Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2470 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2470 Introduced 2/7/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: See Index Amends the Innovation Development and Economy Act. Provides that the corporate authorities of any political subdivision that (i) is not a home-rule unit and (ii) has established a STAR bond district under the Act may, by ordinance or resolution, impose a tourism tax upon all admission and amusement charges from transactions at places of business located within the STAR bond district, at a rate not to exceed 9% of the gross receipts derived from any admission and amusement charge within the STAR bond district, to be imposed only in 0.25% increments. Provides that the tax imposed under the provisions and all civil penalties that may be assessed as an incident of the tax under the provisions shall be collected and enforced by the Department of Revenue. Provides that, for any STAR bond district created on or after January 1, 2025, the Director of Revenue may only approve a STAR bond district if the Director finds that: (i) the proposed STAR bond district is an eligible area; (ii) the STAR bond district plan includes a projected capital investment of at least $500,000,000; (iii) the STAR bond district plan is reasonably projected to produce at least $100,000,000 of annual gross sales revenues, 1,500 new jobs, and 5,000 construction jobs; (iv) the STAR bond district plan includes a statement of how the jobs and taxes will contribute significantly to the economic development of the State and region; (v) the STAR bond district plan shows visitation expectations in excess of 1,000,000 visitors annually; (vi) the STAR bond district plan includes potential destination users and a potential entertainment user; (vii) the creation of the STAR bond district and STAR bond district plan are in accordance with the purpose of the Act and the public interest; and (viii) the STAR bond district and STAR bond district plan meet any other requirement the Director deems appropriate. Provides that, for the purposes of the Act, "local sales tax increment" includes, with respect to local sales taxes administered by the Illinois Department of Revenue, all of the local sales tax paid by, among others, amusement park users. Makes other changes. LRB104 09390 RTM 19449 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2470 Introduced 2/7/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: See Index See Index Amends the Innovation Development and Economy Act. Provides that the corporate authorities of any political subdivision that (i) is not a home-rule unit and (ii) has established a STAR bond district under the Act may, by ordinance or resolution, impose a tourism tax upon all admission and amusement charges from transactions at places of business located within the STAR bond district, at a rate not to exceed 9% of the gross receipts derived from any admission and amusement charge within the STAR bond district, to be imposed only in 0.25% increments. Provides that the tax imposed under the provisions and all civil penalties that may be assessed as an incident of the tax under the provisions shall be collected and enforced by the Department of Revenue. Provides that, for any STAR bond district created on or after January 1, 2025, the Director of Revenue may only approve a STAR bond district if the Director finds that: (i) the proposed STAR bond district is an eligible area; (ii) the STAR bond district plan includes a projected capital investment of at least $500,000,000; (iii) the STAR bond district plan is reasonably projected to produce at least $100,000,000 of annual gross sales revenues, 1,500 new jobs, and 5,000 construction jobs; (iv) the STAR bond district plan includes a statement of how the jobs and taxes will contribute significantly to the economic development of the State and region; (v) the STAR bond district plan shows visitation expectations in excess of 1,000,000 visitors annually; (vi) the STAR bond district plan includes potential destination users and a potential entertainment user; (vii) the creation of the STAR bond district and STAR bond district plan are in accordance with the purpose of the Act and the public interest; and (viii) the STAR bond district and STAR bond district plan meet any other requirement the Director deems appropriate. Provides that, for the purposes of the Act, "local sales tax increment" includes, with respect to local sales taxes administered by the Illinois Department of Revenue, all of the local sales tax paid by, among others, amusement park users. Makes other changes. LRB104 09390 RTM 19449 b LRB104 09390 RTM 19449 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2470 Introduced 2/7/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Innovation Development and Economy Act. Provides that the corporate authorities of any political subdivision that (i) is not a home-rule unit and (ii) has established a STAR bond district under the Act may, by ordinance or resolution, impose a tourism tax upon all admission and amusement charges from transactions at places of business located within the STAR bond district, at a rate not to exceed 9% of the gross receipts derived from any admission and amusement charge within the STAR bond district, to be imposed only in 0.25% increments. Provides that the tax imposed under the provisions and all civil penalties that may be assessed as an incident of the tax under the provisions shall be collected and enforced by the Department of Revenue. Provides that, for any STAR bond district created on or after January 1, 2025, the Director of Revenue may only approve a STAR bond district if the Director finds that: (i) the proposed STAR bond district is an eligible area; (ii) the STAR bond district plan includes a projected capital investment of at least $500,000,000; (iii) the STAR bond district plan is reasonably projected to produce at least $100,000,000 of annual gross sales revenues, 1,500 new jobs, and 5,000 construction jobs; (iv) the STAR bond district plan includes a statement of how the jobs and taxes will contribute significantly to the economic development of the State and region; (v) the STAR bond district plan shows visitation expectations in excess of 1,000,000 visitors annually; (vi) the STAR bond district plan includes potential destination users and a potential entertainment user; (vii) the creation of the STAR bond district and STAR bond district plan are in accordance with the purpose of the Act and the public interest; and (viii) the STAR bond district and STAR bond district plan meet any other requirement the Director deems appropriate. Provides that, for the purposes of the Act, "local sales tax increment" includes, with respect to local sales taxes administered by the Illinois Department of Revenue, all of the local sales tax paid by, among others, amusement park users. Makes other changes.
