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90_HB3100
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Includes in the definition of
"blighted area" an area that consists of abandoned coal mines
and strip mine ponds. Effective immediately.
LRB9010477KDgc
LRB9010477KDgc
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 (3.5) the area consists of abandoned coal mines and strip
5 mine ponds, or (4) the area consists of unused railyards,
6 rail tracks or railroad rights-of-way, or (5) the area, prior
7 to its designation, is subject to chronic flooding which
8 adversely impacts on real property in the area and such
9 flooding is substantially caused by one or more improvements
10 in or in proximity to the area which improvements have been
11 in existence for at least 5 years, or (6) the area consists
12 of an unused disposal site, containing earth, stone, building
13 debris or similar material, which were removed from
14 construction, demolition, excavation or dredge sites, or (7)
15 the area is not less than 50 nor more than 100 acres and 75%
16 of which is vacant, notwithstanding the fact that such area
17 has been used for commercial agricultural purposes within 5
18 years prior to the designation of the redevelopment project
19 area, and which area meets at least one of the factors
20 itemized in provision (1) of this subsection (a), and the
21 area has been designated as a town or village center by
22 ordinance or comprehensive plan adopted prior to January 1,
23 1982, and the area has not been developed for that designated
24 purpose.
25 (b) "Conservation area" means any improved area within
26 the boundaries of a redevelopment project area located within
27 the territorial limits of the municipality in which 50% or
28 more of the structures in the area have an age of 35 years or
29 more. Such an area is not yet a blighted area but because
30 of a combination of 3 or more of the following factors:
31 dilapidation; obsolescence; deterioration; illegal use of
32 individual structures; presence of structures below minimum
33 code standards; abandonment; excessive vacancies;
34 overcrowding of structures and community facilities; lack of
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1 ventilation, light or sanitary facilities; inadequate
2 utilities; excessive land coverage; deleterious land use or
3 layout; depreciation of physical maintenance; lack of
4 community planning, is detrimental to the public safety,
5 health, morals or welfare and such an area may become a
6 blighted area.
7 (c) "Industrial park" means an area in a blighted or
8 conservation area suitable for use by any manufacturing,
9 industrial, research or transportation enterprise, of
10 facilities to include but not be limited to factories, mills,
11 processing plants, assembly plants, packing plants,
12 fabricating plants, industrial distribution centers,
13 warehouses, repair overhaul or service facilities, freight
14 terminals, research facilities, test facilities or railroad
15 facilities.
16 (d) "Industrial park conservation area" means an area
17 within the boundaries of a redevelopment project area located
18 within the territorial limits of a municipality that is a
19 labor surplus municipality or within 1 1/2 miles of the
20 territorial limits of a municipality that is a labor surplus
21 municipality if the area is annexed to the municipality;
22 which area is zoned as industrial no later than at the time
23 the municipality by ordinance designates the redevelopment
24 project area, and which area includes both vacant land
25 suitable for use as an industrial park and a blighted area or
26 conservation area contiguous to such vacant land.
27 (e) "Labor surplus municipality" means a municipality in
28 which, at any time during the 6 months before the
29 municipality by ordinance designates an industrial park
30 conservation area, the unemployment rate was over 6% and was
31 also 100% or more of the national average unemployment rate
32 for that same time as published in the United States
33 Department of Labor Bureau of Labor Statistics publication
34 entitled "The Employment Situation" or its successor
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1 publication. For the purpose of this subsection, if
2 unemployment rate statistics for the municipality are not
3 available, the unemployment rate in the municipality shall be
4 deemed to be the same as the unemployment rate in the
5 principal county in which the municipality is located.
6 (f) "Municipality" shall mean a city, village or
7 incorporated town.
8 (g) "Initial Sales Tax Amounts" means the amount of
9 taxes paid under the Retailers' Occupation Tax Act, Use Tax
10 Act, Service Use Tax Act, the Service Occupation Tax Act, the
11 Municipal Retailers' Occupation Tax Act, and the Municipal
12 Service Occupation Tax Act by retailers and servicemen on
13 transactions at places located in a State Sales Tax Boundary
14 during the calendar year 1985.
