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90_HB2379
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
Amends the Tax Increment Allocation Act in the Illinois
Municipal Code. Provides that woodlands shall not be
included in blighted areas or conservation areas.
LRB9007549KDsb
LRB9007549KDsb
1 AN ACT to amend the Illinois Municipal Code by changing
2 Section 11-74.4-3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 changing Section 11-74.4-3 as follows:
7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
8 Sec. 11-74.4-3. Definitions. The following terms,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) "Blighted area" means any improved or vacant area
13 within the boundaries of a redevelopment project area located
14 within the territorial limits of the municipality where, if
15 improved, industrial, commercial and residential buildings or
16 improvements, because of a combination of 5 or more of the
17 following factors: age; dilapidation; obsolescence;
18 deterioration; illegal use of individual structures; presence
19 of structures below minimum code standards; excessive
20 vacancies; overcrowding of structures and community
21 facilities; lack of ventilation, light or sanitary
22 facilities; inadequate utilities; excessive land coverage;
23 deleterious land use or layout; depreciation of physical
24 maintenance; lack of community planning, is detrimental to
25 the public safety, health, morals or welfare, or if vacant,
26 the sound growth of the taxing districts is impaired by, (1)
27 a combination of 2 or more of the following factors: obsolete
28 platting of the vacant land; diversity of ownership of such
29 land; tax and special assessment delinquencies on such land;
30 flooding on all or part of such vacant land; deterioration of
31 structures or site improvements in neighboring areas adjacent
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1 to the vacant land, or (2) the area immediately prior to
2 becoming vacant qualified as a blighted improved area, or (3)
3 the area consists of an unused quarry or unused quarries, or
4 (4) the area consists of unused railyards, rail tracks or
5 railroad rights-of-way, or (5) the area, prior to its
6 designation, is subject to chronic flooding which adversely
7 impacts on real property in the area and such flooding is
8 substantially caused by one or more improvements in or in
9 proximity to the area which improvements have been in
10 existence for at least 5 years, or (6) the area consists of
11 an unused disposal site, containing earth, stone, building
12 debris or similar material, which were removed from
13 construction, demolition, excavation or dredge sites, or (7)
14 the area is not less than 50 nor more than 100 acres and 75%
15 of which is vacant, notwithstanding the fact that such area
16 has been used for commercial agricultural purposes within 5
17 years prior to the designation of the redevelopment project
18 area, and which area meets at least one of the factors
19 itemized in provision (1) of this subsection (a), and the
20 area has been designated as a town or village center by
21 ordinance or comprehensive plan adopted prior to January 1,
22 1982, and the area has not been developed for that designated
23 purpose. Notwithstanding any provision to the contrary, for
24 purposes of this Act, woodlands shall not be included in a
25 "blighted area".
26 (b) "Conservation area" means any improved area within
27 the boundaries of a redevelopment project area located within
28 the territorial limits of the municipality in which 50% or
29 more of the structures in the area have an age of 35 years or
30 more. Such an area is not yet a blighted area but because
31 of a combination of 3 or more of the following factors:
32 dilapidation; obsolescence; deterioration; illegal use of
33 individual structures; presence of structures below minimum
34 code standards; abandonment; excessive vacancies;
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1 overcrowding of structures and community facilities; lack of
2 ventilation, light or sanitary facilities; inadequate
3 utilities; excessive land coverage; deleterious land use or
4 layout; depreciation of physical maintenance; lack of
5 community planning, is detrimental to the public safety,
6 health, morals or welfare and such an area may become a
7 blighted area. Notwithstanding any provision to the contrary,
8 for purposes of this Act, woodlands shall not be included in
9 a "conservation area".
10 (c) "Industrial park" means an area in a blighted or
11 conservation area suitable for use by any manufacturing,
12 industrial, research or transportation enterprise, of
13 facilities to include but not be limited to factories, mills,
14 processing plants, assembly plants, packing plants,
15 fabricating plants, industrial distribution centers,
16 warehouses, repair overhaul or service facilities, freight
17 terminals, research facilities, test facilities or railroad
18 facilities.
