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90_HB0524ham002
LRB9001031KDksam
1 AMENDMENT TO HOUSE BILL 524
2 AMENDMENT NO. . Amend House Bill 524 by replacing
3 the title with the following:
4 "AN ACT concerning districts."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Enterprise Zone Act is amended
8 by changing Section 5.4 and adding Section 5.4.1 as follows:
9 (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
10 Sec. 5.4. Amendment and De-Certification of Enterprise
11 Zones. (a) The terms of a certified enterprise zone
12 designating ordinance may be amended to
13 (i) alter the boundaries of the Enterprise Zone, or
14 (ii) expand, limit or repeal tax incentives or benefits
15 provided in the ordinance, or
16 (iii) alter the termination date of the zone, or
17 (iv) make technical corrections in the enterprise zone
18 designating ordinance; but such amendment shall not be
19 effective unless the Department issues an amended certificate
20 for the Enterprise Zone, approving the amended designating
21 ordinance. Upon the adoption of any ordinance amending or
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1 repealing the terms of a certified enterprise zone
2 designating ordinance, the municipality or county shall
3 promptly file with the Department an application for approval
4 thereof, containing substantially the same information as
5 required for an application under Section 5.1 insofar as
6 material to the proposed changes. The municipality or county
7 must hold a public hearing on the proposed changes as
8 specified in Section 5 and, if the amendment is to effectuate
9 the limitation of tax abatements under Section 5.4.1, then
10 the public notice of the hearing shall state that property
11 that is in both the enterprise zone and a redevelopment
12 project area may not receive tax abatements unless within 60
13 days after the adoption of the amendment to the designating
14 ordinance the municipality has determined that eligibility
15 for tax abatements has been established, or
16 (v) include an area within another municipality or
17 county as part of the designated enterprise zone provided the
18 requirements of Section 4 are complied with, or.
19 (vi) effectuate the limitation of tax abatements under
20 Section 5.4.1.
21 (b) The Department shall approve or disapprove a
22 proposed amendment to a certified enterprise zone within 90
23 days of its receipt of the application from the municipality
24 or county. The Department may not approve changes in a Zone
25 which are not in conformity with this Act, as now or
26 hereafter amended, or with other applicable laws. If the
27 Department issues an amended certificate for an Enterprise
28 Zone, the amended certificate, together with the amended zone
29 designating ordinance, shall be filed, recorded and
30 transmitted as provided in Section 5.3.
31 (c) An Enterprise Zone may be de-certified by joint
32 action of the Department and the designating county or
33 municipality in accordance with this Section. The designating
34 county or municipality shall conduct at least one public
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1 hearing within the zone prior to its adoption of an ordinance
2 of de-designation. The mayor of the designating municipality
3 or the chairman of the county board of the designating county
4 shall execute a joint de-certification agreement with the
5 Department. A de-certification of an Enterprise Zone shall
6 not become effective until at least 6 months after the
7 execution of the de-certification agreement, which shall be
8 filed in the office of the Secretary of State.
9 (d) An Enterprise Zone may be decertified for cause by
10 the Department in accordance with this Section. Prior to
11 decertification: (1) the Department shall notify the chief
12 elected official of the designating county or municipality in
13 writing of the specific deficiencies which provide cause for
14 decertification; (2) the Department shall place the
15 designating county or municipality on probationary status for
16 at least 6 months during which time corrective action may be
17 achieved in the enterprise zone by the designating county or
18 municipality; and, (3) the Department shall conduct at least
19 one public hearing within the zone. If such corrective action
20 is not achieved during the probationary period, the
21 Department shall issue an amended certificate signed by the
22 Director of the Department decertifying the enterprise zone,
23 which certificate shall be filed in the office of the
24 Secretary of State. A certified copy of the amended
25 enterprise zone certificate, or a duplicate original thereof,
26 shall be recorded in the office of recorder of the county in
27 which the enterprise zone lies, and shall be provided to the
28 chief elected official of the designating county or
29 municipality. Decertification of an Enterprise Zone shall not
30 become effective until 60 days after the date of filing.
31 (e) In the event of a de-certification, or an amendment
32 reducing the length of the term or the area of an Enterprise
33 Zone or the adoption of an ordinance reducing or eliminating
34 tax benefits in an Enterprise Zone, all benefits previously
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1 extended within the Zone pursuant to this Act or pursuant to
2 any other Illinois law providing benefits specifically to or
3 within Enterprise Zones shall remain in effect for the
4 original stated term of the Enterprise Zone, with respect to
5 business enterprises within the Zone on the effective date of
6 such de-certification or amendment, and with respect to
7 individuals participating in urban homestead programs under
8 this Act.
9 (f) Except as otherwise provided in Section 5.4.1, with
10 respect to business enterprises (or expansions thereof) which
11 are proposed or under development within a Zone at the time
12 of a de-certification or an amendment reducing the length of
13 the term of the Zone, or excluding from the Zone area the
14 site of the proposed enterprise, or an ordinance reducing or
15 eliminating tax benefits in a Zone, such business enterprise
16 shall be entitled to the benefits previously applicable
17 within the Zone for the original stated term of the Zone, if
18 the business enterprise establishes:
19 (i) that the proposed business enterprise or expansion
20 has been committed to be located within the Zone;
21 (ii) that substantial and binding financial obligations
22 have been made towards the development of such enterprise;
23 and
24 (iii) that such commitments have been made in reasonable
25 reliance on the benefits and programs which were to have been
26 applicable to the enterprise by reason of the Zone, including
27 in the case of a reduction in term of a zone, the original
28 length of the term.
29 In declaratory judgment actions under this paragraph, the
30 Department and the designating municipality or county shall
31 be necessary parties defendant.
32 (Source: P.A. 86-820.)
33 (20 ILCS 655/5.4.1 new)
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1 Sec. 5.4.1. Adoption of Tax Increment Financing.
2 (a) If (i) a redevelopment project area is, will be, or
3 has been created by a municipality under Division 74.4 of
4 the Illinois Municipal Code, (ii) the redevelopment project
5 area contains property that is located in an enterprise zone,
6 (iii) the municipality adopts an amendment to the enterprise
7 zone designating ordinance pursuant to Section 5.4 of this
8 Act specifically concerning the abatement of taxes on
9 property located within a redevelopment project area created
10 pursuant to Division 74.4 of the Illinois Municipal Code, and
11 (iv) the Department certifies the ordinance amendment, then
12 the property that is located in both the enterprise zone and
13 the redevelopment project area shall not be eligible for the
14 abatement of taxes under Section 18-170 of the Property Tax
15 Code.
16 No business enterprise or expansion or individual,
17 however, that has constructed a new improvement or renovated
18 or rehabilitated an existing improvement and has received an
19 abatement on the improvement under Section 18-170 of the
20 Property Tax Code shall be denied any benefit previously
21 extended within the zone pursuant to this Act or pursuant to
22 any other Illinois law providing benefits specifically to or
23 within enterprise zones. Moreover, if the business enterprise
24 or individual presents evidence to the municipality within 30
25 days after the adoption by the municipality of an amendment
26 to the designating ordinance the sufficiency of which shall
27 be determined by findings of the corporate authorities made
28 within 30 days of the receipt of such evidence by the
29 municipality, that before the date of the notice of the
30 public hearing provided by the municipality regarding the
31 amendment to the designating ordinance (i) the business
32 enterprise or expansion or individual was committed to
33 locate within the enterprise zone, (ii) substantial and
34 binding financial obligations were made towards the
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1 development of the enterprise, and (iii) those commitments
2 were made in reasonable reliance on the benefits and programs
3 that were applicable to the enterprise or individual by
4 reason of the enterprise zone, then the enterprise or
5 expansion or individual shall not be denied any benefit
6 previously extended within the zone pursuant to this Act or
7 pursuant to any other Illinois law providing benefits
8 specifically to or within enterprise zones.
9 (b) This Section applies to all property located within
10 both a redevelopment project area adopted under Division
11 74.4 of the Illinois Municipal Code and an enterprise zone
12 even if the redevelopment project area or the enterprise
13 zone was adopted before the effective date of this
14 amendatory Act of 1997.
15 (c) After July 1, 1997, if (i) a redevelopment project
16 area is created by a municipality under Division 74.4 of the
17 Illinois Municipal Code and (ii) the redevelopment project
18 area contains property that is located in an enterprise zone,
19 the municipality must adopt an amendment to the certified
20 enterprise zone designating ordinance under Section 5.4 that
21 property that is located in both the enterprise zone and the
22 redevelopment project area shall not be eligible for any
23 abatement of taxes under Section 18-170 of the Property Tax
24 Code for new improvements or the renovation or rehabilitation
25 of existing improvements.