15 (g-1) "Revised Initial Sales Tax Amounts" means the
16 amount of taxes paid under the Retailers' Occupation Tax Act,
17 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
18 Act, the Municipal Retailers' Occupation Tax Act, and the
19 Municipal Service Occupation Tax Act by retailers and
20 servicemen on transactions at places located within the State
21 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
22 of this Act.
23 (h) "Municipal Sales Tax Increment" means an amount
24 equal to the increase in the aggregate amount of taxes paid
25 to a municipality from the Local Government Tax Fund arising
26 from sales by retailers and servicemen within the
27 redevelopment project area or State Sales Tax Boundary, as
28 the case may be, for as long as the redevelopment project
29 area or State Sales Tax Boundary, as the case may be, exist
30 over and above the aggregate amount of taxes as certified by
31 the Illinois Department of Revenue and paid under the
32 Municipal Retailers' Occupation Tax Act and the Municipal
33 Service Occupation Tax Act by retailers and servicemen, on
34 transactions at places of business located in the
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1 redevelopment project area or State Sales Tax Boundary, as
2 the case may be, during the base year which shall be the
3 calendar year immediately prior to the year in which the
4 municipality adopted tax increment allocation financing. For
5 purposes of computing the aggregate amount of such taxes for
6 base years occurring prior to 1985, the Department of Revenue
7 shall determine the Initial Sales Tax Amounts for such taxes
8 and deduct therefrom an amount equal to 4% of the aggregate
9 amount of taxes per year for each year the base year is prior
10 to 1985, but not to exceed a total deduction of 12%. The
11 amount so determined shall be known as the "Adjusted Initial
12 Sales Tax Amounts". For purposes of determining the
13 Municipal Sales Tax Increment, the Department of Revenue
14 shall for each period subtract from the amount paid to the
15 municipality from the Local Government Tax Fund arising from
16 sales by retailers and servicemen on transactions located in
17 the redevelopment project area or the State Sales Tax
18 Boundary, as the case may be, the certified Initial Sales Tax
19 Amounts, the Adjusted Initial Sales Tax Amounts or the
20 Revised Initial Sales Tax Amounts for the Municipal
21 Retailers' Occupation Tax Act and the Municipal Service
22 Occupation Tax Act. For the State Fiscal Year 1989, this
23 calculation shall be made by utilizing the calendar year 1987
24 to determine the tax amounts received. For the State Fiscal
25 Year 1990, this calculation shall be made by utilizing the
26 period from January 1, 1988, until September 30, 1988, to
27 determine the tax amounts received from retailers and
28 servicemen pursuant to the Municipal Retailers' Occupation
29 Tax and the Municipal Service Occupation Tax Act, which shall
30 have deducted therefrom nine-twelfths of the certified
31 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
32 Amounts or the Revised Initial Sales Tax Amounts as
33 appropriate. For the State Fiscal Year 1991, this calculation
34 shall be made by utilizing the period from October 1, 1988,
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1 to June 30, 1989, to determine the tax amounts received from
2 retailers and servicemen pursuant to the Municipal Retailers'