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11	11	1 AN ACT concerning local government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Innovation Development and Economy Act is
15	15	5 amended by changing Sections 10, 15, 20, 30, 31, 33, and 45 as
16	16	6 follows:
17	17	7 (50 ILCS 470/10)
18	18	8 Sec. 10. Definitions. As used in this Act, the following
19	19	9 words and phrases shall have the following meanings unless a
20	20	10 different meaning clearly appears from the context:
21	21	11 "Amusement park user" means an owner, operator, licensee,
22	22	12 co-developer, subdeveloper, or tenant that operates a business
23	23	13 within a STAR bond district that has a primary use of providing
24	24	14 a venue for entertainment attractions, rides, or other
25	25	15 activities oriented toward the entertainment and amusement of
26	26	16 its patrons, occupies at least 50 acres of land in the STAR
27	27	17 bond district, and makes an initial capital investment,
28	28	18 including project costs and other direct and indirect costs,
29	29	19 of not less than $150,000,000 for that venue.
30	30	20 "Base year" means the calendar year immediately prior to
31	31	21 the calendar year in which the STAR bond district is
32	32	22 established.
33	33	23 "Commence work" means the manifest commencement of actual
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2470 Introduced 2/7/2025, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Innovation Development and Economy Act. Provides that the corporate authorities of any political subdivision that (i) is not a home-rule unit and (ii) has established a STAR bond district under the Act may, by ordinance or resolution, impose a tourism tax upon all admission and amusement charges from transactions at places of business located within the STAR bond district, at a rate not to exceed 9% of the gross receipts derived from any admission and amusement charge within the STAR bond district, to be imposed only in 0.25% increments. Provides that the tax imposed under the provisions and all civil penalties that may be assessed as an incident of the tax under the provisions shall be collected and enforced by the Department of Revenue. Provides that, for any STAR bond district created on or after January 1, 2025, the Director of Revenue may only approve a STAR bond district if the Director finds that: (i) the proposed STAR bond district is an eligible area; (ii) the STAR bond district plan includes a projected capital investment of at least $500,000,000; (iii) the STAR bond district plan is reasonably projected to produce at least $100,000,000 of annual gross sales revenues, 1,500 new jobs, and 5,000 construction jobs; (iv) the STAR bond district plan includes a statement of how the jobs and taxes will contribute significantly to the economic development of the State and region; (v) the STAR bond district plan shows visitation expectations in excess of 1,000,000 visitors annually; (vi) the STAR bond district plan includes potential destination users and a potential entertainment user; (vii) the creation of the STAR bond district and STAR bond district plan are in accordance with the purpose of the Act and the public interest; and (viii) the STAR bond district and STAR bond district plan meet any other requirement the Director deems appropriate. Provides that, for the purposes of the Act, "local sales tax increment" includes, with respect to local sales taxes administered by the Illinois Department of Revenue, all of the local sales tax paid by, among others, amusement park users. Makes other changes.
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43	43	A BILL FOR
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68	68	1 operations on the development site, such as, erecting a
69	69	2 building, general on-site and off-site grading and utility
70	70	3 installations, commencing design and construction
71	71	4 documentation, ordering lead-time materials, excavating the
72	72	5 ground to lay a foundation or a basement, or work of like
73	73	6 description which a reasonable person would recognize as being
74	74	7 done with the intention and purpose to continue work until the
75	75	8 project is completed.
76	76	9 "County" means the county in which a proposed STAR bond
77	77	10 district is located.
78	78	11 "De minimis" means an amount less than 15% of the land area
79	79	12 within a STAR bond district.
