Full Text of SB1712 097th General Assembly
SB1712enr 97TH 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 Innovation Development and Economy Act is | 5 | | amended by changing Section 10 as follows: | 6 | | (50 ILCS 470/10)
| 7 | | Sec. 10. Definitions. As used in this Act, the following | 8 | | words and phrases shall have the following meanings unless a | 9 | | different meaning clearly appears from the context: | 10 | | "Base year" means the calendar year immediately prior to | 11 | | the calendar year in which the STAR bond district is | 12 | | established.
| 13 | | "Commence work" means the manifest commencement of actual | 14 | | operations on the development site, such as, erecting a | 15 | | building, general on-site and off-site grading and utility | 16 | | installations, commencing design and construction | 17 | | documentation, ordering lead-time materials, excavating the | 18 | | ground to lay a foundation or a basement, or work of like | 19 | | description which a reasonable person would recognize as being | 20 | | done with the intention and purpose to continue work until the | 21 | | project is completed.
| 22 | | "County" means the county in which a proposed STAR bond | 23 | | district is located.
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| 1 | | "De minimus" means an amount less than 15% of the land area | 2 | | within a STAR bond district.
| 3 | | "Department of Revenue" means the Department of Revenue of | 4 | | the State of Illinois.
| 5 | | "Destination user" means an owner, operator, licensee, | 6 | | co-developer, subdeveloper, or tenant (i) that operates a | 7 | | business within a STAR bond district that is a retail store | 8 | | having at least 150,000 square feet of sales floor area; (ii) | 9 | | that at the time of opening does not have another Illinois | 10 | | location within a 70 mile radius; (iii) that has an annual | 11 | | average of not less than 30% of customers who travel from at | 12 | | least 75 miles away or from out-of-state, as demonstrated by | 13 | | data from a comparable existing store or stores, or, if there | 14 | | is no comparable existing store, as demonstrated by an economic | 15 | | analysis that shows that the proposed retailer will have an | 16 | | annual average of not less than 30% of customers who travel | 17 | | from at least 75 miles away or from out-of-state; and (iv) that | 18 | | makes an initial capital investment, including project costs | 19 | | and other direct costs, of not less than $30,000,000 for such | 20 | | retail store. | 21 | | "Destination hotel" means a hotel (as that term is defined | 22 | | in Section 2 of the Hotel Operators' Occupation Tax Act) | 23 | | complex having at least 150 guest rooms and which also includes | 24 | | a venue for entertainment attractions, rides, or other | 25 | | activities oriented toward the entertainment and amusement of | 26 | | its guests and other patrons. |
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| 1 | | "Developer" means any individual, corporation, trust, | 2 | | estate, partnership, limited liability partnership, limited | 3 | | liability company, or other entity. The term does not include a | 4 | | not-for-profit entity, political subdivision, or other agency | 5 | | or instrumentality of the State.
| 6 | | "Director" means the Director of Revenue, who shall consult | 7 | | with the Director of Commerce and Economic Opportunity in any | 8 | | approvals or decisions required by the Director under this Act.
| 9 | | "Economic impact study" means a study conducted by an | 10 | | independent economist to project the financial benefit of the | 11 | | proposed STAR bond project to the local, regional, and State | 12 | | economies, consider the proposed adverse impacts on similar | 13 | | projects and businesses, as well as municipalities within the | 14 | | projected market area, and draw conclusions about the net | 15 | | effect of the proposed STAR bond project on the local, | 16 | | regional, and State economies. A copy of the economic impact | 17 | | study shall be provided to the Director for review. | 18 | | "Eligible area" means any improved or vacant area that (i) | 19 | | is contiguous and is not, in the aggregate, less than 250 acres | 20 | | nor more than 500 acres which must include only parcels of real | 21 | | property directly and substantially benefited by the proposed | 22 | | STAR bond district plan, (ii) is adjacent to a federal | 23 | | interstate highway, (iii) is within one mile of 2 State | 24 | | highways, (iv) is within one mile of an entertainment user, or | 25 | | a major or minor league sports stadium or other similar | 26 | | entertainment venue that had an initial capital investment of |
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| 1 | | at least $20,000,000, and (v) includes land that was previously | 2 | | surface or strip mined. The area may be bisected by streets, | 3 | | highways, roads, alleys, railways, bike paths, streams, | 4 | | rivers, and other waterways and still be deemed contiguous. In | 5 | | addition, in order to constitute an eligible area one of the | 6 | | following requirements must be satisfied and all of which are | 7 | | subject to the review and approval of the Director as provided | 8 | | in subsection (d) of Section 15:
| 9 | | (a) the governing body of the political subdivision | 10 | | shall have determined that the area meets the requirements | 11 | | of a "blighted area" as defined under the Tax Increment | 12 | | Allocation Redevelopment Act;
or | 13 | | (b) the governing body of the political subdivision | 14 | | shall have determined that the area is a blighted area as | 15 | | determined under the provisions of Section 11-74.3-5 of the | 16 | | Illinois Municipal Code;
or | 17 | | (c) the governing body of the political subdivision | 18 | | shall make the following findings:
| 19 | | (i) that the vacant portions of the area have | 20 | | remained vacant for at least one year, or that any | 21 | | building located on a vacant portion of the property | 22 | | was demolished within the last year and that the | 23 | | building would have qualified under item (ii) of this | 24 | | subsection;
| 25 | | (ii) if portions of the area are currently | 26 | | developed, that the use, condition, and character of |
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| 1 | | the buildings on the property are not consistent with | 2 | | the purposes set forth in Section 5;
| 3 | | (iii) that the STAR bond district is expected to | 4 | | create or retain job opportunities within the | 5 | | political subdivision;
| 6 | | (iv) that the STAR bond district will serve to | 7 | | further the development of adjacent areas;
| 8 | | (v) that without the availability of STAR bonds, | 9 | | the projects described in the STAR bond district plan | 10 | | would not be possible;
| 11 | | (vi) that the master developer meets high | 12 | | standards of creditworthiness and financial strength | 13 | | as demonstrated by one or more of the following: (i) | 14 | | corporate debenture ratings of BBB or higher by | 15 | | Standard & Poor's Corporation or Baa or higher by | 16 | | Moody's Investors Service, Inc.; (ii) a letter from a | 17 | | financial institution with assets of $10,000,000 or | 18 | | more attesting to the financial strength of the master | 19 | | developer; or (iii) specific evidence of equity | 20 | | financing for not less than 10% of the estimated total | 21 | | STAR bond project costs;
| 22 | | (vii) that the STAR bond district will strengthen | 23 | | the commercial sector of the political subdivision;
| 24 | | (viii) that the STAR bond district will enhance the | 25 | | tax base of the political subdivision; and
| 26 | | (ix) that the formation of a STAR bond district is |
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| 1 | | in the best interest of the political subdivision.
