Full Text of HB1988 102nd General Assembly
HB1988 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB1988 Introduced 2/17/2021, by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/11-74.4-8 |
from Ch. 24, par. 11-74.4-8 |
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Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, after the effective date of the amendatory Act, the municipal treasurer shall pay: (i) 25% of the money attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in a redevelopment project area directly to school districts within the redevelopment project area in proportion to the percent of that amount that each school district would have received if there was no redevelopment project area; and (ii) the remaining 75% into the special tax allocation fund for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof. Provides that, for redevelopment project areas established after the effective date of the amendatory Act, a school district within a proposed redevelopment project area may negotiate an additional percentage of money for the school district.
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| | | FISCAL 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,
| 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 July 30, 1997 ( the effective | 10 | | date of Public Act 90-258) this amendatory Act of 1997 that | 11 | | will
encompass an area that is currently included in an | 12 | | enterprise zone created
under the Illinois Enterprise Zone Act | 13 | | unless that municipality, pursuant to
Section 5.4 of the | 14 | | Illinois Enterprise Zone Act, amends the enterprise zone
| 15 | | designating ordinance to limit the eligibility for tax | 16 | | abatements as provided
in Section 5.4.1 of the Illinois | 17 | | Enterprise Zone Act.
A municipality, at the time a | 18 | | redevelopment project area
is designated, may adopt tax | 19 | | increment allocation financing by passing an
ordinance | 20 | | providing that the ad valorem taxes, if any, arising from the
| 21 | | levies upon taxable real property in such redevelopment | 22 | | project
area by taxing districts and tax rates determined in | 23 | | the manner provided
in paragraph (c) of Section 11-74.4-9 each |
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| 1 | | year after the effective
date of the ordinance until | 2 | | redevelopment project costs and all municipal
obligations | 3 | | financing redevelopment project costs incurred under this | 4 | | Division
have been paid shall be divided as follows, provided, | 5 | | however, that with respect to any redevelopment project area | 6 | | located within a transit facility improvement area established | 7 | | pursuant to Section 11-74.4-3.3 in a municipality with a | 8 | | population of 1,000,000 or more, ad valorem taxes, if any, | 9 | | arising from the levies upon taxable real property in such | 10 | | redevelopment project area shall be allocated as specifically | 11 | | provided in this Section:
| 12 | | (a) That portion of taxes levied upon each taxable | 13 | | lot, block, tract , or
parcel of real property which is | 14 | | attributable to the lower of the current
equalized | 15 | | assessed value or the initial equalized assessed
value of | 16 | | each such taxable lot, block, tract , or parcel of real | 17 | | property
in the redevelopment project area shall be | 18 | | allocated to and when collected
shall be paid by the | 19 | | county collector to the respective affected taxing
| 20 | | districts in the manner required by law in the absence of | 21 | | the adoption of
tax increment allocation financing.
| 22 | | (b) Except from a tax levied by a township to retire | 23 | | bonds issued to satisfy
court-ordered damages, that | 24 | | portion, if any, of such taxes which is
attributable to | 25 | | the
increase in the current equalized assessed valuation | 26 | | of each taxable lot,
block, tract , or parcel of real |
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| 1 | | property in the redevelopment project area
over and above | 2 | | the initial equalized assessed value of each property in | 3 | | the
project area shall be allocated to and when collected | 4 | | shall be paid to the
municipal treasurer who shall deposit | 5 | | said taxes into a special fund called
the special tax | 6 | | allocation fund of the municipality for the purpose of
| 7 | | paying redevelopment project costs and obligations | 8 | | incurred in the payment
