| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning local government.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Illinois Municipal Code is amended by | ||||||||||||||||||||||||
5 | changing Section 11-74.4-8 as follows:
| ||||||||||||||||||||||||
6 | (65 ILCS 5/11-74.4-8)
(from Ch. 24, par. 11-74.4-8)
| ||||||||||||||||||||||||
7 | Sec. 11-74.4-8. Tax increment allocation financing. A | ||||||||||||||||||||||||
8 | municipality may
not adopt tax increment financing in a
| ||||||||||||||||||||||||
9 | redevelopment
project area after the effective date of this | ||||||||||||||||||||||||
10 | amendatory Act of 1997 that will
encompass an area that is | ||||||||||||||||||||||||
11 | currently included in an enterprise zone created
under the | ||||||||||||||||||||||||
12 | Illinois Enterprise Zone Act unless that municipality, | ||||||||||||||||||||||||
13 | pursuant to
Section 5.4 of the Illinois Enterprise Zone Act, | ||||||||||||||||||||||||
14 | amends the enterprise zone
designating ordinance to limit the | ||||||||||||||||||||||||
15 | eligibility for tax abatements as provided
in Section 5.4.1 of | ||||||||||||||||||||||||
16 | the Illinois Enterprise Zone Act.
A municipality, at the time a | ||||||||||||||||||||||||
17 | redevelopment project area
is designated, may adopt tax | ||||||||||||||||||||||||
18 | increment allocation financing by passing an
ordinance | ||||||||||||||||||||||||
19 | providing that the ad valorem taxes, if any, arising from the
| ||||||||||||||||||||||||
20 | levies upon taxable real property in such redevelopment project
| ||||||||||||||||||||||||
21 | area by taxing districts and tax rates determined in the manner | ||||||||||||||||||||||||
22 | provided
in paragraph (c) of Section 11-74.4-9 each year after | ||||||||||||||||||||||||
23 | the effective
date of the ordinance until redevelopment project |
| |||||||
| |||||||
1 | costs and all municipal
obligations financing redevelopment | ||||||
2 | project costs incurred under this Division
have been paid shall | ||||||
3 | be divided as follows:
| ||||||
4 | (a) That portion of taxes levied upon each taxable lot, | ||||||
5 | block, tract or
parcel of real property which is attributable | ||||||
6 | to the lower of the current
equalized assessed value or the | ||||||
7 | initial equalized assessed
value of each such taxable lot, | ||||||
8 | block, tract or parcel of real property
in the redevelopment | ||||||
9 | project area shall be allocated to and when collected
shall be | ||||||
10 | paid by the county collector to the respective affected taxing
| ||||||
11 | districts in the manner required by law in the absence of the | ||||||
12 | adoption of
tax increment allocation financing.
| ||||||
13 | (a-5) That portion of taxes levied upon each taxable lot, | ||||||
14 | block, tract, or
parcel of real property which is attributable | ||||||
15 | to a school district located
in a redevelopment project area | ||||||
16 | that is (i) established on or after the effective date of this | ||||||
17 | amendatory Act of the 97th General Assembly by the City of | ||||||
18 | Chicago or (ii) established by the City of Chicago prior to the | ||||||
19 | effective date of this amendatory Act of the 97th General | ||||||
20 | Assembly and extended by the General Assembly on or after the | ||||||
21 | effective date of this amendatory Act of the 97th General | ||||||
22 | Assembly shall be allocated to and when collected
shall be paid | ||||||
23 | by the county collector to the school district in the manner | ||||||
24 | required by law in the absence of the adoption of
tax increment | ||||||
25 | allocation financing. Tax proceeds generated from a | ||||||
26 | redevelopment project area that is established by the City of |
| |||||||
| |||||||
1 | Chicago prior to the effective date of this amendatory Act of | ||||||
2 | the 97th General Assembly and extended by the General Assembly | ||||||
3 | on or after the effective date of this amendatory Act of the | ||||||
4 | 97th General Assembly shall be allocated and paid to school | ||||||
5 | districts in accordance with this subsection (a-5) only during | ||||||
6 | the period of the extension. | ||||||
7 | (b) Except from a tax levied by a township to retire bonds | ||||||
8 | issued to satisfy
court-ordered damages, that portion, if any, | ||||||
