102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0088

 

Introduced 2/3/2021, by Sen. Win Stoller

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
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. Provides that any ordinance adopting tax increment financing on or after the effective date of the amendatory Act shall specify a date for the dissolution of the special tax allocation fund and a date for the termination of the designation of the redevelopment project area. Provides that, within 90 days after the effective date of the amendatory Act, each municipality shall amend all existing tax increment financing ordinances to specify a date for the dissolution of the special tax allocation fund and a date for termination of the designation of the redevelopment project area. Provides that municipalities shall notify affected taxing districts of the termination of redevelopment project areas by July 1 (currently, November 1) of the calendar year in which the redevelopment project area is terminated. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if a municipality has failed to provide timely notice to all taxing bodies of the termination of a redevelopment project area and the county clerk has been notified of that failure, then "recovered tax increment value" means the amount of the current year's equalized assessed value in the first year beginning at least 60 days after the notice has been provided.


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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 revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5
8may be cited as the Property Tax Extension Limitation Law. As
9used in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17    "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20    "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

 

 

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1its 1990 equalized assessed value within any county or
2counties contiguous to a county with 3,000,000 or more
3inhabitants. Beginning with the 1995 levy year, "taxing
4district" includes only each non-home rule taxing district
5subject to this Law before the 1995 levy year and each non-home
6rule taxing district not subject to this Law before the 1995
7levy year having the majority of its 1994 equalized assessed
8value in an affected county or counties. Beginning with the
9levy year in which this Law becomes applicable to a taxing
10district as provided in Section 18-213, "taxing district" also
11includes those taxing districts made subject to this Law as
12provided in Section 18-213.
13    "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made
20for any taxing district to pay interest or principal on
21general obligation bonds issued before October 1, 1991; (c)
22made for any taxing district to pay interest or principal on
23bonds issued to refund or continue to refund those bonds
24issued before October 1, 1991; (d) made for any taxing
25district to pay interest or principal on bonds issued to
26refund or continue to refund bonds issued after October 1,

 

 

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11991 that were approved by referendum; (e) made for any taxing
2district to pay interest or principal on revenue bonds issued
3before October 1, 1991 for payment of which a property tax levy
4or the full faith and credit of the unit of local government is
5pledged; however, a tax for the payment of interest or
6principal on those bonds shall be made only after the
7governing body of the unit of local government finds that all
8other sources for payment are insufficient to make those
9payments; (f) made for payments under a building commission
10lease when the lease payments are for the retirement of bonds
11issued by the commission before October 1, 1991, to pay for the
12building project; (g) made for payments due under installment
13contracts entered into before October 1, 1991; (h) made for
14payments of principal and interest on bonds issued under the
15Metropolitan Water Reclamation District Act to finance
16construction projects initiated before October 1, 1991; (i)
17made for payments of principal and interest on limited bonds,
18as defined in Section 3 of the Local Government Debt Reform
19Act, in an amount not to exceed the debt service extension base
20less the amount in items (b), (c), (e), and (h) of this
21definition for non-referendum obligations, except obligations
22initially issued pursuant to referendum; (j) made for payments
23of principal and interest on bonds issued under Section 15 of
24the Local Government Debt Reform Act; (k) made by a school
25district that participates in the Special Education District
26of Lake County, created by special education joint agreement

 

 

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1under Section 10-22.31 of the School Code, for payment of the
2school district's share of the amounts required to be
3contributed by the Special Education District of Lake County
4to the Illinois Municipal Retirement Fund under Article 7 of
5the Illinois Pension Code; the amount of any extension under
6this item (k) shall be certified by the school district to the
7county clerk; (l) made to fund expenses of providing joint
8recreational programs for persons with disabilities under
9Section 5-8 of the Park District Code or Section 11-95-14 of
10the Illinois Municipal Code; (m) made for temporary relocation
11loan repayment purposes pursuant to Sections 2-3.77 and
1217-2.2d of the School Code; (n) made for payment of principal
13and interest on any bonds issued under the authority of
14Section 17-2.2d of the School Code; (o) made for contributions
15to a firefighter's pension fund created under Article 4 of the
16Illinois Pension Code, to the extent of the amount certified
17under item (5) of Section 4-134 of the Illinois Pension Code;
18and (p) made for road purposes in the first year after a
19township assumes the rights, powers, duties, assets, property,
20liabilities, obligations, and responsibilities of a road
21district abolished under the provisions of Section 6-133 of
22the Illinois Highway Code.
23    "Aggregate extension" for the taxing districts to which
24this Law did not apply before the 1995 levy year (except taxing
25districts subject to this Law in accordance with Section
2618-213) means the annual corporate extension for the taxing

 

 