| 2 | | "Entertainment user" means an owner, operator, licensee, | 3 | | co-developer, subdeveloper, or tenant that operates a business | 4 | | within a STAR bond district that has a primary use of providing | 5 | | a venue for entertainment attractions, rides, or other | 6 | | activities oriented toward the entertainment and amusement of | 7 | | its patrons, occupies at least 20 acres of land in the STAR | 8 | | bond district, and makes an initial capital investment, | 9 | | including project costs and other direct and indirect costs, of | 10 | | not less than $25,000,000 for that venue. | 11 | | "Feasibility study" means a feasibility study as defined in | 12 | | subsection (b) of Section 20.
| 13 | | "Infrastructure" means the public improvements and private | 14 | | improvements that serve the public purposes set forth in | 15 | | Section 5 of this Act and that benefit the STAR bond district | 16 | | or any STAR bond projects, including, but not limited to, | 17 | | streets, drives and driveways, traffic and directional signs | 18 | | and signals, parking lots and parking facilities, | 19 | | interchanges, highways, sidewalks, bridges, underpasses and | 20 | | overpasses, bike and walking trails, sanitary storm sewers and | 21 | | lift stations, drainage conduits, channels, levees, canals, | 22 | | storm water detention and retention facilities, utilities and | 23 | | utility connections, water mains and extensions, and street and | 24 | | parking lot lighting and connections. | 25 | | "Local sales taxes" means any locally imposed taxes | 26 | | received by a municipality, county, or other local governmental |
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| 1 | | entity arising from sales by retailers and servicemen within a | 2 | | STAR bond district, including business district sales taxes and | 3 | | STAR bond occupation taxes, and that portion of the net revenue | 4 | | realized under the Retailers' Occupation Tax Act, the Use Tax | 5 | | Act, the Service Use Tax Act, and the Service Occupation Tax | 6 | | Act from transactions at places of business located within a | 7 | | STAR bond district that is deposited into the Local Government | 8 | | Tax Fund and the County and Mass Transit District Fund. For the | 9 | | purpose of this Act, "local sales taxes" does not include (i) | 10 | | any taxes authorized pursuant to the Local Mass Transit | 11 | | District Act or , the Metro-East Park and Recreation District | 12 | | Act , or the Flood Prevention District Act for so long as the | 13 | | applicable taxing district does not impose a tax on real | 14 | | property , or (ii) county school facility occupation taxes | 15 | | imposed pursuant to Section 5-1006.7 of the Counties Code , or | 16 | | (iii) any taxes authorized under the Flood Prevention District | 17 | | Act . | 18 | | "Local sales tax increment" means, with respect to local | 19 | | sales taxes administered by the Illinois Department of Revenue, | 20 | | (i) all of the local sales tax paid by destination users, | 21 | | destination hotels, and entertainment users that is in excess | 22 | | of the local sales tax paid by destination users, destination | 23 | | hotels, and entertainment users for the same month in the base | 24 | | year, as determined by the Illinois Department of Revenue, (ii) | 25 | | in the case of a municipality forming a STAR bond district that | 26 | | is wholly within the corporate boundaries of the municipality |
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| 1 | | and in the case of a municipality and county forming a STAR | 2 | | bond district that is only partially within such municipality, | 3 | | that portion of the local sales tax paid by taxpayers that are | 4 | | not destination users, destination hotels, or entertainment | 5 | | users that is in excess of the local sales tax paid by | 6 | | taxpayers that are not destination users, destination hotels, | 7 | | or entertainment users for the same month in the base year, as | 8 | | determined by the Illinois Department of Revenue, and (iii) in | 9 | | the case of a county in which a STAR bond district is formed | 10 | | that is wholly within a municipality, that portion of the local | 11 | | sales tax paid by taxpayers that are not destination users, | 12 | | destination hotels, or entertainment users that is in excess of | 13 | | the local sales tax paid by taxpayers that are not destination | 14 | | users, destination hotels, or entertainment users for the same | 15 | | month in the base year, as determined by the Illinois | 16 | | Department of Revenue, but only if the corporate authorities of | 17 | | the county adopts an ordinance, and files a copy with the | 18 | | Department within the same time frames as required for STAR | 19 | | bond occupation taxes under Section 31, that designates the | 20 | | taxes referenced in this clause (iii) as part of the local | 21 | | sales tax increment under this Act. "Local sales tax increment" | 22 | | means, with respect to local sales taxes administered by a | 23 | | municipality, county, or other unit of local government, that | 24 | | portion of the local sales tax that is in excess of the local | 25 | | sales tax for the same month in the base year, as determined by | 26 | | the respective municipality, county, or other unit of local |
