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Illinois House Bill HB1646

Illinois 2023-2024 Regular Session

Illinois House Bill HB1646 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1646 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED: 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that moneys in the special tax allocation fund may be used to make distributions to certain taxing districts. Provides that moneys received from the additional distributions may be used by the affected taxing district to pay debt service on obligations incurred by the taxing district and to provide property tax relief. Effective immediately. LRB103 05742 AWJ 50762 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1646 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED: 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that moneys in the special tax allocation fund may be used to make distributions to certain taxing districts. Provides that moneys received from the additional distributions may be used by the affected taxing district to pay debt service on obligations incurred by the taxing district and to provide property tax relief. Effective immediately. LRB103 05742 AWJ 50762 b LRB103 05742 AWJ 50762 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1646 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED:
33 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
44 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7
55 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
66 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that moneys in the special tax allocation fund may be used to make distributions to certain taxing districts. Provides that moneys received from the additional distributions may be used by the affected taxing district to pay debt service on obligations incurred by the taxing district and to provide property tax relief. Effective immediately.
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1212 1 AN ACT concerning local government.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Illinois Municipal Code is amended by
1616 5 changing Sections 11-74.4-7 and 11-74.4-8 as follows:
1717 6 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
1818 7 Sec. 11-74.4-7. Special tax allocation fund; obligations.
1919 8 (a) Obligations secured by the special tax allocation fund
2020 9 set forth in Section 11-74.4-8 for the redevelopment project
2121 10 area may be issued to provide for redevelopment project costs.
2222 11 Such obligations, when so issued, shall be retired in the
2323 12 manner provided in the ordinance authorizing the issuance of
2424 13 such obligations by the receipts of taxes levied as specified
2525 14 in Section 11-74.4-9 against the taxable property included in
2626 15 the area, by revenues as specified by Section 11-74.4-8a and
2727 16 other revenue designated by the municipality. A municipality
2828 17 may in the ordinance pledge all or any part of the funds in and
2929 18 to be deposited in the special tax allocation fund created
3030 19 pursuant to Section 11-74.4-8 to the payment of the
3131 20 redevelopment project costs and obligations. Any pledge of
3232 21 funds in the special tax allocation fund shall provide for
3333 22 distribution to the taxing districts and to the Illinois
3434 23 Department of Revenue of moneys not required, pledged,
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1646 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED:
3939 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
4040 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7
4141 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
4242 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that moneys in the special tax allocation fund may be used to make distributions to certain taxing districts. Provides that moneys received from the additional distributions may be used by the affected taxing district to pay debt service on obligations incurred by the taxing district and to provide property tax relief. Effective immediately.
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7171 1 earmarked, distributed as provided in subsection (b), or
7272 2 otherwise designated for payment and securing of the
7373 3 obligations and anticipated redevelopment project costs and
7474 4 such excess funds shall be calculated annually and deemed to
7575 5 be "surplus" funds. In the event a municipality only applies
7676 6 or pledges a portion of the funds in the special tax allocation
7777 7 fund for the payment or securing of anticipated redevelopment
7878 8 project costs or of obligations, any such funds remaining in
7979 9 the special tax allocation fund after complying with the
8080 10 requirements of the application or pledge, shall also be
8181 11 calculated annually and deemed "surplus" funds. All surplus
8282 12 funds in the special tax allocation fund shall be distributed
8383 13 annually within 180 days after the close of the municipality's
8484 14 fiscal year by being paid by the municipal treasurer to the
8585 15 County Collector, to the Department of Revenue and to the
8686 16 municipality in direct proportion to the tax incremental
8787 17 revenue received as a result of an increase in the equalized
8888 18 assessed value of property in the redevelopment project area,
8989 19 tax incremental revenue received from the State and tax
9090 20 incremental revenue received from the municipality, but not to
9191 21 exceed as to each such source the total incremental revenue
9292 22 received from that source. The County Collector shall
9393 23 thereafter make distribution to the respective taxing
9494 24 districts in the same manner and proportion as the most recent
9595 25 distribution by the county collector to the affected districts
9696 26 of real property taxes from real property in the redevelopment
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107107 1 project area.