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1district and those special purpose extensions that are made
2annually for the taxing district, excluding special purpose
3extensions: (a) made for the taxing district to pay interest
4or principal on general obligation bonds that were approved by
5referendum; (b) made for any taxing district to pay interest
6or principal on general obligation bonds issued before March
71, 1995; (c) made for any taxing district to pay interest or
8principal on bonds issued to refund or continue to refund
9those bonds issued before March 1, 1995; (d) made for any
10taxing district to pay interest or principal on bonds issued
11to refund or continue to refund bonds issued after March 1,
121995 that were approved by referendum; (e) made for any taxing
13district to pay interest or principal on revenue bonds issued
14before March 1, 1995 for payment of which a property tax levy
15or the full faith and credit of the unit of local government is
16pledged; however, a tax for the payment of interest or
17principal on those bonds shall be made only after the
18governing body of the unit of local government finds that all
19other sources for payment are insufficient to make those
20payments; (f) made for payments under a building commission
21lease when the lease payments are for the retirement of bonds
22issued by the commission before March 1, 1995 to pay for the
23building project; (g) made for payments due under installment
24contracts entered into before March 1, 1995; (h) made for
25payments of principal and interest on bonds issued under the
26Metropolitan Water Reclamation District Act to finance

 

 

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1construction projects initiated before October 1, 1991; (h-4)
2made for stormwater management purposes by the Metropolitan
3Water Reclamation District of Greater Chicago under Section 12
4of the Metropolitan Water Reclamation District Act; (i) made
5for payments of principal and interest on limited bonds, as
6defined in Section 3 of the Local Government Debt Reform Act,
7in an amount not to exceed the debt service extension base less
8the amount in items (b), (c), and (e) of this definition for
9non-referendum obligations, except obligations initially
10issued pursuant to referendum and bonds described in
11subsection (h) of this definition; (j) made for payments of
12principal and interest on bonds issued under Section 15 of the
13Local Government Debt Reform Act; (k) made for payments of
14principal and interest on bonds authorized by Public Act
1588-503 and issued under Section 20a of the Chicago Park
16District Act for aquarium or museum projects; (l) made for
17payments of principal and interest on bonds authorized by
18Public Act 87-1191 or 93-601 and (i) issued pursuant to
19Section 21.2 of the Cook County Forest Preserve District Act,
20(ii) issued under Section 42 of the Cook County Forest
21Preserve District Act for zoological park projects, or (iii)
22issued under Section 44.1 of the Cook County Forest Preserve
23District Act for botanical gardens projects; (m) made pursuant
24to Section 34-53.5 of the School Code, whether levied annually
25or not; (n) made to fund expenses of providing joint
26recreational programs for persons with disabilities under

 

 

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1Section 5-8 of the Park District Code or Section 11-95-14 of
2the Illinois Municipal Code; (o) made by the Chicago Park
3District for recreational programs for persons with
4disabilities under subsection (c) of Section 7.06 of the
5Chicago Park District Act; (p) made for contributions to a
6firefighter's pension fund created under Article 4 of the
7Illinois Pension Code, to the extent of the amount certified
8under item (5) of Section 4-134 of the Illinois Pension Code;
9(q) made by Ford Heights School District 169 under Section
1017-9.02 of the School Code; and (r) made for the purpose of
11making employer contributions to the Public School Teachers'
12Pension and Retirement Fund of Chicago under Section 34-53 of
13the School Code.
14    "Aggregate extension" for all taxing districts to which
15this Law applies in accordance with Section 18-213, except for
16those taxing districts subject to paragraph (2) of subsection
17(e) of Section 18-213, means the annual corporate extension
18for the taxing district and those special purpose extensions
19that are made annually for the taxing district, excluding
20special purpose extensions: (a) made for the taxing district
21to pay interest or principal on general obligation bonds that
22were approved by referendum; (b) made for any taxing district
23to pay interest or principal on general obligation bonds
24issued before the date on which the referendum making this Law
25applicable to the taxing district is held; (c) made for any
26taxing district to pay interest or principal on bonds issued

 

 

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1to refund or continue to refund those bonds issued before the
2date on which the referendum making this Law applicable to the
3taxing district is held; (d) made for any taxing district to
4pay interest or principal on bonds issued to refund or
5continue to refund bonds issued after the date on which the
6referendum making this Law applicable to the taxing district
7is held if the bonds were approved by referendum after the date
8on which the referendum making this Law applicable to the
9taxing district is held; (e) made for any taxing district to
10pay interest or principal on revenue bonds issued before the
11date on which the referendum making this Law applicable to the
12taxing district is held for payment of which a property tax
13levy or the full faith and credit of the unit of local
14government is pledged; however, a tax for the payment of
15interest or principal on those bonds shall be made only after
16the governing body of the unit of local government finds that
17all other sources for payment are insufficient to make those
18payments; (f) made for payments under a building commission
19lease when the lease payments are for the retirement of bonds
20issued by the commission before the date on which the
21referendum making this Law applicable to the taxing district
22is held to pay for the building project; (g) made for payments
23due under installment contracts entered into before the date
24on which the referendum making this Law applicable to the
25taxing district is held; (h) made for payments of principal
26and interest on limited bonds, as defined in Section 3 of the