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| 1 | | government. If any portion of local sales taxes are, at the | 2 | | time of formation of a STAR bond district, already subject to | 3 | | tax increment financing under the Tax Increment Allocation | 4 | | Redevelopment Act, then the local sales tax increment for such | 5 | | portion shall be frozen at the base year established in | 6 | | accordance with this Act, and all future incremental increases | 7 | | shall be included in the "local sales tax increment" under this | 8 | | Act. Any party otherwise entitled to receipt of incremental | 9 | | local sales tax revenues through an existing tax increment | 10 | | financing district shall be entitled to continue to receive | 11 | | such revenues up to the amount frozen in the base year. Nothing | 12 | | in this Act shall affect the prior qualification of existing | 13 | | redevelopment project costs incurred that are eligible for | 14 | | reimbursement under the Tax Increment Allocation Redevelopment | 15 | | Act. In such event, prior to approving a STAR bond district, | 16 | | the political subdivision forming the STAR bond district shall | 17 | | take such action as is necessary, including amending the | 18 | | existing tax increment financing district redevelopment plan, | 19 | | to carry out the provisions of this Act. The Illinois | 20 | | Department of Revenue shall allocate the local sales tax | 21 | | increment only if the local sales tax is administered by the | 22 | | Department. | 23 | | "Market study" means a study to determine the ability of | 24 | | the proposed STAR bond project to gain market share locally and | 25 | | regionally and to remain profitable past the term of repayment | 26 | | of STAR bonds.
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| 1 | | "Master developer" means a developer cooperating with a | 2 | | political subdivision to plan, develop, and implement a STAR | 3 | | bond project plan for a STAR bond district. Subject to the | 4 | | limitations of Section 25, the master developer may work with | 5 | | and transfer certain development rights to other developers for | 6 | | the purpose of implementing STAR bond project plans and | 7 | | achieving the purposes of this Act. A master developer for a | 8 | | STAR bond district shall be appointed by a political | 9 | | subdivision in the resolution establishing the STAR bond | 10 | | district, and the master developer must, at the time of | 11 | | appointment, own or have control of, through purchase | 12 | | agreements, option contracts, or other means, not less than 50% | 13 | | of the acreage within the STAR bond district and the master | 14 | | developer or its affiliate must have ownership or control on | 15 | | June 1, 2010. | 16 | | "Master development agreement" means an agreement between | 17 | | the master developer and the political subdivision to govern a | 18 | | STAR bond district and any STAR bond projects.
| 19 | | "Municipality" means the city, village, or incorporated | 20 | | town in which a proposed STAR bond district is located.
| 21 | | "Pledged STAR revenues" means those sales tax and revenues | 22 | | and other sources of funds pledged to pay debt service on STAR | 23 | | bonds or to pay project costs pursuant to Section 30. | 24 | | Notwithstanding any provision to the contrary, the following | 25 | | revenues shall not constitute pledged STAR revenues or be | 26 | | available to pay principal and interest on STAR bonds: any |
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| 1 | | State sales tax increment or local sales tax increment from a | 2 | | retail entity initiating operations in a STAR bond district | 3 | | while terminating operations at another Illinois location | 4 | | within 25 miles of the STAR bond district. For purposes of this | 5 | | paragraph, "terminating operations" means a closing of a retail | 6 | | operation that is directly related to the opening of the same | 7 | | operation or like retail entity owned or operated by more than | 8 | | 50% of the original ownership in a STAR bond district within | 9 | | one year before or after initiating operations in the STAR bond | 10 | | district, but it does not mean closing an operation for reasons | 11 | | beyond the control of the retail entity, as documented by the | 12 | | retail entity, subject to a reasonable finding by the | 13 | | municipality (or county if such retail operation is not located | 14 | | within a municipality) in which the terminated operations were | 15 | | located that the closed location contained inadequate space, | 16 | | had become economically obsolete, or was no longer a viable | 17 | | location for the retailer or serviceman. | 18 | | "Political subdivision" means a municipality or county | 19 | | which undertakes to establish a STAR bond district pursuant to | 20 | | the provisions of this Act. | 21 | | "Project costs" means and includes the sum total of all | 22 | | costs incurred or estimated to be incurred on or following the | 23 | | date of establishment of a STAR bond district that are | 24 | | reasonable or necessary to implement a STAR bond district plan | 25 | | or any STAR bond project plans, or both, including costs | 26 | | incurred for public improvements and private improvements that |
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| 1 | | serve the public purposes set forth in Section 5 of this Act. | 2 | | Such costs include without limitation the following: | 3 | | (a) costs of studies, surveys, development of plans and | 4 | | specifications, formation, implementation, and | 5 | | administration of a STAR bond district, STAR bond district | 6 | | plan, any STAR bond projects, or any STAR bond project | 7 | | plans, including, but not limited to, staff and | 8 | | professional service costs for architectural, engineering, | 9 | | legal, financial, planning, or other services, provided | 10 | | however that no charges for professional services may be | 11 | | based on a percentage of the tax increment collected and no | 12 | | contracts for professional services, excluding | 13 | | architectural and engineering services, may be entered | 14 | | into if the terms of the contract extend beyond a period of | 15 | | 3 years; | 16 | | (b) property assembly costs, including, but not | 17 | | limited to, acquisition of land and other real property or | 18 | | rights or interests therein, located within the boundaries | 19 | | of a STAR bond district, demolition of buildings, site | 20 | | preparation, site improvements that serve as an engineered | 21 | | barrier addressing ground level or below ground | 22 | | environmental contamination, including, but not limited | 23 | | to, parking lots and other concrete or asphalt barriers, | 24 | | the clearing and grading of land, and importing additional | 25 | | soil and fill materials, or removal of soil and fill | 26 | | materials from the site; |