108108 2 Without limiting the foregoing in this Section, the
109109 3 municipality may in addition to obligations secured by the
110110 4 special tax allocation fund pledge for a period not greater
111111 5 than the term of the obligations towards payment of such
112112 6 obligations any part or any combination of the following: (a)
113113 7 net revenues of all or part of any redevelopment project; (b)
114114 8 taxes levied and collected on any or all property in the
115115 9 municipality; (c) the full faith and credit of the
116116 10 municipality; (d) a mortgage on part or all of the
117117 11 redevelopment project; (d-5) repayment of bonds issued
118118 12 pursuant to subsection (p-130) of Section 19-1 of the School
119119 13 Code; or (e) any other taxes or anticipated receipts that the
120120 14 municipality may lawfully pledge.
121121 15 Such obligations may be issued in one or more series
122122 16 bearing interest at such rate or rates as the corporate
123123 17 authorities of the municipality shall determine by ordinance.
124124 18 Such obligations shall bear such date or dates, mature at such
125125 19 time or times not exceeding 20 years from their respective
126126 20 dates, be in such denomination, carry such registration
127127 21 privileges, be executed in such manner, be payable in such
128128 22 medium of payment at such place or places, contain such
129129 23 covenants, terms and conditions, and be subject to redemption
130130 24 as such ordinance shall provide. Obligations issued pursuant
131131 25 to this Act may be sold at public or private sale at such price
132132 26 as shall be determined by the corporate authorities of the
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143143 1 municipalities. No referendum approval of the electors shall
144144 2 be required as a condition to the issuance of obligations
145145 3 pursuant to this Division except as provided in this Section.
146146 4 In the event the municipality authorizes issuance of
147147 5 obligations pursuant to the authority of this Division secured
148148 6 by the full faith and credit of the municipality, which
149149 7 obligations are other than obligations which may be issued
150150 8 under home rule powers provided by Article VII, Section 6 of
151151 9 the Illinois Constitution, or pledges taxes pursuant to (b) or
152152 10 (c) of the second paragraph of this section, the ordinance
153153 11 authorizing the issuance of such obligations or pledging such
154154 12 taxes shall be published within 10 days after such ordinance
155155 13 has been passed in one or more newspapers, with general
156156 14 circulation within such municipality. The publication of the
157157 15 ordinance shall be accompanied by a notice of (1) the specific
158158 16 number of voters required to sign a petition requesting the
159159 17 question of the issuance of such obligations or pledging taxes
160160 18 to be submitted to the electors; (2) the time in which such
161161 19 petition must be filed; and (3) the date of the prospective
162162 20 referendum. The municipal clerk shall provide a petition form
163163 21 to any individual requesting one.
164164 22 If no petition is filed with the municipal clerk, as
165165 23 hereinafter provided in this Section, within 30 days after the
166166 24 publication of the ordinance, the ordinance shall be in
167167 25 effect. But, if within that 30 day period a petition is filed
168168 26 with the municipal clerk, signed by electors in the
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179179 1 municipality numbering 10% or more of the number of registered
180180 2 voters in the municipality, asking that the question of
181181 3 issuing obligations using full faith and credit of the
182182 4 municipality as security for the cost of paying for
183183 5 redevelopment project costs, or of pledging taxes for the
184184 6 payment of such obligations, or both, be submitted to the
185185 7 electors of the municipality, the corporate authorities of the
186186 8 municipality shall call a special election in the manner
187187 9 provided by law to vote upon that question, or, if a general,
188188 10 State or municipal election is to be held within a period of
189189 11 not less than 30 or more than 90 days from the date such
190190 12 petition is filed, shall submit the question at the next
191191 13 general, State or municipal election. If it appears upon the
192192 14 canvass of the election by the corporate authorities that a
193193 15 majority of electors voting upon the question voted in favor
194194 16 thereof, the ordinance shall be in effect, but if a majority of
195195 17 the electors voting upon the question are not in favor
196196 18 thereof, the ordinance shall not take effect.
197197 19 The ordinance authorizing the obligations may provide that
198198 20 the obligations shall contain a recital that they are issued
199199 21 pursuant to this Division, which recital shall be conclusive
200200 22 evidence of their validity and of the regularity of their
201201 23 issuance.