3 Occupation Tax and the Municipal Service Occupation Tax Act
4 which shall have deducted therefrom nine-twelfths of the
5 certified Initial Sales Tax Amounts, Adjusted Initial Sales
6 Tax Amounts or the Revised Initial Sales Tax Amounts as
7 appropriate. For every State Fiscal Year thereafter, the
8 applicable period shall be the 12 months beginning July 1 and
9 ending June 30 to determine the tax amounts received which
10 shall have deducted therefrom the certified Initial Sales Tax
11 Amounts, the Adjusted Initial Sales Tax Amounts or the
12 Revised Initial Sales Tax Amounts, as the case may be.
13 (i) "Net State Sales Tax Increment" means the sum of the
14 following: (a) 80% of the first $100,000 of State Sales Tax
15 Increment annually generated within a State Sales Tax
16 Boundary; (b) 60% of the amount in excess of $100,000 but not
17 exceeding $500,000 of State Sales Tax Increment annually
18 generated within a State Sales Tax Boundary; and (c) 40% of
19 all amounts in excess of $500,000 of State Sales Tax
20 Increment annually generated within a State Sales Tax
21 Boundary. If, however, a municipality established a tax
22 increment financing district in a county with a population in
23 excess of 3,000,000 before January 1, 1986, and the
24 municipality entered into a contract or issued bonds after
25 January 1, 1986, but before December 31, 1986, to finance
26 redevelopment project costs within a State Sales Tax
27 Boundary, then the Net State Sales Tax Increment means, for
28 the fiscal years beginning July 1, 1990, and July 1, 1991,
29 100% of the State Sales Tax Increment annually generated
30 within a State Sales Tax Boundary; and notwithstanding any
31 other provision of this Act, for those fiscal years the
32 Department of Revenue shall distribute to those
33 municipalities 100% of their Net State Sales Tax Increment
34 before any distribution to any other municipality and
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1 regardless of whether or not those other municipalities will
2 receive 100% of their Net State Sales Tax Increment. For
3 Fiscal Year 1999, and every year thereafter until the year
4 2007, for any municipality that has not entered into a
5 contract or has not issued bonds prior to June 1, 1988 to
6 finance redevelopment project costs within a State Sales Tax
7 Boundary, the Net State Sales Tax Increment shall be
8 calculated as follows: By multiplying the Net State Sales Tax
9 Increment by 90% in the State Fiscal Year 1999; 80% in the
10 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
11 60% in the State Fiscal Year 2002; 50% in the State Fiscal
12 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
13 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
14 and 10% in the State Fiscal Year 2007. No payment shall be
15 made for State Fiscal Year 2008 and thereafter.
16 Municipalities that issued bonds in connection with a
17 redevelopment project in a redevelopment project area within
18 the State Sales Tax Boundary prior to July 29, 1991, shall
19 continue to receive their proportional share of the Illinois
20 Tax Increment Fund distribution until the date on which the
21 redevelopment project is completed or terminated, or the date
22 on which the bonds are retired, whichever date occurs first.
23 Refunding of any bonds issued prior to July 29, 1991, shall
24 not alter the Net State Sales Tax Increment.
25 (j) "State Utility Tax Increment Amount" means an amount
26 equal to the aggregate increase in State electric and gas tax
27 charges imposed on owners and tenants, other than residential
28 customers, of properties located within the redevelopment
29 project area under Section 9-222 of the Public Utilities Act,
30 over and above the aggregate of such charges as certified by
31 the Department of Revenue and paid by owners and tenants,
32 other than residential customers, of properties within the
33 redevelopment project area during the base year, which shall
34 be the calendar year immediately prior to the year of the
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1 adoption of the ordinance authorizing tax increment
2 allocation financing.
3 (k) "Net State Utility Tax Increment" means the sum of
4 the following: (a) 80% of the first $100,000 of State Utility
5 Tax Increment annually generated by a redevelopment project
6 area; (b) 60% of the amount in excess of $100,000 but not
7 exceeding $500,000 of the State Utility Tax Increment
8 annually generated by a redevelopment project area; and (c)
9 40% of all amounts in excess of $500,000 of State Utility Tax
10 Increment annually generated by a redevelopment project area.
11 For the State Fiscal Year 1999, and every year thereafter
12 until the year 2007, for any municipality that has not
13 entered into a contract or has not issued bonds prior to June
14 1, 1988 to finance redevelopment project costs within a
15 redevelopment project area, the Net State Utility Tax
16 Increment shall be calculated as follows: By multiplying the
17 Net State Utility Tax Increment by 90% in the State Fiscal
18 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
19 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
20 50% in the State Fiscal Year 2003; 40% in the State Fiscal
21 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
22 State Fiscal Year 2006; and 10% in the State Fiscal Year
23 2007. No payment shall be made for the State Fiscal Year 2008
24 and thereafter.
25 Municipalities that issue bonds in connection with the
26 redevelopment project during the period from June 1, 1988
27 until 3 years after the effective date of this Amendatory Act
28 of 1988 shall receive the Net State Utility Tax Increment,
29 subject to appropriation, for 15 State Fiscal Years after the
30 issuance of such bonds. For the 16th through the 20th State
31 Fiscal Years after issuance of the bonds, the Net State
32 Utility Tax Increment shall be calculated as follows: By
33 multiplying the Net State Utility Tax Increment by 90% in
34 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
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1 50% in year 20. Refunding of any bonds issued prior to June
2 1, 1988, shall not alter the revised Net State Utility Tax
3 Increment payments set forth above.
4 (l) "Obligations" mean bonds, loans, debentures, notes,
5 special certificates or other evidence of indebtedness issued
6 by the municipality to carry out a redevelopment project or
7 to refund outstanding obligations.
