97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1911

 

Introduced 2/10/2011, by Sen. John G. Mulroe

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Makes a technical change in a Section concerning tax increment allocation financing.


LRB097 08972 KMW 49105 b

 

 

A BILL FOR

 

SB1911LRB097 08972 KMW 49105 b

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 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
8municipality may not adopt tax increment financing in a a
9redevelopment project area after the effective date of this
10amendatory Act of 1997 that will encompass an area that is
11currently included in an enterprise zone created under the
12Illinois Enterprise Zone Act unless that municipality,
13pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
14amends the enterprise zone designating ordinance to limit the
15eligibility for tax abatements as provided in Section 5.4.1 of
16the Illinois Enterprise Zone Act. A municipality, at the time a
17redevelopment project area is designated, may adopt tax
18increment allocation financing by passing an ordinance
19providing that the ad valorem taxes, if any, arising from the
20levies upon taxable real property in such redevelopment project
21area by taxing districts and tax rates determined in the manner
22provided in paragraph (c) of Section 11-74.4-9 each year after
23the effective date of the ordinance until redevelopment project

 

 

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1costs and all municipal obligations financing redevelopment
2project costs incurred under this Division have been paid shall
3be divided as follows:
4    (a) That portion of taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract or parcel of real property in the redevelopment
9project area shall be allocated to and when collected shall be
10paid by the county collector to the respective affected taxing
11districts in the manner required by law in the absence of the
12adoption of tax increment allocation financing.
13    (b) Except from a tax levied by a township to retire bonds
14issued to satisfy court-ordered damages, that portion, if any,
15of such taxes which is attributable to the increase in the
16current equalized assessed valuation of each taxable lot,
17block, tract or parcel of real property in the redevelopment
18project area over and above the initial equalized assessed
19value of each property in the project area shall be allocated
20to and when collected shall be paid to the municipal treasurer
21who shall deposit said taxes into a special fund called the
22special tax allocation fund of the municipality for the purpose
23of paying redevelopment project costs and obligations incurred
24in the payment thereof. In any county with a population of
253,000,000 or more that has adopted a procedure for collecting
26taxes that provides for one or more of the installments of the

 

 

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1taxes to be billed and collected on an estimated basis, the
2municipal treasurer shall be paid for deposit in the special
3tax allocation fund of the municipality, from the taxes
4collected from estimated bills issued for property in the
5redevelopment project area, the difference between the amount
6actually collected from each taxable lot, block, tract, or
7parcel of real property within the redevelopment project area
8and an amount determined by multiplying the rate at which taxes
9were last extended against the taxable lot, block, track, or
10parcel of real property in the manner provided in subsection
11(c) of Section 11-74.4-9 by the initial equalized assessed
12value of the property divided by the number of installments in
13which real estate taxes are billed and collected within the
14county; provided that the payments on or before December 31,
151999 to a municipal treasurer shall be made only if each of the
16following conditions are met:
17        (1) The total equalized assessed value of the
18    redevelopment project area as last determined was not less
19    than 175% of the total initial equalized assessed value.
20        (2) Not more than 50% of the total equalized assessed
21    value of the redevelopment project area as last determined
22    is attributable to a piece of property assigned a single
23    real estate index number.
24        (3) The municipal clerk has certified to the county
25    clerk that the municipality has issued its obligations to
26    which there has been pledged the incremental property taxes

 

 

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1    of the redevelopment project area or taxes levied and
2    collected on any or all property in the municipality or the
3    full faith and credit of the municipality to pay or secure
4    payment for all or a portion of the redevelopment project
5    costs. The certification shall be filed annually no later
6    than September 1 for the estimated taxes to be distributed
7    in the following year; however, for the year 1992 the
8    certification shall be made at any time on or before March
9    31, 1992.
10        (4) The municipality has not requested that the total
11    initial equalized assessed value of real property be
12    adjusted as provided in subsection (b) of Section
13    11-74.4-9.
14    The conditions of paragraphs (1) through (4) do not apply
15after December 31, 1999 to payments to a municipal treasurer
16made by a county with 3,000,000 or more inhabitants that has
17adopted an estimated billing procedure for collecting taxes. If
18a county that has adopted the estimated billing procedure makes
19an erroneous overpayment of tax revenue to the municipal
20treasurer, then the county may seek a refund of that
21overpayment. The county shall send the municipal treasurer a
22notice of liability for the overpayment on or before the
23mailing date of the next real estate tax bill within the
24county. The refund shall be limited to the amount of the
25overpayment.
26    It is the intent of this Division that after the effective

 

 

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1date of this amendatory Act of 1988 a municipality's own ad
2valorem tax arising from levies on taxable real property be
3included in the determination of incremental revenue in the
4manner provided in paragraph (c) of Section 11-74.4-9. If the
5municipality does not extend such a tax, it shall annually
6deposit in the municipality's Special Tax Increment Fund an
7amount equal to 10% of the total contributions to the fund from
8all other taxing districts in that year. The annual 10% deposit
9required by this paragraph shall be limited to the actual
10amount of municipally produced incremental tax revenues
11available to the municipality from taxpayers located in the
12redevelopment project area in that year if: (a) the plan for
13the area restricts the use of the property primarily to
14industrial purposes, (b) the municipality establishing the
15redevelopment project area is a home-rule community with a 1990
16population of between 25,000 and 50,000, (c) the municipality
17is wholly located within a county with a 1990 population of
18over 750,000 and (d) the redevelopment project area was
19established by the municipality prior to June 1, 1990. This
20payment shall be in lieu of a contribution of ad valorem taxes
21on real property. If no such payment is made, any redevelopment
22project area of the municipality shall be dissolved.
23    If a municipality has adopted tax increment allocation
24financing by ordinance and the County Clerk thereafter
25certifies the "total initial equalized assessed value as
26adjusted" of the taxable real property within such

