HB4210 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4210

 

Introduced , by Rep. Maria Antonia Berrios

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7
65 ILCS 5/11-74.4-8  from Ch. 24, par. 11-74.4-8

    Amends the Illinois Municipal Code. Provides that in municipalities with more than 1,000,000 inhabitants, all surplus funds in the special tax allocation fund shall be distributed annually within 180 days after the close of the municipality's fiscal year by being paid by the municipal treasurer to any public school district operating under general school law in the municipality. Further provides that if there are 2 or more school districts operating under general school law in the municipality, the funds shall be disbursed proportionately to the number of students enrolled in each district. Prohibits special charter districts from receiving these surplus funds. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-7 and 11-74.4-8 as follows:
 
6    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
7    Sec. 11-74.4-7. Obligations secured by the special tax
8allocation fund set forth in Section 11-74.4-8 for the
9redevelopment project area may be issued to provide for
10redevelopment project costs. Such obligations, when so issued,
11shall be retired in the manner provided in the ordinance
12authorizing the issuance of such obligations by the receipts of
13taxes levied as specified in Section 11-74.4-9 against the
14taxable property included in the area, by revenues as specified
15by Section 11-74.4-8a and other revenue designated by the
16municipality. A municipality may in the ordinance pledge all or
17any part of the funds in and to be deposited in the special tax
18allocation fund created pursuant to Section 11-74.4-8 to the
19payment of the redevelopment project costs and obligations. Any
20pledge of funds in the special tax allocation fund shall
21provide for distribution to the taxing districts and to the
22Illinois Department of Revenue of moneys not required, pledged,
23earmarked, or otherwise designated for payment and securing of

 

 

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1the obligations and anticipated redevelopment project costs
2and such excess funds shall be calculated annually and deemed
3to be "surplus" funds. In the event a municipality only applies
4or pledges a portion of the funds in the special tax allocation
5fund for the payment or securing of anticipated redevelopment
6project costs or of obligations, any such funds remaining in
7the special tax allocation fund after complying with the
8requirements of the application or pledge, shall also be
9calculated annually and deemed "surplus" funds. In
10municipalities with less than 1,000,000 inhabitants, all All
11surplus funds in the special tax allocation fund shall be
12distributed annually within 180 days after the close of the
13municipality's fiscal year by being paid by the municipal
14treasurer to the County Collector, to the Department of Revenue
15and to the municipality in direct proportion to the tax
16incremental revenue received as a result of an increase in the
17equalized assessed value of property in the redevelopment
18project area, tax incremental revenue received from the State
19and tax incremental revenue received from the municipality, but
20not to exceed as to each such source the total incremental
21revenue received from that source. The County Collector shall
22thereafter make distribution to the respective taxing
23districts in the same manner and proportion as the most recent
24distribution by the county collector to the affected districts
25of real property taxes from real property in the redevelopment
26project area. In municipalities with 1,000,000 or more

 

 

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1inhabitants, all surplus funds in the special tax allocation
2fund shall be distributed annually within 180 days after the
3close of the municipality's fiscal year by being paid by the
4municipal treasurer to any public school district operating
5under general school law in the municipality. If there are 2 or
6more school districts operating under general school law in the
7municipality, the funds shall be disbursed proportionately to
8the number of students enrolled in each district. No special
9charter districts shall receive surplus funds under this
10subsection.
11    Without limiting the foregoing in this Section, the
12municipality may in addition to obligations secured by the
13special tax allocation fund pledge for a period not greater
14than the term of the obligations towards payment of such
15obligations any part or any combination of the following: (a)
16net revenues of all or part of any redevelopment project; (b)
17taxes levied and collected on any or all property in the
18municipality; (c) the full faith and credit of the
19municipality; (d) a mortgage on part or all of the
20redevelopment project; or (e) any other taxes or anticipated
21receipts that the municipality may lawfully pledge.
22    Such obligations may be issued in one or more series
23bearing interest at such rate or rates as the corporate
24authorities of the municipality shall determine by ordinance.
25Such obligations shall bear such date or dates, mature at such
26time or times not exceeding 20 years from their respective

 

 