 

 

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1Local Government Debt Reform Act, in an amount not to exceed
2the debt service extension base less the amount in items (b),
3(c), and (e) of this definition for non-referendum
4obligations, except obligations initially issued pursuant to
5referendum; (i) made for payments of principal and interest on
6bonds issued under Section 15 of the Local Government Debt
7Reform Act; (j) made for a qualified airport authority to pay
8interest or principal on general obligation bonds issued for
9the purpose of paying obligations due under, or financing
10airport facilities required to be acquired, constructed,
11installed or equipped pursuant to, contracts entered into
12before March 1, 1996 (but not including any amendments to such
13a contract taking effect on or after that date); (k) made to
14fund expenses of providing joint recreational programs for
15persons with disabilities under Section 5-8 of the Park
16District Code or Section 11-95-14 of the Illinois Municipal
17Code; (l) made for contributions to a firefighter's pension
18fund created under Article 4 of the Illinois Pension Code, to
19the extent of the amount certified under item (5) of Section
204-134 of the Illinois Pension Code; and (m) made for the taxing
21district to pay interest or principal on general obligation
22bonds issued pursuant to Section 19-3.10 of the School Code.
23    "Aggregate extension" for all taxing districts to which
24this Law applies in accordance with paragraph (2) of
25subsection (e) of Section 18-213 means the annual corporate
26extension for the taxing district and those special purpose

 

 

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1extensions that are made annually for the taxing district,
2excluding special purpose extensions: (a) made for the taxing
3district to pay interest or principal on general obligation
4bonds that were approved by referendum; (b) made for any
5taxing district to pay interest or principal on general
6obligation bonds issued before March 7, 1997 (the effective
7date of Public Act 89-718) this amendatory Act of 1997; (c)
8made for any taxing district to pay interest or principal on
9bonds issued to refund or continue to refund those bonds
10issued before March 7, 1997 (the effective date of Public Act
1189-718) this amendatory Act of 1997; (d) made for any taxing
12district to pay interest or principal on bonds issued to
13refund or continue to refund bonds issued after March 7, 1997
14(the effective date of Public Act 89-718) this amendatory Act
15of 1997 if the bonds were approved by referendum after March 7,
161997 (the effective date of Public Act 89-718) this amendatory
17Act of 1997; (e) made for any taxing district to pay interest
18or principal on revenue bonds issued before March 7, 1997 (the
19effective date of Public Act 89-718) this amendatory Act of
201997 for payment of which a property tax levy or the full faith
21and credit of the unit of local government is pledged;
22however, a tax for the payment of interest or principal on
23those bonds shall be made only after the governing body of the
24unit of local government finds that all other sources for
25payment are insufficient to make those payments; (f) made for
26payments under a building commission lease when the lease

 

 

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1payments are for the retirement of bonds issued by the
2commission before March 7, 1997 (the effective date of Public
3Act 89-718) this amendatory Act of 1997 to pay for the building
4project; (g) made for payments due under installment contracts
5entered into before March 7, 1997 (the effective date of
6Public Act 89-718) this amendatory Act of 1997; (h) made for
7payments of principal and interest on limited bonds, as
8defined in Section 3 of the Local Government Debt Reform Act,
9in an amount not to exceed the debt service extension base less
10the amount in items (b), (c), and (e) of this definition for
11non-referendum obligations, except obligations initially
12issued pursuant to referendum; (i) made for payments of
13principal and interest on bonds issued under Section 15 of the
14Local Government Debt Reform Act; (j) made for a qualified
15airport authority to pay interest or principal on general
16obligation bonds issued for the purpose of paying obligations
17due under, or financing airport facilities required to be
18acquired, constructed, installed or equipped pursuant to,
19contracts entered into before March 1, 1996 (but not including
20any amendments to such a contract taking effect on or after
21that date); (k) made to fund expenses of providing joint
22recreational programs for persons with disabilities under
23Section 5-8 of the Park District Code or Section 11-95-14 of
24the Illinois Municipal Code; and (l) made for contributions to
25a firefighter's pension fund created under Article 4 of the
26Illinois Pension Code, to the extent of the amount certified

 

 

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1under item (5) of Section 4-134 of the Illinois Pension Code.
2    "Debt service extension base" means an amount equal to
3that portion of the extension for a taxing district for the
41994 levy year, or for those taxing districts subject to this
5Law in accordance with Section 18-213, except for those
6subject to paragraph (2) of subsection (e) of Section 18-213,
7for the levy year in which the referendum making this Law
8applicable to the taxing district is held, or for those taxing
9districts subject to this Law in accordance with paragraph (2)
10of subsection (e) of Section 18-213 for the 1996 levy year,
11constituting an extension for payment of principal and
12interest on bonds issued by the taxing district without
13referendum, but not including excluded non-referendum bonds.
14For park districts (i) that were first subject to this Law in
151991 or 1995 and (ii) whose extension for the 1994 levy year
16for the payment of principal and interest on bonds issued by
17the park district without referendum (but not including
18excluded non-referendum bonds) was less than 51% of the amount
19for the 1991 levy year constituting an extension for payment
20of principal and interest on bonds issued by the park district
21without referendum (but not including excluded non-referendum
22bonds), "debt service extension base" means an amount equal to
23that portion of the extension for the 1991 levy year
24constituting an extension for payment of principal and
25interest on bonds issued by the park district without
26referendum (but not including excluded non-referendum bonds).

