Illinois General Assembly - Illinois Compiled Statutes

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20 ILCS 620/7

(20 ILCS 620/7) (from Ch. 67 1/2, par. 1007)

Sec. 7. Creation of special tax allocation fund.

If a municipality
has adopted tax increment allocation financing for an economic development
project area by ordinance, the county clerk has thereafter certified the "total
initial equalized assessed value" of the taxable real property within such
economic development project area in the manner provided in Section 6 of this
Act, and the Department has approved and certified the economic development
project area, each year after the date of the certification by the county clerk
of the "total initial equalized assessed value" until economic development
project costs and all municipal obligations financing economic development
project costs have been paid, the ad valorem taxes, if any, arising from the
levies upon the taxable real property in the economic development project area
by taxing districts and tax rates determined in the manner provided in
subsection (b) of Section 6 of this Act shall be divided as follows:

(1) That portion of the taxes levied upon each taxable lot, block, tract
or parcel of real property which is attributable to the lower of the current
equalized assessed value or the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property existing at the time tax
increment allocation financing was adopted, shall be allocated to and when
collected shall be paid by the county collector to the respective affected
taxing districts in the manner required by law in the absence of the adoption
of tax increment allocation financing.

(2) That portion, if any, of those taxes which is attributable to the
increase in the current equalized assessed valuation of each taxable lot,
block, tract, or parcel of real property in the economic development project
area, over and above the initial equalized assessed value of each property
existing at the time tax increment allocation financing was adopted,
shall be allocated to and when collected shall be paid to the municipal
treasurer, who shall deposit those taxes into a special fund called the special
tax allocation fund of the municipality for the purpose of paying economic
development project costs and obligations incurred in the payment thereof.

The municipality, by an ordinance adopting tax increment allocation
financing, may pledge the funds in and to be deposited in the special tax
allocation fund for the payment of obligations issued under this Act and for
the payment of economic development project costs. No part of the current
equalized assessed valuation of each property in the economic development
project area attributable to any increase above the total initial equalized
assessed value, of such properties shall be used in calculating the general
State school aid formula, provided for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code,
until such time as all economic development projects costs have been paid as
provided for in this Section.

When the economic development project costs, including without
limitation all municipal obligations financing economic development project
costs incurred under this Act, have been paid, all surplus funds then
remaining in the special tax allocation fund shall be distributed by being
paid by the municipal treasurer to the county collector, who shall
immediately thereafter pay those funds to the taxing districts having
taxable property in the economic development project area in the same
manner and proportion as the most recent distribution by the county
collector to those taxing districts of real property taxes from real
property in the economic development project area.

Upon the payment of all economic development project costs, retirement of
obligations and the distribution of any excess monies pursuant to this
Section the municipality shall adopt an ordinance dissolving the special
tax allocation fund for the economic development project area,
terminating the economic development project area, and terminating the use
of tax increment allocation financing for the economic development project
area. Thereafter the rates of the taxing districts shall be extended and taxes
levied, collected and distributed in the manner applicable in the absence of
the adoption of tax increment allocation financing.

Nothing in this Section shall be construed as relieving property in
economic development project areas from being assessed as provided in the
Property Tax Code, or as relieving
owners of that property from paying a uniform rate of taxes, as required by
Section 4 of Article IX of the Illinois Constitution.

(Source: P.A. 100-465, eff. 8-31-17.)