House Sponsors: LEITCH. Senate Sponsors: PETERSON Short description: TIF-ENTERPRISE ZONE OVERLAP Synopsis of Bill as introduced: Amends the Illinois Enterprise Zone Act, the Property Tax Code, and the Illinois Municipal Code. Provides that if property is located in a redevelopment project area and an enterprise zone, then the enterprise zone abatement of taxes shall not be available on the property located in the redevelopment project area, except that business enterprises or individuals shall be entitled to the abatement on new improvements or the renovation or rehabilitation of existing improvements if the business enterprise or individual establishes that before the date of the adoption of tax increment financing (i) the new improvement, rehabilitation, or renovation was committed to locate within the redevelopment project area, (ii) substantial and binding financial obligations were made towards the construction, renovation, or rehabilitation of the improvements, and (iii) those commitments and obligations were made in reasonable reliance on the abatement of taxes that are applicable to the construction, renovation, or rehabilitation of the improvements. Requires a notice, published in a newspaper of general circulation within the municipality, that states that the property shall not be eligible for the abatement of taxes for enterprise zone property unless certain conditions are met. Provides that if a municipality determines that property that lies within a State Sales Tax Boundary has an improvement, rehabilitation, or renovation that is entitled to a property tax abatement, then that property and the improvements, rehabilitations, or renovations shall be removed from any State Sales Tax Boundary and the municipality that made the determination shall notify the Department of Revenue within 30 days. Amends the State Mandates Act to require implementation without reimbursement. Makes provisions severable. Effective July 1, 1997. HOUSE AMENDMENT NO. 1. Deletes reference to: 65 ILCS 5/11-74.4-6 Adds reference to: 20 ILCS 655/5.4 from Ch. 67 1/2, par. 609 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 Deletes everything. Amends the Illinois Enterprise Zone Act, the Property Tax Code, and the Illinois Municipal Code. Provides that if property is located in a redevelopment project area and an enterprise zone, then the enterprise zone abatement of taxes shall not be available on the property located in the redevelopment project area, except that no business enterprise, expansion, or individual that has constructed a new improvement or renovated or rehabilitated an existing improvement and has received a property tax abatement on the property shall be denied any benefit previously extended. Provides that the business enterprises, expansions, or individuals shall be entitled to any benefit previously extended within the zone if the business enterprise, expansion, or individual establishes, within 60 days after the adoption by the municipality of an amendment to the designating ordinance, that before the date of the adoption of tax increment financing (i) the business enterprise, expansion, or individual was committed to locate within the redevelopment project area, (ii) substantial and binding financial obligations were made towards the construction, renovation, or rehabilitation of the improvements, and (iii) those commitments and obligations were made in reasonable reliance on the abatement of taxes that are applicable to the construction, renovation, or rehabilitation of the improvements. Provides that to effectuate a limitation of property tax abatements, the required public notice of the hearing shall state that property that is both in the enterprise zone and a redevelopment project area may not receive tax abatements unless within 60 days after adoption of the amendment, eligibility for the abatements is established. Requires the municipality to notify the county clerk and the Board of Review or Board of Appeals by July 1 of the assessment year to be first affected if an abatement is limited. Prohibits a municipality from adopting tax increment financing after the effective date of this amendatory Act in a project area that will encompass an area that is currently included in a enterprise zone unless the municipality previously amends the enterprise zone designating ordinance to prohibit property within the enterprise zone from receiving enterprise zone abatements. Provides that when that property that lies within a State Sales Tax Boundary has an improvement, rehabilitation, or renovation that is entitled to a property tax abatement, then that property and any improvements, rehabilitation, or renovations shall be removed from the State Sales Tax Boundary. States that once property is removed from the State Sales Tax Boundary, the property shall not be permitted to be amended into a Sales Tax Boundary. Amends the State Mandates Act to require implementation without reimbursement. Makes provisions severable. Makes other changes. Effective July 1, 1997. HOUSE AMENDMENT NO. 2. Adds reference to: 20 ILCS 655/5.4.1 new 35 ILCS 200/18-170 65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a 65 ILCS 5/11-74.4-8c new 65 ILCS 5/11-74.6-15 30 ILCS 805/8.21 new Deletes everything. Amends the Illinois Enterprise Zone Act, the Property Tax Code, and the Illinois Municipal Code. Provides that if property is located in a redevelopment project area and an enterprise zone, then the enterprise zone abatement of taxes shall not be available on the property located in the redevelopment project area, except that no business enterprise, expansion, or individual that has constructed a new improvement or renovated or rehabilitated an existing improvement and has received a property tax abatement on the property shall be denied any benefit previously extended. Provides that the business enterprises, expansions, or individuals shall be entitled to any benefit previously extended within the zone if the business enterprise, expansion, or individual establishes, within 30 days after the adoption by the municipality of an amendment to the designating ordinance, that before the date of the adoption of tax increment financing (i) the business enterprise, expansion, or individual was committed to locate within the redevelopment project area, (ii) substantial and binding financial obligations were made towards the construction, renovation, or rehabilitation of the improvements, and (iii) those commitments and obligations were made in reasonable reliance on the abatement of taxes that are applicable to the construction, renovation, or rehabilitation of the improvements. Provides that to effectuate a limitation of property tax abatements, the required public notice of the hearing shall state that property that is both in the enterprise zone and a redevelopment project area may not receive tax abatements unless within 60 days after adoption of the amendment, eligibility for the abatements is established. Requires the municipality to notify the county clerk and the Board of Review or Board of Appeals by July 1 of the assessment year to be first affected if an abatement is limited. Prohibits a municipality from adopting tax increment financing after the effective date of this amendatory Act in a project area that will encompass an area that is currently included in a enterprise zone unless the municipality previously amends the enterprise zone designating ordinance to prohibit property within the enterprise zone from receiving enterprise zone abatements. Provides that when that property that lies within a State Sales Tax Boundary has an improvement, rehabilitation, or renovation that is entitled to a property tax abatement, then that property and any improvements, rehabilitation, or renovations shall be removed from the State Sales Tax Boundary. States that once property is removed from the State Sales Tax Boundary, the property shall not be permitted to be amended into a Sales Tax Boundary. Includes in the list of powers and duties of a municipality the power to utilize tax increment revenues for eligible costs that are received from a redevelopment project area created under the Industrial Jobs Recovery Law that is either contiguous to, or is separated only by a public right of way from, the redevelopment project area created under this Act which initially receives these revenues, and to utilize revenues, other than State sales tax increment revenues, by transferring or loaning such revenues to a redevelopment project area created under the Industrial Jobs Recovery Law that is either contiguous to, or separated only by a public right of way from, the redevelopment project area which initially produced and received those revenues. Amends the Industrial Jobs Recovery Law in the Illinois Municipal Code to include in the list of powers and duties of a municipality the power to, within a redevelopment planning area, transfer or loan tax increment revenues from one redevelopment project area to another redevelopment project area for expenditure on eligible costs in the receiving area and to use tax increment revenue produced in a redevelopment project area created under the Law by transferring or loaning such revenues to a redevelopment project area created under the Tax Increment Allocation Redevelopment Act that is either contiguous to, or separated only by a public right of way from the redevelopment project area that initially produced and received those revenues. Amends the State Mandates Act to require implementation without reimbursement. Makes provisions severable. Makes other changes. Last action on Bill: PUBLIC ACT.............................. 90-0258 Last action date: 97-07-30 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status