26 (d) In declaratory judgment actions under this Section,
27 the Department and the designating municipality shall be
28 necessary parties defendant.
29 Section 10. The Property Tax Code is amended by changing
30 Section 18-170 as follows:
31 (35 ILCS 200/18-170)
32 Sec. 18-170. Enterprise zone abatement. In addition to
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1 the authority to abate taxes under Section 18-165, any taxing
2 district, upon a majority vote of its governing authority,
3 may order the county clerk to abate any portion of its taxes
4 on property, or any class thereof, located within an
5 Enterprise Zone created under the Illinois Enterprise Zone
6 Act, and upon which either new improvements have been
7 constructed or existing improvements have been renovated or
8 rehabilitated after December 7, 1982. However, any abatement
9 of taxes on any parcel shall not exceed the amount
10 attributable to the construction of the improvements and the
11 renovation or rehabilitation of existing improvements on the
12 parcel. In the case of property within a redevelopment area
13 created under the Tax Increment Allocation Redevelopment Act,
14 the abatement shall not apply unless a business enterprise or
15 individual with regard to new improvements or renovated or
16 rehabilitated improvements has met the requirements of
17 Section 5.4.1 of the Illinois Enterprise Zone Act exceed the
18 amount of taxes allocable to the taxing district. If an
19 abatement is discontinued under this Section, a municipality
20 shall notify the county clerk and the board of review or
21 board of appeals of the change in writing not later than July
22 1 of the assessment year to be first affected by the change.
23 However, within a county economic development project area
24 created under the County Economic Development Project Area
25 Property Tax Allocation Act, any municipality or county which
26 has adopted tax increment allocation financing under the Tax
27 Increment Allocation Redevelopment Act or the County Economic
28 Development Project Area Tax Increment Allocation Act may
29 abate any portion of its taxes as provided in this Section.
30 Any other taxing district within the county economic
31 development project area may order any portion or all of its
32 taxes abated as provided above if the county or municipality
33 which created the tax increment district has agreed, in
34 writing, to the abatement.
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1 A copy of an abatement order adopted under this Section
2 shall be delivered to the county clerk and to the board of
3 review or board of appeals not later than July 1 of the
4 assessment year to be first affected by the order. If it is
5 delivered on or after that date, it will first affect the
6 taxes extended on the assessment of the following year. The
7 board of review or board of appeals shall, each time the
8 assessment books are delivered to the county clerk, also
9 deliver a list of parcels affected by an abatement and the
10 assessed value attributable to new improvements or to the
11 renovation or rehabilitation of existing improvements.
12 (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
13 8-14-96.)
14 Section 15. The Illinois Municipal Code is amended by
15 changing Sections 11-74.4-4, 11-74.4-8, 11-74.4-8a, and
16 11-74.6-15 and adding Section 11-74.4-8c as follows:
17 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
18 Sec. 11-74.4-4. Municipal powers and duties;
19 redevelopment project areas. A municipality may:
20 (a) By ordinance introduced in the governing body of the
21 municipality within 14 to 90 days from the completion of the
22 hearing specified in Section 11-74.4-5 approve redevelopment
23 plans and redevelopment projects, and designate redevelopment
24 project areas pursuant to notice and hearing required by this
25 Act. No redevelopment project area shall be designated
26 unless a plan and project are approved prior to the
27 designation of such area and such area shall include only
28 those contiguous parcels of real property and improvements
29 thereon substantially benefited by the proposed redevelopment
30 project improvements.
31 (b) Make and enter into all contracts necessary or
32 incidental to the implementation and furtherance of its
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1 redevelopment plan and project.
2 (c) Within a redevelopment project area, acquire by
3 purchase, donation, lease or eminent domain; own, convey,
4 lease, mortgage or dispose of land and other property, real
5 or personal, or rights or interests therein, and grant or
6 acquire licenses, easements and options with respect thereto,
7 all in the manner and at such price the municipality
8 determines is reasonably necessary to achieve the objectives
9 of the redevelopment plan and project. No conveyance, lease,
10 mortgage, disposition of land or other property, or agreement
11 relating to the development of the property shall be made
12 except upon the adoption of an ordinance by the corporate
13 authorities of the municipality. Furthermore, no conveyance,
14 lease, mortgage, or other disposition of land or agreement
15 relating to the development of property shall be made without
16 making public disclosure of the terms of the disposition and
17 all bids and proposals made in response to the municipality's
18 request. The procedures for obtaining such bids and
19 proposals shall provide reasonable opportunity for any person
20 to submit alternative proposals or bids.
21 (d) Within a redevelopment project area, clear any area
22 by demolition or removal of any existing buildings and
23 structures.
24 (e) Within a redevelopment project area, renovate or
25 rehabilitate or construct any structure or building.
26 (f) Install, repair, construct, reconstruct or relocate
27 streets, utilities and site improvements essential to the
28 preparation of the redevelopment area for use in accordance
29 with a redevelopment plan.
30 (g) Within a redevelopment project area, fix, charge and
31 collect fees, rents and charges for the use of any building
32 or property owned or leased by it or any part thereof, or
33 facility therein.
34 (h) Accept grants, guarantees and donations of property,
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1 labor, or other things of value from a public or private
2 source for use within a project redevelopment area.
3 (i) Acquire and construct public facilities within a
4 redevelopment project area.
5 (j) Incur project redevelopment costs.
6 (k) Create a commission of not less than 5 or more than
7 15 persons to be appointed by the mayor or president of the
8 municipality with the consent of the majority of the
9 governing board of the municipality. Members of a commission
10 appointed after the effective date of this amendatory Act of
11 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
12 years, respectively, in such numbers as to provide that the
13 terms of not more than 1/3 of all such members shall expire
14 in any one year. Their successors shall be appointed for a
15 term of 5 years. The commission, subject to approval of the
16 corporate authorities may exercise the powers enumerated in
17 this Section. The commission shall also have the power to
18 hold the public hearings required by this division and make
19 recommendations to the corporate authorities concerning the
20 adoption of redevelopment plans, redevelopment projects and
21 designation of redevelopment project areas.
22 (l) Make payment in lieu of taxes or a portion thereof
23 to taxing districts. If payments in lieu of taxes or a
24 portion thereof are made to taxing districts, those payments
25 shall be made to all districts within a project redevelopment
26 area on a basis which is proportional to the current
27 collections of revenue which each taxing district receives
28 from real property in the redevelopment project area.
29 (m) Exercise any and all other powers necessary to
30 effectuate the purposes of this Act.
31 (n) If any member of the corporate authority, a member
32 of a commission established pursuant to Section 11-74.4-4(k)
33 of this Act, or an employee or consultant of the municipality
34 involved in the planning and preparation of a redevelopment
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1 plan, or project for a redevelopment project area or proposed
2 redevelopment project area, as defined in Sections
3 11-74.4-3(i) through (k) of this Act, owns or controls an
4 interest, direct or indirect, in any property included in any
5 redevelopment area, or proposed redevelopment area, he or she
6 shall disclose the same in writing to the clerk of the
7 municipality, and shall also so disclose the dates and terms
8 and conditions of any disposition of any such interest, which
9 disclosures shall be acknowledged by the corporate
10 authorities and entered upon the minute books of the
11 corporate authorities. If an individual holds such an
12 interest then that individual shall refrain from any further
13 official involvement in regard to such redevelopment plan,
14 project or area, from voting on any matter pertaining to such
15 redevelopment plan, project or area, or communicating with
16 other members concerning corporate authorities, commission or
17 employees concerning any matter pertaining to said
18 redevelopment plan, project or area. Furthermore, no such
19 member or employee shall acquire of any interest direct, or
20 indirect, in any property in a redevelopment area or proposed
21 redevelopment area after either (a) such individual obtains
22 knowledge of such plan, project or area or (b) first public
23 notice of such plan, project or area pursuant to Section
24 11-74.4-6 of this Division, whichever occurs first.
25 (o) Create a Tax Increment Economic Development Advisory
26 Committee to be appointed by the Mayor or President of the
27 municipality with the consent of the majority of the
28 governing board of the municipality, the members of which
29 Committee shall be appointed for initial terms of 1, 2, 3, 4
30 and 5 years respectively, in such numbers as to provide that
31 the terms of not more than 1/3 of all such members shall
32 expire in any one year. Their successors shall be appointed
33 for a term of 5 years. The Committee shall have none of the
34 powers enumerated in this Section. The Committee shall serve
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1 in an advisory capacity only. The Committee may advise the
2 governing Board of the municipality and other municipal
3 officials regarding development issues and opportunities
4 within the redevelopment project area or the area within the
5 State Sales Tax Boundary. The Committee may also promote and
6 publicize development opportunities in the redevelopment
7 project area or the area within the State Sales Tax Boundary.
