Full Text of SB1911 97th General Assembly
SB1911 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1911 Introduced 2/10/2011, by Sen. John G. Mulroe 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 in the Illinois Municipal Code. Makes a technical change in a Section concerning tax increment allocation financing.
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| | 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 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 | | (b) Except from a tax levied by a township to retire bonds | 14 | | issued to satisfy
court-ordered damages, that portion, if any, | 15 | | of such taxes which is
attributable to the
increase in the | 16 | | current equalized assessed valuation of each taxable lot,
| 17 | | block, tract or parcel of real property in the redevelopment | 18 | | project area
over and above the initial equalized assessed | 19 | | value of each property in the
project area shall be allocated | 20 | | to and when collected shall be paid to the
municipal treasurer | 21 | | who shall deposit said taxes into a special fund called
the | 22 | | special tax allocation fund of the municipality for the purpose | 23 | | of
paying redevelopment project costs and obligations incurred | 24 | | in the payment
thereof. In any county with a population of | 25 | | 3,000,000 or more that has adopted
a procedure for collecting | 26 | | taxes that provides for one or more of the
installments of the |
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| 1 | | taxes to be billed and collected on an estimated basis,
the | 2 | | municipal treasurer shall be paid for deposit in the special | 3 | | tax
allocation fund of the municipality, from the taxes | 4 | | collected from
estimated bills issued for property in the | 5 | | redevelopment project area, the
difference between the amount | 6 | | actually collected from each taxable lot,
block, tract, or | 7 | | parcel of real property within the redevelopment project
area | 8 | | and an amount determined by multiplying the rate at which taxes | 9 | | were
last extended against the taxable lot, block, track, or | 10 | | parcel of real
property in the manner provided in subsection | 11 | | (c) of Section 11-74.4-9 by
the initial equalized assessed | 12 | | value of the property divided by the number
of installments in | 13 | | which real estate taxes are billed and collected within
the | 14 | | county; provided that the payments on or before December 31,
| 15 | | 1999 to a municipal treasurer shall be made only if each of the | 16 | | following
conditions are met:
| 17 | | (1) The total equalized assessed value of the | 18 | | redevelopment project
area as last determined was not less | 19 | | than 175% of the total initial
equalized assessed value.
| 20 | | (2) Not more than 50% of the total equalized assessed | 21 | | value of the
redevelopment project area as last determined | 22 | | is attributable to a piece of
property assigned a single | 23 | | real estate index number.
| 24 | | (3) The municipal clerk has certified to the county | 25 | | clerk that the
municipality has issued its obligations to | 26 | | which there has been pledged
the incremental property taxes |
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| 1 | | of the redevelopment project area or taxes
levied and | 2 | | collected on any or all property in the municipality or
the | 3 | | full faith and credit of the municipality to pay or secure | 4 | | payment for
all or a portion of the redevelopment project | 5 | | costs. The certification
shall be filed annually no later | 6 | | than September 1 for the estimated taxes
to be distributed | 7 | | in the following year; however, for the year 1992 the
| 8 | | certification shall be made at any time on or before March | 9 | | 31, 1992.
| 10 | | (4) The municipality has not requested that the total | 11 | | initial
equalized assessed value of real property be | 12 | | adjusted as provided in
subsection (b) of Section | 13 | | 11-74.4-9.
| 14 | | The conditions of paragraphs (1) through (4) do not apply | 15 | | after December
31, 1999 to payments to a municipal treasurer
| 16 | | made by a county with 3,000,000 or more inhabitants that has | 17 | | adopted an
estimated billing procedure for collecting taxes.
If | 18 | | a county that has adopted the estimated billing
procedure makes | 19 | | an erroneous overpayment of tax revenue to the municipal
| 20 | | treasurer, then the county may seek a refund of that | 21 | | overpayment.