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| 1 | | (c) subject to paragraph (d), costs of buildings and | 2 | | other vertical improvements that are located within the | 3 | | boundaries of a STAR bond district and owned by a political | 4 | | subdivision or other public entity, including without | 5 | | limitation police and fire stations, educational | 6 | | facilities, and public restrooms and rest areas; | 7 | | (c-1) costs of buildings and other vertical | 8 | | improvements that are located within the boundaries of a | 9 | | STAR bond district and owned by a destination user or | 10 | | destination hotel; except that only 2 destination users in | 11 | | a STAR bond district and one destination hotel are eligible | 12 | | to include the cost of those vertical improvements as | 13 | | project costs; | 14 | | (c-5) costs of buildings; rides and attractions, which | 15 | | include carousels, slides, roller coasters, displays, | 16 | | models, towers, works of art, and similar theme and | 17 | | amusement park improvements; and other vertical | 18 | | improvements that are located within the boundaries of a | 19 | | STAR bond district and owned by an entertainment user; | 20 | | except that only one entertainment user in a STAR bond | 21 | | district is eligible to include the cost of those vertical | 22 | | improvements as project costs; | 23 | | (d) costs of the design and construction of | 24 | | infrastructure and public works located within the | 25 | | boundaries of a STAR bond district that are reasonable or | 26 | | necessary to implement a STAR bond district plan or any |
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| 1 | | STAR bond project plans, or both, except that project costs | 2 | | shall not include the cost of constructing a new municipal | 3 | | public building principally used to provide offices, | 4 | | storage space, or conference facilities or vehicle | 5 | | storage, maintenance, or repair for administrative, public | 6 | | safety, or public works personnel and that is not intended | 7 | | to replace an existing public building unless the political | 8 | | subdivision makes a reasonable determination in a STAR bond | 9 | | district plan or any STAR bond project plans, supported by | 10 | | information that provides the basis for that | 11 | | determination, that the new municipal building is required | 12 | | to meet an increase in the need for public safety purposes | 13 | | anticipated to result from the implementation of the STAR | 14 | | bond district plan or any STAR bond project plans; | 15 | | (e) costs of the design and construction of the | 16 | | following improvements located outside the boundaries of a | 17 | | STAR bond district, provided that the costs are essential | 18 | | to further the purpose and development of a STAR bond | 19 | | district plan and either (i) part of and connected to | 20 | | sewer, water, or utility service lines that physically | 21 | | connect to the STAR bond district or (ii) significant | 22 | | improvements for adjacent offsite highways, streets, | 23 | | roadways, and interchanges that are approved by the | 24 | | Illinois Department of Transportation. No other cost of | 25 | | infrastructure and public works improvements located | 26 | | outside the boundaries of a STAR bond district may be |
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| 1 | | deemed project costs; | 2 | | (f) costs of job training and retraining projects, | 3 | | including the cost of "welfare to work" programs | 4 | | implemented by businesses located within a STAR bond | 5 | | district; | 6 | | (g) financing costs, including, but not limited to, all | 7 | | necessary and incidental expenses related to the issuance | 8 | | of obligations and which may include payment of interest on | 9 | | any obligations issued hereunder including interest | 10 | | accruing during the estimated period of construction of any | 11 | | improvements in a STAR bond district or any STAR bond | 12 | | projects for which such obligations are issued and for not | 13 | | exceeding 36 months thereafter and including reasonable | 14 | | reserves related thereto; | 15 | | (h) to the extent the political subdivision by written | 16 | | agreement accepts and approves the same, all or a portion | 17 | | of a taxing district's capital costs resulting from a STAR | 18 | | bond district or STAR bond projects necessarily incurred or | 19 | | to be incurred within a taxing district in furtherance of | 20 | | the objectives of a STAR bond district plan or STAR bond | 21 | | project plans; | 22 | | (i) interest cost incurred by a developer for project | 23 | | costs related to the acquisition, formation, | 24 | | implementation, development, construction, and | 25 | | administration of a STAR bond district, STAR bond district | 26 | | plan, STAR bond projects, or any STAR bond project plans |