80	80	13 "Department of Revenue" means the Department of Revenue of
81	81	14 the State of Illinois.
82	82	15 "Destination user" means an owner, operator, licensee,
83	83	16 co-developer, subdeveloper, or tenant (i) that operates a
84	84	17 business within a STAR bond district that is a retail store
85	85	18 having at least 100,000 150,000 square feet of sales floor
86	86	19 area; (ii) that at the time of opening does not have another
87	87	20 Illinois location within a 70 mile radius; (iii) that has an
88	88	21 annual average of not less than 30% of customers who travel
89	89	22 from at least 75 miles away or from out-of-state, as
90	90	23 demonstrated by data from a comparable existing store or
91	91	24 stores, or, if there is no comparable existing store, as
92	92	25 demonstrated by an economic analysis that shows that the
93	93	26 proposed retailer will have an annual average of not less than
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104	104	1 30% of customers who travel from at least 75 miles away or from
105	105	2 out-of-state; and (iv) that makes an initial capital
106	106	3 investment, including project costs and other direct costs, of
107	107	4 not less than $30,000,000 for such retail store.
108	108	5 "Destination hotel" means a hotel (as that term is defined
109	109	6 in Section 2 of the Hotel Operators' Occupation Tax Act)
110	110	7 complex having at least 150 guest rooms and which also
111	111	8 includes a venue for entertainment attractions, rides, or
112	112	9 other activities oriented toward the entertainment and
113	113	10 amusement of its guests and other patrons.
114	114	11 "Developer" means any individual, corporation, trust,
115	115	12 estate, partnership, limited liability partnership, limited
116	116	13 liability company, or other entity. The term does not include
117	117	14 a not-for-profit entity, political subdivision, or other
118	118	15 agency or instrumentality of the State.
119	119	16 "Director" means the Director of Revenue, who shall
120	120	17 consult with the Director of Commerce and Economic Opportunity
121	121	18 in any approvals or decisions required by the Director under
122	122	19 this Act.
123	123	20 "Economic impact study" means a study conducted by an
124	124	21 independent economist to project the financial benefit of the
125	125	22 proposed STAR bond project to the local, regional, and State
126	126	23 economies, consider the proposed adverse impacts on similar
127	127	24 projects and businesses, as well as municipalities within the
128	128	25 projected market area, and draw conclusions about the net
129	129	26 effect of the proposed STAR bond project on the local,
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140	140	1 regional, and State economies. A copy of the economic impact
141	141	2 study shall be provided to the Director for review.
142	142	3 "Eligible area" means:
143	143	4 (1) for any STAR bond district created prior to
144	144	5 January 1, 2025, any improved or vacant area that (i) is
145	145	6 contiguous and is not, in the aggregate, less than 250
146	146	7 acres nor more than 500 acres which must include only
147	147	8 parcels of real property directly and substantially
148	148	9 benefited by the proposed STAR bond district plan, (ii) is
149	149	10 adjacent to a federal interstate highway, (iii) is within
150	150	11 one mile of 2 State highways, (iv) is within one mile of an
151	151	12 entertainment user, or a major or minor league sports
152	152	13 stadium or other similar entertainment venue that had an
153	153	14 initial capital investment of at least $20,000,000, and
154	154	15 (v) includes land that was previously surface or strip
155	155	16 mined, and (vi) meets the additional requirements set
156	156	17 forth in Section 3.
157	157	18 (2) for any STAR bond district created on or after
158	158	19 January 1, 2025, any improved or vacant area that (i) is
159	159	20 contiguous and is not, in the aggregate, less than 500
160	160	21 acres nor more than 900 acres, which must include only
161	161	22 parcels of real property directly and substantially
162	162	23 benefited by the proposed STAR bond district plan; (ii) is
163	163	24 at least 90% undeveloped; (iii) is within 20 miles of
164	164	25 another state; (iv) is located in a county that has a
165	165	26 population of less than 300,000; (v) has a population base
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176	176	1 of less than 250,000 within a 10 mile radius and at least
177	177	2 15,000 people unemployed within a 30 min drive time, which
178	178	3 must be demonstrated by using an industry standard
179	179	4 demographic program, such as Environmental Systems
180	180	5 Research Institute (ESRI), Claritas, or other industry
181	181	6 standard program; and (vi) meets the additional
182	182	7 requirements set forth in Section 3.