9 | of such taxes which is
attributable to the
increase in the | ||||||
10 | current equalized assessed valuation of each taxable lot,
| ||||||
11 | block, tract or parcel of real property in the redevelopment | ||||||
12 | project area
over and above the initial equalized assessed | ||||||
13 | value of each property in the
project area shall be allocated | ||||||
14 | to and when collected shall be paid to the
municipal treasurer | ||||||
15 | who shall deposit said taxes into a special fund called
the | ||||||
16 | special tax allocation fund of the municipality for the purpose | ||||||
17 | of
paying redevelopment project costs and obligations incurred | ||||||
18 | in the payment
thereof. In any county with a population of | ||||||
19 | 3,000,000 or more that has adopted
a procedure for collecting | ||||||
20 | taxes that provides for one or more of the
installments of the | ||||||
21 | taxes to be billed and collected on an estimated basis,
the | ||||||
22 | municipal treasurer shall be paid for deposit in the special | ||||||
23 | tax
allocation fund of the municipality, from the taxes | ||||||
24 | collected from
estimated bills issued for property in the | ||||||
25 | redevelopment project area, the
difference between the amount | ||||||
26 | actually collected from each taxable lot,
block, tract, or |
| |||||||
| |||||||
1 | parcel of real property within the redevelopment project
area | ||||||
2 | and an amount determined by multiplying the rate at which taxes | ||||||
3 | were
last extended against the taxable lot, block, track, or | ||||||
4 | parcel of real
property in the manner provided in subsection | ||||||
5 | (c) of Section 11-74.4-9 by
the initial equalized assessed | ||||||
6 | value of the property divided by the number
of installments in | ||||||
7 | which real estate taxes are billed and collected within
the | ||||||
8 | county; provided that the payments on or before December 31,
| ||||||
9 | 1999 to a municipal treasurer shall be made only if each of the | ||||||
10 | following
conditions are met:
| ||||||
11 | (1) The total equalized assessed value of the | ||||||
12 | redevelopment project
area as last determined was not less | ||||||
13 | than 175% of the total initial
equalized assessed value.
| ||||||
14 | (2) Not more than 50% of the total equalized assessed | ||||||
15 | value of the
redevelopment project area as last determined | ||||||
16 | is attributable to a piece of
property assigned a single | ||||||
17 | real estate index number.
| ||||||
18 | (3) The municipal clerk has certified to the county | ||||||
19 | clerk that the
municipality has issued its obligations to | ||||||
20 | which there has been pledged
the incremental property taxes | ||||||
21 | of the redevelopment project area or taxes
levied and | ||||||
22 | collected on any or all property in the municipality or
the | ||||||
23 | full faith and credit of the municipality to pay or secure | ||||||
24 | payment for
all or a portion of the redevelopment project | ||||||
25 | costs. The certification
shall be filed annually no later | ||||||
26 | than September 1 for the estimated taxes
to be distributed |
| |||||||
| |||||||
1 | in the following year; however, for the year 1992 the
| ||||||
2 | certification shall be made at any time on or before March | ||||||
3 | 31, 1992.
| ||||||
4 | (4) The municipality has not requested that the total | ||||||
5 | initial
equalized assessed value of real property be | ||||||
6 | adjusted as provided in
subsection (b) of Section | ||||||
7 | 11-74.4-9.
| ||||||
8 | The conditions of paragraphs (1) through (4) do not apply | ||||||
9 | after December
31, 1999 to payments to a municipal treasurer
| ||||||
10 | made by a county with 3,000,000 or more inhabitants that has | ||||||
11 | adopted an
estimated billing procedure for collecting taxes.
If | ||||||
12 | a county that has adopted the estimated billing
procedure makes | ||||||
13 | an erroneous overpayment of tax revenue to the municipal
| ||||||
14 | treasurer, then the county may seek a refund of that | ||||||
15 | overpayment.
The county shall send the municipal treasurer a | ||||||
16 | notice of liability for the
overpayment on or before the | ||||||
17 | mailing date of the next real estate tax bill
within the | ||||||
18 | county. The refund shall be limited to the amount of the
| ||||||
19 | overpayment.