thereof ; except that, after the | 9 | | effective date of this amendatory Act of the 102nd General | 10 | | Assembly, the treasurer shall pay: (i) 25% of the money | 11 | | attributable to the increase in the current equalized | 12 | | assessed valuation of each taxable lot, block, tract, or | 13 | | parcel of real property in the redevelopment project area | 14 | | directly to school districts within the redevelopment | 15 | | project area in proportion to the percent of that amount | 16 | | that each school district would have received if there was | 17 | | no redevelopment project area; and (ii) the remaining 75% | 18 | | into the special tax allocation fund for the purpose of | 19 | | paying redevelopment project costs and obligations | 20 | | incurred in the payment thereof. For redevelopment project | 21 | | areas established after the effective date of this | 22 | | amendatory Act of the 102nd General Assembly, a school | 23 | | district within a proposed redevelopment project area may | 24 | | negotiate an additional percentage of the money | 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 other | 2 | | than allowed by this subsection . In any county with a | 3 | | population of 3,000,000 or more that has adopted
a | 4 | | procedure for collecting taxes that provides for one or | 5 | | more of the
installments of the taxes to be billed and | 6 | | collected on an estimated basis,
the municipal treasurer | 7 | | shall be paid for deposit in the special tax
allocation | 8 | | fund of the municipality, from the taxes collected from
| 9 | | estimated bills issued for property in the redevelopment | 10 | | project area, the
difference between the amount actually | 11 | | collected from each taxable lot,
block, tract, or parcel | 12 | | of real property within the redevelopment project
area and | 13 | | an amount determined by multiplying the rate at which | 14 | | taxes were
last extended against the taxable lot, block, | 15 | | tract track , or parcel of real
property in the manner | 16 | | provided in subsection (c) of Section 11-74.4-9 by
the | 17 | | initial equalized assessed value of the property divided | 18 | | by the number
of installments in which real estate taxes | 19 | | are billed and collected within
the county; provided that | 20 | | the payments on or before December 31,
1999 to a municipal | 21 | | treasurer shall be made only if each of the following
| 22 | | conditions are met:
| 23 | | (1) The total equalized assessed value of the | 24 | | redevelopment project
area as last determined was not | 25 | | less than 175% of the total initial
equalized assessed | 26 | | value.
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| 1 | | (2) Not more than 50% of the total equalized | 2 | | assessed value of the
redevelopment project area as | 3 | | last determined is attributable to a piece of
property | 4 | | assigned a single real estate index number.
| 5 | | (3) The municipal clerk has certified to the | 6 | | county clerk that the
municipality has issued its | 7 | | obligations to which there has been pledged
the | 8 | | incremental property taxes of the redevelopment | 9 | | project area or taxes
levied and collected on any or | 10 | | all property in the municipality or
the full faith and | 11 | | credit of the municipality to pay or secure payment | 12 | | for
all or a portion of the redevelopment project | 13 | | costs. The certification
shall be filed annually no | 14 | | later than September 1 for the estimated taxes
to be | 15 | | distributed in the following year; however, for the | 16 | | year 1992 the
certification shall be made at any time | 17 | | on or before March 31, 1992.
| 18 | | (4) The municipality has not requested that the | 19 | | total initial
equalized assessed value of real | 20 | | property be adjusted as provided in
subsection (b) of | 21 | | Section 11-74.4-9.
| 22 | | The conditions of paragraphs (1) through (4) do not | 23 | | apply after December
31, 1999 to payments to a municipal | 24 | | treasurer
made by a county with 3,000,000 or more | 25 | | inhabitants that has adopted an
estimated billing | 26 | | procedure for collecting taxes.
If a county that has |
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| 1 | | adopted the estimated billing
procedure makes an erroneous | 2 | | overpayment of tax revenue to the municipal
treasurer, | 3 | | then the county may seek a refund of that overpayment.
The | 4 | | county shall send the municipal treasurer a notice of | 5 | | liability for the
overpayment on or before the mailing | 6 | | date of the next real estate tax bill
within the county. | 7 | | The refund shall be limited to the amount of the
| 8 | | overpayment.