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| 1 | | provided that: | 2 | | (i) payment of such costs in any one year may not | 3 | | exceed 30% of the annual interest costs incurred by the | 4 | | developer with regard to the STAR bond district or any | 5 | | STAR bond projects during that year; and | 6 | | (ii) the total of such interest payments paid | 7 | | pursuant to this Act may not exceed 30% of the total | 8 | | cost paid or incurred by the developer for a STAR bond | 9 | | district or STAR bond projects, plus project costs, | 10 | | excluding any property assembly costs incurred by a | 11 | | political subdivision pursuant to this Act; | 12 | | (j) costs of common areas located within the boundaries | 13 | | of a STAR bond district; | 14 | | (k) costs of landscaping and plantings, retaining | 15 | | walls and fences, man-made lakes and ponds, shelters, | 16 | | benches, lighting, and similar amenities located within | 17 | | the boundaries of a STAR bond district; | 18 | | (l) costs of mounted building signs, site monument, and | 19 | | pylon signs located within the boundaries of a STAR bond | 20 | | district; or | 21 | | (m) if included in the STAR bond district plan and | 22 | | approved in writing by the Director, salaries or a portion | 23 | | of salaries for local government employees to the extent | 24 | | the same are directly attributable to the work of such | 25 | | employees on the establishment and management of a STAR | 26 | | bond district or any STAR bond projects. |
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| 1 | | Except as specified in items (a) through (m), "project | 2 | | costs" shall not include: | 3 | | (i) the cost of construction of buildings that are | 4 | | privately owned or owned by a municipality and leased to a | 5 | | developer or retail user for non-entertainment retail | 6 | | uses; | 7 | | (ii) moving expenses for employees of the businesses | 8 | | locating within the STAR bond district; | 9 | | (iii) property taxes for property located in the STAR | 10 | | bond district; | 11 | | (iv) lobbying costs; and | 12 | | (v) general overhead or administrative costs of the | 13 | | political subdivision that would still have been incurred | 14 | | by the political subdivision if the political subdivision | 15 | | had not established a STAR bond district. | 16 | | "Project development agreement" means any one or more | 17 | | agreements, including any amendments thereto, between a master | 18 | | developer and any co-developer or subdeveloper in connection | 19 | | with a STAR bond project, which project development agreement | 20 | | may include the political subdivision as a party.
| 21 | | "Projected market area" means any area within the State in | 22 | | which a STAR bond district or STAR bond project is projected to | 23 | | have a significant fiscal or market impact as determined by the | 24 | | Director.
| 25 | | "Resolution" means a resolution, order, ordinance, or | 26 | | other appropriate form of legislative action of a political |
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| 1 | | subdivision or other applicable public entity approved by a | 2 | | vote of a majority of a quorum at a meeting of the governing | 3 | | body of the political subdivision or applicable public entity.
| 4 | | "STAR bond" means a sales tax and revenue bond, note, or | 5 | | other obligation payable from pledged STAR revenues and issued | 6 | | by a political subdivision, the proceeds of which shall be used | 7 | | only to pay project costs as defined in this Act.
| 8 | | "STAR bond district" means the specific area declared to be | 9 | | an eligible area as determined by the political subdivision, | 10 | | and approved by the Director, in which the political | 11 | | subdivision may develop one or more STAR bond projects.
| 12 | | "STAR bond district plan" means the preliminary or | 13 | | conceptual plan that generally identifies the proposed STAR | 14 | | bond project areas and identifies in a general manner the | 15 | | buildings, facilities, and improvements to be constructed or | 16 | | improved in each STAR bond project area.
| 17 | | "STAR bond project" means a project within a STAR bond | 18 | | district which is approved pursuant to Section 20.
| 19 | | "STAR bond project area" means the geographic area within a | 20 | | STAR bond district in which there may be one or more STAR bond | 21 | | projects.
| 22 | | "STAR bond project plan" means the written plan adopted by | 23 | | a political subdivision for the development of a STAR bond | 24 | | project in a STAR bond district; the plan may include, but is | 25 | | not limited to, (i) project costs incurred prior to the date of | 26 | | the STAR bond project plan and estimated future STAR bond |
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| 1 | | project costs, (ii) proposed sources of funds to pay those | 2 | | costs, (iii) the nature and estimated term of any obligations | 3 | | to be issued by the political subdivision to pay those costs, | 4 | | (iv) the most recent equalized assessed valuation of the STAR | 5 | | bond project area, (v) an estimate of the equalized assessed | 6 | | valuation of the STAR bond district or applicable project area | 7 | | after completion of a STAR bond project, (vi) a general | 8 | | description of the types of any known or proposed developers, | 9 | | users, or tenants of the STAR bond project or projects included | 10 | | in the plan, (vii) a general description of the type, | 11 | | structure, and character of the property or facilities to be | 12 | | developed or improved, (viii) a description of the general land | 13 | | uses to apply to the STAR bond project, and (ix) a general | 14 | | description or an estimate of the type, class, and number of | 15 | | employees to be employed in the operation of the STAR bond | 16 | | project.