 

 

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1A debt service extension base established or increased at any
2time pursuant to any provision of this Law, except Section
318-212, shall be increased each year commencing with the later
4of (i) the 2009 levy year or (ii) the first levy year in which
5this Law becomes applicable to the taxing district, by the
6lesser of 5% or the percentage increase in the Consumer Price
7Index during the 12-month calendar year preceding the levy
8year. The debt service extension base may be established or
9increased as provided under Section 18-212. "Excluded
10non-referendum bonds" means (i) bonds authorized by Public Act
1188-503 and issued under Section 20a of the Chicago Park
12District Act for aquarium and museum projects; (ii) bonds
13issued under Section 15 of the Local Government Debt Reform
14Act; or (iii) refunding obligations issued to refund or to
15continue to refund obligations initially issued pursuant to
16referendum.
17    "Special purpose extensions" include, but are not limited
18to, extensions for levies made on an annual basis for
19unemployment and workers' compensation, self-insurance,
20contributions to pension plans, and extensions made pursuant
21to Section 6-601 of the Illinois Highway Code for a road
22district's permanent road fund whether levied annually or not.
23The extension for a special service area is not included in the
24aggregate extension.
25    "Aggregate extension base" means the taxing district's
26last preceding aggregate extension as adjusted under Sections

 

 

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118-135, 18-215, 18-230, and 18-206. An adjustment under
2Section 18-135 shall be made for the 2007 levy year and all
3subsequent levy years whenever one or more counties within
4which a taxing district is located (i) used estimated
5valuations or rates when extending taxes in the taxing
6district for the last preceding levy year that resulted in the
7over or under extension of taxes, or (ii) increased or
8decreased the tax extension for the last preceding levy year
9as required by Section 18-135(c). Whenever an adjustment is
10required under Section 18-135, the aggregate extension base of
11the taxing district shall be equal to the amount that the
12aggregate extension of the taxing district would have been for
13the last preceding levy year if either or both (i) actual,
14rather than estimated, valuations or rates had been used to
15calculate the extension of taxes for the last levy year, or
16(ii) the tax extension for the last preceding levy year had not
17been adjusted as required by subsection (c) of Section 18-135.
18    Notwithstanding any other provision of law, for levy year
192012, the aggregate extension base for West Northfield School
20District No. 31 in Cook County shall be $12,654,592.
21    "Levy year" has the same meaning as "year" under Section
221-155.
23    "New property" means (i) the assessed value, after final
24board of review or board of appeals action, of new
25improvements or additions to existing improvements on any
26parcel of real property that increase the assessed value of

 

 

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1that real property during the levy year multiplied by the
2equalization factor issued by the Department under Section
317-30, (ii) the assessed value, after final board of review or
4board of appeals action, of real property not exempt from real
5estate taxation, which real property was exempt from real
6estate taxation for any portion of the immediately preceding
7levy year, multiplied by the equalization factor issued by the
8Department under Section 17-30, including the assessed value,
9upon final stabilization of occupancy after new construction
10is complete, of any real property located within the
11boundaries of an otherwise or previously exempt military
12reservation that is intended for residential use and owned by
13or leased to a private corporation or other entity, (iii) in
14counties that classify in accordance with Section 4 of Article
15IX of the Illinois Constitution, an incentive property's
16additional assessed value resulting from a scheduled increase
17in the level of assessment as applied to the first year final
18board of review market value, and (iv) any increase in
19assessed value due to oil or gas production from an oil or gas
20well required to be permitted under the Hydraulic Fracturing
21Regulatory Act that was not produced in or accounted for
22during the previous levy year. In addition, the county clerk
23in a county containing a population of 3,000,000 or more shall
24include in the 1997 recovered tax increment value for any
25school district, any recovered tax increment value that was
26applicable to the 1995 tax year calculations.