183	183	8 Eligible areas The area may be bisected by streets,
184	184	9 highways, roads, alleys, railways, bike paths, streams,
185	185	10 rivers, and other waterways and still be deemed
186	186	11 contiguous. In addition, in order to constitute an
187	187	12 eligible area one of the following requirements must be
188	188	13 satisfied and all of which are subject to the review and
189	189	14 approval of the Director as provided in subsection (d) or
190	190	15 (d-5) of Section 15:
191	191	16 (a) the governing body of the political subdivision
192	192	17 shall have determined that the area meets the requirements
193	193	18 of a "blighted area" as defined under the Tax Increment
194	194	19 Allocation Redevelopment Act; or
195	195	20 (b) the governing body of the political subdivision
196	196	21 shall have determined that the area is a blighted area as
197	197	22 determined under the provisions of Section 11-74.3-5 of
198	198	23 the Illinois Municipal Code; or
199	199	24 (c) the governing body of the political subdivision
200	200	25 shall make the following findings:
201	201	26 (i) that the vacant portions of the area have
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212	212	1 remained vacant for at least one year, or that any
213	213	2 building located on a vacant portion of the property
214	214	3 was demolished within the last year and that the
215	215	4 building would have qualified under item (ii) of this
216	216	5 subsection;
217	217	6 (ii) if portions of the area are currently
218	218	7 developed, that the use, condition, and character of
219	219	8 the buildings on the property are not consistent with
220	220	9 the purposes set forth in Section 5;
221	221	10 (iii) that the STAR bond district is expected to
222	222	11 create or retain job opportunities within the
223	223	12 political subdivision;
224	224	13 (iv) that the STAR bond district will serve to
225	225	14 further the development of adjacent areas;
226	226	15 (v) that without the availability of STAR bonds,
227	227	16 the projects described in the STAR bond district plan
228	228	17 would not be possible;
229	229	18 (vi) that the master developer meets high
230	230	19 standards of creditworthiness and financial strength
231	231	20 as demonstrated by one or more of the following: (i)
232	232	21 corporate debenture ratings of BBB or higher by
233	233	22 Standard & Poor's Corporation or Baa or higher by
234	234	23 Moody's Investors Service, Inc.; (ii) a letter from a
235	235	24 financial institution with assets of $10,000,000 or
236	236	25 more attesting to the financial strength of the master
237	237	26 developer; or (iii) specific evidence of equity
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248	248	1 financing for not less than 10% of the estimated total
249	249	2 STAR bond project costs;
250	250	3 (vii) that the STAR bond district will strengthen
251	251	4 the commercial sector of the political subdivision;
252	252	5 (viii) that the STAR bond district will enhance
253	253	6 the tax base of the political subdivision; and
254	254	7 (ix) that the formation of a STAR bond district is
255	255	8 in the best interest of the political subdivision.
256	256	9 "Entertainment user" means an owner, operator, licensee,
257	257	10 co-developer, subdeveloper, or tenant that operates a business
258	258	11 within a STAR bond district that has a primary use of providing
259	259	12 a venue for entertainment attractions, rides, or other
260	260	13 activities oriented toward the entertainment and amusement of
261	261	14 its patrons, occupies at least 20 acres of land in the STAR
262	262	15 bond district, and makes an initial capital investment,
263	263	16 including project costs and other direct and indirect costs,
264	264	17 of not less than $25,000,000 for that venue.
265	265	18 "Feasibility study" means a feasibility study as defined
266	266	19 in subsection (b) of Section 20.
267	267	20 "Infrastructure" means the public improvements and private
268	268	21 improvements that serve the public purposes set forth in
269	269	22 Section 5 of this Act and that benefit the STAR bond district
270	270	23 or any STAR bond projects, including, but not limited to,
271	271	24 streets, drives and driveways, traffic and directional signs
272	272	25 and signals, parking lots and parking facilities,
273	273	26 interchanges, highways, sidewalks, bridges, underpasses and
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284	284	1 overpasses, bike and walking trails, sanitary storm sewers and
285	285	2 lift stations, drainage conduits, channels, levees, canals,
286	286	3 storm water detention and retention facilities, utilities and
287	287	4 utility connections, water mains and extensions, and street
288	288	5 and parking lot lighting and connections.