| 17 | | "State sales tax" means all of the net revenue realized | 18 | | under the Retailers' Occupation Tax Act, the Use Tax Act, the | 19 | | Service Use Tax Act, and the Service Occupation Tax Act from | 20 | | transactions at places of business located within a STAR bond | 21 | | district, excluding that portion of the net revenue realized | 22 | | under the Retailers' Occupation Tax Act, the Use Tax Act, the | 23 | | Service Use Tax Act, and the Service Occupation Tax Act from | 24 | | transactions at places of business located within a STAR bond | 25 | | district that is deposited into the Local Government Tax Fund | 26 | | and the County and Mass Transit District Fund. |
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| 1 | | "State sales tax increment" means (i) 100% of that portion | 2 | | of the State sales tax that is in excess of the State sales tax | 3 | | for the same month in the base year, as determined by the | 4 | | Department of Revenue, from transactions at up to 2 destination | 5 | | users, one destination hotel, and one entertainment user | 6 | | located within a STAR bond district, which destination users, | 7 | | destination hotel, and entertainment user shall be designated | 8 | | by the master developer and approved by the political | 9 | | subdivision and the Director in conjunction with the applicable | 10 | | STAR bond project approval, and (ii) 25% of that portion of the | 11 | | State sales tax that is in excess of the State sales tax for | 12 | | the same month in the base year, as determined by the | 13 | | Department of Revenue, from all other transactions within a | 14 | | STAR bond district. If any portion of State sales taxes are, at | 15 | | the time of formation of a STAR bond district, already subject | 16 | | to tax increment financing under the Tax Increment Allocation | 17 | | Redevelopment Act, then the State sales tax increment for such | 18 | | portion shall be frozen at the base year established in | 19 | | accordance with this Act, and all future incremental increases | 20 | | shall be included in the State sales tax increment under this | 21 | | Act. Any party otherwise entitled to receipt of incremental | 22 | | State sales tax revenues through an existing tax increment | 23 | | financing district shall be entitled to continue to receive | 24 | | such revenues up to the amount frozen in the base year. Nothing | 25 | | in this Act shall affect the prior qualification of existing | 26 | | redevelopment project costs incurred that are eligible for |
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| 1 | | reimbursement under the Tax Increment Allocation Redevelopment | 2 | | Act. In such event, prior to approving a STAR bond district, | 3 | | the political subdivision forming the STAR bond district shall | 4 | | take such action as is necessary, including amending the | 5 | | existing tax increment financing district redevelopment plan, | 6 | | to carry out the provisions of this Act. | 7 | | "Substantial change" means a change wherein the proposed | 8 | | STAR bond project plan differs substantially in size, scope, or | 9 | | use from the approved STAR bond district plan or STAR bond | 10 | | project plan.
| 11 | | "Taxpayer" means an individual, partnership, corporation, | 12 | | limited liability company, trust, estate, or other entity that | 13 | | is subject to the Illinois Income Tax Act.
| 14 | | "Total development costs" means the aggregate public and | 15 | | private investment in a STAR bond district, including project | 16 | | costs and other direct and indirect costs related to the | 17 | | development of the STAR bond district. | 18 | | "Traditional retail use" means the operation of a business | 19 | | that derives at least 90% of its annual gross revenue from | 20 | | sales at retail, as that phrase is defined by Section 1 of the | 21 | | Retailers' Occupation Tax Act, but does not include the | 22 | | operations of destination users, entertainment users, | 23 | | restaurants, hotels, retail uses within hotels, or any other | 24 | | non-retail uses. | 25 | | "Vacant" means that portion of the land in a proposed STAR | 26 | | bond district that is not occupied by a building, facility, or |
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| 1 | | other vertical improvement.
| 2 | | (Source: P.A. 96-939, eff. 6-24-10.) | 3 | | Section 10. The Flood Prevention District Act is amended by | 4 | | changing Section 25 as follows:
| 5 | | (70 ILCS 750/25)
| 6 | | Sec. 25. Flood prevention retailers' and service | 7 | | occupation taxes. | 8 | | (a) If the Board of Commissioners of a flood prevention | 9 | | district determines that an emergency situation exists | 10 | | regarding levee repair or flood prevention, and upon an | 11 | | ordinance confirming the determination adopted by the | 12 | | affirmative vote of a majority of the members of the county | 13 | | board of the county in which the district is situated, the | 14 | | county may impose a flood prevention
retailers' occupation tax | 15 | | upon all persons engaged in the business of
selling tangible | 16 | | personal property at retail within the territory of the | 17 | | district to provide revenue to pay the costs of providing | 18 | | emergency levee repair and flood prevention and to secure the | 19 | | payment of bonds, notes, and other evidences of indebtedness | 20 | | issued under this Act for a period not to exceed 25 years or as | 21 | | required to repay the bonds, notes, and other evidences of | 22 | | indebtedness issued under this Act.