19 (d) "Industrial park conservation area" means an area
20 within the boundaries of a redevelopment project area located
21 within the territorial limits of a municipality that is a
22 labor surplus municipality or within 1 1/2 miles of the
23 territorial limits of a municipality that is a labor surplus
24 municipality if the area is annexed to the municipality;
25 which area is zoned as industrial no later than at the time
26 the municipality by ordinance designates the redevelopment
27 project area, and which area includes both vacant land
28 suitable for use as an industrial park and a blighted area or
29 conservation area contiguous to such vacant land.
30 (e) "Labor surplus municipality" means a municipality in
31 which, at any time during the 6 months before the
32 municipality by ordinance designates an industrial park
33 conservation area, the unemployment rate was over 6% and was
34 also 100% or more of the national average unemployment rate
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1 for that same time as published in the United States
2 Department of Labor Bureau of Labor Statistics publication
3 entitled "The Employment Situation" or its successor
4 publication. For the purpose of this subsection, if
5 unemployment rate statistics for the municipality are not
6 available, the unemployment rate in the municipality shall be
7 deemed to be the same as the unemployment rate in the
8 principal county in which the municipality is located.
9 (f) "Municipality" shall mean a city, village or
10 incorporated town.
11 (g) "Initial Sales Tax Amounts" means the amount of
12 taxes paid under the Retailers' Occupation Tax Act, Use Tax
13 Act, Service Use Tax Act, the Service Occupation Tax Act, the
14 Municipal Retailers' Occupation Tax Act, and the Municipal
15 Service Occupation Tax Act by retailers and servicemen on
16 transactions at places located in a State Sales Tax Boundary
17 during the calendar year 1985.
18 (g-1) "Revised Initial Sales Tax Amounts" means the
19 amount of taxes paid under the Retailers' Occupation Tax Act,
20 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
21 Act, the Municipal Retailers' Occupation Tax Act, and the
22 Municipal Service Occupation Tax Act by retailers and
23 servicemen on transactions at places located within the State
24 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
25 of this Act.
26 (h) "Municipal Sales Tax Increment" means an amount
27 equal to the increase in the aggregate amount of taxes paid
28 to a municipality from the Local Government Tax Fund arising
29 from sales by retailers and servicemen within the
30 redevelopment project area or State Sales Tax Boundary, as
31 the case may be, for as long as the redevelopment project
32 area or State Sales Tax Boundary, as the case may be, exist
33 over and above the aggregate amount of taxes as certified by
34 the Illinois Department of Revenue and paid under the
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1 Municipal Retailers' Occupation Tax Act and the Municipal
2 Service Occupation Tax Act by retailers and servicemen, on
3 transactions at places of business located in the
4 redevelopment project area or State Sales Tax Boundary, as
5 the case may be, during the base year which shall be the
6 calendar year immediately prior to the year in which the
7 municipality adopted tax increment allocation financing. For
8 purposes of computing the aggregate amount of such taxes for
9 base years occurring prior to 1985, the Department of Revenue
10 shall determine the Initial Sales Tax Amounts for such taxes
11 and deduct therefrom an amount equal to 4% of the aggregate
12 amount of taxes per year for each year the base year is prior
13 to 1985, but not to exceed a total deduction of 12%. The
14 amount so determined shall be known as the "Adjusted Initial
15 Sales Tax Amounts". For purposes of determining the
16 Municipal Sales Tax Increment, the Department of Revenue
17 shall for each period subtract from the amount paid to the
18 municipality from the Local Government Tax Fund arising from
19 sales by retailers and servicemen on transactions located in
20 the redevelopment project area or the State Sales Tax
21 Boundary, as the case may be, the certified Initial Sales Tax
22 Amounts, the Adjusted Initial Sales Tax Amounts or the
23 Revised Initial Sales Tax Amounts for the Municipal