 

 

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1redevelopment project area in the manner provided in paragraph
2(b) of Section 11-74.4-9, each year after the date of the
3certification of the total initial equalized assessed value as
4adjusted until redevelopment project costs and all municipal
5obligations financing redevelopment project costs have been
6paid the ad valorem taxes, if any, arising from the levies upon
7the taxable real property in such redevelopment project area by
8taxing districts and tax rates determined in the manner
9provided in paragraph (c) of Section 11-74.4-9 shall be divided
10as follows:
11        (1) That portion of the taxes levied upon each taxable
12    lot, block, tract or parcel of real property which is
13    attributable to the lower of the current equalized assessed
14    value or "current equalized assessed value as adjusted" or
15    the initial equalized assessed value of each such taxable
16    lot, block, tract, or parcel of real property existing at
17    the time tax increment financing was adopted, minus the
18    total current homestead exemptions under Article 15 of the
19    Property Tax Code in the redevelopment project area shall
20    be allocated to and when collected shall be paid by the
21    county collector to the respective affected taxing
22    districts in the manner required by law in the absence of
23    the adoption of tax increment allocation financing.
24        (2) That portion, if any, of such taxes which is
25    attributable to the increase in the current equalized
26    assessed valuation of each taxable lot, block, tract, or

 

 

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1    parcel of real property in the redevelopment project area,
2    over and above the initial equalized assessed value of each
3    property existing at the time tax increment financing was
4    adopted, minus the total current homestead exemptions
5    pertaining to each piece of property provided by Article 15
6    of the Property Tax Code in the redevelopment project area,
7    shall be allocated to and when collected shall be paid to
8    the municipal Treasurer, who shall deposit said taxes into
9    a special fund called the special tax allocation fund of
10    the municipality for the purpose of paying redevelopment
11    project costs and obligations incurred in the payment
12    thereof.
13    The municipality may pledge in the ordinance the funds in
14and to be deposited in the special tax allocation fund for the
15payment of such costs and obligations. No part of the current
16equalized assessed valuation of each property in the
17redevelopment project area attributable to any increase above
18the total initial equalized assessed value, or the total
19initial equalized assessed value as adjusted, of such
20properties shall be used in calculating the general State
21school aid formula, provided for in Section 18-8 of the School
22Code, until such time as all redevelopment project costs have
23been paid as provided for in this Section.
24    Whenever a municipality issues bonds for the purpose of
25financing redevelopment project costs, such municipality may
26provide by ordinance for the appointment of a trustee, which

 

 

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1may be any trust company within the State, and for the
2establishment of such funds or accounts to be maintained by
3such trustee as the municipality shall deem necessary to
4provide for the security and payment of the bonds. If such
5municipality provides for the appointment of a trustee, such
6trustee shall be considered the assignee of any payments
7assigned by the municipality pursuant to such ordinance and
8this Section. Any amounts paid to such trustee as assignee
9shall be deposited in the funds or accounts established
10pursuant to such trust agreement, and shall be held by such
11trustee in trust for the benefit of the holders of the bonds,
12and such holders shall have a lien on and a security interest
13in such funds or accounts so long as the bonds remain
14outstanding and unpaid. Upon retirement of the bonds, the
15trustee shall pay over any excess amounts held to the
16municipality for deposit in the special tax allocation fund.
17    When such redevelopment projects costs, including without
18limitation all municipal obligations financing redevelopment
19project costs incurred under this Division, have been paid, all
20surplus funds then remaining in the special tax allocation fund
21shall be distributed by being paid by the municipal treasurer
22to the Department of Revenue, the municipality and the county
23collector; first to the Department of Revenue and the
24municipality in direct proportion to the tax incremental
25revenue received from the State and the municipality, but not
26to exceed the total incremental revenue received from the State

 

 

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1or the municipality less any annual surplus distribution of
2incremental revenue previously made; with any remaining funds
3to be paid to the County Collector who shall immediately
4thereafter pay said funds to the taxing districts in the
5redevelopment project area in the same manner and proportion as
6the most recent distribution by the county collector to the
7affected districts of real property taxes from real property in
8the redevelopment project area.
9    Upon the payment of all redevelopment project costs, the
10retirement of obligations, the distribution of any excess
11monies pursuant to this Section, and final closing of the books
12and records of the redevelopment project area, the municipality
13shall adopt an ordinance dissolving the special tax allocation
14fund for the redevelopment project area and terminating the
15designation of the redevelopment project area as a
16redevelopment project area. Title to real or personal property
17and public improvements acquired by or for the municipality as
18a result of the redevelopment project and plan shall vest in
19the municipality when acquired and shall continue to be held by
20the municipality after the redevelopment project area has been
21terminated. Municipalities shall notify affected taxing
22districts prior to November 1 if the redevelopment project area
23is to be terminated by December 31 of that same year. If a
24municipality extends estimated dates of completion of a
25redevelopment project and retirement of obligations to finance
26a redevelopment project, as allowed by this amendatory Act of

 

 

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11993, that extension shall not extend the property tax
2increment allocation financing authorized by this Section.
3Thereafter the rates of the taxing districts shall be extended
4and taxes levied, collected and distributed in the manner
5applicable in the absence of the adoption of tax increment
6allocation financing.
7    Nothing in this Section shall be construed as relieving
8property in such redevelopment project areas from being
9assessed as provided in the Property Tax Code or as relieving
10owners of such property from paying a uniform rate of taxes, as
11required by Section 4 of Article 9 of the Illinois
12Constitution.
13(Source: P.A. 95-644, eff. 10-12-07.)