8 (m) "Payment in lieu of taxes" means those estimated tax
9 revenues from real property in a redevelopment project area
10 acquired by a municipality which according to the
11 redevelopment project or plan is to be used for a private use
12 which taxing districts would have received had a municipality
13 not adopted tax increment allocation financing and which
14 would result from levies made after the time of the adoption
15 of tax increment allocation financing to the time the current
16 equalized value of real property in the redevelopment project
17 area exceeds the total initial equalized value of real
18 property in said area.
19 (n) "Redevelopment plan" means the comprehensive program
20 of the municipality for development or redevelopment intended
21 by the payment of redevelopment project costs to reduce or
22 eliminate those conditions the existence of which qualified
23 the redevelopment project area as a "blighted area" or
24 "conservation area" or combination thereof or "industrial
25 park conservation area," and thereby to enhance the tax bases
26 of the taxing districts which extend into the redevelopment
27 project area. Each redevelopment plan shall set forth in
28 writing the program to be undertaken to accomplish the
29 objectives and shall include but not be limited to:
30 (A) estimated redevelopment project costs;
31 (B) evidence indicating that the redevelopment
32 project area on the whole has not been subject to growth
33 and development through investment by private enterprise;
34 (C) an assessment of any financial impact of the
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1 redevelopment project area on or any increased demand for
2 services from any taxing district affected by the plan
3 and any program to address such financial impact or
4 increased demand;
5 (D) the sources of funds to pay costs;
6 (E) the nature and term of the obligations to be
7 issued;
8 (F) the most recent equalized assessed valuation of
9 the redevelopment project area;
10 (G) an estimate as to the equalized assessed
11 valuation after redevelopment and the general land uses
12 to apply in the redevelopment project area;
13 (H) a commitment to fair employment practices and
14 an affirmative action plan;
15 (I) if it concerns an industrial park conservation
16 area, the plan shall also include a general description
17 of any proposed developer, user and tenant of any
18 property, a description of the type, structure and
19 general character of the facilities to be developed, a
20 description of the type, class and number of new
21 employees to be employed in the operation of the
22 facilities to be developed; and
23 (J) if property is to be annexed to the
24 municipality, the plan shall include the terms of the
25 annexation agreement.
26 The provisions of items (B) and (C) of this subsection
27 (n) shall not apply to a municipality that before March 14,
28 1994 (the effective date of Public Act 88-537) had fixed,
29 either by its corporate authorities or by a commission
30 designated under subsection (k) of Section 11-74.4-4, a time
31 and place for a public hearing as required by subsection (a)
32 of Section 11-74.4-5. No redevelopment plan shall be adopted
33 unless a municipality complies with all of the following
34 requirements:
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1 (1) The municipality finds that the redevelopment
2 project area on the whole has not been subject to growth
3 and development through investment by private enterprise
4 and would not reasonably be anticipated to be developed
5 without the adoption of the redevelopment plan.
6 (2) The municipality finds that the redevelopment
7 plan and project conform to the comprehensive plan for
8 the development of the municipality as a whole, or, for
9 municipalities with a population of 100,000 or more,
10 regardless of when the redevelopment plan and project was
11 adopted, the redevelopment plan and project either: (i)
12 conforms to the strategic economic development or
13 redevelopment plan issued by the designated planning
14 authority of the municipality, or (ii) includes land uses
15 that have been approved by the planning commission of the
16 municipality.
17 (3) The redevelopment plan establishes the
18 estimated dates of completion of the redevelopment
19 project and retirement of obligations issued to finance
20 redevelopment project costs. Those dates shall not be
21 more than 23 years from the adoption of the ordinance
22 approving the redevelopment project area if the ordinance
23 was adopted on or after January 15, 1981, and not more
24 than 35 years if the ordinance was adopted before January
25 15, 1981, or if the ordinance was adopted in April 1984
26 or July 1985, or if the ordinance was adopted in December
27 1987 and the redevelopment project is located within one
28 mile of Midway Airport, or if the municipality is subject
29 to the Local Government Financial Planning and
30 Supervision Act. However, for redevelopment project
31 areas for which bonds were issued before July 29, 1991,
32 in connection with a redevelopment project in the area
33 within the State Sales Tax Boundary, the estimated dates
34 of completion of the redevelopment project and retirement
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1 of obligations to finance redevelopment project costs may
2 be extended by municipal ordinance to December 31, 2013.