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1dates, be in such denomination, carry such registration
2privileges, be executed in such manner, be payable in such
3medium of payment at such place or places, contain such
4covenants, terms and conditions, and be subject to redemption
5as such ordinance shall provide. Obligations issued pursuant to
6this Act may be sold at public or private sale at such price as
7shall be determined by the corporate authorities of the
8municipalities. No referendum approval of the electors shall be
9required as a condition to the issuance of obligations pursuant
10to this Division except as provided in this Section.
11    In the event the municipality authorizes issuance of
12obligations pursuant to the authority of this Division secured
13by the full faith and credit of the municipality, which
14obligations are other than obligations which may be issued
15under home rule powers provided by Article VII, Section 6 of
16the Illinois Constitution, or pledges taxes pursuant to (b) or
17(c) of the second paragraph of this section, the ordinance
18authorizing the issuance of such obligations or pledging such
19taxes shall be published within 10 days after such ordinance
20has been passed in one or more newspapers, with general
21circulation within such municipality. The publication of the
22ordinance shall be accompanied by a notice of (1) the specific
23number of voters required to sign a petition requesting the
24question of the issuance of such obligations or pledging taxes
25to be submitted to the electors; (2) the time in which such
26petition must be filed; and (3) the date of the prospective

 

 

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1referendum. The municipal clerk shall provide a petition form
2to any individual requesting one.
3    If no petition is filed with the municipal clerk, as
4hereinafter provided in this Section, within 30 days after the
5publication of the ordinance, the ordinance shall be in effect.
6But, if within that 30 day period a petition is filed with the
7municipal clerk, signed by electors in the municipality
8numbering 10% or more of the number of registered voters in the
9municipality, asking that the question of issuing obligations
10using full faith and credit of the municipality as security for
11the cost of paying for redevelopment project costs, or of
12pledging taxes for the payment of such obligations, or both, be
13submitted to the electors of the municipality, the corporate
14authorities of the municipality shall call a special election
15in the manner provided by law to vote upon that question, or,
16if a general, State or municipal election is to be held within
17a period of not less than 30 or more than 90 days from the date
18such petition is filed, shall submit the question at the next
19general, State or municipal election. If it appears upon the
20canvass of the election by the corporate authorities that a
21majority of electors voting upon the question voted in favor
22thereof, the ordinance shall be in effect, but if a majority of
23the electors voting upon the question are not in favor thereof,
24the ordinance shall not take effect.
25    The ordinance authorizing the obligations may provide that
26the obligations shall contain a recital that they are issued

 

 

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1pursuant to this Division, which recital shall be conclusive
2evidence of their validity and of the regularity of their
3issuance.
4    In the event the municipality authorizes issuance of
5obligations pursuant to this Section secured by the full faith
6and credit of the municipality, the ordinance authorizing the
7obligations may provide for the levy and collection of a direct
8annual tax upon all taxable property within the municipality
9sufficient to pay the principal thereof and interest thereon as
10it matures, which levy may be in addition to and exclusive of
11the maximum of all other taxes authorized to be levied by the
12municipality, which levy, however, shall be abated to the
13extent that monies from other sources are available for payment
14of the obligations and the municipality certifies the amount of
15said monies available to the county clerk.
16    A certified copy of such ordinance shall be filed with the
17county clerk of each county in which any portion of the
18municipality is situated, and shall constitute the authority
19for the extension and collection of the taxes to be deposited
20in the special tax allocation fund.
21    A municipality may also issue its obligations to refund in
22whole or in part, obligations theretofore issued by such
23municipality under the authority of this Act, whether at or
24prior to maturity, provided however, that the last maturity of
25the refunding obligations may not be later than the dates set
26forth under Section 11-74.4-3.5.

 

 

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1    In the event a municipality issues obligations under home
2rule powers or other legislative authority the proceeds of
3which are pledged to pay for redevelopment project costs, the
4municipality may, if it has followed the procedures in
5conformance with this division, retire said obligations from
6funds in the special tax allocation fund in amounts and in such
7manner as if such obligations had been issued pursuant to the
8provisions of this division.
9    All obligations heretofore or hereafter issued pursuant to
10this Act shall not be regarded as indebtedness of the
11municipality issuing such obligations or any other taxing
12district for the purpose of any limitation imposed by law.
13(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
14eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
1595-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
1610-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
17eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08;
1895-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the
19effective date of changes made by P.A. 95-1028); 96-328, eff.
208-11-09; 96-1000, eff. 7-2-10.)
 