202202 24 In the event the municipality authorizes issuance of
203203 25 obligations pursuant to this Section secured by the full faith
204204 26 and credit of the municipality, the ordinance authorizing the
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215215 1 obligations may provide for the levy and collection of a
216216 2 direct annual tax upon all taxable property within the
217217 3 municipality sufficient to pay the principal thereof and
218218 4 interest thereon as it matures, which levy may be in addition
219219 5 to and exclusive of the maximum of all other taxes authorized
220220 6 to be levied by the municipality, which levy, however, shall
221221 7 be abated to the extent that monies from other sources are
222222 8 available for payment of the obligations and the municipality
223223 9 certifies the amount of said monies available to the county
224224 10 clerk.
225225 11 A certified copy of such ordinance shall be filed with the
226226 12 county clerk of each county in which any portion of the
227227 13 municipality is situated, and shall constitute the authority
228228 14 for the extension and collection of the taxes to be deposited
229229 15 in the special tax allocation fund.
230230 16 A municipality may also issue its obligations to refund in
231231 17 whole or in part, obligations theretofore issued by such
232232 18 municipality under the authority of this Act, whether at or
233233 19 prior to maturity, provided however, that the last maturity of
234234 20 the refunding obligations may not be later than the dates set
235235 21 forth under Section 11-74.4-3.5.
236236 22 In the event a municipality issues obligations under home
237237 23 rule powers or other legislative authority the proceeds of
238238 24 which are pledged to pay for redevelopment project costs, the
239239 25 municipality may, if it has followed the procedures in
240240 26 conformance with this division, retire said obligations from
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251251 1 funds in the special tax allocation fund in amounts and in such
252252 2 manner as if such obligations had been issued pursuant to the
253253 3 provisions of this division.
254254 4 All obligations heretofore or hereafter issued pursuant to
255255 5 this Act shall not be regarded as indebtedness of the
256256 6 municipality issuing such obligations or any other taxing
257257 7 district for the purpose of any limitation imposed by law.
258258 8 (b) Prior to the distribution of any surplus funds under
259259 9 subsection (a), a municipality may make additional
260260 10 distributions from the special tax allocation fund to any
261261 11 affected taxing district, provided that the total amount of
262262 12 such additional distributions may not cause the balance in the
263263 13 special tax allocation fund to be less than the amount pledged
264264 14 to pay obligations secured by the special tax allocation fund.
265265 15 If an additional distribution is made under this subsection,
266266 16 the moneys may be used by the affected taxing district to pay
267267 17 debt service on obligations incurred by the taxing district
268268 18 and to provide property tax relief as provided in this
269269 19 subsection. Prior to receiving additional distributions under
270270 20 this Section, the affected taxing district may enter into an
271271 21 intergovernmental agreement with the municipality and may
272272 22 agree to reduce the amount of its property tax levy for the
273273 23 levy year in which the distributions are received by an amount
274274 24 that is not less than the total amount of additional
275275 25 distributions received during the taxable year.
276276 26 As used in this subsection, "affected taxing district"
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287287 1 means any of the following units that have the authority to
288288 2 directly levy taxes on the property within the redevelopment
289289 3 project area: a community college district; school district;
290290 4 park district; library district; township; fire protection
291291 5 district; or county.
292292 6 (Source: P.A. 100-531, eff. 9-22-17.)