24 Retailers' Occupation Tax Act and the Municipal Service
25 Occupation Tax Act. For the State Fiscal Year 1989, this
26 calculation shall be made by utilizing the calendar year 1987
27 to determine the tax amounts received. For the State Fiscal
28 Year 1990, this calculation shall be made by utilizing the
29 period from January 1, 1988, until September 30, 1988, to
30 determine the tax amounts received from retailers and
31 servicemen pursuant to the Municipal Retailers' Occupation
32 Tax and the Municipal Service Occupation Tax Act, which shall
33 have deducted therefrom nine-twelfths of the certified
34 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
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1 Amounts or the Revised Initial Sales Tax Amounts as
2 appropriate. For the State Fiscal Year 1991, this calculation
3 shall be made by utilizing the period from October 1, 1988,
4 to June 30, 1989, to determine the tax amounts received from
5 retailers and servicemen pursuant to the Municipal Retailers'
6 Occupation Tax and the Municipal Service Occupation Tax Act
7 which shall have deducted therefrom nine-twelfths of the
8 certified Initial Sales Tax Amounts, Adjusted Initial Sales
9 Tax Amounts or the Revised Initial Sales Tax Amounts as
10 appropriate. For every State Fiscal Year thereafter, the
11 applicable period shall be the 12 months beginning July 1 and
12 ending June 30 to determine the tax amounts received which
13 shall have deducted therefrom the certified Initial Sales Tax
14 Amounts, the Adjusted Initial Sales Tax Amounts or the
15 Revised Initial Sales Tax Amounts, as the case may be.
16 (i) "Net State Sales Tax Increment" means the sum of the
17 following: (a) 80% of the first $100,000 of State Sales Tax
18 Increment annually generated within a State Sales Tax
19 Boundary; (b) 60% of the amount in excess of $100,000 but not
20 exceeding $500,000 of State Sales Tax Increment annually
21 generated within a State Sales Tax Boundary; and (c) 40% of
22 all amounts in excess of $500,000 of State Sales Tax
23 Increment annually generated within a State Sales Tax
24 Boundary. If, however, a municipality established a tax
25 increment financing district in a county with a population in
26 excess of 3,000,000 before January 1, 1986, and the
27 municipality entered into a contract or issued bonds after
28 January 1, 1986, but before December 31, 1986, to finance
29 redevelopment project costs within a State Sales Tax
30 Boundary, then the Net State Sales Tax Increment means, for
31 the fiscal years beginning July 1, 1990, and July 1, 1991,
32 100% of the State Sales Tax Increment annually generated
33 within a State Sales Tax Boundary; and notwithstanding any
34 other provision of this Act, for those fiscal years the
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1 Department of Revenue shall distribute to those
2 municipalities 100% of their Net State Sales Tax Increment
3 before any distribution to any other municipality and
4 regardless of whether or not those other municipalities will
5 receive 100% of their Net State Sales Tax Increment. For
6 Fiscal Year 1999, and every year thereafter until the year
7 2007, for any municipality that has not entered into a
8 contract or has not issued bonds prior to June 1, 1988 to
9 finance redevelopment project costs within a State Sales Tax
10 Boundary, the Net State Sales Tax Increment shall be
11 calculated as follows: By multiplying the Net State Sales Tax
12 Increment by 90% in the State Fiscal Year 1999; 80% in the
13 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
14 60% in the State Fiscal Year 2002; 50% in the State Fiscal
15 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
16 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
17 and 10% in the State Fiscal Year 2007. No payment shall be
18 made for State Fiscal Year 2008 and thereafter.
19 Municipalities that issued bonds in connection with a
20 redevelopment project in a redevelopment project area within
21 the State Sales Tax Boundary prior to July 29, 1991, shall
22 continue to receive their proportional share of the Illinois
23 Tax Increment Fund distribution until the date on which the
24 redevelopment project is completed or terminated, or the date
25 on which the bonds are retired, whichever date occurs first.
