97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1234

 

Introduced 02/08/11, by Rep. Rita Mayfield

 

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. Provides that 3 years after a redevelopment project area is established, the portion of taxes levied by a school district located in the redevelopment project area shall be allocated and paid to the school district in the manner required by law in the absence of the adoption of tax increment allocation financing.


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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 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
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    (a-5) Beginning with the first distribution of tax proceeds
14to occur 3 years after the redevelopment project area is
15established, that portion of taxes levied upon each taxable
16lot, block, tract, or parcel of real property which is
17attributable to a school district located in the redevelopment
18project area shall be allocated to and when collected shall be
19paid by the county collector to the school district in the
20manner required by law in the absence of the adoption of tax
21increment allocation financing.
22    (b) Except from a tax levied by a township to retire bonds
23issued to satisfy court-ordered damages, that portion, if any,
24of such taxes which is attributable to the increase in the
25current equalized assessed valuation of each taxable lot,
26block, tract or parcel of real property in the redevelopment

 

 

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1project area over and above the initial equalized assessed
2value of each property in the project area shall be allocated
3to and when collected shall be paid to the municipal treasurer
4who shall deposit said taxes into a special fund called the
5special tax allocation fund of the municipality for the purpose
6of paying redevelopment project costs and obligations incurred
7in the payment thereof. In any county with a population of
83,000,000 or more that has adopted a procedure for collecting
9taxes that provides for one or more of the installments of the
10taxes to be billed and collected on an estimated basis, the
11municipal treasurer shall be paid for deposit in the special
12tax allocation fund of the municipality, from the taxes
13collected from estimated bills issued for property in the
14redevelopment project area, the difference between the amount
15actually collected from each taxable lot, block, tract, or
16parcel of real property within the redevelopment project area
17and an amount determined by multiplying the rate at which taxes
18were last extended against the taxable lot, block, track, or
19parcel of real property in the manner provided in subsection
20(c) of Section 11-74.4-9 by the initial equalized assessed
21value of the property divided by the number of installments in
22which real estate taxes are billed and collected within the
23county; provided that the payments on or before December 31,
241999 to a municipal treasurer shall be made only if each of the
25following conditions are met:
26        (1) The total equalized assessed value of the

 

 

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1    redevelopment project area as last determined was not less
2    than 175% of the total initial equalized assessed value.
3        (2) Not more than 50% of the total equalized assessed
4    value of the redevelopment project area as last determined
5    is attributable to a piece of property assigned a single
6    real estate index number.
7        (3) The municipal clerk has certified to the county
8    clerk that the municipality has issued its obligations to
9    which there has been pledged the incremental property taxes
10    of the redevelopment project area or taxes levied and
11    collected on any or all property in the municipality or the
12    full faith and credit of the municipality to pay or secure
13    payment for all or a portion of the redevelopment project
14    costs. The certification shall be filed annually no later
15    than September 1 for the estimated taxes to be distributed
16    in the following year; however, for the year 1992 the
17    certification shall be made at any time on or before March
18    31, 1992.
19        (4) The municipality has not requested that the total
20    initial equalized assessed value of real property be
21    adjusted as provided in subsection (b) of Section
22    11-74.4-9.
23    The conditions of paragraphs (1) through (4) do not apply
24after December 31, 1999 to payments to a municipal treasurer
25made by a county with 3,000,000 or more inhabitants that has
26adopted an estimated billing procedure for collecting taxes. If

 

 

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1a county that has adopted the estimated billing procedure makes
2an erroneous overpayment of tax revenue to the municipal
3treasurer, then the county may seek a refund of that
4overpayment. The county shall send the municipal treasurer a
5notice of liability for the overpayment on or before the
6mailing date of the next real estate tax bill within the
7county. The refund shall be limited to the amount of the
8overpayment.
9    It is the intent of this Division that after the effective
10date of this amendatory Act of 1988 a municipality's own ad
11valorem tax arising from levies on taxable real property be
12included in the determination of incremental revenue in the
13manner provided in paragraph (c) of Section 11-74.4-9. If the
14municipality does not extend such a tax, it shall annually
15deposit in the municipality's Special Tax Increment Fund an
16amount equal to 10% of the total contributions to the fund from
17all other taxing districts in that year. The annual 10% deposit
18required by this paragraph shall be limited to the actual
19amount of municipally produced incremental tax revenues
20available to the municipality from taxpayers located in the
21redevelopment project area in that year if: (a) the plan for
22the area restricts the use of the property primarily to
23industrial purposes, (b) the municipality establishing the
24redevelopment project area is a home-rule community with a 1990
25population of between 25,000 and 50,000, (c) the municipality
26is wholly located within a county with a 1990 population of

 

 