The tax rate shall be 0.25%
| 23 | | of the gross receipts from all taxable sales made in the course | 24 | | of that
business. The tax
imposed under this Section and all |
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| 1 | | civil penalties that may be
assessed as an incident thereof | 2 | | shall be collected and enforced by the
State Department of | 3 | | Revenue. The Department shall have full power to
administer and | 4 | | enforce this Section; to collect all taxes and penalties
so | 5 | | collected in the manner hereinafter provided; and to determine | 6 | | all
rights to credit memoranda arising on account of the | 7 | | erroneous payment
of tax or penalty hereunder. | 8 | | In the administration of and compliance with this | 9 | | subsection, the Department and persons who are subject to this | 10 | | subsection (i) have the same rights, remedies, privileges, | 11 | | immunities, powers, and duties, (ii) are subject to the same | 12 | | conditions, restrictions, limitations, penalties, and | 13 | | definitions of terms, and (iii) shall employ the same modes of | 14 | | procedure as are set forth in Sections 1 through 1o, 2 through | 15 | | 2-70 (in respect to all provisions contained in those Sections | 16 | | other than the State rate of tax), 2a through 2h, 3 (except as | 17 | | to the disposition of taxes and penalties collected), 4, 5, 5a, | 18 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, | 19 | | 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and | 20 | | all provisions of the Uniform Penalty and Interest Act as if | 21 | | those provisions were set forth in this subsection. | 22 | | Persons subject to any tax imposed under this Section may | 23 | | reimburse themselves for their seller's tax
liability | 24 | | hereunder by separately stating the tax as an additional
| 25 | | charge, which charge may be stated in combination in a single | 26 | | amount
with State taxes that sellers are required to collect |
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| 1 | | under the Use
Tax Act, under any bracket schedules the
| 2 | | Department may prescribe. | 3 | | If a tax is imposed under this subsection (a), a tax shall | 4 | | also
be imposed under subsection (b) of this Section. | 5 | | (b) If a tax has been imposed under subsection (a), a flood | 6 | | prevention service occupation
tax shall
also be imposed upon | 7 | | all persons engaged within the territory of the district in
the | 8 | | business of making sales of service, who, as an incident to | 9 | | making the sales
of service, transfer tangible personal | 10 | | property,
either in the form of tangible personal property or | 11 | | in the form of real estate
as an incident to a sale of service | 12 | | to provide revenue to pay the costs of providing emergency | 13 | | levee repair and flood prevention and to secure the payment of | 14 | | bonds, notes, and other evidences of indebtedness issued under | 15 | | this Act for a period not to exceed 25 years or as required to | 16 | | repay the bonds, notes, and other evidences of indebtedness. | 17 | | The tax rate shall be 0.25% of the selling price
of all | 18 | | tangible personal property transferred. | 19 | | The tax imposed under this subsection and all civil
| 20 | | penalties that may be assessed as an incident thereof shall be | 21 | | collected
and enforced by the State Department of Revenue. The | 22 | | Department shall
have full power to administer and enforce this | 23 | | subsection; to collect all
taxes and penalties due hereunder; | 24 | | to dispose of taxes and penalties
collected in the manner | 25 | | hereinafter provided; and to determine all
rights to credit | 26 | | memoranda arising on account of the erroneous payment
of tax or |
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| 1 | | penalty hereunder. | 2 | | In the administration of and compliance with this | 3 | | subsection, the Department and persons who are subject to this | 4 | | subsection shall (i) have the same rights, remedies, | 5 | | privileges, immunities, powers, and duties, (ii) be subject to | 6 | | the same conditions, restrictions, limitations, penalties, and | 7 | | definitions of terms, and (iii) employ the same modes of | 8 | | procedure as are set forth in Sections 2 (except that the | 9 | | reference to State in the definition of supplier maintaining a | 10 | | place of business in this State means the district), 2a through | 11 | | 2d, 3 through 3-50 (in respect to all provisions contained in | 12 | | those Sections other than the State rate of tax), 4 (except | 13 | | that the reference to the State shall be to the district), 5, | 14 | | 7, 8 (except that the jurisdiction to which the tax is a debt | 15 | | to the extent indicated in that Section 8 is the district), 9 | 16 | | (except as to the disposition of taxes and penalties | 17 | | collected), 10, 11, 12 (except the reference therein to Section | 18 | | 2b of the Retailers' Occupation Tax Act), 13 (except that any | 19 | | reference to the State means the district), Section 15, 16, 17, | 20 | | 18, 19, and 20 of the Service Occupation Tax Act and all | 21 | | provisions of the Uniform Penalty and Interest Act, as fully as | 22 | | if those provisions were set forth herein. | 23 | | Persons subject to any tax imposed under the authority | 24 | | granted
in this subsection may reimburse themselves for their | 25 | | serviceman's tax
liability hereunder by separately stating the | 26 | | tax as an additional
charge, that charge may be stated in |
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| 1 | | combination in a single amount
with State tax that servicemen | 2 | | are authorized to collect under the
Service Use Tax Act, under | 3 | | any bracket schedules the
Department may prescribe. | 4 | | (c) The taxes imposed in subsections (a) and (b) may not be | 5 | | imposed on personal property titled or registered with an | 6 | | agency of the State; food for human consumption that is to be | 7 | | consumed off the premises where it is sold (other than | 8 | | alcoholic beverages, soft drinks, and food that has been | 9 | | prepared for immediate consumption); prescription and | 10 | | non-prescription medicines, drugs, and medical appliances; | 11 | | modifications to a motor vehicle for the purpose of rendering | 12 | | it usable by a disabled person; or insulin, urine testing | 13 | | materials, and syringes and needles used by diabetics. | 14 | | (d) Nothing in this Section shall be construed to authorize | 15 | | the
