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Public Act 91-0190
SB52 Enrolled LRB9101534PTpk
AN ACT concerning property taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 18-150 as follows:
(35 ILCS 200/18-150)
Sec. 18-150. Extension in one total. In counties with
3,000,000 or more inhabitants, the county clerk shall, and in
all other counties the county clerk may, extend on each
valuation of property the sum of the taxes to be extended
upon the property in one total. When collected, the taxes
shall be divided among the taxing bodies levying the same in
proportion to the rates as determined by the clerk, after
deducting from any tax the amount or amounts, if any, ruled
invalid by the final judgment of a court of competent
jurisdiction, and in the event a municipality has adopted tax
increment financing under Division 74.4 of Article 11 of the
Illinois Municipal Code, after deducting from any tax, except
from a tax levied by a township to retire bonds issued to
satisfy court-ordered damages, the amount to be placed in the
special tax allocation fund, and distributing the amount to
be placed in the special fund to the municipal treasurer
under Section 11-74.4-8 of that Act. The clerk shall certify
in the collector's books the rates as determined for
extension in such manner as to indicate the different taxes
entering into each total. All officers dealing with such
extensions, shall record them by totals. The clerk shall
show in the collector's books the total tax due each taxing
body as extended.
If (i) a county clerk does not extend in one total on
each valuation of property the sum of the taxes to be
extended upon the property and (ii) a municipality has
adopted tax increment financing under Division 74.4 of
Article 11 of the Illinois Municipal Code, then the clerk may
not deduct the amount to be placed in the special tax
allocation fund from a tax levied by a township to retire
bonds issued to satisfy court-ordered damages.
(Source: P.A. 79-1525; 88-455.)
Section 10. The Illinois Municipal Code is amended by
changing Section 11-74.4-8 as follows:
(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. A municipality may not adopt tax
increment financing in a redevelopment project area after the
effective date of this amendatory Act of 1997 that will
encompass an area that is currently included in an enterprise
zone created under the Illinois Enterprise Zone Act unless
that municipality, pursuant to Section 5.4 of the Illinois
Enterprise Zone Act, amends the enterprise zone designating
ordinance to limit the eligibility for tax abatements as
provided in Section 5.4.1 of the Illinois Enterprise Zone
Act. A municipality, at the time a redevelopment project
area is designated, may adopt tax increment allocation
financing by passing an ordinance providing that the ad
valorem taxes, if any, arising from the levies upon taxable
real property in such redevelopment project area by taxing
districts and tax rates determined in the manner provided in
paragraph (c) of Section 11-74.4-9 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid
shall be divided as follows:
(a) That portion of taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract or parcel of real property in the redevelopment
project area shall be allocated to and when collected shall
be paid by the county collector to the respective affected
taxing districts in the manner required by law in the absence
of the adoption of tax increment allocation financing.
(b) Except from a tax levied by a township to retire
bonds issued to satisfy court-ordered damages, that portion,
if any, of such taxes which is attributable to the increase
in the current equalized assessed valuation of each taxable
lot, block, tract or parcel of real property in the
redevelopment project area over and above the initial
equalized assessed value of each property in the project area
shall be allocated to and when collected shall be paid to the
municipal treasurer who shall deposit said taxes into a
special fund called the special tax allocation fund of the
municipality for the purpose of paying redevelopment project
costs and obligations incurred in the payment thereof. In any
county with a population of 3,000,000 or more that has
adopted a procedure for collecting taxes that provides for
one or more of the installments of the taxes to be billed and
collected on an estimated basis, the municipal treasurer
shall be paid for deposit in the special tax allocation fund
of the municipality, from the taxes collected from estimated
bills issued for property in the redevelopment project area,
the difference between the amount actually collected from
each taxable lot, block, tract, or parcel of real property
within the redevelopment project area and an amount
determined by multiplying the rate at which taxes were last
extended against the taxable lot, block, track, or parcel of
real property in the manner provided in subsection (c) of
Section 11-74.4-9 by the initial equalized assessed value of
the property divided by the number of installments in which
real estate taxes are billed and collected within the county,
provided each of the following conditions are met:
(1) The total equalized assessed value of the
redevelopment project area as last determined was not
less than 175% of the total initial equalized assessed
value.
(2) Not more than 50% of the total equalized
assessed value of the redevelopment project area as last
determined is attributable to a piece of property
assigned a single real estate index number.
(3) The municipal clerk has certified to the county
clerk that the municipality has issued its obligations to
which there has been pledged the incremental property
taxes of the redevelopment project area or taxes levied
and collected on any or all property in the municipality
or the full faith and credit of the municipality to pay
or secure payment for all or a portion of the
redevelopment project costs. The certification shall be
filed annually no later than September 1 for the
estimated taxes to be distributed in the following year;
however, for the year 1992 the certification shall be
made at any time on or before March 31, 1992.
(4) The municipality has not requested that the
total initial equalized assessed value of real property
be adjusted as provided in subsection (b) of Section
11-74.4-9.