 

 

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1    "Qualified airport authority" means an airport authority
2organized under the Airport Authorities Act and located in a
3county bordering on the State of Wisconsin and having a
4population in excess of 200,000 and not greater than 500,000.
5    "Recovered tax increment value" means, except as otherwise
6provided in this paragraph, the amount of the current year's
7equalized assessed value, in the first year after a
8municipality terminates the designation of an area as a
9redevelopment project area previously established under the
10Tax Increment Allocation Redevelopment Development Act in the
11Illinois Municipal Code, previously established under the
12Industrial Jobs Recovery Law in the Illinois Municipal Code,
13previously established under the Economic Development Project
14Area Tax Increment Act of 1995, or previously established
15under the Economic Development Area Tax Increment Allocation
16Act, of each taxable lot, block, tract, or parcel of real
17property in the redevelopment project area over and above the
18initial equalized assessed value of each property in the
19redevelopment project area. If a municipality has failed to
20provide timely notice to all taxing bodies of the termination
21of a redevelopment project area under Section 11-74.4-8 of the
22Illinois Municipal Code and the county clerk has been notified
23of that failure, then "recovered tax increment value" means
24the amount of the current year's equalized assessed value in
25the first year beginning at least 60 days after the notice has
26been provided. For the taxes which are extended for the 1997

 

 

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1levy year, the recovered tax increment value for a non-home
2rule taxing district that first became subject to this Law for
3the 1995 levy year because a majority of its 1994 equalized
4assessed value was in an affected county or counties shall be
5increased if a municipality terminated the designation of an
6area in 1993 as a redevelopment project area previously
7established under the Tax Increment Allocation Redevelopment
8Development Act in the Illinois Municipal Code, previously
9established under the Industrial Jobs Recovery Law in the
10Illinois Municipal Code, or previously established under the
11Economic Development Area Tax Increment Allocation Act, by an
12amount equal to the 1994 equalized assessed value of each
13taxable lot, block, tract, or parcel of real property in the
14redevelopment project area over and above the initial
15equalized assessed value of each property in the redevelopment
16project area. In the first year after a municipality removes a
17taxable lot, block, tract, or parcel of real property from a
18redevelopment project area established under the Tax Increment
19Allocation Redevelopment Development Act in the Illinois
20Municipal Code, the Industrial Jobs Recovery Law in the
21Illinois Municipal Code, or the Economic Development Area Tax
22Increment Allocation Act, "recovered tax increment value"
23means the amount of the current year's equalized assessed
24value of each taxable lot, block, tract, or parcel of real
25property removed from the redevelopment project area over and
26above the initial equalized assessed value of that real

 

 

SB0088- 18 -LRB102 04160 HLH 14177 b

1property before removal from the redevelopment project area.
2    Except as otherwise provided in this Section, "limiting
3rate" means a fraction the numerator of which is the last
4preceding aggregate extension base times an amount equal to
5one plus the extension limitation defined in this Section and
6the denominator of which is the current year's equalized
7assessed value of all real property in the territory under the
8jurisdiction of the taxing district during the prior levy
9year. For those taxing districts that reduced their aggregate
10extension for the last preceding levy year, except for school
11districts that reduced their extension for educational
12purposes pursuant to Section 18-206, the highest aggregate
13extension in any of the last 3 preceding levy years shall be
14used for the purpose of computing the limiting rate. The
15denominator shall not include new property or the recovered
16tax increment value. If a new rate, a rate decrease, or a
17limiting rate increase has been approved at an election held
18after March 21, 2006, then (i) the otherwise applicable
19limiting rate shall be increased by the amount of the new rate
20or shall be reduced by the amount of the rate decrease, as the
21case may be, or (ii) in the case of a limiting rate increase,
22the limiting rate shall be equal to the rate set forth in the
23proposition approved by the voters for each of the years
24specified in the proposition, after which the limiting rate of
25the taxing district shall be calculated as otherwise provided.
26In the case of a taxing district that obtained referendum

 

 

SB0088- 19 -LRB102 04160 HLH 14177 b

1approval for an increased limiting rate on March 20, 2012, the
2limiting rate for tax year 2012 shall be the rate that
3generates the approximate total amount of taxes extendable for
4that tax year, as set forth in the proposition approved by the
5voters; this rate shall be the final rate applied by the county
6clerk for the aggregate of all capped funds of the district for
7tax year 2012.
8(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
9100-465, eff. 8-31-17; revised 8-12-19.)
 
10    Section 10. The Illinois Municipal Code is amended by
11changing Section 11-74.4-8 as follows:
 
12    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
13    Sec. 11-74.4-8. Tax increment allocation financing. A
14municipality may not adopt tax increment financing in a
15redevelopment project area after July 30, 1997 (the effective
16date of Public Act 90-258) this amendatory Act of 1997 that
17will encompass an area that is currently included in an
18enterprise zone created under the Illinois Enterprise Zone Act
19unless that municipality, pursuant to Section 5.4 of the
20Illinois Enterprise Zone Act, amends the enterprise zone
21designating ordinance to limit the eligibility for tax
22abatements as provided in Section 5.4.1 of the Illinois
23Enterprise Zone Act. A municipality, at the time a
24redevelopment project area is designated, may adopt tax

 

 