26 Refunding of any bonds issued prior to July 29, 1991, shall
27 not alter the Net State Sales Tax Increment.
28 (j) "State Utility Tax Increment Amount" means an amount
29 equal to the aggregate increase in State electric and gas tax
30 charges imposed on owners and tenants, other than residential
31 customers, of properties located within the redevelopment
32 project area under Section 9-222 of the Public Utilities Act,
33 over and above the aggregate of such charges as certified by
34 the Department of Revenue and paid by owners and tenants,
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1 other than residential customers, of properties within the
2 redevelopment project area during the base year, which shall
3 be the calendar year immediately prior to the year of the
4 adoption of the ordinance authorizing tax increment
5 allocation financing.
6 (k) "Net State Utility Tax Increment" means the sum of
7 the following: (a) 80% of the first $100,000 of State Utility
8 Tax Increment annually generated by a redevelopment project
9 area; (b) 60% of the amount in excess of $100,000 but not
10 exceeding $500,000 of the State Utility Tax Increment
11 annually generated by a redevelopment project area; and (c)
12 40% of all amounts in excess of $500,000 of State Utility Tax
13 Increment annually generated by a redevelopment project area.
14 For the State Fiscal Year 1999, and every year thereafter
15 until the year 2007, for any municipality that has not
16 entered into a contract or has not issued bonds prior to June
17 1, 1988 to finance redevelopment project costs within a
18 redevelopment project area, the Net State Utility Tax
19 Increment shall be calculated as follows: By multiplying the
20 Net State Utility Tax Increment by 90% in the State Fiscal
21 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
22 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
23 50% in the State Fiscal Year 2003; 40% in the State Fiscal
24 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
25 State Fiscal Year 2006; and 10% in the State Fiscal Year
26 2007. No payment shall be made for the State Fiscal Year 2008
27 and thereafter.
28 Municipalities that issue bonds in connection with the
29 redevelopment project during the period from June 1, 1988
30 until 3 years after the effective date of this Amendatory Act
31 of 1988 shall receive the Net State Utility Tax Increment,
32 subject to appropriation, for 15 State Fiscal Years after the
33 issuance of such bonds. For the 16th through the 20th State
34 Fiscal Years after issuance of the bonds, the Net State
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1 Utility Tax Increment shall be calculated as follows: By
2 multiplying the Net State Utility Tax Increment by 90% in
3 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
4 50% in year 20. Refunding of any bonds issued prior to June
5 1, 1988, shall not alter the revised Net State Utility Tax
6 Increment payments set forth above.
7 (l) "Obligations" mean bonds, loans, debentures, notes,
8 special certificates or other evidence of indebtedness issued
9 by the municipality to carry out a redevelopment project or
10 to refund outstanding obligations.
11 (m) "Payment in lieu of taxes" means those estimated tax
12 revenues from real property in a redevelopment project area
13 acquired by a municipality which according to the
14 redevelopment project or plan is to be used for a private use
15 which taxing districts would have received had a municipality
16 not adopted tax increment allocation financing and which
17 would result from levies made after the time of the adoption
18 of tax increment allocation financing to the time the current
19 equalized value of real property in the redevelopment project
20 area exceeds the total initial equalized value of real
21 property in said area.
