Illinois General Assembly - Illinois Compiled Statutes

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55 ILCS 85/7

(55 ILCS 85/7) (from Ch. 34, par. 7007)

Sec. 7. Creation of special tax allocation fund.

If a county has
adopted property tax allocation financing by ordinance for an economic
development project area, the Department has approved and certified the
economic development project area, and the county clerk has thereafter
certified the "total initial equalized value" of the taxable real property
within such economic development project area in the manner provided in
subsection (b) of Section 6 of this Act, each year after the date of the
certification by the county clerk of the "initial equalized assessed value"
until economic development project costs and all county 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 property tax allocation financing was adopted shall be allocated and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by the law in the absence of the adoption of property tax 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 are, over and above the initial equalized assessed value of each property existing at the time property tax allocation financing was adopted shall be allocated to and when collected shall be paid to the county treasurer, who shall deposit those taxes into a special fund called the special tax allocation fund of the county for the purpose of paying economic development project costs and obligations incurred in the payment thereof.

The county, by an ordinance adopting property tax 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.

Whenever a county issues bonds for the purpose of financing economic
development project costs, the county may provide by ordinance for the
appointment of a trustee, which may be any trust company within the State,
and for the establishment of the funds or accounts to be maintained by such
trustee as the county shall deem necessary to provide for the security and
payment of the bonds.  If the county provides for the appointment of a
trustee, the trustee shall be considered the assignee of any payments
assigned by the county pursuant to the ordinance and this Section.  Any
amounts paid to the trustee as assignee shall be deposited in the funds or
accounts established pursuant to the trust agreement, and shall be held by
the trustee in trust for the benefit of the holders of the bonds, and the
holders shall have a lien on and a security interest in those bonds or
accounts so long as the bonds remain outstanding and unpaid.  Upon
retirement of the bonds, the trustee shall pay over any excess amounts held
to the county for deposit in the special tax allocation fund.

When the economic development project costs, including without limitation
all county obligations financing economic development project costs
incurred under this Act, have been paid, all surplus funds then remaining
in the special tax allocation funds shall be distributed by being paid by
the county 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 and not later than 23 years from the date of adoption of the
ordinance adopting property tax allocation financing, the county shall
adopt an ordinance dissolving the special tax allocation fund for the
economic development project area and terminating the designation of the
economic development project area as an economic development project area; however, in relation to one or more contiguous parcels not exceeding a total area of 120 acres within which an electric generating facility is intended to be constructed, and with respect to which the owner of that proposed electric generating facility has entered into a redevelopment agreement with Grundy County on or before July 25, 2017, the ordinance of the county required in this paragraph shall not dissolve the special tax allocation fund for the existing economic development project area and shall only terminate the designation of the economic development project area as to those portions of the economic development project area excluding the area covered by the redevelopment agreement between the owner of the proposed electric generating facility and Grundy County; the county shall adopt an ordinance dissolving the special tax allocation fund for the economic development project area and terminating the designation of the economic development project area as an economic development project area with regard to the electric generating facility  property not later than 35 years from the date of adoption of the ordinance adopting property tax allocation financing.
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 property tax 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 of 1970.

(Source: P.A. 99-513, eff. 6-30-16; 100-465, eff. 8-31-17.)