8 (p) Municipalities may jointly undertake and perform
9 redevelopment plans and projects and utilize the provisions
10 of the Act wherever they have contiguous redevelopment
11 project areas or they determine to adopt tax increment
12 financing with respect to a redevelopment project area which
13 includes contiguous real property within the boundaries of
14 the municipalities, and in doing so, they may, by agreement
15 between municipalities, issue obligations, separately or
16 jointly, and expend revenues received under the Act for
17 eligible expenses anywhere within contiguous redevelopment
18 project areas or as otherwise permitted in the Act.
19 (q) Utilize revenues, other than State sales tax
20 increment revenues, received under this Act from one
21 redevelopment project area for eligible costs in another
22 redevelopment project area that is either contiguous to, or
23 is separated only by a public right of way from, the
24 redevelopment project area from which the revenues are
25 received. Utilize tax increment revenues for eligible costs
26 that are received from a redevelopment project area created
27 under the Industrial Jobs Recovery Law that is either
28 contiguous to, or is separated only by a public right of way
29 from, the redevelopment project area created under this Act
30 which initially receives these revenues. Utilize revenues,
31 other than State sales tax increment revenues, by
32 transferring or loaning such revenues to a redevelopment
33 project area created under the Industrial Jobs Recovery Law
34 that is either contiguous to, or separated only by a public
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1 right of way from the redevelopment project area that
2 initially produced and received those revenues.
3 (r) If no redevelopment project has been initiated in a
4 redevelopment project area within 7 years after the area was
5 designated by ordinance under subsection (a), the
6 municipality shall adopt an ordinance repealing the area's
7 designation as a redevelopment project area; provided,
8 however, that if an area received its designation more than 3
9 years before the effective date of this amendatory Act of
10 1994 and no redevelopment project has been initiated within 4
11 years after the effective date of this amendatory Act of
12 1994, the municipality shall adopt an ordinance repealing its
13 designation as a redevelopment project area. Initiation of a
14 redevelopment project shall be evidenced by either a signed
15 redevelopment agreement or expenditures on eligible
16 redevelopment project costs associated with a redevelopment
17 project.
18 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
19 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
20 Sec. 11-74.4-8. A municipality may not adopt tax
21 increment financing in a redevelopment project area after the
22 effective date of this amendatory Act of 1997 that will
23 encompass an area that is currently included in an enterprise
24 zone created under the Illinois Enterprise Zone Act unless
25 that municipality, pursuant to Section 5.4 of the Illinois
26 Enterprise Zone Act, amends the enterprise zone designating
27 ordinance to limit the eligibility for tax abatements as
28 provided in Section 5.4.1 of the Illinois Enterprise Zone
29 Act. A municipality, at the time a redevelopment project
30 area is designated, may adopt tax increment allocation
31 financing by passing an ordinance providing that the ad
32 valorem taxes, if any, arising from the levies upon taxable
33 real property in such redevelopment project area by taxing
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1 districts and tax rates determined in the manner provided in
2 paragraph (c) of Section 11-74.4-9 each year after the
3 effective date of the ordinance until redevelopment project
4 costs and all municipal obligations financing redevelopment
5 project costs incurred under this Division have been paid
6 shall be divided as follows:
7 (a) That portion of taxes levied upon each taxable lot,
8 block, tract or parcel of real property which is attributable
9 to the lower of the current equalized assessed value or the
10 initial equalized assessed value of each such taxable lot,
11 block, tract or parcel of real property in the redevelopment
12 project area shall be allocated to and when collected shall
13 be paid by the county collector to the respective affected
14 taxing districts in the manner required by law in the absence
15 of the adoption of tax increment allocation financing.
16 (b) That portion, if any, of such taxes which is
17 attributable to the increase in the current equalized
18 assessed valuation of each taxable lot, block, tract or
19 parcel of real property in the redevelopment project area
20 over and above the initial equalized assessed value of each
21 property in the project area shall be allocated to and when
22 collected shall be paid to the municipal treasurer who shall
23 deposit said taxes into a special fund called the special tax
24 allocation fund of the municipality for the purpose of paying
25 redevelopment project costs and obligations incurred in the
26 payment thereof. In any county with a population of 3,000,000
27 or more that has adopted a procedure for collecting taxes
28 that provides for one or more of the installments of the
29 taxes to be billed and collected on an estimated basis, the
30 municipal treasurer shall be paid for deposit in the special
31 tax allocation fund of the municipality, from the taxes
32 collected from estimated bills issued for property in the
33 redevelopment project area, the difference between the amount
34 actually collected from each taxable lot, block, tract, or
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1 parcel of real property within the redevelopment project area
2 and an amount determined by multiplying the rate at which
3 taxes were last extended against the taxable lot, block,
4 track, or parcel of real property in the manner provided in
5 subsection (c) of Section 11-74.4-9 by the initial equalized
6 assessed value of the property divided by the number of
7 installments in which real estate taxes are billed and
8 collected within the county, provided each of the following
9 conditions are met:
10 (1) The total equalized assessed value of the
11 redevelopment project area as last determined was not
12 less than 175% of the total initial equalized assessed
13 value.
14 (2) Not more than 50% of the total equalized
15 assessed value of the redevelopment project area as last
16 determined is attributable to a piece of property
17 assigned a single real estate index number.
18 (3) The municipal clerk has certified to the county
19 clerk that the municipality has issued its obligations to
20 which there has been pledged the incremental property
21 taxes of the redevelopment project area or taxes levied
22 and collected on any or all property in the municipality
23 or the full faith and credit of the municipality to pay
24 or secure payment for all or a portion of the
25 redevelopment project costs. The certification shall be
26 filed annually no later than September 1 for the
27 estimated taxes to be distributed in the following year;
28 however, for the year 1992 the certification shall be
29 made at any time on or before March 31, 1992.
30 (4) The municipality has not requested that the
31 total initial equalized assessed value of real property
32 be adjusted as provided in subsection (b) of Section
33 11-74.4-9.
34 It is the intent of this Division that after the
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1 effective date of this amendatory Act of 1988 a
2 municipality's own ad valorem tax arising from levies on
3 taxable real property be included in the determination of
4 incremental revenue in the manner provided in paragraph (c)
5 of Section 11-74.4-9. If the municipality does not extend
6 such a tax, it shall annually deposit in the municipality's
7 Special Tax Increment Fund an amount equal to 10% of the
8 total contributions to the fund from all other taxing
9 districts in that year. The annual 10% deposit required by
10 this paragraph shall be limited to the actual amount of
11 municipally produced incremental tax revenues available to
12 the municipality from taxpayers located in the redevelopment
13 project area in that year if: (a) the plan for the area
14 restricts the use of the property primarily to industrial
15 purposes, (b) the municipality establishing the redevelopment
16 project area is a home-rule community with a 1990 population
17 of between 25,000 and 50,000, (c) the municipality is wholly
18 located within a county with a 1990 population of over
19 750,000 and (d) the redevelopment project area was
20 established by the municipality prior to June 1, 1990. This
21 payment shall be in lieu of a contribution of ad valorem
22 taxes on real property. If no such payment is made, any
23 redevelopment project area of the municipality shall be
24 dissolved.
25 If a municipality has adopted tax increment allocation
26 financing by ordinance and the County Clerk thereafter
27 certifies the "total initial equalized assessed value as
28 adjusted" of the taxable real property within such
29 redevelopment project area in the manner provided in
30 paragraph (b) of Section 11-74.4-9, each year after the date
31 of the certification of the total initial equalized assessed
32 value as adjusted until redevelopment project costs and all
33 municipal obligations financing redevelopment project costs
34 have been paid the ad valorem taxes, if any, arising from the
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1 levies upon the taxable real property in such redevelopment
2 project area by taxing districts and tax rates determined in
3 the manner provided in paragraph (c) of Section 11-74.4-9
4 shall be divided as follows:
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 assessed
9 value as adjusted" or the initial equalized assessed
10 value of each such taxable lot, block, tract, or parcel
11 of real property existing at the time tax increment
12 financing was adopted, minus the total current homestead
13 exemptions provided by Sections 15-170 and 15-175 of the
14 Property Tax Code in the redevelopment project area shall
15 be allocated to and when collected shall be paid by the
16 county collector to the respective affected taxing
17 districts in the manner required by law in the absence of
18 the adoption of tax increment allocation financing.