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1increment allocation financing by passing an ordinance
2providing that the ad valorem taxes, if any, arising from the
3levies upon taxable real property in such redevelopment
4project area by taxing districts and tax rates determined in
5the manner provided in paragraph (c) of Section 11-74.4-9 each
6year after the effective date of the ordinance until
7redevelopment project costs and all municipal obligations
8financing redevelopment project costs incurred under this
9Division have been paid shall be divided as follows, provided,
10however, that with respect to any redevelopment project area
11located within a transit facility improvement area established
12pursuant to Section 11-74.4-3.3 in a municipality with a
13population of 1,000,000 or more, ad valorem taxes, if any,
14arising from the levies upon taxable real property in such
15redevelopment project area shall be allocated as specifically
16provided in this Section:
17        (a) That portion of taxes levied upon each taxable
18    lot, block, tract, or parcel of real property which is
19    attributable to the lower of the current equalized
20    assessed value or the initial equalized assessed value of
21    each such taxable lot, block, tract, or parcel of real
22    property in the redevelopment project area shall be
23    allocated to and when collected shall be paid by the
24    county collector to the respective affected taxing
25    districts in the manner required by law in the absence of
26    the adoption of tax increment allocation financing.

 

 

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

 

 

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1    provided in subsection (c) of Section 11-74.4-9 by the
2    initial equalized assessed value of the property divided
3    by the number of installments in which real estate taxes
4    are billed and collected within the county; provided that
5    the payments on or before December 31, 1999 to a municipal
6    treasurer shall be made only if each of the following
7    conditions are met:
8            (1) The total equalized assessed value of the
9        redevelopment project area as last determined was not
10        less than 175% of the total initial equalized assessed
11        value.
12            (2) Not more than 50% of the total equalized
13        assessed value of the redevelopment project area as
14        last determined is attributable to a piece of property
15        assigned a single real estate index number.
16            (3) The municipal clerk has certified to the
17        county clerk that the municipality has issued its
18        obligations to which there has been pledged the
19        incremental property taxes of the redevelopment
20        project area or taxes levied and collected on any or
21        all property in the municipality or the full faith and
22        credit of the municipality to pay or secure payment
23        for all or a portion of the redevelopment project
24        costs. The certification shall be filed annually no
25        later than September 1 for the estimated taxes to be
26        distributed in the following year; however, for the

 

 

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1        year 1992 the certification shall be made at any time
2        on or before March 31, 1992.
3            (4) The municipality has not requested that the
4        total initial equalized assessed value of real
5        property be adjusted as provided in subsection (b) of
6        Section 11-74.4-9.
7        The conditions of paragraphs (1) through (4) do not
8    apply after December 31, 1999 to payments to a municipal
9    treasurer made by a county with 3,000,000 or more
10    inhabitants that has adopted an estimated billing
11    procedure for collecting taxes. If a county that has
12    adopted the estimated billing procedure makes an erroneous
13    overpayment of tax revenue to the municipal treasurer,
14    then the county may seek a refund of that overpayment. The
15    county shall send the municipal treasurer a notice of
16    liability for the overpayment on or before the mailing
17    date of the next real estate tax bill within the county.
18    The refund shall be limited to the amount of the
19    overpayment.
20        It is the intent of this Division that after July 29,
21    1988 (the effective date of Public Act 85-1142) this
22    amendatory Act of 1988 a municipality's own ad valorem tax
23    arising from levies on taxable real property be included
24    in the determination of incremental revenue in the manner
25    provided in paragraph (c) of Section 11-74.4-9. If the
26    municipality does not extend such a tax, it shall annually

 

 

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1    deposit in the municipality's Special Tax Increment Fund
2    an amount equal to 10% of the total contributions to the
3    fund from all other taxing districts in that year. The
4    annual 10% deposit required by this paragraph shall be
5    limited to the actual amount of municipally produced
6    incremental tax revenues available to the municipality
7    from taxpayers located in the redevelopment project area
8    in that year if: (a) the plan for the area restricts the
9    use of the property primarily to industrial purposes, (b)
10    the municipality establishing the redevelopment project
11    area is a home rule home-rule community with a 1990
12    population of between 25,000 and 50,000, (c) the
13    municipality is wholly located within a county with a 1990
14    population of over 750,000 and (d) the redevelopment
15    project area was established by the municipality prior to
16    June 1, 1990. This payment shall be in lieu of a
17    contribution of ad valorem taxes on real property. If no
18    such payment is made, any redevelopment project area of
19    the municipality shall be dissolved.
20        If a municipality has adopted tax increment allocation
21    financing by ordinance and the County Clerk thereafter
22    certifies the "total initial equalized assessed value as
23    adjusted" of the taxable real property within such
24    redevelopment project area in the manner provided in
25    paragraph (b) of Section 11-74.4-9, each year after the
26    date of the certification of the total initial equalized

 

 