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1over 750,000 and (d) the redevelopment project area was
2established by the municipality prior to June 1, 1990. This
3payment shall be in lieu of a contribution of ad valorem taxes
4on real property. If no such payment is made, any redevelopment
5project area of the municipality shall be dissolved.
6    If a municipality has adopted tax increment allocation
7financing by ordinance and the County Clerk thereafter
8certifies the "total initial equalized assessed value as
9adjusted" of the taxable real property within such
10redevelopment project area in the manner provided in paragraph
11(b) of Section 11-74.4-9, each year after the date of the
12certification of the total initial equalized assessed value as
13adjusted until redevelopment project costs and all municipal
14obligations financing redevelopment project costs have been
15paid the ad valorem taxes, if any, arising from the levies upon
16the taxable real property in such redevelopment project area by
17taxing districts and tax rates determined in the manner
18provided in paragraph (c) of Section 11-74.4-9 shall be divided
19as follows:
20        (1) That portion of the taxes levied upon each taxable
21    lot, block, tract or parcel of real property which is
22    attributable to the lower of the current equalized assessed
23    value or "current equalized assessed value as adjusted" or
24    the initial equalized assessed value of each such taxable
25    lot, block, tract, or parcel of real property existing at
26    the time tax increment financing was adopted, minus the

 

 

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

 

 

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1the total initial equalized assessed value, or the total
2initial equalized assessed value as adjusted, of such
3properties shall be used in calculating the general State
4school aid formula, provided for in Section 18-8 of the School
5Code, until such time as all redevelopment project costs have
6been paid as provided for in this Section.
7    Whenever a municipality issues bonds for the purpose of
8financing redevelopment project costs, such municipality may
9provide by ordinance for the appointment of a trustee, which
10may be any trust company within the State, and for the
11establishment of such funds or accounts to be maintained by
12such trustee as the municipality shall deem necessary to
13provide for the security and payment of the bonds. If such
14municipality provides for the appointment of a trustee, such
15trustee shall be considered the assignee of any payments
16assigned by the municipality pursuant to such ordinance and
17this Section. Any amounts paid to such trustee as assignee
18shall be deposited in the funds or accounts established
19pursuant to such trust agreement, and shall be held by such
20trustee in trust for the benefit of the holders of the bonds,
21and such holders shall have a lien on and a security interest
22in such funds or accounts so long as the bonds remain
23outstanding and unpaid. Upon retirement of the bonds, the
24trustee shall pay over any excess amounts held to the
25municipality for deposit in the special tax allocation fund.
26    When such redevelopment projects costs, including without

 

 

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1limitation all municipal obligations financing redevelopment
2project costs incurred under this Division, have been paid, all
3surplus funds then remaining in the special tax allocation fund
4shall be distributed by being paid by the municipal treasurer
5to the Department of Revenue, the municipality and the county
6collector; first to the Department of Revenue and the
7municipality in direct proportion to the tax incremental
8revenue received from the State and the municipality, but not
9to exceed the total incremental revenue received from the State
10or the municipality less any annual surplus distribution of
11incremental revenue previously made; with any remaining funds
12to be paid to the County Collector who shall immediately
13thereafter pay said funds to the taxing districts in the
14redevelopment project area in the same manner and proportion as
15the most recent distribution by the county collector to the
16affected districts of real property taxes from real property in
17the redevelopment project area.
18    Upon the payment of all redevelopment project costs, the
19retirement of obligations, the distribution of any excess
20monies pursuant to this Section, and final closing of the books
21and records of the redevelopment project area, the municipality
22shall adopt an ordinance dissolving the special tax allocation
23fund for the redevelopment project area and terminating the
24designation of the redevelopment project area as a
25redevelopment project area. Title to real or personal property
26and public improvements acquired by or for the municipality as

 

 

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1a result of the redevelopment project and plan shall vest in
2the municipality when acquired and shall continue to be held by
3the municipality after the redevelopment project area has been
4terminated. Municipalities shall notify affected taxing
5districts prior to November 1 if the redevelopment project area
6is to be terminated by December 31 of that same year. If a
7municipality extends estimated dates of completion of a
8redevelopment project and retirement of obligations to finance
9a redevelopment project, as allowed by this amendatory Act of
101993, that extension shall not extend the property tax
11increment allocation financing authorized by this Section.
12Thereafter the rates of the taxing districts shall be extended
13and taxes levied, collected and distributed in the manner
14applicable in the absence of the adoption of tax increment
15allocation financing.
16    Nothing in this Section shall be construed as relieving
17property in such redevelopment project areas from being
18assessed as provided in the Property Tax Code or as relieving
19owners of such property from paying a uniform rate of taxes, as
20required by Section 4 of Article 9 of the Illinois
21Constitution.
22(Source: P.A. 95-644, eff. 10-12-07.)