It is the intent of this Division that after the
effective date of this amendatory Act of 1988 a
municipality's own ad valorem tax arising from levies on
taxable real property be included in the determination of
incremental revenue in the manner provided in paragraph (c)
of Section 11-74.4-9. If the municipality does not extend
such a tax, it shall annually deposit in the municipality's
Special Tax Increment Fund an amount equal to 10% of the
total contributions to the fund from all other taxing
districts in that year. The annual 10% deposit required by
this paragraph shall be limited to the actual amount of
municipally produced incremental tax revenues available to
the municipality from taxpayers located in the redevelopment
project area in that year if: (a) the plan for the area
restricts the use of the property primarily to industrial
purposes, (b) the municipality establishing the redevelopment
project area is a home-rule community with a 1990 population
of between 25,000 and 50,000, (c) the municipality is wholly
located within a county with a 1990 population of over
750,000 and (d) the redevelopment project area was
established by the municipality prior to June 1, 1990. This
payment shall be in lieu of a contribution of ad valorem
taxes on real property. If no such payment is made, any
redevelopment project area of the municipality shall be
dissolved.
If a municipality has adopted tax increment allocation
financing by ordinance and the County Clerk thereafter
certifies the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area in the manner provided in
paragraph (b) of Section 11-74.4-9, each year after the date
of the certification of the total initial equalized assessed
value as adjusted until redevelopment project costs and all
municipal obligations financing redevelopment project costs
have been paid the ad valorem taxes, if any, arising from the
levies upon the taxable real property in such redevelopment
project area by taxing districts and tax rates determined in
the manner provided in paragraph (c) of Section 11-74.4-9
shall be divided as follows:
(1) That portion of the taxes levied upon each
taxable lot, block, tract or parcel of real property
which is attributable to the lower of the current
equalized assessed value or "current equalized assessed
value as adjusted" or the initial equalized assessed
value of each such taxable lot, block, tract, or parcel
of real property existing at the time tax increment
financing was adopted, minus the total current homestead
exemptions provided by Sections 15-170 and 15-175 of the
Property Tax Code in the redevelopment project area shall
be allocated to and when collected shall be paid by the
county collector to the respective affected taxing
districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the redevelopment project
area, over and above the initial equalized assessed value
of each property existing at the time tax increment
financing was adopted, minus the total current homestead
exemptions pertaining to each piece of property provided
by Sections 15-170 and 15-175 of the Property Tax Code in
the redevelopment project area, shall be allocated to and
when collected shall be paid to the municipal Treasurer,
who shall deposit said taxes into a special fund called
the special tax allocation fund of the municipality for
the purpose of paying redevelopment project costs and
obligations incurred in the payment thereof.
The municipality may pledge in the ordinance the funds in
and to be deposited in the special tax allocation fund for
the payment of such costs and obligations. No part of the
current equalized assessed valuation of each property in the
redevelopment project area attributable to any increase above
the total initial equalized assessed value, or the total
initial equalized assessed value as adjusted, of such
properties shall be used in calculating the general State
school aid formula, provided for in Section 18-8 of the
School Code, until such time as all redevelopment project
costs have been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, such municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of such funds or accounts to be maintained by
such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If such
municipality provides for the appointment of a trustee, such
trustee shall be considered the assignee of any payments
assigned by the municipality pursuant to such ordinance and
this Section. Any amounts paid to such trustee as assignee
shall be deposited in the funds or accounts established
pursuant to such trust agreement, and shall be held by such
trustee in trust for the benefit of the holders of the bonds,
and such holders shall have a lien on and a security interest
in such funds or accounts so long as the bonds remain
outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the
municipality for deposit in the special tax allocation fund.
When such redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Division, have been paid,
all surplus funds then remaining in the special tax
allocation fund shall be distributed by being paid by the
municipal treasurer to the Department of Revenue, the
municipality and the county collector; first to the
Department of Revenue and the municipality in direct
proportion to the tax incremental revenue received from the
State and the municipality, but not to exceed the total
incremental revenue received from the State or the
municipality less any annual surplus distribution of
incremental revenue previously made; with any remaining funds
to be paid to the County Collector who shall immediately
thereafter pay said funds to the taxing districts in the
redevelopment project area in the same manner and proportion
as the most recent distribution by the county collector to
the affected districts of real property taxes from real
property in the redevelopment project area.
Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section, the municipality shall adopt
an ordinance dissolving the special tax allocation fund for
the redevelopment project area and terminating the
designation of the redevelopment project area as a
redevelopment project area. If a municipality extends
estimated dates of completion of a redevelopment project and
retirement of obligations to finance a redevelopment project,
as allowed by this amendatory Act of 1993, that extension
shall not extend the property tax increment allocation
financing authorized by this Section. Thereafter the rates
of the taxing districts shall be extended and taxes levied,
collected and distributed in the manner applicable in the
absence of the adoption of tax increment allocation
financing.
Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes,
as required by Section 4 of Article 9 of the Illinois
Constitution.
(Source: P.A. 90-258, eff. 7-30-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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