293293 7 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
294294 8 Sec. 11-74.4-8. Tax increment allocation financing. A
295295 9 municipality may not adopt tax increment financing in a
296296 10 redevelopment project area after July 30, 1997 (the effective
297297 11 date of Public Act 90-258) that will encompass an area that is
298298 12 currently included in an enterprise zone created under the
299299 13 Illinois Enterprise Zone Act unless that municipality,
300300 14 pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
301301 15 amends the enterprise zone designating ordinance to limit the
302302 16 eligibility for tax abatements as provided in Section 5.4.1 of
303303 17 the Illinois Enterprise Zone Act. A municipality, at the time
304304 18 a redevelopment project area is designated, may adopt tax
305305 19 increment allocation financing by passing an ordinance
306306 20 providing that the ad valorem taxes, if any, arising from the
307307 21 levies upon taxable real property in such redevelopment
308308 22 project area by taxing districts and tax rates determined in
309309 23 the manner provided in paragraph (c) of Section 11-74.4-9 each
310310 24 year after the effective date of the ordinance until
311311 25 redevelopment project costs and all municipal obligations
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322322 1 financing redevelopment project costs incurred under this
323323 2 Division have been paid shall be divided as follows, provided,
324324 3 however, that with respect to any redevelopment project area
325325 4 located within a transit facility improvement area established
326326 5 pursuant to Section 11-74.4-3.3 in a municipality with a
327327 6 population of 1,000,000 or more, ad valorem taxes, if any,
328328 7 arising from the levies upon taxable real property in such
329329 8 redevelopment project area shall be allocated as specifically
330330 9 provided in this Section:
331331 10 (a) That portion of taxes levied upon each taxable
332332 11 lot, block, tract, or parcel of real property which is
333333 12 attributable to the lower of the current equalized
334334 13 assessed value or the initial equalized assessed value of
335335 14 each such taxable lot, block, tract, or parcel of real
336336 15 property in the redevelopment project area shall be
337337 16 allocated to and when collected shall be paid by the
338338 17 county collector to the respective affected taxing
339339 18 districts in the manner required by law in the absence of
340340 19 the adoption of tax increment allocation financing.
341341 20 (b) Except from a tax levied by a township to retire
342342 21 bonds issued to satisfy court-ordered damages, that
343343 22 portion, if any, of such taxes which is attributable to
344344 23 the increase in the current equalized assessed valuation
345345 24 of each taxable lot, block, tract, or parcel of real
346346 25 property in the redevelopment project area over and above
347347 26 the initial equalized assessed value of each property in
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358358 1 the project area shall be allocated to and when collected
359359 2 shall be paid to the municipal treasurer who shall deposit
360360 3 said taxes into a special fund called the special tax
361361 4 allocation fund of the municipality for the purpose of
362362 5 paying redevelopment project costs and obligations
363363 6 incurred in the payment thereof. In any county with a
364364 7 population of 3,000,000 or more that has adopted a
365365 8 procedure for collecting taxes that provides for one or
366366 9 more of the installments of the taxes to be billed and
367367 10 collected on an estimated basis, the municipal treasurer
368368 11 shall be paid for deposit in the special tax allocation
369369 12 fund of the municipality, from the taxes collected from
370370 13 estimated bills issued for property in the redevelopment
371371 14 project area, the difference between the amount actually
372372 15 collected from each taxable lot, block, tract, or parcel
373373 16 of real property within the redevelopment project area and
374374 17 an amount determined by multiplying the rate at which
375375 18 taxes were last extended against the taxable lot, block,
376376 19 tract, or parcel of real property in the manner provided
377377 20 in subsection (c) of Section 11-74.4-9 by the initial
378378 21 equalized assessed value of the property divided by the
379379 22 number of installments in which real estate taxes are
380380 23 billed and collected within the county; provided that the
381381 24 payments on or before December 31, 1999 to a municipal
382382 25 treasurer shall be made only if each of the following
383383 26 conditions are met:
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394394 1 (1) The total equalized assessed value of the
395395 2 redevelopment project area as last determined was not
396396 3 less than 175% of the total initial equalized assessed
397397 4 value.
398398 5 (2) Not more than 50% of the total equalized
399399 6 assessed value of the redevelopment project area as
400400 7 last determined is attributable to a piece of property
401401 8 assigned a single real estate index number.
402402 9 (3) The municipal clerk has certified to the
403403 10 county clerk that the municipality has issued its
404404 11 obligations to which there has been pledged the
405405 12 incremental property taxes of the redevelopment
406406 13 project area or taxes levied and collected on any or
407407 14 all property in the municipality or the full faith and
408408 15 credit of the municipality to pay or secure payment
409409 16 for all or a portion of the redevelopment project
410410 17 costs. The certification shall be filed annually no
411411 18 later than September 1 for the estimated taxes to be
412412 19 distributed in the following year; however, for the
413413 20 year 1992 the certification shall be made at any time
414414 21 on or before March 31, 1992.
415415 22 (4) The municipality has not requested that the
416416 23 total initial equalized assessed value of real
417417 24 property be adjusted as provided in subsection (b) of
418418 25 Section 11-74.4-9.