| 9 | | It is the intent of this Division that after July 29, | 10 | | 1988 ( the effective date of Public Act 85-1142) this
| 11 | | amendatory Act of 1988 a municipality's own ad valorem
tax | 12 | | arising from levies on taxable real property be included | 13 | | in the
determination of incremental revenue in the manner | 14 | | provided in paragraph
(c) of Section 11-74.4-9. If the | 15 | | municipality does not extend such a tax,
it shall annually | 16 | | deposit in the municipality's Special Tax Increment Fund
| 17 | | an amount equal to 10% of the total contributions to the | 18 | | fund from all
other taxing districts in that year. The | 19 | | annual 10% deposit required by
this paragraph shall be | 20 | | limited to the actual amount of municipally
produced | 21 | | incremental tax revenues available to the municipality | 22 | | from
taxpayers located in the redevelopment project area | 23 | | in that year if:
(a) the plan for the area restricts the | 24 | | use of the property primarily to
industrial purposes, (b) | 25 | | the municipality establishing the redevelopment
project | 26 | | area is a home rule home-rule community with a 1990 |
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| 1 | | population of between
25,000 and 50,000, (c) the | 2 | | municipality is wholly located within a county
with a 1990 | 3 | | population of over 750,000 and (d) the redevelopment | 4 | | project
area was established by the municipality prior to | 5 | | June 1, 1990. This
payment shall be in lieu of a | 6 | | contribution of ad valorem taxes on real
property. If no | 7 | | such payment is made, any redevelopment project area of | 8 | | the
municipality shall be dissolved.
| 9 | | If a municipality has adopted tax increment allocation | 10 | | financing by ordinance
and the County Clerk thereafter | 11 | | certifies the "total initial equalized assessed
value as | 12 | | adjusted" of the taxable real property within such | 13 | | redevelopment
project area in the manner provided in | 14 | | paragraph (b) of Section 11-74.4-9,
each year after the | 15 | | date of the certification of the total initial equalized
| 16 | | assessed value as adjusted until redevelopment project | 17 | | costs and all
municipal obligations financing | 18 | | redevelopment project costs have been paid
the ad valorem | 19 | | taxes, if any, arising from the levies upon the taxable | 20 | | real
property in such redevelopment project area by taxing | 21 | | districts and tax
rates determined in the manner provided | 22 | | in paragraph (c) of Section
11-74.4-9 shall be divided as | 23 | | follows, provided, however, that with respect to any | 24 | | redevelopment project area located within a transit | 25 | | facility improvement area established pursuant to Section | 26 | | 11-74.4-3.3 in a municipality with a population of |
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| 1 | | 1,000,000 or more, ad valorem taxes, if any, arising from | 2 | | the levies upon the taxable real property in such | 3 | | redevelopment project area shall be allocated as | 4 | | specifically provided in this Section:
| 5 | | (1) That portion of the taxes levied upon each | 6 | | taxable lot, block, tract ,
or parcel of real property | 7 | | which is attributable to the lower of the
current | 8 | | equalized assessed value or "current equalized | 9 | | assessed value as
adjusted" or the initial equalized | 10 | | assessed value of each such taxable lot,
block, tract, | 11 | | or parcel of real property existing at the time tax | 12 | | increment
financing was adopted, minus the total | 13 | | current homestead exemptions under Article 15 of the | 14 | | Property
Tax Code in the
redevelopment project area | 15 | | shall be allocated to and when collected shall be
paid | 16 | | by the county collector to the respective affected | 17 | | taxing districts in the
manner required by law in the | 18 | | absence of the adoption of tax increment
allocation | 19 | | financing.
| 20 | | (2) That portion, if any, of such taxes which is | 21 | | attributable to the
increase in the current equalized | 22 | | assessed valuation of each taxable lot,
block, tract, | 23 | | or parcel of real property in the redevelopment | 24 | | project area,
over and above the initial equalized | 25 | | assessed value of each property
existing at the time | 26 | | tax increment financing was adopted, minus the total
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| 1 | | current homestead exemptions pertaining to each piece | 2 | | of property provided
by Article 15 of the Property Tax | 3 | | Code
in the redevelopment
project area, shall be | 4 | | allocated to and when collected shall be paid to the
| 5 | | municipal Treasurer, who shall deposit said taxes into | 6 | | a special fund called
the special tax allocation fund | 7 | | of the municipality for the purpose of paying
| 8 | | redevelopment project costs and obligations incurred | 9 | | in the payment thereof ; except that, after the | 10 | | effective date of this amendatory Act of the 102nd | 11 | | General Assembly, the treasurer shall pay: (i) 25% | 12 | | such taxes directly to school districts within the | 13 | | redevelopment project area in proportion to the | 14 | | percent of that amount that each school district would | 15 | | have received if there was no redevelopment project | 16 | | area; and (ii) the remaining 75% into the special tax | 17 | | allocation fund of the municipality for the purpose of | 18 | | paying redevelopment project costs and obligations | 19 | | incurred in the payment thereof. For redevelopment | 20 | | project areas established after the effective date of | 21 | | this amendatory Act of the 102nd General Assembly, a | 22 | | school district within a proposed redevelopment | 23 | | project area may negotiate an additional percentage of | 24 | | such taxes other than allowed by this paragraph .