22 (n) "Redevelopment plan" means the comprehensive program
23 of the municipality for development or redevelopment intended
24 by the payment of redevelopment project costs to reduce or
25 eliminate those conditions the existence of which qualified
26 the redevelopment project area as a "blighted area" or
27 "conservation area" or combination thereof or "industrial
28 park conservation area," and thereby to enhance the tax bases
29 of the taxing districts which extend into the redevelopment
30 project area. Each redevelopment plan shall set forth in
31 writing the program to be undertaken to accomplish the
32 objectives and shall include but not be limited to:
33 (A) estimated redevelopment project costs;
34 (B) evidence indicating that the redevelopment
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1 project area on the whole has not been subject to growth
2 and development through investment by private enterprise;
3 (C) an assessment of any financial impact of the
4 redevelopment project area on or any increased demand for
5 services from any taxing district affected by the plan
6 and any program to address such financial impact or
7 increased demand;
8 (D) the sources of funds to pay costs;
9 (E) the nature and term of the obligations to be
10 issued;
11 (F) the most recent equalized assessed valuation of
12 the redevelopment project area;
13 (G) an estimate as to the equalized assessed
14 valuation after redevelopment and the general land uses
15 to apply in the redevelopment project area;
16 (H) a commitment to fair employment practices and
17 an affirmative action plan;
18 (I) if it concerns an industrial park conservation
19 area, the plan shall also include a general description
20 of any proposed developer, user and tenant of any
21 property, a description of the type, structure and
22 general character of the facilities to be developed, a
23 description of the type, class and number of new
24 employees to be employed in the operation of the
25 facilities to be developed; and
26 (J) if property is to be annexed to the
27 municipality, the plan shall include the terms of the
28 annexation agreement.
29 The provisions of items (B) and (C) of this subsection
30 (n) shall not apply to a municipality that before March 14,
31 1994 (the effective date of Public Act 88-537) had fixed,
32 either by its corporate authorities or by a commission
33 designated under subsection (k) of Section 11-74.4-4, a time
34 and place for a public hearing as required by subsection (a)
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1 of Section 11-74.4-5. No redevelopment plan shall be adopted
2 unless a municipality complies with all of the following
3 requirements:
4 (1) The municipality finds that the redevelopment
5 project area on the whole has not been subject to growth
6 and development through investment by private enterprise
7 and would not reasonably be anticipated to be developed
8 without the adoption of the redevelopment plan.
9 (2) The municipality finds that the redevelopment
10 plan and project conform to the comprehensive plan for
11 the development of the municipality as a whole, or, for
12 municipalities with a population of 100,000 or more,
13 regardless of when the redevelopment plan and project was
14 adopted, the redevelopment plan and project either: (i)
15 conforms to the strategic economic development or
16 redevelopment plan issued by the designated planning
17 authority of the municipality, or (ii) includes land uses
18 that have been approved by the planning commission of the
19 municipality.
20 (3) The redevelopment plan establishes the
21 estimated dates of completion of the redevelopment
22 project and retirement of obligations issued to finance
23 redevelopment project costs. Those dates shall not be
24 more than 23 years from the adoption of the ordinance
25 approving the redevelopment project area if the ordinance
26 was adopted on or after January 15, 1981, and not more
27 than 35 years if the ordinance was adopted before January
28 15, 1981, or if the ordinance was adopted in April 1984
29 or July 1985, or if the ordinance was adopted in December
30 1987 and the redevelopment project is located within one
31 mile of Midway Airport, or if the municipality is subject
32 to the Local Government Financial Planning and
33 Supervision Act. However, for redevelopment project
34 areas for which bonds were issued before July 29, 1991,
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1 in connection with a redevelopment project in the area
2 within the State Sales Tax Boundary, the estimated dates
3 of completion of the redevelopment project and retirement
4 of obligations to finance redevelopment project costs may
5 be extended by municipal ordinance to December 31, 2013.
6 The extension allowed by this amendatory Act of 1993
7 shall not apply to real property tax increment allocation
8 financing under Section 11-74.4-8.
9 Those dates, for purposes of real property tax
10 increment allocation financing pursuant to Section
11 11-74.4-8 only, shall be not more than 35 years for
12 redevelopment project areas that were adopted on or after
13 December 16, 1986 and for which at least $8 million worth
14 of municipal bonds were authorized on or after December
15 19, 1989 but before January 1, 1990; provided that the
16 municipality elects to extend the life of the
17 redevelopment project area to 35 years by the adoption of
18 an ordinance after at least 14 but not more than 30 days'
19 written notice to the taxing bodies, that would otherwise
20 constitute the joint review board for the redevelopment
21 project area, before the adoption of the ordinance.