21    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
22    Sec. 11-74.4-8. Tax increment allocation financing. A
23municipality may not adopt tax increment financing in a
24redevelopment project area after the effective date of this
25amendatory Act of 1997 that will encompass an area that is

 

 

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1currently included in an enterprise zone created under the
2Illinois Enterprise Zone Act unless that municipality,
3pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
4amends the enterprise zone designating ordinance to limit the
5eligibility for tax abatements as provided in Section 5.4.1 of
6the Illinois Enterprise Zone Act. A municipality, at the time a
7redevelopment project area is designated, may adopt tax
8increment allocation financing by passing an ordinance
9providing that the ad valorem taxes, if any, arising from the
10levies upon taxable real property in such redevelopment project
11area by taxing districts and tax rates determined in the manner
12provided in paragraph (c) of Section 11-74.4-9 each year after
13the effective date of the ordinance until redevelopment project
14costs and all municipal obligations financing redevelopment
15project costs incurred under this Division have been paid shall
16be divided as follows:
17    (a) That portion of taxes levied upon each taxable lot,
18block, tract or parcel of real property which is attributable
19to the lower of the current equalized assessed value or the
20initial equalized assessed value of each such taxable lot,
21block, tract or parcel of real property in the redevelopment
22project area shall be allocated to and when collected shall be
23paid by the county collector to the respective affected taxing
24districts in the manner required by law in the absence of the
25adoption of tax increment allocation financing.
26    (b) Except from a tax levied by a township to retire bonds

 

 

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1issued to satisfy court-ordered damages, that portion, if any,
2of such taxes which is attributable to the increase in the
3current equalized assessed valuation of each taxable lot,
4block, tract or parcel of real property in the redevelopment
5project area over and above the initial equalized assessed
6value of each property in the project area shall be allocated
7to and when collected shall be paid to the municipal treasurer
8who shall deposit said taxes into a special fund called the
9special tax allocation fund of the municipality for the purpose
10of paying redevelopment project costs and obligations incurred
11in the payment thereof. In any county with a population of
123,000,000 or more that has adopted a procedure for collecting
13taxes that provides for one or more of the installments of the
14taxes to be billed and collected on an estimated basis, the
15municipal treasurer shall be paid for deposit in the special
16tax allocation fund of the municipality, from the taxes
17collected from estimated bills issued for property in the
18redevelopment project area, the difference between the amount
19actually collected from each taxable lot, block, tract, or
20parcel of real property within the redevelopment project area
21and an amount determined by multiplying the rate at which taxes
22were last extended against the taxable lot, block, track, or
23parcel of real property in the manner provided in subsection
24(c) of Section 11-74.4-9 by the initial equalized assessed
25value of the property divided by the number of installments in
26which real estate taxes are billed and collected within the

 

 

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1county; provided that the payments on or before December 31,
21999 to a municipal treasurer shall be made only if each of the
3following conditions are met:
4        (1) The total equalized assessed value of the
5    redevelopment project area as last determined was not less
6    than 175% of the total initial equalized assessed value.
7        (2) Not more than 50% of the total equalized assessed
8    value of the redevelopment project area as last determined
9    is attributable to a piece of property assigned a single
10    real estate index number.
11        (3) The municipal clerk has certified to the county
12    clerk that the municipality has issued its obligations to
13    which there has been pledged the incremental property taxes
14    of the redevelopment project area or taxes levied and
15    collected on any or all property in the municipality or the
16    full faith and credit of the municipality to pay or secure
17    payment for all or a portion of the redevelopment project
18    costs. The certification shall be filed annually no later
19    than September 1 for the estimated taxes to be distributed
20    in the following year; however, for the year 1992 the
21    certification shall be made at any time on or before March
22    31, 1992.
23        (4) The municipality has not requested that the total
24    initial equalized assessed value of real property be
25    adjusted as provided in subsection (b) of Section
26    11-74.4-9.