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1    assessed value as adjusted until redevelopment project
2    costs and all municipal obligations financing
3    redevelopment project costs have been paid the ad valorem
4    taxes, if any, arising from the levies upon the taxable
5    real property in such redevelopment project area by taxing
6    districts and tax rates determined in the manner provided
7    in paragraph (c) of Section 11-74.4-9 shall be divided as
8    follows, provided, however, that with respect to any
9    redevelopment project area located within a transit
10    facility improvement area established pursuant to Section
11    11-74.4-3.3 in a municipality with a population of
12    1,000,000 or more, ad valorem taxes, if any, arising from
13    the levies upon the taxable real property in such
14    redevelopment project area shall be allocated as
15    specifically provided in this Section:
16            (1) That portion of the taxes levied upon each
17        taxable lot, block, tract, or parcel of real property
18        which is attributable to the lower of the current
19        equalized assessed value or "current equalized
20        assessed value as adjusted" or the initial equalized
21        assessed value of each such taxable lot, block, tract,
22        or parcel of real property existing at the time tax
23        increment financing was adopted, minus the total
24        current homestead exemptions under Article 15 of the
25        Property Tax Code in the redevelopment project area
26        shall be allocated to and when collected shall be paid

 

 

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1        by the county collector to the respective affected
2        taxing districts in the manner required by law in the
3        absence of the adoption of tax increment allocation
4        financing.
5            (2) That portion, if any, of such taxes which is
6        attributable to the increase in the current equalized
7        assessed valuation of each taxable lot, block, tract,
8        or parcel of real property in the redevelopment
9        project area, over and above the initial equalized
10        assessed value of each property existing at the time
11        tax increment financing was adopted, minus the total
12        current homestead exemptions pertaining to each piece
13        of property provided by Article 15 of the Property Tax
14        Code in the redevelopment project area, shall be
15        allocated to and when collected shall be paid to the
16        municipal Treasurer, who shall deposit said taxes into
17        a special fund called the special tax allocation fund
18        of the municipality for the purpose of paying
19        redevelopment project costs and obligations incurred
20        in the payment thereof.
21        The municipality may pledge in the ordinance the funds
22    in and to be deposited in the special tax allocation fund
23    for the payment of such costs and obligations. No part of
24    the current equalized assessed valuation of each property
25    in the redevelopment project area attributable to any
26    increase above the total initial equalized assessed value,

 

 

SB0088- 27 -LRB102 04160 HLH 14177 b

1    or the total initial equalized assessed value as adjusted,
2    of such properties shall be used in calculating the
3    general State aid formula, provided for in Section 18-8 of
4    the School Code, or the evidence-based funding formula,
5    provided for in Section 18-8.15 of the School Code, until
6    such time as all redevelopment project costs have been
7    paid as provided for in this Section.
8        Whenever a municipality issues bonds for the purpose
9    of financing redevelopment project costs, such
10    municipality may provide by ordinance for the appointment
11    of a trustee, which may be any trust company within the
12    State, and for the establishment of such funds or accounts
13    to be maintained by such trustee as the municipality shall
14    deem necessary to provide for the security and payment of
15    the bonds. If such municipality provides for the
16    appointment of a trustee, such trustee shall be considered
17    the assignee of any payments assigned by the municipality
18    pursuant to such ordinance and this Section. Any amounts
19    paid to such trustee as assignee shall be deposited in the
20    funds or accounts established pursuant to such trust
21    agreement, and shall be held by such trustee in trust for
22    the benefit of the holders of the bonds, and such holders
23    shall have a lien on and a security interest in such funds
24    or accounts so long as the bonds remain outstanding and
25    unpaid. Upon retirement of the bonds, the trustee shall
26    pay over any excess amounts held to the municipality for

 

 

SB0088- 28 -LRB102 04160 HLH 14177 b

1    deposit in the special tax allocation fund.
2        When such redevelopment projects costs, including,
3    without limitation, all municipal obligations financing
4    redevelopment project costs incurred under this Division,
5    have been paid, all surplus funds then remaining in the
6    special tax allocation fund shall be distributed by being
7    paid by the municipal treasurer to the Department of
8    Revenue, the municipality and the county collector; first
9    to the Department of Revenue and the municipality in
10    direct proportion to the tax incremental revenue received
11    from the State and the municipality, but not to exceed the
12    total incremental revenue received from the State or the
13    municipality less any annual surplus distribution of
14    incremental revenue previously made; with any remaining
15    funds to be paid to the County Collector who shall
16    immediately thereafter pay said funds to the taxing
17    districts in the redevelopment project area in the same
18    manner and proportion as the most recent distribution by
19    the county collector to the affected districts of real
20    property taxes from real property in the redevelopment
21    project area.
22        Upon the payment of all redevelopment project costs,
23    the retirement of obligations, the distribution of any
24    excess monies pursuant to this Section, and final closing
25    of the books and records of the redevelopment project
26    area, the municipality, if it has not already done so,

 

 