22 Those dates, for purposes of real property tax
23 increment allocation financing pursuant to Section
24 11-74.4-8 only, shall be not more than 35 years for
25 redevelopment project areas that were established on or
26 after December 1, 1981 but before January 1, 1982 and for
27 which at least $1,500,000 worth of tax increment revenue
28 bonds were authorized on or after September 30, 1990 but
29 before July 1, 1991; provided that the municipality
30 elects to extend the life of the redevelopment project
31 area to 35 years by the adoption of an ordinance after at
32 least 14 but not more than 30 days' written notice to the
33 taxing bodies, that would otherwise constitute the joint
34 review board for the redevelopment project area, before
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1 the adoption of the ordinance.
2 (4) The municipality finds, in the case of an
3 industrial park conservation area, also that the
4 municipality is a labor surplus municipality and that the
5 implementation of the redevelopment plan will reduce
6 unemployment, create new jobs and by the provision of new
7 facilities enhance the tax base of the taxing districts
8 that extend into the redevelopment project area.
9 (5) If any incremental revenues are being utilized
10 under Section 8(a)(1) or 8(a)(2) of this Act in
11 redevelopment project areas approved by ordinance after
12 January 1, 1986, the municipality finds: (a) that the
13 redevelopment project area would not reasonably be
14 developed without the use of such incremental revenues,
15 and (b) that such incremental revenues will be
16 exclusively utilized for the development of the
17 redevelopment project area.
18 (o) "Redevelopment project" means any public and private
19 development project in furtherance of the objectives of a
20 redevelopment plan.
21 (p) "Redevelopment project area" means an area
22 designated by the municipality, which is not less in the
23 aggregate than 1 1/2 acres and in respect to which the
24 municipality has made a finding that there exist conditions
25 which cause the area to be classified as an industrial park
26 conservation area or a blighted area or a conservation area,
27 or a combination of both blighted areas and conservation
28 areas.
29 (q) "Redevelopment project costs" mean and include the
30 sum total of all reasonable or necessary costs incurred or
31 estimated to be incurred, and any such costs incidental to a
32 redevelopment plan and a redevelopment project. Such costs
33 include, without limitation, the following:
34 (1) Costs of studies, surveys, development of
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1 plans, and specifications, implementation and
2 administration of the redevelopment plan including but
3 not limited to staff and professional service costs for
4 architectural, engineering, legal, marketing, financial,
5 planning or other services, provided however that no
6 charges for professional services may be based on a
7 percentage of the tax increment collected;
8 (2) Property assembly costs, including but not
9 limited to acquisition of land and other property, real
10 or personal, or rights or interests therein, demolition
11 of buildings, and the clearing and grading of land;
12 (3) Costs of rehabilitation, reconstruction or
13 repair or remodeling of existing public or private
14 buildings and fixtures;
15 (4) Costs of the construction of public works or
16 improvements;
17 (5) Costs of job training and retraining projects;
18 (6) Financing costs, including but not limited to
19 all necessary and incidental expenses related to the
20 issuance of obligations and which may include payment of
21 interest on any obligations issued hereunder accruing
22 during the estimated period of construction of any
23 redevelopment project for which such obligations are
24 issued and for not exceeding 36 months thereafter and
25 including reasonable reserves related thereto;
26 (7) All or a portion of a taxing district's capital
27 costs resulting from the redevelopment project
28 necessarily incurred or to be incurred in furtherance of
29 the objectives of the redevelopment plan and project, to
30 the extent the municipality by written agreement accepts
31 and approves such costs;
32 (8) Relocation costs to the extent that a
33 municipality determines that relocation costs shall be
34 paid or is required to make payment of relocation costs
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1 by federal or State law;
2 (9) Payment in lieu of taxes;
3 (10) Costs of job training, advanced vocational
4 education or career education, including but not limited
5 to courses in occupational, semi-technical or technical