3 The extension allowed by this amendatory Act of 1993
4 shall not apply to real property tax increment allocation
5 financing under Section 11-74.4-8.
6 Those dates, for purposes of real property tax
7 increment allocation financing pursuant to Section
8 11-74.4-8 only, shall be not more than 35 years for
9 redevelopment project areas that were adopted on or after
10 December 16, 1986 and for which at least $8 million worth
11 of municipal bonds were authorized on or after December
12 19, 1989 but before January 1, 1990; provided that the
13 municipality elects to extend the life of the
14 redevelopment project area to 35 years by the adoption of
15 an ordinance after at least 14 but not more than 30 days'
16 written notice to the taxing bodies, that would otherwise
17 constitute the joint review board for the redevelopment
18 project area, before the adoption of the ordinance.
19 Those dates, for purposes of real property tax
20 increment allocation financing pursuant to Section
21 11-74.4-8 only, shall be not more than 35 years for
22 redevelopment project areas that were established on or
23 after December 1, 1981 but before January 1, 1982 and for
24 which at least $1,500,000 worth of tax increment revenue
25 bonds were authorized on or after September 30, 1990 but
26 before July 1, 1991; provided that the municipality
27 elects to extend the life of the redevelopment project
28 area to 35 years by the adoption of an ordinance after at
29 least 14 but not more than 30 days' written notice to the
30 taxing bodies, that would otherwise constitute the joint
31 review board for the redevelopment project area, before
32 the adoption of the ordinance.
33 (4) The municipality finds, in the case of an
34 industrial park conservation area, also that the
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1 municipality is a labor surplus municipality and that the
2 implementation of the redevelopment plan will reduce
3 unemployment, create new jobs and by the provision of new
4 facilities enhance the tax base of the taxing districts
5 that extend into the redevelopment project area.
6 (5) If any incremental revenues are being utilized
7 under Section 8(a)(1) or 8(a)(2) of this Act in
8 redevelopment project areas approved by ordinance after
9 January 1, 1986, the municipality finds: (a) that the
10 redevelopment project area would not reasonably be
11 developed without the use of such incremental revenues,
12 and (b) that such incremental revenues will be
13 exclusively utilized for the development of the
14 redevelopment project area.
15 (o) "Redevelopment project" means any public and private
16 development project in furtherance of the objectives of a
17 redevelopment plan.
18 (p) "Redevelopment project area" means an area
19 designated by the municipality, which is not less in the
20 aggregate than 1 1/2 acres and in respect to which the
21 municipality has made a finding that there exist conditions
22 which cause the area to be classified as an industrial park
23 conservation area or a blighted area or a conservation area,
24 or a combination of both blighted areas and conservation
25 areas.
26 (q) "Redevelopment project costs" mean and include the
27 sum total of all reasonable or necessary costs incurred or
28 estimated to be incurred, and any such costs incidental to a
29 redevelopment plan and a redevelopment project. Such costs
30 include, without limitation, the following:
31 (1) Costs of studies, surveys, development of
32 plans, and specifications, implementation and
33 administration of the redevelopment plan including but
34 not limited to staff and professional service costs for
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1 architectural, engineering, legal, marketing, financial,
2 planning or other services, provided however that no
3 charges for professional services may be based on a
4 percentage of the tax increment collected;
5 (2) Property assembly costs, including but not
6 limited to acquisition of land and other property, real
7 or personal, or rights or interests therein, demolition
8 of buildings, and the clearing and grading of land;
9 (3) Costs of rehabilitation, reconstruction or
10 repair or remodeling of existing public or private
11 buildings and fixtures;
12 (4) Costs of the construction of public works or
13 improvements;
14 (5) Costs of job training and retraining projects;
15 (6) Financing costs, including but not limited to
