Full Text of HB0197 98th General Assembly
HB0197eng 98TH GENERAL ASSEMBLY |
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| 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 |
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| 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) Beginning with the first distribution of tax proceeds | 14 | | to occur 3 years after the redevelopment project area is | 15 | | established, that portion of taxes levied upon each taxable | 16 | | lot, block, tract, or parcel of real property which is | 17 | | attributable to annual inflationary increases (not less than | 18 | | zero) shall be allocated to a school district located in the | 19 | | redevelopment project area through an intergovernmental | 20 | | agreement with the sponsoring municipality and, when | 21 | | collected, shall be paid by the county collector to the school | 22 | | district in the manner required by law. The inflationary | 23 | | increase allocated to the school districts shall be determined | 24 | | by the annual increase in the consumer price index-u. | 25 | | For purposes of this subsection, "consumer price index-u" | 26 | | means the index published by the Bureau of Labor Statistics of |
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| 1 | | the United States Department of Labor that measures the average | 2 | | change in prices of goods and services published by all urban | 3 | | consumers, United States city average, all items, 1982-1984 = | 4 | | 100. | 5 | | (b) Except from a tax levied by a township to retire bonds | 6 | | issued to satisfy
court-ordered damages, that portion, if any, | 7 | | of such taxes which is
attributable to the
increase in the | 8 | | current equalized assessed valuation of each taxable lot,
| 9 | | block, tract or parcel of real property in the redevelopment | 10 | | project area
over and above the initial equalized assessed | 11 | | value of each property in the
project area shall be allocated | 12 | | to and when collected shall be paid to the
municipal treasurer | 13 | | who shall deposit said taxes into a special fund called
the | 14 | | special tax allocation fund of the municipality for the purpose | 15 | | of
paying redevelopment project costs and obligations incurred | 16 | | in the payment
thereof. In any county with a population of | 17 | | 3,000,000 or more that has adopted
a procedure for collecting | 18 | | taxes that provides for one or more of the
installments of the | 19 | | taxes to be billed and collected on an estimated basis,
the | 20 | | municipal treasurer shall be paid for deposit in the special | 21 | | tax
allocation fund of the municipality, from the taxes | 22 | | collected from
estimated bills issued for property in the | 23 | | redevelopment project area, the
difference between the amount | 24 | | actually collected from each taxable lot,
block, tract, or | 25 | | parcel of real property within the redevelopment project
area | 26 | | and an amount determined by multiplying the rate at which taxes |
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| 1 | | were
last extended against the taxable lot, block, track, or | 2 | | parcel of real
property in the manner provided in subsection | 3 | | (c) of Section 11-74.4-9 by
the initial equalized assessed | 4 | | value of the property divided by the number
of installments in | 5 | | which real estate taxes are billed and collected within
the | 6 | | county; provided that the payments on or before December 31,
| 7 | | 1999 to a municipal treasurer shall be made only if each of the | 8 | | following
conditions are met:
| 9 | | (1) The total equalized assessed value of the | 10 | | redevelopment project
area as last determined was not less | 11 | | than 175% of the total initial
equalized assessed value.
| 12 | | (2) Not more than 50% of the total equalized assessed | 13 | | value of the
redevelopment project area as last determined | 14 | | is attributable to a piece of
property assigned a single | 15 | | real estate index number.
| 16 | | (3) The municipal clerk has certified to the county | 17 | | clerk that the
municipality has issued its obligations to | 18 | | which there has been pledged
the incremental property taxes | 19 | | of the redevelopment project area or taxes
levied and | 20 | | collected on any or all property in the municipality or
the | 21 | | full faith and credit of the municipality to pay or secure | 22 | | payment for
all or a portion of the redevelopment project | 23 | | costs. The certification
shall be filed annually no later | 24 | | than September 1 for the estimated taxes
to be distributed | 25 | | in the following year; however, for the year 1992 the
| 26 | | certification shall be made at any time on or before March |
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| 1 | | 31, 1992.
| 2 | | (4) The municipality has not requested that the total | 3 | | initial
equalized assessed value of real property be | 4 | | adjusted as provided in
subsection (b) of Section | 5 | | 11-74.4-9.
| 6 | | The conditions of paragraphs (1) through (4) do not apply | 7 | | after December
31, 1999 to payments to a municipal treasurer
| 8 | | made by a county with 3,000,000 or more inhabitants that has | 9 | | adopted an
estimated billing procedure for collecting taxes.