SB0088- 29 -LRB102 04160 HLH 14177 b

1    shall adopt an ordinance dissolving the special tax
2    allocation fund for the redevelopment project area and
3    terminating the designation of the redevelopment project
4    area as a redevelopment project area. Title to real or
5    personal property and public improvements acquired by or
6    for the municipality as a result of the redevelopment
7    project and plan shall vest in the municipality when
8    acquired and shall continue to be held by the municipality
9    after the redevelopment project area has been terminated.
10    Municipalities shall notify affected taxing districts
11    prior to July 1 November 1 if the redevelopment project
12    area is to be terminated by December 31 of that same year.
13    If a municipality extends estimated dates of completion of
14    a redevelopment project and retirement of obligations to
15    finance a redevelopment project, as allowed by Public Act
16    87-1272 this amendatory Act of 1993, that extension shall
17    not extend the property tax increment allocation financing
18    authorized by this Section. Thereafter the rates of the
19    taxing districts shall be extended and taxes levied,
20    collected and distributed in the manner applicable in the
21    absence of the adoption of tax increment allocation
22    financing.
23        After the effective date of this amendatory Act of the
24    102nd General Assembly, any new ordinance adopting tax
25    increment financing in a redevelopment project area shall
26    specify a date for the dissolution of the special tax

 

 

SB0088- 30 -LRB102 04160 HLH 14177 b

1    allocation fund for the redevelopment project area and a
2    date for the termination of the designation of the
3    redevelopment project area as a redevelopment project
4    area. The municipality may amend the ordinance at any time
5    to change the date of termination. No later than 90 days
6    after the effective date of this amendatory Act of the
7    102nd66666 General Assembly, each municipality shall amend
8    all existing tax increment financing ordinances to specify
9    a date for the dissolution of the special tax allocation
10    fund for the redevelopment project area and a date for
11    termination of the designation of the redevelopment
12    project area as a redevelopment project area. The date of
13    termination as originally designated or designated by the
14    amendment of the ordinance shall be consistent with the
15    terms of Section 11-74.4-3.5.
16        If a municipality with a population of 1,000,000 or
17    more has adopted by ordinance tax increment allocation
18    financing for a redevelopment project area located in a
19    transit facility improvement area established pursuant to
20    Section 11-74.4-3.3, for each year after the effective
21    date of the ordinance until redevelopment project costs
22    and all municipal obligations financing redevelopment
23    project costs have been paid, the ad valorem taxes, if
24    any, arising from the levies upon the taxable real
25    property in that redevelopment project area by taxing
26    districts and tax rates determined in the manner provided

 

 

SB0088- 31 -LRB102 04160 HLH 14177 b

1    in paragraph (c) of Section 11-74.4-9 shall be divided as
2    follows:
3            (1) That portion of the taxes levied upon each
4        taxable lot, block, tract, or parcel of real property
5        which is attributable to the lower of (i) the current
6        equalized assessed value or "current equalized
7        assessed value as adjusted" or (ii) the initial
8        equalized assessed value of each such taxable lot,
9        block, tract, or parcel of real property existing at
10        the time tax increment financing was adopted, minus
11        the total current homestead exemptions under Article
12        15 of the Property Tax Code in the redevelopment
13        project area shall be allocated to and when collected
14        shall be paid by the county collector to the
15        respective affected taxing districts in the manner
16        required by law in the absence of the adoption of tax
17        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,
21        or parcel of real property in the redevelopment
22        project area, over and above the initial equalized
23        assessed value of each property existing at the time
24        tax increment financing was adopted, minus the total
25        current homestead exemptions pertaining to each piece
26        of property provided by Article 15 of the Property Tax

 

 

SB0088- 32 -LRB102 04160 HLH 14177 b

1        Code in the redevelopment project area, shall be
2        allocated to and when collected shall be paid by the
3        county collector as follows:
4                (A) First, that portion which would be payable
5            to a school district whose boundaries are
6            coterminous with such municipality in the absence
7            of the adoption of tax increment allocation
8            financing, shall be paid to such school district
9            in the manner required by law in the absence of the
10            adoption of tax increment allocation financing;
11            then
12                (B) 80% of the remaining portion shall be paid
13            to the municipal Treasurer, who shall deposit said
14            taxes into a special fund called the special tax
15            allocation fund of the municipality for the
16            purpose of paying redevelopment project costs and
17            obligations incurred in the payment thereof; and
18            then
19                (C) 20% of the remaining portion shall be paid
20            to the respective affected taxing districts, other
21            than the school district described in clause (a)
22            above, in the manner required by law in the
23            absence of the adoption of tax increment
24            allocation financing.
25    Nothing in this Section shall be construed as relieving
26property in such redevelopment project areas from being

 

 

SB0088- 33 -LRB102 04160 HLH 14177 b

1assessed as provided in the Property Tax Code or as relieving
2owners of such property from paying a uniform rate of taxes, as
3required by Section 4 of Article IX of the Illinois
4Constitution.
5(Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17;
6revised 8-8-19.)