16 all necessary and incidental expenses related to the
17 issuance of obligations and which may include payment of
18 interest on any obligations issued hereunder accruing
19 during the estimated period of construction of any
20 redevelopment project for which such obligations are
21 issued and for not exceeding 36 months thereafter and
22 including reasonable reserves related thereto;
23 (7) All or a portion of a taxing district's capital
24 costs resulting from the redevelopment project
25 necessarily incurred or to be incurred in furtherance of
26 the objectives of the redevelopment plan and project, to
27 the extent the municipality by written agreement accepts
28 and approves such costs;
29 (8) Relocation costs to the extent that a
30 municipality determines that relocation costs shall be
31 paid or is required to make payment of relocation costs
32 by federal or State law;
33 (9) Payment in lieu of taxes;
34 (10) Costs of job training, advanced vocational
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1 education or career education, including but not limited
2 to courses in occupational, semi-technical or technical
3 fields leading directly to employment, incurred by one or
4 more taxing districts, provided that such costs (i) are
5 related to the establishment and maintenance of
6 additional job training, advanced vocational education or
7 career education programs for persons employed or to be
8 employed by employers located in a redevelopment project
9 area; and (ii) when incurred by a taxing district or
10 taxing districts other than the municipality, are set
11 forth in a written agreement by or among the municipality
12 and the taxing district or taxing districts, which
13 agreement describes the program to be undertaken,
14 including but not limited to the number of employees to
15 be trained, a description of the training and services to
16 be provided, the number and type of positions available
17 or to be available, itemized costs of the program and
18 sources of funds to pay for the same, and the term of the
19 agreement. Such costs include, specifically, the payment
20 by community college districts of costs pursuant to
21 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
22 Community College Act and by school districts of costs
23 pursuant to Sections 10-22.20a and 10-23.3a of The School
24 Code;
25 (11) Interest cost incurred by a redeveloper
26 related to the construction, renovation or rehabilitation
27 of a redevelopment project provided that:
28 (A) such costs are to be paid directly from
29 the special tax allocation fund established pursuant
30 to this Act; and
31 (B) such payments in any one year may not
32 exceed 30% of the annual interest costs incurred by
33 the redeveloper with regard to the redevelopment
34 project during that year;
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1 (C) if there are not sufficient funds
2 available in the special tax allocation fund to make
3 the payment pursuant to this paragraph (11) then the
4 amounts so due shall accrue and be payable when
5 sufficient funds are available in the special tax
6 allocation fund; and
7 (D) the total of such interest payments paid
8 pursuant to this Act may not exceed 30% of the total
9 (i) cost paid or incurred by the redeveloper for the
10 redevelopment project plus (ii) redevelopment
11 project costs excluding any property assembly costs
12 and any relocation costs incurred by a municipality
13 pursuant to this Act.
14 (12) Unless explicitly stated herein the cost of
15 construction of new privately-owned buildings shall not
16 be an eligible redevelopment project cost.
17 If a special service area has been established pursuant
18 to the Special Service Area Tax Act, then any tax increment
19 revenues derived from the tax imposed pursuant to the Special
20 Service Area Tax Act may be used within the redevelopment
21 project area for the purposes permitted by that Act as well
22 as the purposes permitted by this Act.
23 (r) "State Sales Tax Boundary" means the redevelopment
24 project area or the amended redevelopment project area
25 boundaries which are determined pursuant to subsection (9) of
26 Section 11-74.4-8a of this Act. The Department of Revenue
27 shall certify pursuant to subsection (9) of Section
28 11-74.4-8a the appropriate boundaries eligible for the
29 determination of State Sales Tax Increment.