6 fields leading directly to employment, incurred by one or
7 more taxing districts, provided that such costs (i) are
8 related to the establishment and maintenance of
9 additional job training, advanced vocational education or
10 career education programs for persons employed or to be
11 employed by employers located in a redevelopment project
12 area; and (ii) when incurred by a taxing district or
13 taxing districts other than the municipality, are set
14 forth in a written agreement by or among the municipality
15 and the taxing district or taxing districts, which
16 agreement describes the program to be undertaken,
17 including but not limited to the number of employees to
18 be trained, a description of the training and services to
19 be provided, the number and type of positions available
20 or to be available, itemized costs of the program and
21 sources of funds to pay for the same, and the term of the
22 agreement. Such costs include, specifically, the payment
23 by community college districts of costs pursuant to
24 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
25 Community College Act and by school districts of costs
26 pursuant to Sections 10-22.20a and 10-23.3a of The School
27 Code;
28 (11) Interest cost incurred by a redeveloper
29 related to the construction, renovation or rehabilitation
30 of a redevelopment project provided that:
31 (A) such costs are to be paid directly from
32 the special tax allocation fund established pursuant
33 to this Act; and
34 (B) such payments in any one year may not
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1 exceed 30% of the annual interest costs incurred by
2 the redeveloper with regard to the redevelopment
3 project during that year;
4 (C) if there are not sufficient funds
5 available in the special tax allocation fund to make
6 the payment pursuant to this paragraph (11) then the
7 amounts so due shall accrue and be payable when
8 sufficient funds are available in the special tax
9 allocation fund; and
10 (D) the total of such interest payments paid
11 pursuant to this Act may not exceed 30% of the total
12 (i) cost paid or incurred by the redeveloper for the
13 redevelopment project plus (ii) redevelopment
14 project costs excluding any property assembly costs
15 and any relocation costs incurred by a municipality
16 pursuant to this Act.
17 (12) Unless explicitly stated herein the cost of
18 construction of new privately-owned buildings shall not
19 be an eligible redevelopment project cost.
20 If a special service area has been established pursuant
21 to the Special Service Area Tax Act, then any tax increment
22 revenues derived from the tax imposed pursuant to the Special
23 Service Area Tax Act may be used within the redevelopment
24 project area for the purposes permitted by that Act as well
25 as the purposes permitted by this Act.
26 (r) "State Sales Tax Boundary" means the redevelopment
27 project area or the amended redevelopment project area
28 boundaries which are determined pursuant to subsection (9) of
29 Section 11-74.4-8a of this Act. The Department of Revenue
30 shall certify pursuant to subsection (9) of Section
31 11-74.4-8a the appropriate boundaries eligible for the
32 determination of State Sales Tax Increment.
33 (s) "State Sales Tax Increment" means an amount equal to
34 the increase in the aggregate amount of taxes paid by
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1 retailers and servicemen, other than retailers and servicemen
2 subject to the Public Utilities Act, on transactions at
3 places of business located within a State Sales Tax Boundary
4 pursuant to the Retailers' Occupation Tax Act, the Use Tax
5 Act, the Service Use Tax Act, and the Service Occupation Tax
6 Act, except such portion of such increase that is paid into
7 the State and Local Sales Tax Reform Fund, the Local
8 Government Distributive Fund, the Local Government Tax
9 Fund and the County and Mass Transit District Fund, for as
10 long as State participation exists, over and above the
11 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
12 or the Revised Initial Sales Tax Amounts for such taxes as
13 certified by the Department of Revenue and paid under those
14 Acts by retailers and servicemen on transactions at places of
15 business located within the State Sales Tax Boundary during
16 the base year which shall be the calendar year immediately
17 prior to the year in which the municipality adopted tax
18 increment allocation financing, less 3.0% of such amounts
19 generated under the Retailers' Occupation Tax Act, Use Tax
20 Act and Service Use Tax Act and the Service Occupation Tax
21 Act, which sum shall be appropriated to the Department of