19 (2) That portion, if any, of such taxes which is
20 attributable to the increase in the current equalized
21 assessed valuation of each taxable lot, block, tract, or
22 parcel of real property in the redevelopment project
23 area, over and above the initial equalized assessed value
24 of each property existing at the time tax increment
25 financing was adopted, minus the total current homestead
26 exemptions pertaining to each piece of property provided
27 by Sections 15-170 and 15-175 of the Property Tax Code in
28 the redevelopment project area, shall be allocated to and
29 when collected shall be paid to the municipal Treasurer,
30 who shall deposit said taxes into a special fund called
31 the special tax allocation fund of the municipality for
32 the purpose of paying redevelopment project costs and
33 obligations incurred in the payment thereof.
34 The municipality may pledge in the ordinance the funds in
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1 and to be deposited in the special tax allocation fund for
2 the payment of such costs and obligations. No part of the
3 current equalized assessed valuation of each property in the
4 redevelopment project area attributable to any increase above
5 the total initial equalized assessed value, or the total
6 initial equalized assessed value as adjusted, of such
7 properties shall be used in calculating the general State
8 school aid formula, provided for in Section 18-8 of the
9 School Code, until such time as all redevelopment project
10 costs have been paid as provided for in this Section.
11 Whenever a municipality issues bonds for the purpose of
12 financing redevelopment project costs, such municipality may
13 provide by ordinance for the appointment of a trustee, which
14 may be any trust company within the State, and for the
15 establishment of such funds or accounts to be maintained by
16 such trustee as the municipality shall deem necessary to
17 provide for the security and payment of the bonds. If such
18 municipality provides for the appointment of a trustee, such
19 trustee shall be considered the assignee of any payments
20 assigned by the municipality pursuant to such ordinance and
21 this Section. Any amounts paid to such trustee as assignee
22 shall be deposited in the funds or accounts established
23 pursuant to such trust agreement, and shall be held by such
24 trustee in trust for the benefit of the holders of the bonds,
25 and such holders shall have a lien on and a security interest
26 in such funds or accounts so long as the bonds remain
27 outstanding and unpaid. Upon retirement of the bonds, the
28 trustee shall pay over any excess amounts held to the
29 municipality for deposit in the special tax allocation fund.
30 When such redevelopment projects costs, including without
31 limitation all municipal obligations financing redevelopment
32 project costs incurred under this Division, have been paid,
33 all surplus funds then remaining in the special tax
34 allocation fund shall be distributed by being paid by the
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1 municipal treasurer to the Department of Revenue, the
2 municipality and the county collector; first to the
3 Department of Revenue and the municipality in direct
4 proportion to the tax incremental revenue received from the
5 State and the municipality, but not to exceed the total
6 incremental revenue received from the State or the
7 municipality less any annual surplus distribution of
8 incremental revenue previously made; with any remaining funds
9 to be paid to the County Collector who shall immediately
10 thereafter pay said funds to the taxing districts in the
11 redevelopment project area in the same manner and proportion
12 as the most recent distribution by the county collector to
13 the affected districts of real property taxes from real
14 property in the redevelopment project area.
15 Upon the payment of all redevelopment project costs,
16 retirement of obligations and the distribution of any excess
17 monies pursuant to this Section, the municipality shall adopt
18 an ordinance dissolving the special tax allocation fund for
19 the redevelopment project area and terminating the
20 designation of the redevelopment project area as a
21 redevelopment project area. If a municipality extends
22 estimated dates of completion of a redevelopment project and
23 retirement of obligations to finance a redevelopment project,
24 as allowed by this amendatory Act of 1993, that extension
25 shall not extend the property tax increment allocation
26 financing authorized by this Section. Thereafter the rates
27 of the taxing districts shall be extended and taxes levied,
28 collected and distributed in the manner applicable in the
29 absence of the adoption of tax increment allocation
30 financing.
31 Nothing in this Section shall be construed as relieving
32 property in such redevelopment project areas from being
33 assessed as provided in the Property Tax Code or as relieving
34 owners of such property from paying a uniform rate of taxes,
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1 as required by Section 4 of Article 9 of the Illinois
2 Constitution.
3 (Source: P.A. 87-813; 87-872; 87-1272; 88-670, eff. 12-2-94.)
4 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
5 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
6 which has adopted tax increment allocation financing prior to
7 January 1, 1987, may by ordinance (1) authorize the
8 Department of Revenue, subject to appropriation, to annually
9 certify and cause to be paid from the Illinois Tax Increment
10 Fund to such municipality for deposit in the municipality's
11 special tax allocation fund an amount equal to the Net State
12 Sales Tax Increment and (2) authorize the Department of
13 Revenue to annually notify the municipality of the amount of
14 the Municipal Sales Tax Increment which shall be deposited by
15 the municipality in the municipality's special tax allocation
16 fund. Provided that for purposes of this Section no
17 amendments adding additional area to the redevelopment
18 project area which has been certified as the State Sales Tax
19 Boundary shall be taken into account if such amendments are
20 adopted by the municipality after January 1, 1987. If an
21 amendment is adopted which decreases the area of a State
22 Sales Tax Boundary, the municipality shall update the list
23 required by subsection (3)(a) of this Section. The Retailers'
24 Occupation Tax liability, Use Tax liability, Service
25 Occupation Tax liability and Service Use Tax liability for
26 retailers and servicemen located within the disconnected area
27 shall be excluded from the base from which tax increments are
28 calculated and the revenue from any such retailer or
29 serviceman shall not be included in calculating incremental
30 revenue payable to the municipality. A municipality adopting
31 an ordinance under this subsection (1) of this Section for a
32 redevelopment project area which is certified as a State
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1 Sales Tax Boundary shall not be entitled to payments of State
2 taxes authorized under subsection (2) of this Section for the
3 same redevelopment project area. Nothing herein shall be
4 construed to prevent a municipality from receiving payment of
5 State taxes authorized under subsection (2) of this Section
6 for a separate redevelopment project area that does not
7 overlap in any way with the State Sales Tax Boundary
8 receiving payments of State taxes pursuant to subsection (1)
9 of this Section.
10 A certified copy of such ordinance shall be submitted by
11 the municipality to the Department of Commerce and Community
12 Affairs and the Department of Revenue not later than 30 days
13 after the effective date of the ordinance. Upon submission
14 of the ordinances, and the information required pursuant to
15 subsection 3 of this Section, the Department of Revenue shall
16 promptly determine the amount of such taxes paid under the
17 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
18 Act, the Service Occupation Tax Act, the Municipal Retailers'
19 Occupation Tax Act and the Municipal Service Occupation Tax
20 Act by retailers and servicemen on transactions at places
21 located in the redevelopment project area during the base
22 year, and shall certify all the foregoing "initial sales tax
23 amounts" to the municipality within 60 days of submission of
24 the list required of subsection (3)(a) of this Section.
25 If a retailer or serviceman with a place of business
26 located within a redevelopment project area also has one or
27 more other places of business within the municipality but
28 outside the redevelopment project area, the retailer or
29 serviceman shall, upon request of the Department of Revenue,
30 certify to the Department of Revenue the amount of taxes paid
31 pursuant to the Retailers' Occupation Tax Act, the Municipal
32 Retailers' Occupation Tax Act, the Service Occupation Tax Act
33 and the Municipal Service Occupation Tax Act at each place of
34 business which is located within the redevelopment project
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1 area in the manner and for the periods of time requested by
2 the Department of Revenue.
3 When the municipality determines that a portion of an
4 increase in the aggregate amount of taxes paid by retailers
5 and servicemen under the Retailers' Occupation Tax Act, Use
6 Tax Act, Service Use Tax Act, or the Service Occupation Tax
7 Act is the result of a retailer or serviceman initiating
8 retail or service operations in the redevelopment project
9 area by such retailer or serviceman with a resulting
10 termination of retail or service operations by such retailer
11 or serviceman at another location in Illinois in the standard
12 metropolitan statistical area of such municipality, the
13 Department of Revenue shall be notified that the retailers
14 occupation tax liability, use tax liability, service
15 occupation tax liability, or service use tax liability from
16 such retailer's or serviceman's terminated operation shall be
17 included in the base Initial Sales Tax Amounts from which the
18 State Sales Tax Increment is calculated for purposes of State
19 payments to the affected municipality; provided, however, for
20 purposes of this paragraph "termination" shall mean a closing
21 of a retail or service operation which is directly related to
22 the opening of the same retail or service operation in a
23 redevelopment project area which is included within a State
24 Sales Tax Boundary, but it shall not include retail or
25 service operations closed for reasons beyond the control of
26 the retailer or serviceman, as determined by the Department.