| 25 | | The municipality may pledge in the ordinance the funds | 26 | | in and to be
deposited in the special tax allocation fund |
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| 1 | | for the payment of such costs
and obligations. No part of | 2 | | the current equalized assessed valuation of
each property | 3 | | in the redevelopment project area attributable to any
| 4 | | increase above the total initial equalized assessed value, | 5 | | or the total
initial equalized assessed value as adjusted, | 6 | | of such properties shall be
used in calculating the | 7 | | general State aid formula, provided for in
Section 18-8 of | 8 | | the School Code, or the evidence-based funding formula, | 9 | | provided for in Section 18-8.15 of the School Code, until | 10 | | such time as all redevelopment
project costs have been | 11 | | paid as provided for in this Section.
| 12 | | Whenever a municipality issues bonds for the purpose | 13 | | of financing
redevelopment project costs, such | 14 | | municipality may provide by ordinance for the
appointment | 15 | | of a trustee, which may be any trust company within the | 16 | | State,
and for the establishment of such funds or accounts | 17 | | to be maintained by
such trustee as the municipality shall | 18 | | deem necessary to provide for the
security and payment of | 19 | | the bonds. If such municipality provides for
the | 20 | | appointment of a trustee, such trustee shall be considered | 21 | | the assignee
of any payments assigned by the municipality | 22 | | pursuant to such ordinance
and this Section. Any amounts | 23 | | paid to such trustee as assignee shall be
deposited in the | 24 | | funds or accounts established pursuant to such trust
| 25 | | agreement, and shall be held by such trustee in trust for | 26 | | the benefit of the
holders of the bonds, and such holders |
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| 1 | | shall have a lien on and a security
interest in such funds | 2 | | or accounts so long as the bonds remain outstanding and
| 3 | | unpaid. Upon retirement of the bonds, the trustee shall | 4 | | pay over any excess
amounts held to the municipality for | 5 | | deposit in the special tax allocation
fund.
| 6 | | When such redevelopment projects costs, including , | 7 | | without limitation , all
municipal obligations financing | 8 | | redevelopment project costs incurred under
this Division, | 9 | | have been paid, all surplus funds then remaining in the
| 10 | | special tax allocation fund shall be distributed
by being | 11 | | paid by the
municipal treasurer to the Department of | 12 | | Revenue, the municipality and the
county collector; first | 13 | | to the Department of Revenue and the municipality
in | 14 | | direct proportion to the tax incremental revenue received | 15 | | from the State
and the municipality, but not to exceed the | 16 | | total incremental revenue received
from the State or the | 17 | | municipality less any annual surplus distribution
of | 18 | | incremental revenue previously made; with any remaining | 19 | | funds to be paid
to the County Collector who shall | 20 | | immediately thereafter pay said funds to
the taxing | 21 | | districts in the redevelopment project area in the same | 22 | | manner
and proportion as the most recent distribution by | 23 | | the county collector to
the affected districts of real | 24 | | property taxes from real property in the
redevelopment | 25 | | project area.
| 26 | | Upon the payment of all redevelopment project costs, |
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| 1 | | the retirement of
obligations, the distribution of any | 2 | | excess monies pursuant to this
Section, and final closing | 3 | | of the books and records of the redevelopment
project
| 4 | | area, the municipality shall adopt an ordinance dissolving | 5 | | the special
tax allocation fund for the redevelopment | 6 | | project area and terminating the
designation of the | 7 | | redevelopment project area as a redevelopment project
| 8 | | area.
Title to real or personal property and public | 9 | | improvements
acquired
by or for
the
municipality as a | 10 | | result of the redevelopment project and plan shall vest in
| 11 | | the
municipality when acquired and shall continue to be | 12 | | held by the municipality
after the redevelopment project | 13 | | area has been terminated.