419419 26 The conditions of paragraphs (1) through (4) do not
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430430 1 apply after December 31, 1999 to payments to a municipal
431431 2 treasurer made by a county with 3,000,000 or more
432432 3 inhabitants that has adopted an estimated billing
433433 4 procedure for collecting taxes. If a county that has
434434 5 adopted the estimated billing procedure makes an erroneous
435435 6 overpayment of tax revenue to the municipal treasurer,
436436 7 then the county may seek a refund of that overpayment. The
437437 8 county shall send the municipal treasurer a notice of
438438 9 liability for the overpayment on or before the mailing
439439 10 date of the next real estate tax bill within the county.
440440 11 The refund shall be limited to the amount of the
441441 12 overpayment.
442442 13 It is the intent of this Division that after July 29,
443443 14 1988 (the effective date of Public Act 85-1142) a
444444 15 municipality's own ad valorem tax arising from levies on
445445 16 taxable real property be included in the determination of
446446 17 incremental revenue in the manner provided in paragraph
447447 18 (c) of Section 11-74.4-9. If the municipality does not
448448 19 extend such a tax, it shall annually deposit in the
449449 20 municipality's Special Tax Increment Fund an amount equal
450450 21 to 10% of the total contributions to the fund from all
451451 22 other taxing districts in that year. The annual 10%
452452 23 deposit required by this paragraph shall be limited to the
453453 24 actual amount of municipally produced incremental tax
454454 25 revenues available to the municipality from taxpayers
455455 26 located in the redevelopment project area in that year if:
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466466 1 (a) the plan for the area restricts the use of the property
467467 2 primarily to industrial purposes, (b) the municipality
468468 3 establishing the redevelopment project area is a home rule
469469 4 community with a 1990 population of between 25,000 and
470470 5 50,000, (c) the municipality is wholly located within a
471471 6 county with a 1990 population of over 750,000 and (d) the
472472 7 redevelopment project area was established by the
473473 8 municipality prior to June 1, 1990. This payment shall be
474474 9 in lieu of a contribution of ad valorem taxes on real
475475 10 property. If no such payment is made, any redevelopment
476476 11 project area of the municipality shall be dissolved.
477477 12 If a municipality has adopted tax increment allocation
478478 13 financing by ordinance and the County Clerk thereafter
479479 14 certifies the "total initial equalized assessed value as
480480 15 adjusted" of the taxable real property within such
481481 16 redevelopment project area in the manner provided in
482482 17 paragraph (b) of Section 11-74.4-9, each year after the
483483 18 date of the certification of the total initial equalized
484484 19 assessed value as adjusted until redevelopment project
485485 20 costs and all municipal obligations financing
486486 21 redevelopment project costs have been paid the ad valorem
487487 22 taxes, if any, arising from the levies upon the taxable
488488 23 real property in such redevelopment project area by taxing
489489 24 districts and tax rates determined in the manner provided
490490 25 in paragraph (c) of Section 11-74.4-9 shall be divided as
491491 26 follows, provided, however, that with respect to any
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502502 1 redevelopment project area located within a transit
503503 2 facility improvement area established pursuant to Section
504504 3 11-74.4-3.3 in a municipality with a population of
505505 4 1,000,000 or more, ad valorem taxes, if any, arising from
506506 5 the levies upon the taxable real property in such
507507 6 redevelopment project area shall be allocated as
508508 7 specifically provided in this Section:
509509 8 (1) That portion of the taxes levied upon each
510510 9 taxable lot, block, tract, or parcel of real property
511511 10 which is attributable to the lower of the current
512512 11 equalized assessed value or "current equalized
513513 12 assessed value as adjusted" or the initial equalized
514514 13 assessed value of each such taxable lot, block, tract,
515515 14 or parcel of real property existing at the time tax
516516 15 increment financing was adopted, minus the total
517517 16 current homestead exemptions under Article 15 of the
518518 17 Property Tax Code in the redevelopment project area
519519 18 shall be allocated to and when collected shall be paid
520520 19 by the county collector to the respective affected
521521 20 taxing districts in the manner required by law in the
522522 21 absence of the adoption of tax increment allocation
523523 22 financing.
