| Consolidation or Splits of | Should I consolidate my two or more parcels of property |
| Property | into one? If you are a property owner with separate |
| page 1 of 2 | adjacent lots I hope this article gives you some insights |
| Table of Contents | regarding the pros and cons of consolidation. |
| There may be some tax advantages to consider when a |
| property owner has no intentions of selling a separate |
| vacant lot that is adjacent to their principle residence. It is |
| possible for two smaller lots to have a higher combined |
| assessed value than one single lot of the same size. Some |
| exceptions may exist if one lot has some particular |
| problem that affects Market Value. Because land is |
| unique each situation must be looked at on a case by case |
| basis. |
| In general a larger piece of land will usually be assessed |
| less than two equally split lots that total size equal the |
| single parcel. The reason is that land like other marketable |
| commodities exhibit economy of scale in the market place. |
| This just means as lot size increases the selling price per |
| square foot decreases or quantity discount. |
| Another tax advantage of consolidation is all exemptions |
| an owner is entitled to only apply to their principle |
| residence. By consolidating your adjacent parcel into one |
| parcel any exemptions’ such as General Homestead, |
| Home Improvement, Regular Senior, and Senior Freeze will |
| apply to the total now. None of these exemptions apply |
| to a separate lot. As an example suppose your house in |
| on a fifty-foot wide lot and you own the adjacent same |
| size lot. You want to construct a detached garage but |
| there is no room on lot that your house is located. You |
| decide to construct the garage on this separate lot. A |
| home improvement exemption would not apply in this |
| instance. Regarding the senior freeze exemption the best |
| scenario is to consolidate the lots prior to getting the |
| exemption so if the combined assessed value is lower the |
| base assessment with the senior freeze will be lower. |
| Often the only advantage to keeping lots separate is |
| holding them for resale like an investment, perhaps a |
| home site for a relative, or to avoid a re-zoning process if |
| the new proposed parcel's size would not be compatible |
| with it's present zoning. Zoning laws may prevent having |
| a smaller lot split out from a larger lot once they are |
| consolidated together. Also check with the zoning |
| official that the consolidation or split you are planning |
| can be placed into a zoning category such as R1, E1, A1 |
| etc. Because of a consolidation or split the original |
| parcels present or grandfather zoning may no longer |
| apply. This may require a zoning hearing to get the parcel |
| re-zoned to comply with the current zoning ordinance. |
| Anyone can fill out a property consolidation form at the |
| Table of Contents | Will County Mapping Dept. It takes a year for mapping to |
| page 1 of 2 | complete the consolidation process and assign a new |
| Next to view page 2 | Property Identification Number. Please call the assessor’s |