22 Revenue to cover its costs of administering and enforcing
23 this Section. For purposes of computing the aggregate amount
24 of such taxes for base years occurring prior to 1985, the
25 Department of Revenue shall compute the Initial Sales Tax
26 Amount for such taxes and deduct therefrom an amount equal to
27 4% of the aggregate amount of taxes per year for each year
28 the base year is prior to 1985, but not to exceed a total
29 deduction of 12%. The amount so determined shall be known as
30 the "Adjusted Initial Sales Tax Amount". For purposes of
31 determining the State Sales Tax Increment the Department of
32 Revenue shall for each period subtract from the tax amounts
33 received from retailers and servicemen on transactions
34 located in the State Sales Tax Boundary, the certified
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1 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
2 or Revised Initial Sales Tax Amounts for the Retailers'
3 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
4 and the Service Occupation Tax Act. For the State Fiscal
5 Year 1989 this calculation shall be made by utilizing the
6 calendar year 1987 to determine the tax amounts received. For
7 the State Fiscal Year 1990, this calculation shall be made by
8 utilizing the period from January 1, 1988, until September
9 30, 1988, to determine the tax amounts received from
10 retailers and servicemen, which shall have deducted therefrom
11 nine-twelfths of the certified Initial Sales Tax Amounts,
12 Adjusted Initial Sales Tax Amounts or the Revised Initial
13 Sales Tax Amounts as appropriate. For the State Fiscal Year
14 1991, this calculation shall be made by utilizing the period
15 from October 1, 1988, until June 30, 1989, to determine the
16 tax amounts received from retailers and servicemen, which
17 shall have deducted therefrom nine-twelfths of the certified
18 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
19 Amounts or the Revised Initial Sales Tax Amounts as
20 appropriate. For every State Fiscal Year thereafter, the
21 applicable period shall be the 12 months beginning July 1 and
22 ending on June 30, to determine the tax amounts received
23 which shall have deducted therefrom the certified Initial
24 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
25 Revised Initial Sales Tax Amounts. Municipalities intending
26 to receive a distribution of State Sales Tax Increment must
27 report a list of retailers to the Department of Revenue by
28 October 31, 1988 and by July 31, of each year thereafter.
29 (t) "Taxing districts" means counties, townships, cities
30 and incorporated towns and villages, school, road, park,
31 sanitary, mosquito abatement, forest preserve, public health,
32 fire protection, river conservancy, tuberculosis sanitarium
33 and any other municipal corporations or districts with the
34 power to levy taxes.
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1 (u) "Taxing districts' capital costs" means those costs
2 of taxing districts for capital improvements that are found
3 by the municipal corporate authorities to be necessary and
4 directly result from the redevelopment project.
5 (v) As used in subsection (a) of Section 11-74.4-3 of
6 this Act, "vacant land" means any parcel or combination of
7 parcels of real property without industrial, commercial, and
8 residential buildings which has not been used for commercial
9 agricultural purposes within 5 years prior to the designation
10 of the redevelopment project area, unless the parcel is
11 included in an industrial park conservation area or the
12 parcel has been subdivided; provided that if the parcel was
13 part of a larger tract that has been divided into 3 or more
14 smaller tracts that were accepted for recording during the
15 period from 1950 to 1990, then the parcel shall be deemed to
16 have been subdivided, and all proceedings and actions of the
17 municipality taken in that connection with respect to any
18 previously approved or designated redevelopment project area
19 or amended redevelopment project area are hereby validated
20 and hereby declared to be legally sufficient for all purposes
21 of this Act.
22 (w) "Annual Total Increment" means the sum of each
23 municipality's annual Net Sales Tax Increment and each
24 municipality's annual Net Utility Tax Increment. The ratio
25 of the Annual Total Increment of each municipality to the
26 Annual Total Increment for all municipalities, as most
27 recently calculated by the Department, shall determine the
28 proportional shares of the Illinois Tax Increment Fund to be
29 distributed to each municipality.
30 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
31 90-379, eff. 8-14-97.)