27 If the municipality makes the determination referred to in
28 the prior paragraph and notifies the Department and if the
29 relocation is from a location within the municipality, the
30 Department, at the request of the municipality, shall adjust
31 the certified aggregate amount of taxes that constitute the
32 Municipal Sales Tax Increment paid by retailers and
33 servicemen on transactions at places of business located
34 within the State Sales Tax Boundary during the base year
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1 using the same procedures as are employed to make the
2 adjustment referred to in the prior paragraph. The adjusted
3 Municipal Sales Tax Increment calculated by the Department
4 shall be sufficient to satisfy the requirements of subsection
5 (1) of this Section.
6 When a municipality which has adopted tax increment
7 allocation financing in 1986 determines that a portion of the
8 aggregate amount of taxes paid by retailers and servicemen
9 under the Retailers Occupation Tax Act, Use Tax Act, Service
10 Use Tax Act, or Service Occupation Tax Act, the Municipal
11 Retailers' Occupation Tax Act and the Municipal Service
12 Occupation Tax Act, includes revenue of a retailer or
13 serviceman which terminated retailer or service operations in
14 1986, prior to the adoption of tax increment allocation
15 financing, the Department of Revenue shall be notified by
16 such municipality that the retailers' occupation tax
17 liability, use tax liability, service occupation tax
18 liability or service use tax liability, from such retailer's
19 or serviceman's terminated operations shall be excluded from
20 the Initial Sales Tax Amounts for such taxes. The revenue
21 from any such retailer or serviceman which is excluded from
22 the base year under this paragraph, shall not be included in
23 calculating incremental revenues if such retailer or
24 serviceman reestablishes such business in the redevelopment
25 project area.
26 For State fiscal year 1992, the Department of Revenue
27 shall budget, and the Illinois General Assembly shall
28 appropriate from the Illinois Tax Increment Fund in the State
29 treasury, an amount not to exceed $18,000,000 to pay to each
30 eligible municipality the Net State Sales Tax Increment to
31 which such municipality is entitled.
32 Beginning on January 1, 1993, each municipality's
33 proportional share of the Illinois Tax Increment Fund shall
34 be determined by adding the annual Net State Sales Tax
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1 Increment and the annual Net Utility Tax Increment to
2 determine the Annual Total Increment. The ratio of the Annual
3 Total Increment of each municipality to the Annual Total
4 Increment for all municipalities, as most recently calculated
5 by the Department, shall determine the proportional shares of
6 the Illinois Tax Increment Fund to be distributed to each
7 municipality.
8 Beginning in October, 1993, and each January, April, July
9 and October thereafter, the Department of Revenue shall
10 certify to the Treasurer and the Comptroller the amounts
11 payable quarter annually during the fiscal year to each
12 municipality under this Section. The Comptroller shall
13 promptly then draw warrants, ordering the State Treasurer to
14 pay such amounts from the Illinois Tax Increment Fund in the
15 State treasury.
16 The Department of Revenue shall utilize the same periods
17 established for determining State Sales Tax Increment to
18 determine the Municipal Sales Tax Increment for the area
19 within a State Sales Tax Boundary and certify such amounts to
20 such municipal treasurer who shall transfer such amounts to
21 the special tax allocation fund.
22 The provisions of this subsection (1) do not apply to
23 additional municipal retailers' occupation or service
24 occupation taxes imposed by municipalities using their home
25 rule powers or imposed pursuant to Sections 8-11-1.3,
26 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
27 receive from the State any share of the Illinois Tax
28 Increment Fund unless such municipality deposits all its
29 Municipal Sales Tax Increment and the local incremental real
30 property tax revenues, as provided herein, into the
31 appropriate special tax allocation fund. A municipality
32 located within an economic development project area created
33 under the County Economic Development Project Area Property
34 Tax Allocation Act which has abated any portion of its
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1 property taxes which otherwise would have been deposited in
2 its special tax allocation fund shall not receive from the
3 State the Net Sales Tax Increment.
4 (2) A municipality which has adopted tax increment
5 allocation financing with regard to an industrial park or
6 industrial park conservation area, prior to January 1, 1988,
7 may by ordinance authorize the Department of Revenue to
8 annually certify and pay from the Illinois Tax Increment Fund
9 to such municipality for deposit in the municipality's
10 special tax allocation fund an amount equal to the Net State
11 Utility Tax Increment. Provided that for purposes of this
12 Section no amendments adding additional area to the
13 redevelopment project area shall be taken into account if
14 such amendments are adopted by the municipality after January
15 1, 1988. Municipalities adopting an ordinance under this
16 subsection (2) of this Section for a redevelopment project
17 area shall not be entitled to payment of State taxes
18 authorized under subsection (1) of this Section for the same
19 redevelopment project area which is within a State Sales Tax
20 Boundary. Nothing herein shall be construed to prevent a
21 municipality from receiving payment of State taxes authorized
22 under subsection (1) of this Section for a separate
23 redevelopment project area within a State Sales Tax Boundary
24 that does not overlap in any way with the redevelopment
25 project area receiving payments of State taxes pursuant to
26 subsection (2) of this Section.
27 A certified copy of such ordinance shall be submitted to
28 the Department of Commerce and Community Affairs and the
29 Department of Revenue not later than 30 days after the
30 effective date of the ordinance.
31 When a municipality determines that a portion of an
32 increase in the aggregate amount of taxes paid by industrial
33 or commercial facilities under the Public Utilities Act, is
34 the result of an industrial or commercial facility initiating
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1 operations in the redevelopment project area with a resulting
2 termination of such operations by such industrial or
3 commercial facility at another location in Illinois, the
4 Department of Revenue shall be notified by such municipality
5 that such industrial or commercial facility's liability under
6 the Public Utility Tax Act shall be included in the base from
7 which tax increments are calculated for purposes of State
8 payments to the affected municipality.
9 After receipt of the calculations by the public utility
10 as required by subsection (4) of this Section, the Department
11 of Revenue shall annually budget and the Illinois General
12 Assembly shall annually appropriate from the General Revenue
13 Fund through State Fiscal Year 1989, and thereafter from the
14 Illinois Tax Increment Fund, an amount sufficient to pay to
15 each eligible municipality the amount of incremental revenue
16 attributable to State electric and gas taxes as reflected by
17 the charges imposed on persons in the project area to which
18 such municipality is entitled by comparing the preceding
19 calendar year with the base year as determined by this
20 Section. Beginning on January 1, 1993, each municipality's
21 proportional share of the Illinois Tax Increment Fund shall
22 be determined by adding the annual Net State Utility Tax
23 Increment and the annual Net Utility Tax Increment to
24 determine the Annual Total Increment. The ratio of the Annual
25 Total Increment of each municipality to the Annual Total
26 Increment for all municipalities, as most recently calculated
27 by the Department, shall determine the proportional shares of
28 the Illinois Tax Increment Fund to be distributed to each
29 municipality.
30 A municipality shall not receive any share of the
31 Illinois Tax Increment Fund from the State unless such
32 municipality imposes the maximum municipal charges authorized
33 pursuant to Section 9-221 of the Public Utilities Act and
34 deposits all municipal utility tax incremental revenues as
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1 certified by the public utilities, and all local real estate
2 tax increments into such municipality's special tax
3 allocation fund.
4 (3) Within 30 days after the adoption of the ordinance
5 required by either subsection (1) or subsection (2) of this
6 Section, the municipality shall transmit to the Department of
7 Commerce and Community Affairs and the Department of Revenue
8 the following:
9 (a) if applicable, a certified copy of the
10 ordinance required by subsection (1) accompanied by a
11 complete list of street names and the range of street
12 numbers of each street located within the redevelopment
13 project area for which payments are to be made under this
14 Section in both the base year and in the year preceding
15 the payment year; and the addresses of persons registered
16 with the Department of Revenue; and, the name under which
17 each such retailer or serviceman conducts business at
18 that address, if different from the corporate name; and
19 the Illinois Business Tax Number of each such person (The
20 municipality shall update this list in the event of a
21 revision of the redevelopment project area, or the
22 opening or closing or name change of any street or part
23 thereof in the redevelopment project area, or if the
24 Department of Revenue informs the municipality of an
25 addition or deletion pursuant to the monthly updates
26 given by the Department.);
27 (b) if applicable, a certified copy of the
28 ordinance required by subsection (2) accompanied by a
29 complete list of street names and range of street numbers
30 of each street located within the redevelopment project
31 area, the utility customers in the project area, and the
32 utilities serving the redevelopment project areas;
33 (c) certified copies of the ordinances approving
34 the redevelopment plan and designating the redevelopment
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1 project area;
2 (d) a copy of the redevelopment plan as approved by
3 the municipality;
4 (e) an opinion of legal counsel that the
5 municipality had complied with the requirements of this
6 Act; and
7 (f) a certification by the chief executive officer
8 of the municipality that with regard to a redevelopment
9 project area: (1) the municipality has committed all of
10 the municipal tax increment created pursuant to this Act
11 for deposit in the special tax allocation fund, (2) the
12 redevelopment projects described in the redevelopment
13 plan would not be completed without the use of State
14 incremental revenues pursuant to this Act, (3) the
15 municipality will pursue the implementation of the
16 redevelopment plan in an expeditious manner, (4) the
17 incremental revenues created pursuant to this Section
18 will be exclusively utilized for the development of the
19 redevelopment project area, and (5) the increased revenue
20 created pursuant to this Section shall be used
21 exclusively to pay redevelopment project costs as defined
22 in this Act.