Municipalities shall notify | 14 | | affected taxing districts prior to
November 1 if the | 15 | | redevelopment project area is to be terminated by December | 16 | | 31
of
that same year. If a municipality extends estimated | 17 | | dates of completion of a
redevelopment project and | 18 | | retirement of obligations to finance a
redevelopment | 19 | | project, as allowed by Public Act 87-1272 this amendatory | 20 | | Act of 1993 , that
extension shall not extend the property | 21 | | tax increment allocation financing
authorized by this | 22 | | Section. Thereafter the rates of the taxing districts
| 23 | | shall be extended and taxes levied, collected and | 24 | | distributed in the manner
applicable in the absence of the | 25 | | adoption of tax increment allocation
financing.
| 26 | | If a municipality with a population of 1,000,000 or |
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| 1 | | more has adopted by ordinance tax increment allocation | 2 | | financing for a redevelopment project area located in a | 3 | | transit facility improvement area established pursuant to | 4 | | Section 11-74.4-3.3, for each year after the effective | 5 | | date of the ordinance until redevelopment project costs | 6 | | and all municipal obligations financing redevelopment | 7 | | project costs have been paid, the ad valorem taxes, if | 8 | | any, arising from the levies upon the taxable real | 9 | | property in that redevelopment project area by taxing | 10 | | districts and tax rates determined in the manner provided | 11 | | in paragraph (c) of Section 11-74.4-9 shall be divided as | 12 | | follows: | 13 | | (1) That portion of the taxes levied upon each | 14 | | taxable lot, block, tract , or parcel of real property | 15 | | which is attributable to the lower of (i) the current | 16 | | equalized assessed value or "current equalized | 17 | | assessed value as adjusted" or (ii) the initial | 18 | | equalized assessed value of each such taxable lot, | 19 | | block, tract, or parcel of real property existing at | 20 | | the time tax increment financing was adopted, minus | 21 | | the total current homestead exemptions under Article | 22 | | 15 of the Property Tax Code in the redevelopment | 23 | | project area shall be allocated to and when collected | 24 | | shall be paid by the county collector to the | 25 | | respective affected taxing districts in the manner | 26 | | required by law in the absence of the adoption of tax |
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| 1 | | increment allocation financing. | 2 | | (2) That portion, if any, of such taxes which is | 3 | | attributable to the increase in the current equalized | 4 | | assessed valuation of each taxable lot, block, tract, | 5 | | or parcel of real property in the redevelopment | 6 | | project area, over and above the initial equalized | 7 | | assessed value of each property existing at the time | 8 | | tax increment financing was adopted, minus the total | 9 | | current homestead exemptions pertaining to each piece | 10 | | of property provided by Article 15 of the Property Tax | 11 | | Code in the redevelopment project area, shall be | 12 | | allocated to and when collected shall be paid by the | 13 | | county collector as follows: | 14 | | (A) First, that portion which would be payable | 15 | | to a school district whose boundaries are | 16 | | coterminous with such municipality in the absence | 17 | | of the adoption of tax increment allocation | 18 | | financing, shall be paid to such school district | 19 | | in the manner required by law in the absence of the | 20 | | adoption of tax increment allocation financing; | 21 | | then | 22 | | (B) 80% of the remaining portion shall be paid | 23 | | to the municipal Treasurer, who shall deposit said | 24 | | taxes into a special fund called the special tax | 25 | | allocation fund of the municipality for the | 26 | | purpose of paying redevelopment project costs and |
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| 1 | | obligations incurred in the payment thereof; and | 2 | | then | 3 | | (C) 20% of the remaining portion shall be paid | 4 | | to the respective affected taxing districts, other | 5 | | than the school district described in clause (a) | 6 | | above, in the manner required by law in the | 7 | | absence of the adoption of tax increment | 8 | | allocation financing. | 9 | | Nothing in this Section shall be construed as relieving | 10 | | property in such
redevelopment project areas from being | 11 | | assessed as provided in the Property
Tax Code or as relieving | 12 | | owners of such property from paying a uniform rate of
taxes, as | 13 | | required by Section 4 of Article IX of the Illinois | 14 | | Constitution.
| 15 | | (Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17; | 16 | | revised 8-8-19.)
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