30 (s) "State Sales Tax Increment" means an amount equal to
31 the increase in the aggregate amount of taxes paid by
32 retailers and servicemen, other than retailers and servicemen
33 subject to the Public Utilities Act, on transactions at
34 places of business located within a State Sales Tax Boundary
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1 pursuant to the Retailers' Occupation Tax Act, the Use Tax
2 Act, the Service Use Tax Act, and the Service Occupation Tax
3 Act, except such portion of such increase that is paid into
4 the State and Local Sales Tax Reform Fund, the Local
5 Government Distributive Fund, the Local Government Tax
6 Fund and the County and Mass Transit District Fund, for as
7 long as State participation exists, over and above the
8 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
9 or the Revised Initial Sales Tax Amounts for such taxes as
10 certified by the Department of Revenue and paid under those
11 Acts by retailers and servicemen on transactions at places of
12 business located within the State Sales Tax Boundary during
13 the base year which shall be the calendar year immediately
14 prior to the year in which the municipality adopted tax
15 increment allocation financing, less 3.0% of such amounts
16 generated under the Retailers' Occupation Tax Act, Use Tax
17 Act and Service Use Tax Act and the Service Occupation Tax
18 Act, which sum shall be appropriated to the Department of
19 Revenue to cover its costs of administering and enforcing
20 this Section. For purposes of computing the aggregate amount
21 of such taxes for base years occurring prior to 1985, the
22 Department of Revenue shall compute the Initial Sales Tax
23 Amount for such taxes and deduct therefrom an amount equal to
24 4% of the aggregate amount of taxes per year for each year
25 the base year is prior to 1985, but not to exceed a total
26 deduction of 12%. The amount so determined shall be known as
27 the "Adjusted Initial Sales Tax Amount". For purposes of
28 determining the State Sales Tax Increment the Department of
29 Revenue shall for each period subtract from the tax amounts
30 received from retailers and servicemen on transactions
31 located in the State Sales Tax Boundary, the certified
32 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
33 or Revised Initial Sales Tax Amounts for the Retailers'
34 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
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1 and the Service Occupation Tax Act. For the State Fiscal
2 Year 1989 this calculation shall be made by utilizing the
3 calendar year 1987 to determine the tax amounts received. For
4 the State Fiscal Year 1990, this calculation shall be made by
5 utilizing the period from January 1, 1988, until September
6 30, 1988, to determine the tax amounts received from
7 retailers and servicemen, which shall have deducted therefrom
8 nine-twelfths of the certified Initial Sales Tax Amounts,
9 Adjusted Initial Sales Tax Amounts or the Revised Initial
10 Sales Tax Amounts as appropriate. For the State Fiscal Year
11 1991, this calculation shall be made by utilizing the period
12 from October 1, 1988, until June 30, 1989, to determine the
13 tax amounts received from retailers and servicemen, which
14 shall have deducted therefrom nine-twelfths of the certified
15 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
16 Amounts or the Revised Initial Sales Tax Amounts as
17 appropriate. For every State Fiscal Year thereafter, the
18 applicable period shall be the 12 months beginning July 1 and
19 ending on June 30, to determine the tax amounts received
20 which shall have deducted therefrom the certified Initial
21 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
22 Revised Initial Sales Tax Amounts. Municipalities intending
23 to receive a distribution of State Sales Tax Increment must
24 report a list of retailers to the Department of Revenue by
25 October 31, 1988 and by July 31, of each year thereafter.
26 (t) "Taxing districts" means counties, townships, cities
27 and incorporated towns and villages, school, road, park,
28 sanitary, mosquito abatement, forest preserve, public health,
29 fire protection, river conservancy, tuberculosis sanitarium
30 and any other municipal corporations or districts with the
31 power to levy taxes.
32 (u) "Taxing districts' capital costs" means those costs
33 of taxing districts for capital improvements that are found
34 by the municipal corporate authorities to be necessary and
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1 directly result from the redevelopment project.
2 (v) As used in subsection (a) of Section 11-74.4-3 of
3 this Act, "vacant land" means any parcel or combination of
4 parcels of real property without industrial, commercial, and
5 residential buildings which has not been used for commercial
6 agricultural purposes within 5 years prior to the designation
7 of the redevelopment project area, unless the parcel is
8 included in an industrial park conservation area or the
9 parcel has been subdivided; provided that if the parcel was
10 part of a larger tract that has been divided into 3 or more
11 smaller tracts that were accepted for recording during the
12 period from 1950 to 1990, then the parcel shall be deemed to
13 have been subdivided, and all proceedings and actions of the
14 municipality taken in that connection with respect to any
15 previously approved or designated redevelopment project area
16 or amended redevelopment project area are hereby validated
17 and hereby declared to be legally sufficient for all purposes
18 of this Act.
19 (w) "Annual Total Increment" means the sum of each
20 municipality's annual Net Sales Tax Increment and each
21 municipality's annual Net Utility Tax Increment. The ratio
22 of the Annual Total Increment of each municipality to the
23 Annual Total Increment for all municipalities, as most
24 recently calculated by the Department, shall determine the
25 proportional shares of the Illinois Tax Increment Fund to be
26 distributed to each municipality.
27 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
28 90-379, eff. 8-14-97.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.