 

 

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1    The conditions of paragraphs (1) through (4) do not apply
2after December 31, 1999 to payments to a municipal treasurer
3made by a county with 3,000,000 or more inhabitants that has
4adopted an estimated billing procedure for collecting taxes. If
5a county that has adopted the estimated billing procedure makes
6an erroneous overpayment of tax revenue to the municipal
7treasurer, then the county may seek a refund of that
8overpayment. The county shall send the municipal treasurer a
9notice of liability for the overpayment on or before the
10mailing date of the next real estate tax bill within the
11county. The refund shall be limited to the amount of the
12overpayment.
13    It is the intent of this Division that after the effective
14date of this amendatory Act of 1988 a municipality's own ad
15valorem tax arising from levies on taxable real property be
16included in the determination of incremental revenue in the
17manner provided in paragraph (c) of Section 11-74.4-9. If the
18municipality does not extend such a tax, it shall annually
19deposit in the municipality's Special Tax Increment Fund an
20amount equal to 10% of the total contributions to the fund from
21all other taxing districts in that year. The annual 10% deposit
22required by this paragraph shall be limited to the actual
23amount of municipally produced incremental tax revenues
24available to the municipality from taxpayers located in the
25redevelopment project area in that year if: (a) the plan for
26the area restricts the use of the property primarily to

 

 

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1industrial purposes, (b) the municipality establishing the
2redevelopment project area is a home-rule community with a 1990
3population of between 25,000 and 50,000, (c) the municipality
4is wholly located within a county with a 1990 population of
5over 750,000 and (d) the redevelopment project area was
6established by the municipality prior to June 1, 1990. This
7payment shall be in lieu of a contribution of ad valorem taxes
8on real property. If no such payment is made, any redevelopment
9project area of the municipality shall be dissolved.
10    If a municipality has adopted tax increment allocation
11financing by ordinance and the County Clerk thereafter
12certifies the "total initial equalized assessed value as
13adjusted" of the taxable real property within such
14redevelopment project area in the manner provided in paragraph
15(b) of Section 11-74.4-9, each year after the date of the
16certification of the total initial equalized assessed value as
17adjusted until redevelopment project costs and all municipal
18obligations financing redevelopment project costs have been
19paid the ad valorem taxes, if any, arising from the levies upon
20the taxable real property in such redevelopment project area by
21taxing districts and tax rates determined in the manner
22provided in paragraph (c) of Section 11-74.4-9 shall be divided
23as follows:
24        (1) That portion of the taxes levied upon each taxable
25    lot, block, tract or parcel of real property which is
26    attributable to the lower of the current equalized assessed

 

 

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1    value or "current equalized assessed value as adjusted" or
2    the initial equalized assessed value of each such taxable
3    lot, block, tract, or parcel of real property existing at
4    the time tax increment financing was adopted, minus the
5    total current homestead exemptions under Article 15 of the
6    Property Tax Code in the redevelopment project area shall
7    be allocated to and when collected shall be paid by the
8    county collector to the respective affected taxing
9    districts in the manner required by law in the absence of
10    the adoption of tax increment allocation financing.
11        (2) That portion, if any, of such taxes which is
12    attributable to the increase in the current equalized
13    assessed valuation of each taxable lot, block, tract, or
14    parcel of real property in the redevelopment project area,
15    over and above the initial equalized assessed value of each
16    property existing at the time tax increment financing was
17    adopted, minus the total current homestead exemptions
18    pertaining to each piece of property provided by Article 15
19    of the Property Tax Code in the redevelopment project area,
20    shall be allocated to and when collected shall be paid to
21    the municipal Treasurer, who shall deposit said taxes into
22    a special fund called the special tax allocation fund of
23    the municipality for the purpose of paying redevelopment
24    project costs and obligations incurred in the payment
25    thereof.
26    The municipality may pledge in the ordinance the funds in

 

 

