
instead of
Cook
County
were evaluated in the case of the
Tinley Park
site.
Results: In
Hillside
, the estimates helped provide the basis for an agreement to share
sales tax revenue between CarMax and the Village, while protecting the
Village from any potential reduction in property taxes. The project
was approved. In Tinley Park, the substantiation of the dramatic
differences in taxes between Cook and Will Counties helped lead to a
property tax abatement by the school districts.
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