| ||||||
20 | It is the intent of this Division that after the effective | ||||||
21 | date of this
amendatory Act of 1988 a municipality's own ad | ||||||
22 | valorem
tax arising from levies on taxable real property be | ||||||
23 | included in the
determination of incremental revenue in the | ||||||
24 | manner provided in paragraph
(c) of Section 11-74.4-9. If the | ||||||
25 | municipality does not extend such a tax,
it shall annually | ||||||
26 | deposit in the municipality's Special Tax Increment Fund
an |
| |||||||
| |||||||
1 | amount equal to 10% of the total contributions to the fund from | ||||||
2 | all
other taxing districts in that year. The annual 10% deposit | ||||||
3 | required by
this paragraph shall be limited to the actual | ||||||
4 | amount of municipally
produced incremental tax revenues | ||||||
5 | available to the municipality from
taxpayers located in the | ||||||
6 | redevelopment project area in that year if:
(a) the plan for | ||||||
7 | the area restricts the use of the property primarily to
| ||||||
8 | industrial purposes, (b) the municipality establishing the | ||||||
9 | redevelopment
project area is a home-rule community with a 1990 | ||||||
10 | population of between
25,000 and 50,000, (c) the municipality | ||||||
11 | is wholly located within a county
with a 1990 population of | ||||||
12 | over 750,000 and (d) the redevelopment project
area was | ||||||
13 | established by the municipality prior to June 1, 1990. This
| ||||||
14 | payment shall be in lieu of a contribution of ad valorem taxes | ||||||
15 | on real
property. If no such payment is made, any redevelopment | ||||||
16 | project area of the
municipality shall be dissolved.
| ||||||
17 | If a municipality has adopted tax increment allocation | ||||||
18 | financing by ordinance
and the County Clerk thereafter | ||||||
19 | certifies the "total initial equalized assessed
value as | ||||||
20 | adjusted" of the taxable real property within such | ||||||
21 | redevelopment
project area in the manner provided in paragraph | ||||||
22 | (b) of Section 11-74.4-9,
each year after the date of the | ||||||
23 | certification of the total initial equalized
assessed value as | ||||||
24 | adjusted until redevelopment project costs and all
municipal | ||||||
25 | obligations financing redevelopment project costs have been | ||||||
26 | paid
the ad valorem taxes, if any, arising from the levies upon |
| |||||||
| |||||||
1 | the taxable real
property in such redevelopment project area by | ||||||
2 | taxing districts and tax
rates determined in the manner | ||||||
3 | provided in paragraph (c) of Section
11-74.4-9 shall be divided | ||||||
4 | as follows:
| ||||||
5 | (1) That portion of the taxes levied upon each taxable | ||||||
6 | lot, block, tract
or parcel of real property which is | ||||||
7 | attributable to the lower of the
current equalized assessed | ||||||
8 | value or "current equalized assessed value as
adjusted" or | ||||||
9 | the initial equalized assessed value of each such taxable | ||||||
10 | lot,
block, tract, or parcel of real property existing at | ||||||
11 | the time tax increment
financing was adopted, minus the | ||||||
12 | total current homestead exemptions under Article 15 of the | ||||||
13 | Property
Tax Code in the
redevelopment project area shall | ||||||
14 | be allocated to and when collected shall be
paid by the | ||||||
15 | county collector to the respective affected taxing | ||||||
16 | districts in the
manner required by law in the absence of | ||||||
17 | the adoption of tax increment
allocation financing.
| ||||||
18 | (2) That portion, if any, of such taxes which is | ||||||
19 | attributable to the
increase in the current equalized | ||||||
20 | assessed valuation of each taxable lot,
block, tract, or | ||||||
21 | parcel of real property in the redevelopment project area,
| ||||||
22 | over and above the initial equalized assessed value of each | ||||||
23 | property
existing at the time tax increment financing was | ||||||
24 | adopted, minus the total
current homestead exemptions | ||||||
25 | pertaining to each piece of property provided
by Article 15 | ||||||
26 | of the Property Tax Code
in the redevelopment
project area, |
| |||||||
| |||||||
1 | shall be allocated to and when collected shall be paid to | ||||||
2 | the
municipal Treasurer, who shall deposit said taxes into | ||||||
3 | a special fund called
the special tax allocation fund of | ||||||
4 | the municipality for the purpose of paying
redevelopment | ||||||
5 | project costs and obligations incurred in the payment | ||||||
6 | thereof.
| ||||||
7 | The municipality may pledge in the ordinance the funds in | ||||||
8 | and to be
deposited in the special tax allocation fund for the | ||||||
9 | payment of such costs
and obligations. No part of the current | ||||||
10 | equalized assessed valuation of
each property in the | ||||||
11 | redevelopment project area attributable to any
increase above | ||||||
12 | the total initial equalized assessed value, or the total
| ||||||
13 | initial equalized assessed value as adjusted, of such | ||||||
14 | properties shall be
used in calculating the general State | ||||||
15 | school aid formula, provided for in
Section 18-8 of the School | ||||||
16 | Code, until such time as all redevelopment
project costs have | ||||||
17 | been paid as provided for in this Section.