district to impose a tax upon the privilege of engaging in | 16 | | any business
that under the Constitution of the United States | 17 | | may not be made the
subject of taxation by the State. | 18 | | (e) The certificate of registration that is issued by the | 19 | | Department to a retailer under the Retailers' Occupation Tax | 20 | | Act or a serviceman under the Service Occupation Tax Act | 21 | | permits the retailer or serviceman to engage in a business that | 22 | | is taxable without registering separately with the Department | 23 | | under an ordinance or resolution under this Section. | 24 | | (f) The Department shall immediately pay over to the State | 25 | | Treasurer, ex officio, as trustee, all taxes and penalties | 26 | | collected under this Section to be deposited into the Flood |
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| 1 | | Prevention Occupation Tax Fund, which shall be an | 2 | | unappropriated trust fund held outside the State treasury. | 3 | | As soon as possible after the first day of each month, | 4 | | beginning January 1, 2011, upon certification of the Department | 5 | | of Revenue, the Comptroller shall order transferred, and the | 6 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 7 | | local sales tax increment, as defined in the Innovation | 8 | | Development and Economy Act, collected under this Section | 9 | | during the second preceding calendar month for sales within a | 10 | | STAR bond district. The Department shall make this | 11 | | certification only if the flood prevention district imposes a | 12 | | tax on real property as provided in the definition of "local | 13 | | sales taxes" under the Innovation Development and Economy Act. | 14 | | On After the monthly transfer to the STAR Bonds Revenue | 15 | | Fund, on or before the 25th day of each calendar month, the | 16 | | Department shall prepare and certify to the Comptroller the | 17 | | disbursement of stated sums of money to the counties from which | 18 | | retailers or servicemen have paid taxes or penalties to the | 19 | | Department during the second preceding calendar month. The | 20 | | amount to be paid to each county is equal to the amount (not | 21 | | including credit memoranda) collected from the county under | 22 | | this Section during the second preceding calendar month by the | 23 | | Department, (i) less 2% of that amount, which shall be | 24 | | deposited into the Tax Compliance and Administration Fund and | 25 | | shall be used by the Department in administering and enforcing | 26 | | the provisions of this Section on behalf of the county, (ii) |
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| 1 | | plus an amount that the Department determines is necessary to | 2 | | offset any amounts that were erroneously paid to a different | 3 | | taxing body; (iii) less an amount equal to the amount of | 4 | | refunds made during the second preceding calendar month by the | 5 | | Department on behalf of the county; and (iv) less any amount | 6 | | that the Department determines is necessary to offset any | 7 | | amounts that were payable to a different taxing body but were | 8 | | erroneously paid to the county ; and (v) less any amounts that | 9 | | are transferred to the STAR Bonds Revenue Fund . When certifying | 10 | | the amount of a monthly disbursement to a county under this | 11 | | Section, the Department shall increase or decrease the amounts | 12 | | by an amount necessary to offset any miscalculation of previous | 13 | | disbursements within the previous 6 months from the time a | 14 | | miscalculation is discovered. | 15 | | Within 10 days after receipt by the Comptroller from the | 16 | | Department of the disbursement certification to the counties | 17 | | provided for in this Section, the Comptroller shall cause the | 18 | | orders to be drawn for the respective amounts in accordance | 19 | | with directions contained in the certification. | 20 | | If the Department determines that a refund should be made | 21 | | under this Section to a claimant instead of issuing a credit | 22 | | memorandum, then the Department shall notify the Comptroller, | 23 | | who shall cause the order to be drawn for the amount specified | 24 | | and to the person named in the notification from the | 25 | | Department. The refund shall be paid by the Treasurer out of | 26 | | the Flood Prevention Occupation Tax Fund. |
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| 1 | | (g) If a county imposes a tax under this Section, then the | 2 | | county board shall, by ordinance, discontinue the tax upon the | 3 | | payment of all indebtedness of the flood prevention district. | 4 | | The tax shall not be discontinued until all indebtedness of the | 5 | | District has been paid. | 6 | | (h) Any ordinance imposing the tax under this Section, or | 7 | | any ordinance that discontinues the tax, must be certified by | 8 | | the county clerk and filed with the Illinois Department of | 9 | | Revenue either (i) on or before the first day of April, | 10 | | whereupon the Department shall proceed to administer and | 11 | | enforce the tax or change in the rate as of the first day of | 12 | | July next following the filing; or (ii) on or before the first | 13 | | day of October, whereupon the Department shall proceed to | 14 | | administer and enforce the tax or change in the rate as of the | 15 | | first day of January next following the filing. | 16 | | (j) County Flood Prevention Occupation Tax Fund. All | 17 | | proceeds received by a county from a tax distribution under | 18 | | this Section must be maintained in a special fund known as the | 19 | | [name of county] flood prevention occupation tax fund. The | 20 | | county shall, at the direction of the flood prevention | 21 | | district, use moneys in the fund to pay the costs of providing | 22 | | emergency levee repair and flood prevention and to pay bonds, | 23 | | notes, and other evidences of indebtedness issued under this | 24 | | Act. | 25 | | (k) This Section may be cited as the Flood Prevention | 26 | | Occupation Tax Law.
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| 1 | | (Source: P.A. 95-719, eff. 5-21-08; 95-723, eff. 6-23-08; | 2 | | 96-939, eff. 6-24-10.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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