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1and to be deposited in the special tax allocation fund for the
2payment of such costs and obligations. No part of the current
3equalized assessed valuation of each property in the
4redevelopment project area attributable to any increase above
5the total initial equalized assessed value, or the total
6initial equalized assessed value as adjusted, of such
7properties shall be used in calculating the general State
8school aid formula, provided for in Section 18-8 of the School
9Code, until such time as all redevelopment project costs have
10been paid as provided for in this Section.
11    Whenever a municipality issues bonds for the purpose of
12financing redevelopment project costs, such municipality may
13provide by ordinance for the appointment of a trustee, which
14may be any trust company within the State, and for the
15establishment of such funds or accounts to be maintained by
16such trustee as the municipality shall deem necessary to
17provide for the security and payment of the bonds. If such
18municipality provides for the appointment of a trustee, such
19trustee shall be considered the assignee of any payments
20assigned by the municipality pursuant to such ordinance and
21this Section. Any amounts paid to such trustee as assignee
22shall be deposited in the funds or accounts established
23pursuant to such trust agreement, and shall be held by such
24trustee in trust for the benefit of the holders of the bonds,
25and such holders shall have a lien on and a security interest
26in such funds or accounts so long as the bonds remain

 

 

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1outstanding and unpaid. Upon retirement of the bonds, the
2trustee shall pay over any excess amounts held to the
3municipality for deposit in the special tax allocation fund.
4    In municipalities with less than 1,000,000 inhabitants,
5when When such redevelopment projects costs, including without
6limitation all municipal obligations financing redevelopment
7project costs incurred under this Division, have been paid, all
8surplus funds then remaining in the special tax allocation fund
9shall be distributed by being paid by the municipal treasurer
10to the Department of Revenue, the municipality and the county
11collector; first to the Department of Revenue and the
12municipality in direct proportion to the tax incremental
13revenue received from the State and the municipality, but not
14to exceed the total incremental revenue received from the State
15or the municipality less any annual surplus distribution of
16incremental revenue previously made; with any remaining funds
17to be paid to the County Collector who shall immediately
18thereafter pay said funds to the taxing districts in the
19redevelopment project area in the same manner and proportion as
20the most recent distribution by the county collector to the
21affected districts of real property taxes from real property in
22the redevelopment project area. In municipalities with
231,000,000 or more inhabitants, all surplus funds in the special
24tax allocation fund shall be distributed annually within 180
25days after the close of the municipality's fiscal year by being
26paid by the municipal treasurer to any public school district

 

 

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1operating under general school law in the municipality. If
2there are 2 or more school districts operating under general
3school law in the municipality, the funds shall be disbursed
4proportionately to the number of students enrolled in each
5district. No special charter districts shall receive surplus
6funds under this subsection.
7    Upon the payment of all redevelopment project costs, the
8retirement of obligations, the distribution of any excess
9monies pursuant to this Section, and final closing of the books
10and records of the redevelopment project area, the municipality
11shall adopt an ordinance dissolving the special tax allocation
12fund for the redevelopment project area and terminating the
13designation of the redevelopment project area as a
14redevelopment project area. Title to real or personal property
15and public improvements acquired by or for the municipality as
16a result of the redevelopment project and plan shall vest in
17the municipality when acquired and shall continue to be held by
18the municipality after the redevelopment project area has been
19terminated. Municipalities shall notify affected taxing
20districts prior to November 1 if the redevelopment project area
21is to be terminated by December 31 of that same year. If a
22municipality extends estimated dates of completion of a
23redevelopment project and retirement of obligations to finance
24a redevelopment project, as allowed by this amendatory Act of
251993, that extension shall not extend the property tax
26increment allocation financing authorized by this Section.

 

 

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1Thereafter the rates of the taxing districts shall be extended
2and taxes levied, collected and distributed in the manner
3applicable in the absence of the adoption of tax increment
4allocation financing.
5    Nothing in this Section shall be construed as relieving
6property in such redevelopment project areas from being
7assessed as provided in the Property Tax Code or as relieving
8owners of such property from paying a uniform rate of taxes, as
9required by Section 4 of Article IX of the Illinois
10Constitution.
11(Source: P.A. 98-463, eff. 8-16-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.