23 (4) The Department of Revenue upon receipt of the
24 information set forth in paragraph (b) of subsection (3)
25 shall immediately forward such information to each public
26 utility furnishing natural gas or electricity to buildings
27 within the redevelopment project area. Upon receipt of such
28 information, each public utility shall promptly:
29 (a) provide to the Department of Revenue and the
30 municipality separate lists of the names and addresses of
31 persons within the redevelopment project area receiving
32 natural gas or electricity from such public utility.
33 Such list shall be updated as necessary by the public
34 utility. Each month thereafter the public utility shall
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1 furnish the Department of Revenue and the municipality
2 with an itemized listing of charges imposed pursuant to
3 Sections 9-221 and 9-222 of the Public Utilities Act on
4 persons within the redevelopment project area.
5 (b) determine the amount of charges imposed
6 pursuant to Sections 9-221 and 9-222 of the Public
7 Utilities Act on persons in the redevelopment project
8 area during the base year, both as a result of municipal
9 taxes on electricity and gas and as a result of State
10 taxes on electricity and gas and certify such amounts
11 both to the municipality and the Department of Revenue;
12 and
13 (c) determine the amount of charges imposed
14 pursuant to Sections 9-221 and 9-222 of the Public
15 Utilities Act on persons in the redevelopment project
16 area on a monthly basis during the base year, both as a
17 result of State and municipal taxes on electricity and
18 gas and certify such separate amounts both to the
19 municipality and the Department of Revenue.
20 After the determinations are made in paragraphs (b) and
21 (c), the public utility shall monthly during the existence of
22 the redevelopment project area notify the Department of
23 Revenue and the municipality of any increase in charges over
24 the base year determinations made pursuant to paragraphs (b)
25 and (c).
26 (5) The payments authorized under this Section shall be
27 deposited by the municipal treasurer in the special tax
28 allocation fund of the municipality, which for accounting
29 purposes shall identify the sources of each payment as:
30 municipal receipts from the State retailers occupation,
31 service occupation, use and service use taxes; and municipal
32 public utility taxes charged to customers under the Public
33 Utilities Act and State public utility taxes charged to
34 customers under the Public Utilities Act.
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1 (6) Any municipality receiving payments authorized under
2 this Section for any redevelopment project area or area
3 within a State Sales Tax Boundary within the municipality
4 shall submit to the Department of Revenue and to the taxing
5 districts which are sent the notice required by Section 6 of
6 this Act annually within 180 days after the close of each
7 municipal fiscal year the following information for the
8 immediately preceding fiscal year:
9 (a) Any amendments to the redevelopment plan, the
10 redevelopment project area, or the State Sales Tax
11 Boundary.
12 (b) Audited financial statements of the special tax
13 allocation fund.
14 (c) Certification of the Chief Executive Officer of
15 the municipality that the municipality has complied with
16 all of the requirements of this Act during the preceding
17 fiscal year.
18 (d) An opinion of legal counsel that the
19 municipality is in compliance with this Act.
20 (e) An analysis of the special tax allocation fund
21 which sets forth:
22 (1) the balance in the special tax allocation
23 fund at the beginning of the fiscal year;
24 (2) all amounts deposited in the special tax
25 allocation fund by source;
26 (3) all expenditures from the special tax
27 allocation fund by category of permissible
28 redevelopment project cost; and
29 (4) the balance in the special tax allocation
30 fund at the end of the fiscal year including a
31 breakdown of that balance by source. Such ending
32 balance shall be designated as surplus if it is not
33 required for anticipated redevelopment project costs
34 or to pay debt service on bonds issued to finance
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1 redevelopment project costs, as set forth in Section
2 11-74.4-7 hereof.
3 (f) A description of all property purchased by the
4 municipality within the redevelopment project area
5 including
6 1. Street address
7 2. Approximate size or description of property
8 3. Purchase price
9 4. Seller of property.
10 (g) A statement setting forth all activities
11 undertaken in furtherance of the objectives of the
12 redevelopment plan, including:
13 1. Any project implemented in the preceding
14 fiscal year
15 2. A description of the redevelopment
16 activities undertaken
17 3. A description of any agreements entered
18 into by the municipality with regard to the
19 disposition or redevelopment of any property within
20 the redevelopment project area or the area within
21 the State Sales Tax Boundary.
22 (h) With regard to any obligations issued by the
23 municipality:
24 1. copies of bond ordinances or resolutions
25 2. copies of any official statements
26 3. an analysis prepared by financial advisor
27 or underwriter setting forth: (a) nature and term of
28 obligation; and (b) projected debt service including
29 required reserves and debt coverage.
30 (i) A certified audit report reviewing compliance
31 with this statute performed by an independent public
32 accountant certified and licensed by the authority of the
33 State of Illinois. The financial portion of the audit
34 must be conducted in accordance with Standards for Audits
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1 of Governmental Organizations, Programs, Activities, and
2 Functions adopted by the Comptroller General of the
3 United States (1981), as amended. The audit report shall
4 contain a letter from the independent certified public
5 accountant indicating compliance or noncompliance with
6 the requirements of subsection (q) of Section 11-74.4-3.
7 If the audit indicates that expenditures are not in
8 compliance with the law, the Department of Revenue shall
9 withhold State sales and utility tax increment payments
10 to the municipality until compliance has been reached,
11 and an amount equal to the ineligible expenditures has
12 been returned to the Special Tax Allocation Fund.
13 (6.1) After July 29, 1988, any funds which have not been
14 designated for use in a specific development project in the
15 annual report shall be designated as surplus. No funds may be
16 held in the Special Tax Allocation Fund for more than 36
17 months from the date of receipt unless the money is required
18 for payment of contractual obligations for specific
19 development project costs. If held for more than 36 months in
20 violation of the preceding sentence, such funds shall be
21 designated as surplus. Any funds designated as surplus must
22 first be used for early redemption of any bond obligations.
23 Any funds designated as surplus which are not disposed of as
24 otherwise provided in this paragraph, shall be distributed as
25 surplus as provided in Section 11-74.4-7.
26 (7) Any appropriation made pursuant to this Section for
27 the 1987 State fiscal year shall not exceed the amount of $7
28 million and for the 1988 State fiscal year the amount of $10
29 million. The amount which shall be distributed to each
30 municipality shall be the incremental revenue to which each
31 municipality is entitled as calculated by the Department of
32 Revenue, unless the requests of the municipality exceed the
33 appropriation, then the amount to which each municipality
34 shall be entitled shall be prorated among the municipalities
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1 in the same proportion as the increment to which the
2 municipality would be entitled bears to the total increment
3 which all municipalities would receive in the absence of this
4 limitation, provided that no municipality may receive an
5 amount in excess of 15% of the appropriation. For the 1987
6 Net State Sales Tax Increment payable in Fiscal Year 1989, no
7 municipality shall receive more than 7.5% of the total
8 appropriation; provided, however, that any of the
9 appropriation remaining after such distribution shall be
10 prorated among municipalities on the basis of their pro rata
11 share of the total increment. Beginning on January 1, 1993,
12 each municipality's proportional share of the Illinois Tax
13 Increment Fund shall be determined by adding the annual Net
14 State Sales Tax Increment and the annual Net Utility Tax
15 Increment to determine the Annual Total Increment. The ratio
16 of the Annual Total Increment of each municipality to the
17 Annual Total Increment for all municipalities, as most
18 recently calculated by the Department, shall determine the
19 proportional shares of the Illinois Tax Increment Fund to be
20 distributed to each municipality.