The county shall send the municipal treasurer a | 22 | | notice of liability for the
overpayment on or before the | 23 | | mailing date of the next real estate tax bill
within the | 24 | | county. The refund shall be limited to the amount of the
| 25 | | overpayment.
| 26 | | It is the intent of this Division that after the effective |
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| 1 | | date of this
amendatory Act of 1988 a municipality's own ad | 2 | | valorem
tax arising from levies on taxable real property be | 3 | | included in the
determination of incremental revenue in the | 4 | | manner provided in paragraph
(c) of Section 11-74.4-9. If the | 5 | | municipality does not extend such a tax,
it shall annually | 6 | | deposit in the municipality's Special Tax Increment Fund
an | 7 | | amount equal to 10% of the total contributions to the fund from | 8 | | all
other taxing districts in that year. The annual 10% deposit | 9 | | required by
this paragraph shall be limited to the actual | 10 | | amount of municipally
produced incremental tax revenues | 11 | | available to the municipality from
taxpayers located in the | 12 | | redevelopment project area in that year if:
(a) the plan for | 13 | | the area restricts the use of the property primarily to
| 14 | | industrial purposes, (b) the municipality establishing the | 15 | | redevelopment
project area is a home-rule community with a 1990 | 16 | | population of between
25,000 and 50,000, (c) the municipality | 17 | | is wholly located within a county
with a 1990 population of | 18 | | over 750,000 and (d) the redevelopment project
area was | 19 | | established by the municipality prior to June 1, 1990. This
| 20 | | payment shall be in lieu of a contribution of ad valorem taxes | 21 | | on real
property. If no such payment is made, any redevelopment | 22 | | project area of the
municipality shall be dissolved.
| 23 | | If a municipality has adopted tax increment allocation | 24 | | financing by ordinance
and the County Clerk thereafter | 25 | | certifies the "total initial equalized assessed
value as | 26 | | adjusted" of the taxable real property within such |
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| 1 | | redevelopment
project area in the manner provided in paragraph | 2 | | (b) of Section 11-74.4-9,
each year after the date of the | 3 | | certification of the total initial equalized
assessed value as | 4 | | adjusted until redevelopment project costs and all
municipal | 5 | | obligations financing redevelopment project costs have been | 6 | | paid
the ad valorem taxes, if any, arising from the levies upon | 7 | | the taxable real
property in such redevelopment project area by | 8 | | taxing districts and tax
rates determined in the manner | 9 | | provided in paragraph (c) of Section
11-74.4-9 shall be divided | 10 | | as follows:
| 11 | | (1) That portion of the taxes levied upon each taxable | 12 | | lot, block, tract
or parcel of real property which is | 13 | | attributable to the lower of the
current equalized assessed | 14 | | value or "current equalized assessed value as
adjusted" or | 15 | | the initial equalized assessed value of each such taxable | 16 | | lot,
block, tract, or parcel of real property existing at | 17 | | the time tax increment
financing was adopted, minus the | 18 | | total current homestead exemptions under Article 15 of the | 19 | | Property
Tax Code in the
redevelopment project area shall | 20 | | be allocated to and when collected shall be
paid by the | 21 | | county collector to the respective affected taxing | 22 | | districts in the
manner required by law in the absence of | 23 | | the adoption of tax increment
allocation financing.
| 24 | | (2) That portion, if any, of such taxes which is | 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 area,
| 2 | | over and above the initial equalized assessed value of each | 3 | | property
existing at the time tax increment financing was | 4 | | adopted, minus the total
current homestead exemptions | 5 | | pertaining to each piece of property provided
by Article 15 | 6 | | of the Property Tax Code
in the redevelopment
project area, | 7 | | shall be allocated to and when collected shall be paid to | 8 | | the
municipal Treasurer, who shall deposit said taxes into | 9 | | a special fund called
the special tax allocation fund of | 10 | | the municipality for the purpose of paying
redevelopment | 11 | | project costs and obligations incurred in the payment | 12 | | thereof.
| 13 | | The municipality may pledge in the ordinance the funds in | 14 | | and to be
deposited in the special tax allocation fund for the | 15 | | payment of such costs
and obligations. No part of the current | 16 | | equalized assessed valuation of
each property in the | 17 | | redevelopment project area attributable to any
increase above | 18 | | the total initial equalized assessed value, or the total
| 19 | | initial equalized assessed value as adjusted, of such | 20 | | properties shall be
used in calculating the general State | 21 | | school aid formula, provided for in
Section 18-8 of the School | 22 | | Code, until such time as all redevelopment
project costs have | 23 | | been paid as provided for in this Section.