524524 23 (2) That portion, if any, of such taxes which is
525525 24 attributable to the increase in the current equalized
526526 25 assessed valuation of each taxable lot, block, tract,
527527 26 or parcel of real property in the redevelopment
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538538 1 project area, over and above the initial equalized
539539 2 assessed value of each property existing at the time
540540 3 tax increment financing was adopted, minus the total
541541 4 current homestead exemptions pertaining to each piece
542542 5 of property provided by Article 15 of the Property Tax
543543 6 Code in the redevelopment project area, shall be
544544 7 allocated to and when collected shall be paid to the
545545 8 municipal Treasurer, who shall deposit said taxes into
546546 9 a special fund called the special tax allocation fund
547547 10 of the municipality for the purpose of paying
548548 11 redevelopment project costs and obligations incurred
549549 12 in the payment thereof.
550550 13 The municipality may pledge in the ordinance the funds
551551 14 in and to be deposited in the special tax allocation fund
552552 15 for the payment of such costs and obligations. No part of
553553 16 the current equalized assessed valuation of each property
554554 17 in the redevelopment project area attributable to any
555555 18 increase above the total initial equalized assessed value,
556556 19 or the total initial equalized assessed value as adjusted,
557557 20 of such properties shall be used in calculating the
558558 21 general State aid formula, provided for in Section 18-8 of
559559 22 the School Code, or the evidence-based funding formula,
560560 23 provided for in Section 18-8.15 of the School Code, until
561561 24 such time as all redevelopment project costs have been
562562 25 paid as provided for in this Section.
563563 26 Whenever a municipality issues bonds for the purpose
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574574 1 of financing redevelopment project costs, such
575575 2 municipality may provide by ordinance for the appointment
576576 3 of a trustee, which may be any trust company within the
577577 4 State, and for the establishment of such funds or accounts
578578 5 to be maintained by such trustee as the municipality shall
579579 6 deem necessary to provide for the security and payment of
580580 7 the bonds. If such municipality provides for the
581581 8 appointment of a trustee, such trustee shall be considered
582582 9 the assignee of any payments assigned by the municipality
583583 10 pursuant to such ordinance and this Section. Any amounts
584584 11 paid to such trustee as assignee shall be deposited in the
585585 12 funds or accounts established pursuant to such trust
586586 13 agreement, and shall be held by such trustee in trust for
587587 14 the benefit of the holders of the bonds, and such holders
588588 15 shall have a lien on and a security interest in such funds
589589 16 or accounts so long as the bonds remain outstanding and
590590 17 unpaid. Upon retirement of the bonds, the trustee shall
591591 18 pay over any excess amounts held to the municipality for
592592 19 deposit in the special tax allocation fund.
593593 20 When such redevelopment projects costs, including,
594594 21 without limitation, all municipal obligations financing
595595 22 redevelopment project costs incurred under this Division,
596596 23 have been paid and all distributions under subsection (b)
597597 24 of Section 11-74.4-7 have been made, all surplus funds
598598 25 then remaining in the special tax allocation fund shall be
599599 26 distributed by being paid by the municipal treasurer to
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610610 1 the Department of Revenue, the municipality and the county
611611 2 collector; first to the Department of Revenue and the
612612 3 municipality in direct proportion to the tax incremental
613613 4 revenue received from the State and the municipality, but
614614 5 not to exceed the total incremental revenue received from
615615 6 the State or the municipality less any annual surplus
616616 7 distribution of incremental revenue previously made; with
617617 8 any remaining funds to be paid to the County Collector who
618618 9 shall immediately thereafter pay said funds to the taxing
619619 10 districts in the redevelopment project area in the same
620620 11 manner and proportion as the most recent distribution by
621621 12 the county collector to the affected districts of real
622622 13 property taxes from real property in the redevelopment
623623 14 project area.