21 (7.1) No distribution of Net State Sales Tax Increment
22 to a municipality for an area within a State Sales Tax
23 Boundary shall exceed in any State Fiscal Year an amount
24 equal to 3 times the sum of the Municipal Sales Tax
25 Increment, the real property tax increment and deposits of
26 funds from other sources, excluding state and federal funds,
27 as certified by the city treasurer to the Department of
28 Revenue for an area within a State Sales Tax Boundary. After
29 July 29, 1988, for those municipalities which issue bonds
30 between June 1, 1988 and 3 years from July 29, 1988 to
31 finance redevelopment projects within the area in a State
32 Sales Tax Boundary, the distribution of Net State Sales Tax
33 Increment during the 16th through 20th years from the date of
34 issuance of the bonds shall not exceed in any State Fiscal
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1 Year an amount equal to 2 times the sum of the Municipal
2 Sales Tax Increment, the real property tax increment and
3 deposits of funds from other sources, excluding State and
4 federal funds.
5 (8) Any person who knowingly files or causes to be filed
6 false information for the purpose of increasing the amount of
7 any State tax incremental revenue commits a Class A
8 misdemeanor.
9 (9) The following procedures shall be followed to
10 determine whether municipalities have complied with the Act
11 for the purpose of receiving distributions after July 1, 1989
12 pursuant to subsection (1) of this Section 11-74.4-8a.
13 (a) The Department of Revenue shall conduct a
14 preliminary review of the redevelopment project areas and
15 redevelopment plans pertaining to those municipalities
16 receiving payments from the State pursuant to subsection
17 (1) of Section 8a of this Act for the purpose of
18 determining compliance with the following standards:
19 (1) For any municipality with a population of
20 more than 12,000 as determined by the 1980 U.S.
21 Census: (a) the redevelopment project area, or in
22 the case of a municipality which has more than one
23 redevelopment project area, each such area, must be
24 contiguous and the total of all such areas shall not
25 comprise more than 25% of the area within the
26 municipal boundaries nor more than 20% of the
27 equalized assessed value of the municipality; (b)
28 the aggregate amount of 1985 taxes in the
29 redevelopment project area, or in the case of a
30 municipality which has more than one redevelopment
31 project area, the total of all such areas, shall be
32 not more than 25% of the total base year taxes paid
33 by retailers and servicemen on transactions at
34 places of business located within the municipality
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1 under the Retailers' Occupation Tax Act, the Use Tax
2 Act, the Service Use Tax Act, and the Service
3 Occupation Tax Act. Redevelopment project areas
4 created prior to 1986 are not subject to the above
5 standards if their boundaries were not amended in
6 1986.
7 (2) For any municipality with a population of
8 12,000 or less as determined by the 1980 U.S.
9 Census: (a) the redevelopment project area, or in
10 the case of a municipality which has more than one
11 redevelopment project area, each such area, must be
12 contiguous and the total of all such areas shall not
13 comprise more than 35% of the area within the
14 municipal boundaries nor more than 30% of the
15 equalized assessed value of the municipality; (b)
16 the aggregate amount of 1985 taxes in the
17 redevelopment project area, or in the case of a
18 municipality which has more than one redevelopment
19 project area, the total of all such areas, shall not
20 be more than 35% of the total base year taxes paid
21 by retailers and servicemen on transactions at
22 places of business located within the municipality
23 under the Retailers' Occupation Tax Act, the Use Tax
24 Act, the Service Use Tax Act, and the Service
25 Occupation Tax Act. Redevelopment project areas
26 created prior to 1986 are not subject to the above
27 standards if their boundaries were not amended in
28 1986.
29 (3) Such preliminary review of the
30 redevelopment project areas applying the above
31 standards shall be completed by November 1, 1988,
32 and on or before November 1, 1988, the Department
33 shall notify each municipality by certified mail,
34 return receipt requested that either (1) the
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1 Department requires additional time in which to
2 complete its preliminary review; or (2) the
3 Department is issuing either (a) a Certificate of
4 Eligibility or (b) a Notice of Review. If the
5 Department notifies a municipality that it requires
6 additional time to complete its preliminary
7 investigation, it shall complete its preliminary
8 investigation no later than February 1, 1989, and by
9 February 1, 1989 shall issue to each municipality
10 either (a) a Certificate of Eligibility or (b) a
11 Notice of Review. A redevelopment project area for
12 which a Certificate of Eligibility has been issued
13 shall be deemed a "State Sales Tax Boundary."
14 (4) The Department of Revenue shall also issue
15 a Notice of Review if the Department has received a
16 request by November 1, 1988 to conduct such a review
17 from taxpayers in the municipality, local taxing
18 districts located in the municipality or the State
19 of Illinois, or if the redevelopment project area
20 has more than 5 retailers and has had growth in
21 State sales tax revenue of more than 15% from
22 calendar year 1985 to 1986.
23 (b) For those municipalities receiving a Notice of
24 Review, the Department will conduct a secondary review
25 consisting of: (i) application of the above standards
26 contained in subsection (9)(a)(1)(a) and (b) or
27 (9)(a)(2)(a) and (b), and (ii) the definitions of
28 blighted and conservation area provided for in Section
29 11-74.4-3. Such secondary review shall be completed by
30 July 1, 1989.
31 Upon completion of the secondary review, the
32 Department will issue (a) a Certificate of Eligibility or
33 (b) a Preliminary Notice of Deficiency. Any municipality
34 receiving a Preliminary Notice of Deficiency may amend
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1 its redevelopment project area to meet the standards and
2 definitions set forth in this paragraph (b). This amended
3 redevelopment project area shall become the "State Sales
4 Tax Boundary" for purposes of determining the State Sales
5 Tax Increment.
6 (c) If the municipality advises the Department of
7 its intent to comply with the requirements of paragraph
8 (b) of this subsection outlined in the Preliminary Notice
9 of Deficiency, within 120 days of receiving such notice
10 from the Department, the municipality shall submit
11 documentation to the Department of the actions it has
12 taken to cure any deficiencies. Thereafter, within 30
13 days of the receipt of the documentation, the Department
14 shall either issue a Certificate of Eligibility or a
15 Final Notice of Deficiency. If the municipality fails to
16 advise the Department of its intent to comply or fails to
17 submit adequate documentation of such cure of
18 deficiencies the Department shall issue a Final Notice of
19 Deficiency that provides that the municipality is
20 ineligible for payment of the Net State Sales Tax
21 Increment.
22 (d) If the Department issues a final determination
23 of ineligibility, the municipality shall have 30 days
24 from the receipt of determination to protest and request
25 a hearing. Such hearing shall be conducted in accordance
26 with Sections 10-25, 10-35, 10-40, and 10-50 of the
27 Illinois Administrative Procedure Act. The decision
28 following the hearing shall be subject to review under
29 the Administrative Review Law.
30 (e) Any Certificate of Eligibility issued pursuant
31 to this subsection 9 shall be binding only on the State
32 for the purposes of establishing municipal eligibility to
33 receive revenue pursuant to subsection (1) of this
34 Section 11-74.4-8a.
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1 (f) It is the intent of this subsection that the
2 periods of time to cure deficiencies shall be in addition
3 to all other periods of time permitted by this Section,
4 regardless of the date by which plans were originally
5 required to be adopted. To cure said deficiencies,
6 however, the municipality shall be required to follow the
7 procedures and requirements pertaining to amendments, as
8 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
9 (10) If a municipality adopts a State Sales Tax Boundary
10 in accordance with the provisions of subsection (9) of this
11 Section, such boundaries shall subsequently be utilized to
12 determine Revised Initial Sales Tax Amounts and the Net State
13 Sales Tax Increment; provided, however, that such revised
14 State Sales Tax Boundary shall not have any effect upon the
15 boundary of the redevelopment project area established for
16 the purposes of determining the ad valorem taxes on real
17 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
18 Act nor upon the municipality's authority to implement the
19 redevelopment plan for that redevelopment project area. For
20 any redevelopment project area with a smaller State Sales Tax
21 Boundary within its area, the municipality may annually elect
22 to deposit the Municipal Sales Tax Increment for the
23 redevelopment project area in the special tax allocation fund
24 and shall certify the amount to the Department prior to
25 receipt of the Net State Sales Tax Increment. Any
26 municipality required by subsection (9) to establish a State
27 Sales Tax Boundary for one or more of its redevelopment
28 project areas shall submit all necessary information required
29 by the Department concerning such boundary and the retailers
30 therein, by October 1, 1989, after complying with the
31 procedures for amendment set forth in Sections 11-74.4-5 and
32 11-74.4-6 of this Act. Net State Sales Tax Increment
33 produced within the State Sales Tax Boundary shall be spent
34 only within that area. However expenditures of all municipal
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1 property tax increment and municipal sales tax increment in a
2 redevelopment project area are not required to be spent
3 within the smaller State Sales Tax Boundary within such
4 redevelopment project area.
5 (11) The Department of Revenue shall have the authority
6 to issue rules and regulations for purposes of this Section.
7 and regulations for purposes of this Section.