| 24 | | Whenever a municipality issues bonds for the purpose of | 25 | | financing
redevelopment project costs, such municipality may | 26 | | provide by ordinance for the
appointment of a trustee, which |
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| 1 | | may be any trust company within the State,
and for the | 2 | | establishment of such funds or accounts to be maintained by
| 3 | | such trustee as the municipality shall deem necessary to | 4 | | provide for the
security and payment of the bonds. If such | 5 | | municipality provides for
the appointment of a trustee, such | 6 | | trustee shall be considered the assignee
of any payments | 7 | | assigned by the municipality pursuant to such ordinance
and | 8 | | this Section. Any amounts paid to such trustee as assignee | 9 | | shall be
deposited in the funds or accounts established | 10 | | pursuant to such trust
agreement, and shall be held by such | 11 | | trustee in trust for the benefit of the
holders of the bonds, | 12 | | and such holders shall have a lien on and a security
interest | 13 | | in such funds or accounts so long as the bonds remain | 14 | | outstanding and
unpaid. Upon retirement of the bonds, the | 15 | | trustee shall pay over any excess
amounts held to the | 16 | | municipality for deposit in the special tax allocation
fund.
| 17 | | When such redevelopment projects costs, including without | 18 | | limitation all
municipal obligations financing redevelopment | 19 | | project costs incurred under
this Division, have been paid, all | 20 | | surplus funds then remaining in the
special tax allocation fund | 21 | | shall be distributed
by being paid by the
municipal treasurer | 22 | | to the Department of Revenue, the municipality and the
county | 23 | | collector; first to the Department of Revenue and the | 24 | | municipality
in direct proportion to the tax incremental | 25 | | revenue received from the State
and the municipality, but not | 26 | | to exceed the total incremental revenue received
from the State |
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| 1 | | or the municipality less any annual surplus distribution
of | 2 | | incremental revenue previously made; with any remaining funds | 3 | | to be paid
to the County Collector who shall immediately | 4 | | thereafter pay said funds to
the taxing districts in the | 5 | | redevelopment project area in the same manner
and proportion as | 6 | | the most recent distribution by the county collector to
the | 7 | | affected districts of real property taxes from real property in | 8 | | the
redevelopment project area.
| 9 | | Upon the payment of all redevelopment project costs, the | 10 | | retirement of
obligations, the distribution of any excess | 11 | | monies pursuant to this
Section, and final closing of the books | 12 | | and records of the redevelopment
project
area, the municipality | 13 | | shall adopt an ordinance dissolving the special
tax allocation | 14 | | fund for the redevelopment project area and terminating the
| 15 | | designation of the redevelopment project area as a | 16 | | redevelopment project
area.
Title to real or personal property | 17 | | and public improvements
acquired
by or for
the
municipality as | 18 | | a result of the redevelopment project and plan shall vest in
| 19 | | the
municipality when acquired and shall continue to be held by | 20 | | the municipality
after the redevelopment project area has been | 21 | | terminated.
Municipalities shall notify affected taxing | 22 | | districts prior to
November 1 if the redevelopment project area | 23 | | is to be terminated by December 31
of
that same year. If a | 24 | | municipality extends estimated dates of completion of a
| 25 | | redevelopment project and retirement of obligations to finance | 26 | | a
redevelopment project, as allowed by this amendatory Act of |
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| 1 | | 1993, that
extension shall not extend the property tax | 2 | | increment allocation financing
authorized by this Section. | 3 | | Thereafter the rates of the taxing districts
shall be extended | 4 | | and taxes levied, collected and distributed in the manner
| 5 | | applicable in the absence of the adoption of tax increment | 6 | | allocation
financing.
| 7 | | Nothing in this Section shall be construed as relieving | 8 | | property in such
redevelopment project areas from being | 9 | | assessed as provided in the Property
Tax Code or as relieving | 10 | | owners of such property from paying a uniform rate of
taxes, as | 11 | | required by Section 4 of Article 9 of the Illinois | 12 | | Constitution.
| 13 | | (Source: P.A. 95-644, eff. 10-12-07.)
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