If | 10 | | a county that has adopted the estimated billing
procedure makes | 11 | | an erroneous overpayment of tax revenue to the municipal
| 12 | | treasurer, then the county may seek a refund of that | 13 | | overpayment.
The county shall send the municipal treasurer a | 14 | | notice of liability for the
overpayment on or before the | 15 | | mailing date of the next real estate tax bill
within the | 16 | | county. The refund shall be limited to the amount of the
| 17 | | overpayment.
| 18 | | It is the intent of this Division that after the effective | 19 | | date of this
amendatory Act of 1988 a municipality's own ad | 20 | | valorem
tax arising from levies on taxable real property be | 21 | | included in the
determination of incremental revenue in the | 22 | | manner provided in paragraph
(c) of Section 11-74.4-9. If the | 23 | | municipality does not extend such a tax,
it shall annually | 24 | | deposit in the municipality's Special Tax Increment Fund
an | 25 | | amount equal to 10% of the total contributions to the fund from | 26 | | all
other taxing districts in that year. The annual 10% deposit |
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| 1 | | required by
this paragraph shall be limited to the actual | 2 | | amount of municipally
produced incremental tax revenues | 3 | | available to the municipality from
taxpayers located in the | 4 | | redevelopment project area in that year if:
(a) the plan for | 5 | | the area restricts the use of the property primarily to
| 6 | | industrial purposes, (b) the municipality establishing the | 7 | | redevelopment
project area is a home-rule community with a 1990 | 8 | | population of between
25,000 and 50,000, (c) the municipality | 9 | | is wholly located within a county
with a 1990 population of | 10 | | over 750,000 and (d) the redevelopment project
area was | 11 | | established by the municipality prior to June 1, 1990. This
| 12 | | payment shall be in lieu of a contribution of ad valorem taxes | 13 | | on real
property. If no such payment is made, any redevelopment | 14 | | project area of the
municipality shall be dissolved.
| 15 | | If a municipality has adopted tax increment allocation | 16 | | financing by ordinance
and the County Clerk thereafter | 17 | | certifies the "total initial equalized assessed
value as | 18 | | adjusted" of the taxable real property within such | 19 | | redevelopment
project area in the manner provided in paragraph | 20 | | (b) of Section 11-74.4-9,
each year after the date of the | 21 | | certification of the total initial equalized
assessed value as | 22 | | adjusted until redevelopment project costs and all
municipal | 23 | | obligations financing redevelopment project costs have been | 24 | | paid
the ad valorem taxes, if any, arising from the levies upon | 25 | | the taxable real
property in such redevelopment project area by | 26 | | taxing districts and tax
rates determined in the manner |
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| 1 | | provided in paragraph (c) of Section
11-74.4-9 shall be divided | 2 | | as follows:
| 3 | | (1) That portion of the taxes levied upon each taxable | 4 | | lot, block, tract
or parcel of real property which is | 5 | | attributable to the lower of the
current equalized assessed | 6 | | value or "current equalized assessed value as
adjusted" or | 7 | | the initial equalized assessed value of each such taxable | 8 | | lot,
block, tract, or parcel of real property existing at | 9 | | the time tax increment
financing was adopted, minus the | 10 | | total current homestead exemptions under Article 15 of the | 11 | | Property
Tax Code in the
redevelopment project area shall | 12 | | be allocated to and when collected shall be
paid by the | 13 | | county collector to the respective affected taxing | 14 | | districts in the
manner required by law in the absence of | 15 | | the adoption of tax increment
allocation financing.
| 16 | | (2) That portion, if any, of such taxes which is | 17 | | attributable to the
increase in the current equalized | 18 | | assessed valuation of each taxable lot,
block, tract, or | 19 | | parcel of real property in the redevelopment project area,
| 20 | | over and above the initial equalized assessed value of each | 21 | | property
existing at the time tax increment financing was | 22 | | adopted, minus the total
current homestead exemptions | 23 | | pertaining to each piece of property provided
by Article 15 | 24 | | of the Property Tax Code
in the redevelopment
project area, | 25 | | shall be allocated to and when collected shall be paid to | 26 | | the
municipal Treasurer, who shall deposit said taxes into |
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| 1 | | a special fund called
the special tax allocation fund of | 2 | | the municipality for the purpose of paying
redevelopment | 3 | | project costs and obligations incurred in the payment | 4 | | thereof.