8 (12) If, under Section 5.4.1 of the Illinois Enterprise
9 Zone Act, a municipality determines that property that lies
10 within a State Sales Tax Boundary has an improvement,
11 rehabilitation, or renovation that is entitled to a property
12 tax abatement, then that property along with any
13 improvements, rehabilitation, or renovations shall be
14 immediately removed from any State Sales Tax Boundary. The
15 municipality that made the determination shall notify the
16 Department of Revenue within 30 days after the determination.
17 Once a property is removed from the State Sales Tax Boundary
18 because of the existence of a property tax abatement
19 resulting from an enterprise zone, then that property shall
20 not be permitted to be amended into a State Sales Tax
21 Boundary.
22 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
23 (65 ILCS 5/11-74.4-8c new)
24 Sec. 11-74.4-8c. Enterprise zone abatements. If a
25 redevelopment project area is or has been established under
26 Section 11-74.4-4 on or before the effective date of this
27 amendatory Act of 1997 and the redevelopment project area
28 contains property that is located within an enterprise zone
29 established under the Illinois Enterprise Zone Act, then the
30 property that is located in both the redevelopment project
31 area and the enterprise zone shall not be eligible for the
32 abatement of taxes under Section 18-170 of the Property Tax
33 Code if the requirements of Section 5.4.1 of the Illinois
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1 Enterprise Zone Act are satisfied. If an abatement is limited
2 under Section 5.4.1 of the Illinois Enterprise Zone Act, a
3 municipality shall notify the county clerk and the board of
4 review or board of appeals of the change in writing not later
5 than July 1 of the assessment year to be first affected by
6 the change.
7 (65 ILCS 5/11-74.6-15)
8 Sec. 11-74.6-15. Municipal Powers and Duties. A
9 municipality may:
10 (a) By ordinance introduced in the governing body of the
11 municipality within 14 to 90 days from the final adjournment
12 of the hearing specified in Section 11-74.6-22, approve
13 redevelopment plans and redevelopment projects, and designate
14 redevelopment planning areas and redevelopment project areas
15 pursuant to notice and hearing required by this Act. No
16 redevelopment planning area or redevelopment project area
17 shall be designated unless a plan and project are approved
18 before the designation of the area and the area shall include
19 only those parcels of real property and improvements on those
20 parcels substantially benefited by the proposed redevelopment
21 project improvements.
22 (b) Make and enter into all contracts necessary or
23 incidental to the implementation and furtherance of its
24 redevelopment plan and project.
25 (c) Within a redevelopment project area, acquire by
26 purchase, donation, lease or eminent domain; own, convey,
27 lease, mortgage or dispose of land and other property, real
28 or personal, or rights or interests therein, and grant or
29 acquire licenses, easements and options with respect to that
30 property, all in the manner and at a price that the
31 municipality determines is reasonably necessary to achieve
32 the objectives of the redevelopment plan and project. No
33 conveyance, lease, mortgage, disposition of land or other
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1 property, or agreement relating to the development of the
2 property shall be made or executed except pursuant to prior
3 official action of the corporate authorities of the
4 municipality. No conveyance, lease, mortgage, or other
5 disposition of land, and no agreement relating to the
6 development of property, shall be made without making public
7 disclosure of the terms and the disposition of all bids and
8 proposals submitted to the municipality in connection
9 therewith. The procedures for obtaining the bids and
10 proposals shall provide reasonable opportunity for any person
11 to submit alternative proposals or bids.
12 (d) Within a redevelopment project area, clear any area
13 by demolition or removal of any existing buildings,
14 structures, fixtures, utilities or improvements, and to clear
15 and grade land.
16 (e) Within a redevelopment project area, renovate or
17 rehabilitate or construct any structure or building.
18 (f) Within or without a redevelopment project area,
19 install, repair, construct, reconstruct or relocate streets,
20 utilities and site improvements essential to the preparation
21 of the redevelopment area for use in accordance with a
22 redevelopment plan.
23 (g) Within a redevelopment project area, fix, charge and
24 collect fees, rents and charges for the use of all or any
25 part of any building or property owned or leased by it.
26 (h) Issue obligations as provided in this Act.
27 (i) Accept grants, guarantees and donations of property,
28 labor, or other things of value from a public or private
29 source for use within a project redevelopment area.
30 (j) Acquire and construct public facilities within a
31 redevelopment project area.
32 (k) Incur, pay or cause to be paid redevelopment project
33 costs. Any payments to be made by the municipality to
34 redevelopers or other nongovernmental persons for
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1 redevelopment project costs incurred by such redeveloper or
2 other nongovernmental person shall be made only pursuant to
3 the prior official action of the municipality evidencing an
4 intent to pay or cause to be paid such redevelopment project
5 costs. A municipality is not required to obtain any right,
6 title or interest in any real or personal property in order
7 to pay redevelopment project costs associated with such
8 property. The municipality shall adopt such accounting
9 procedures as may be necessary to determine that such
10 redevelopment project costs are properly paid.
11 (l) Create a commission of not less than 5 or more than
12 15 persons to be appointed by the mayor or president of the
13 municipality with the consent of the majority of the
14 governing board of the municipality. Members of a commission
15 appointed after the effective date of this Law shall be
16 appointed for initial terms of 1, 2, 3, 4 and 5 years,
17 respectively, in numbers so that the terms of not more than
18 1/3 of all members expire in any one year. Their successors
19 shall be appointed for a term of 5 years. The commission,
20 subject to approval of the corporate authorities of the
21 municipality, may exercise the powers enumerated in this
22 Section. The commission shall also have the power to hold the
23 public hearings required by this Act and make recommendations
24 to the corporate authorities concerning the adoption of
25 redevelopment plans, redevelopment projects and designation
26 of redevelopment project areas.
27 (m) Make payment in lieu of all or a portion of real
28 property taxes due to taxing districts. If payments in lieu
29 of all or a portion of taxes are made to taxing districts,
30 those payments shall be made to all districts within a
31 redevelopment project area on a basis that is proportional to
32 the current collection of revenue which each taxing district
33 receives from real property in the redevelopment project
34 area.
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1 (n) Exercise any and all other powers necessary to
2 effectuate the purposes of this Act.
3 (o) In conjunction with other municipalities, undertake
4 and perform redevelopment plans and projects and utilize the
5 provisions of the Act wherever they have contiguous
6 redevelopment project areas or they determine to adopt tax
7 increment allocation financing with respect to a
8 redevelopment project area that includes contiguous real
9 property within the boundaries of the municipalities, and, by
10 agreement between participating municipalities, to issue
11 obligations, separately or jointly, and expend revenues
12 received under this Act for eligible expenses anywhere within
13 contiguous redevelopment project areas or as otherwise
14 permitted in the Act.
15 (p) Create an Industrial Jobs Recovery Advisory
16 Committee of not more than 15 members to be appointed by the
17 mayor or president of the municipality with the consent of
18 the majority of the governing board of the municipality. The
19 members of that Committee shall be appointed for initial
20 terms of 1, 2, and 3 years respectively, in numbers so that
21 the terms of not more than 1/3 of all members expire in any
22 one year. Their successors shall be appointed for a term of
23 3 years. The Committee shall have none of the powers
24 enumerated in this Section. The Committee shall serve in an
25 advisory capacity only. The Committee may advise the
26 governing board of the municipality and other municipal
27 officials regarding development issues and opportunities
28 within the redevelopment project area. The Committee may also
29 promote and publicize development opportunities in the
30 redevelopment project area.
31 (q) If a redevelopment project has not been initiated in
32 a redevelopment project area within 5 years after the area
33 was designated by ordinance under subsection (a), the
34 municipality shall adopt an ordinance repealing the area's
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1 designation as a redevelopment project area. Initiation of a
2 redevelopment project shall be evidenced by either a signed
3 redevelopment agreement or expenditures on eligible
4 redevelopment project costs associated with a redevelopment
5 project.
6 (r) Within a redevelopment planning area, transfer or
7 loan tax increment revenues from one redevelopment project
8 area to another redevelopment project area for expenditure on
9 eligible costs in the receiving area.
10 (s) Use tax increment revenue produced in a
11 redevelopment project area created under this Law by
12 transferring or loaning such revenues to a redevelopment
13 project area created under the Tax Increment Allocation
14 Redevelopment Act that is either contiguous to, or separated
15 only by a public right of way from, the redevelopment project
16 area that initially produced and received those revenues.
17 (Source: P.A. 88-537.)
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.21 as follows:
20 (30 ILCS 805/8.21 new)
21 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of 1997.
25 Section 95. Severability. The provisions of this Act
26 are severable under Section 1.31 of the Statute on Statutes.
27 Section 99. Effective date. This Act takes effect on
28 July 1, 1997.".