| ||||||
18 | Whenever a municipality issues bonds for the purpose of | ||||||
19 | financing
redevelopment project costs, such municipality may | ||||||
20 | provide by ordinance for the
appointment of a trustee, which | ||||||
21 | may be any trust company within the State,
and for the | ||||||
22 | establishment of such funds or accounts to be maintained by
| ||||||
23 | such trustee as the municipality shall deem necessary to | ||||||
24 | provide for the
security and payment of the bonds. If such | ||||||
25 | municipality provides for
the appointment of a trustee, such | ||||||
26 | trustee shall be considered the assignee
of any payments |
| |||||||
| |||||||
1 | assigned by the municipality pursuant to such ordinance
and | ||||||
2 | this Section. Any amounts paid to such trustee as assignee | ||||||
3 | shall be
deposited in the funds or accounts established | ||||||
4 | pursuant to such trust
agreement, and shall be held by such | ||||||
5 | trustee in trust for the benefit of the
holders of the bonds, | ||||||
6 | and such holders shall have a lien on and a security
interest | ||||||
7 | in such funds or accounts so long as the bonds remain | ||||||
8 | outstanding and
unpaid. Upon retirement of the bonds, the | ||||||
9 | trustee shall pay over any excess
amounts held to the | ||||||
10 | municipality for deposit in the special tax allocation
fund.
| ||||||
11 | When such redevelopment projects costs, including without | ||||||
12 | limitation all
municipal obligations financing redevelopment | ||||||
13 | project costs incurred under
this Division, have been paid, all | ||||||
14 | surplus funds then remaining in the
special tax allocation fund | ||||||
15 | shall be distributed
by being paid by the
municipal treasurer | ||||||
16 | to the Department of Revenue, the municipality and the
county | ||||||
17 | collector; first to the Department of Revenue and the | ||||||
18 | municipality
in direct proportion to the tax incremental | ||||||
19 | revenue received from the State
and the municipality, but not | ||||||
20 | to exceed the total incremental revenue received
from the State | ||||||
21 | or the municipality less any annual surplus distribution
of | ||||||
22 | incremental revenue previously made; with any remaining funds | ||||||
23 | to be paid
to the County Collector who shall immediately | ||||||
24 | thereafter pay said funds to
the taxing districts in the | ||||||
25 | redevelopment project area in the same manner
and proportion as | ||||||
26 | the most recent distribution by the county collector to
the |
| |||||||
| |||||||
1 | affected districts of real property taxes from real property in | ||||||
2 | the
redevelopment project area.
| ||||||
3 | Upon the payment of all redevelopment project costs, the | ||||||
4 | retirement of
obligations, the distribution of any excess | ||||||
5 | monies pursuant to this
Section, and final closing of the books | ||||||
6 | and records of the redevelopment
project
area, the municipality | ||||||
7 | shall adopt an ordinance dissolving the special
tax allocation | ||||||
8 | fund for the redevelopment project area and terminating the
| ||||||
9 | designation of the redevelopment project area as a | ||||||
10 | redevelopment project
area.
Title to real or personal property | ||||||
11 | and public improvements
acquired
by or for
the
municipality as | ||||||
12 | a result of the redevelopment project and plan shall vest in
| ||||||
13 | the
municipality when acquired and shall continue to be held by | ||||||
14 | the municipality
after the redevelopment project area has been | ||||||
15 | terminated.
Municipalities shall notify affected taxing | ||||||
16 | districts prior to
November 1 if the redevelopment project area | ||||||
17 | is to be terminated by December 31
of
that same year. If a | ||||||
18 | municipality extends estimated dates of completion of a
| ||||||
19 | redevelopment project and retirement of obligations to finance | ||||||
20 | a
redevelopment project, as allowed by this amendatory Act of | ||||||
21 | 1993, that
extension shall not extend the property tax | ||||||
22 | increment allocation financing
authorized by this Section. | ||||||
23 | Thereafter the rates of the taxing districts
shall be extended | ||||||
24 | and taxes levied, collected and distributed in the manner
| ||||||
25 | applicable in the absence of the adoption of tax increment | ||||||
26 | allocation
financing.
|
| |||||||
| |||||||
1 | Nothing in this Section shall be construed as relieving | ||||||
2 | property in such
redevelopment project areas from being | ||||||
3 | assessed as provided in the Property
Tax Code or as relieving | ||||||
4 | owners of such property from paying a uniform rate of
taxes, as | ||||||
5 | required by Section 4 of Article 9 of the Illinois | ||||||
6 | Constitution.
| ||||||
7 | (Source: P.A. 95-644, eff. 10-12-07.)
| ||||||
8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
|