| 5 | | The municipality may pledge in the ordinance the funds in | 6 | | and to be
deposited in the special tax allocation fund for the | 7 | | payment of such costs
and obligations. No part of the current | 8 | | equalized assessed valuation of
each property in the | 9 | | redevelopment project area attributable to any
increase above | 10 | | the total initial equalized assessed value, or the total
| 11 | | initial equalized assessed value as adjusted, of such | 12 | | properties shall be
used in calculating the general State | 13 | | school aid formula, provided for in
Section 18-8 of the School | 14 | | Code, until such time as all redevelopment
project costs have | 15 | | been paid as provided for in this Section.
| 16 | | Whenever a municipality issues bonds for the purpose of | 17 | | financing
redevelopment project costs, such municipality may | 18 | | provide by ordinance for the
appointment of a trustee, which | 19 | | may be any trust company within the State,
and for the | 20 | | establishment of such funds or accounts to be maintained by
| 21 | | such trustee as the municipality shall deem necessary to | 22 | | provide for the
security and payment of the bonds. If such | 23 | | municipality provides for
the appointment of a trustee, such | 24 | | trustee shall be considered the assignee
of any payments | 25 | | assigned by the municipality pursuant to such ordinance
and | 26 | | this Section. Any amounts paid to such trustee as assignee |
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| 1 | | shall be
deposited in the funds or accounts established | 2 | | pursuant to such trust
agreement, and shall be held by such | 3 | | trustee in trust for the benefit of the
holders of the bonds, | 4 | | and such holders shall have a lien on and a security
interest | 5 | | in such funds or accounts so long as the bonds remain | 6 | | outstanding and
unpaid. Upon retirement of the bonds, the | 7 | | trustee shall pay over any excess
amounts held to the | 8 | | municipality for deposit in the special tax allocation
fund.
| 9 | | When such redevelopment projects costs, including without | 10 | | limitation all
municipal obligations financing redevelopment | 11 | | project costs incurred under
this Division, have been paid, all | 12 | | surplus funds then remaining in the
special tax allocation fund | 13 | | shall be distributed
by being paid by the
municipal treasurer | 14 | | to the Department of Revenue, the municipality and the
county | 15 | | collector; first to the Department of Revenue and the | 16 | | municipality
in direct proportion to the tax incremental | 17 | | revenue received from the State
and the municipality, but not | 18 | | to exceed the total incremental revenue received
from the State | 19 | | or the municipality less any annual surplus distribution
of | 20 | | incremental revenue previously made; with any remaining funds | 21 | | to be paid
to the County Collector who shall immediately | 22 | | thereafter pay said funds to
the taxing districts in the | 23 | | redevelopment project area in the same manner
and proportion as | 24 | | the most recent distribution by the county collector to
the | 25 | | affected districts of real property taxes from real property in | 26 | | the
redevelopment project area.
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| 1 | | Upon the payment of all redevelopment project costs, the | 2 | | retirement of
obligations, the distribution of any excess | 3 | | monies pursuant to this
Section, and final closing of the books | 4 | | and records of the redevelopment
project
area, the municipality | 5 | | shall adopt an ordinance dissolving the special
tax allocation | 6 | | fund for the redevelopment project area and terminating the
| 7 | | designation of the redevelopment project area as a | 8 | | redevelopment project
area.
Title to real or personal property | 9 | | and public improvements
acquired
by or for
the
municipality as | 10 | | a result of the redevelopment project and plan shall vest in
| 11 | | the
municipality when acquired and shall continue to be held by | 12 | | the municipality
after the redevelopment project area has been | 13 | | terminated.
Municipalities shall notify affected taxing | 14 | | districts prior to
November 1 if the redevelopment project area | 15 | | is to be terminated by December 31
of
that same year. If a | 16 | | municipality extends estimated dates of completion of a
| 17 | | redevelopment project and retirement of obligations to finance | 18 | | a
redevelopment project, as allowed by this amendatory Act of | 19 | | 1993, that
extension shall not extend the property tax | 20 | | increment allocation financing
authorized by this Section. | 21 | | Thereafter the rates of the taxing districts
shall be extended | 22 | | and taxes levied, collected and distributed in the manner
| 23 | | applicable in the absence of the adoption of tax increment | 24 | | allocation
financing.
| 25 | | Nothing in this Section shall be construed as relieving | 26 | | property in such
redevelopment project areas from being |
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| 1 | | assessed as provided in the Property
Tax Code or as relieving | 2 | | owners of such property from paying a uniform rate of
taxes, as | 3 | | required by Section 4 of Article IX 9 of the Illinois | 4 | | Constitution.
| 5 | | (Source: P.A. 95-644, eff. 10-12-07; revised 10-17-12.)
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