624624 15 Upon the payment of all redevelopment project costs,
625625 16 the retirement of obligations, the distribution of any
626626 17 excess monies pursuant to this Section, and final closing
627627 18 of the books and records of the redevelopment project
628628 19 area, the municipality shall adopt an ordinance dissolving
629629 20 the special tax allocation fund for the redevelopment
630630 21 project area and terminating the designation of the
631631 22 redevelopment project area as a redevelopment project
632632 23 area. Title to real or personal property and public
633633 24 improvements acquired by or for the municipality as a
634634 25 result of the redevelopment project and plan shall vest in
635635 26 the municipality when acquired and shall continue to be
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646646 1 held by the municipality after the redevelopment project
647647 2 area has been terminated. Municipalities shall notify
648648 3 affected taxing districts prior to November 1 if the
649649 4 redevelopment project area is to be terminated by December
650650 5 31 of that same year. If a municipality extends estimated
651651 6 dates of completion of a redevelopment project and
652652 7 retirement of obligations to finance a redevelopment
653653 8 project, as allowed by Public Act 87-1272, that extension
654654 9 shall not extend the property tax increment allocation
655655 10 financing authorized by this Section. Thereafter the rates
656656 11 of the taxing districts shall be extended and taxes
657657 12 levied, collected and distributed in the manner applicable
658658 13 in the absence of the adoption of tax increment allocation
659659 14 financing.
660660 15 If a municipality with a population of 1,000,000 or
661661 16 more has adopted by ordinance tax increment allocation
662662 17 financing for a redevelopment project area located in a
663663 18 transit facility improvement area established pursuant to
664664 19 Section 11-74.4-3.3, for each year after the effective
665665 20 date of the ordinance until redevelopment project costs
666666 21 and all municipal obligations financing redevelopment
667667 22 project costs have been paid, the ad valorem taxes, if
668668 23 any, arising from the levies upon the taxable real
669669 24 property in that redevelopment project area by taxing
670670 25 districts and tax rates determined in the manner provided
671671 26 in paragraph (c) of Section 11-74.4-9 shall be divided as
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682682 1 follows:
683683 2 (1) That portion of the taxes levied upon each
684684 3 taxable lot, block, tract, or parcel of real property
685685 4 which is attributable to the lower of (i) the current
686686 5 equalized assessed value or "current equalized
687687 6 assessed value as adjusted" or (ii) the initial
688688 7 equalized assessed value of each such taxable lot,
689689 8 block, tract, or parcel of real property existing at
690690 9 the time tax increment financing was adopted, minus
691691 10 the total current homestead exemptions under Article
692692 11 15 of the Property Tax Code in the redevelopment
693693 12 project area shall be allocated to and when collected
694694 13 shall be paid by the county collector to the
695695 14 respective affected taxing districts in the manner
696696 15 required by law in the absence of the adoption of tax
697697 16 increment allocation financing.
698698 17 (2) That portion, if any, of such taxes which is
699699 18 attributable to the increase in the current equalized
700700 19 assessed valuation of each taxable lot, block, tract,
701701 20 or parcel of real property in the redevelopment
702702 21 project area, over and above the initial equalized
703703 22 assessed value of each property existing at the time
704704 23 tax increment financing was adopted, minus the total
705705 24 current homestead exemptions pertaining to each piece
706706 25 of property provided by Article 15 of the Property Tax
707707 26 Code in the redevelopment project area, shall be
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718718 1 allocated to and when collected shall be paid by the
719719 2 county collector as follows:
720720 3 (A) First, that portion which would be payable
721721 4 to a school district whose boundaries are
722722 5 coterminous with such municipality in the absence
723723 6 of the adoption of tax increment allocation
724724 7 financing, shall be paid to such school district
725725 8 in the manner required by law in the absence of the
726726 9 adoption of tax increment allocation financing;
727727 10 then
728728 11 (B) 80% of the remaining portion shall be paid
729729 12 to the municipal Treasurer, who shall deposit said
730730 13 taxes into a special fund called the special tax
731731 14 allocation fund of the municipality for the
732732 15 purpose of paying redevelopment project costs and
733733 16 obligations incurred in the payment thereof; and
734734 17 then
735735 18 (C) 20% of the remaining portion shall be paid
736736 19 to the respective affected taxing districts, other
737737 20 than the school district described in clause (a)
738738 21 above, in the manner required by law in the
739739 22 absence of the adoption of tax increment
740740 23 allocation financing.
741741 24 Nothing in this Section shall be construed as relieving
742742 25 property in such redevelopment project areas from being
743743 26 assessed as provided in the Property Tax Code or as relieving
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754754 1 owners of such property from paying a uniform rate of taxes, as
755755 2 required by Section 4 of Article IX of the Illinois
756756 3 Constitution.
757757 4 (Source: P.A. 102-558, eff. 8-20-21.)
758758 5 Section 99. Effective date. This Act takes effect upon
759759 6 becoming law.
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