289	289	6 "Local sales taxes" means any locally-imposed taxes
290	290	7 received by a municipality, county, or other local
291	291	8 governmental entity arising from sales by retailers and
292	292	9 servicemen within a STAR bond district, including business
293	293	10 district sales taxes and STAR bond occupation taxes, and that
294	294	11 portion of the net revenue realized under the Retailers'
295	295	12 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act,
296	296	13 and the Service Occupation Tax Act from transactions at places
297	297	14 of business located within a STAR bond district, including
298	298	15 that portion of the net revenue that would have been realized
299	299	16 but for the reduction of the rate to 0% under this amendatory
300	300	17 Act of the 102nd General Assembly, that is deposited or, under
301	301	18 this amendatory Act of the 102nd General Assembly, transferred
302	302	19 into the Local Government Tax Fund and the County and Mass
303	303	20 Transit District Fund. For the purpose of this Act, "local
304	304	21 sales taxes" does not include (i) any taxes authorized
305	305	22 pursuant to the Local Mass Transit District Act or the
306	306	23 Metro-East Park and Recreation District Act for so long as the
307	307	24 applicable taxing district does not impose a tax on real
308	308	25 property, (ii) county school facility and resources occupation
309	309	26 taxes imposed pursuant to Section 5-1006.7 of the Counties
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320	320	1 Code, or (iii) any taxes authorized under the Flood Prevention
321	321	2 District Act.
322	322	3 "Local sales tax increment" means, except as otherwise
323	323	4 provided in this Section, with respect to local sales taxes
324	324	5 administered by the Illinois Department of Revenue, (i) all of
325	325	6 the local sales tax paid (plus all of the local sales tax that
326	326	7 would have been paid but for the reduction of the rate to 0%
327	327	8 under this amendatory Act of the 102nd General Assembly) by
328	328	9 destination users, destination hotels, amusement park users,
329	329	10 and entertainment users that is in excess of the local sales
330	330	11 tax paid (plus all of the local sales tax that would have been
331	331	12 paid but for the reduction of the rate to 0% under this
332	332	13 amendatory Act of the 102nd General Assembly) by destination
333	333	14 users, destination hotels, amusement park users, and
334	334	15 entertainment users for the same month in the base year, as
335	335	16 determined by the Illinois Department of Revenue, (ii) in the
336	336	17 case of a municipality forming a STAR bond district that is
337	337	18 wholly within the corporate boundaries of the municipality and
338	338	19 in the case of a municipality and county forming a STAR bond
339	339	20 district that is only partially within such municipality, that
340	340	21 portion of the local sales tax paid (plus the local sales tax
341	341	22 that would have been paid but for the reduction of the rate to
342	342	23 0% under this amendatory Act of the 102nd General Assembly) by
343	343	24 taxpayers that are not destination users, destination hotels,
344	344	25 amusement park users, or entertainment users that is in excess
345	345	26 of the local sales tax paid (plus the local sales tax that
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356	356	1 would have been paid but for the reduction of the rate to 0%
357	357	2 under this amendatory Act of the 102nd General Assembly) by
358	358	3 taxpayers that are not destination users, destination hotels,
359	359	4 amusement park users, or entertainment users for the same
360	360	5 month in the base year, as determined by the Illinois
361	361	6 Department of Revenue, and (iii) in the case of a county in
362	362	7 which a STAR bond district is formed that is wholly within a
363	363	8 municipality, that portion of the local sales tax paid by
364	364	9 taxpayers that are not destination users, destination hotels,
365	365	10 amusement park users, or entertainment users that is in excess
366	366	11 of the local sales tax paid by taxpayers that are not
367	367	12 destination users, destination hotels, amusement park users,
368	368	13 or entertainment users for the same month in the base year, as
369	369	14 determined by the Illinois Department of Revenue, but only if
370	370	15 the corporate authorities of the county adopts an ordinance,
371	371	16 and files a copy with the Department within the same time
372	372	17 frames as required for STAR bond occupation taxes under
373	373	18 Section 31, that designates the taxes referenced in this
374	374	19 clause (iii) as part of the local sales tax increment under
375	375	20 this Act. "Local sales tax increment" means, with respect to
376	376	21 local sales taxes administered by a municipality, county, or
377	377	22 other unit of local government, that portion of the local
378	378	23 sales tax that is in excess of the local sales tax for the same
379	379	24 month in the base year, as determined by the respective
380	380	25 municipality, county, or other unit of local government. If
381	381	26 any portion of local sales taxes are, at the time of formation
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391	391	SB2470 - 11 - LRB104 09390 RTM 19449 b
392	392	1 of a STAR bond district, already subject to tax increment
393	393	2 financing under the Tax Increment Allocation Redevelopment
394	394	3 Act, then the local sales tax increment for such portion shall
395	395	4 be frozen at the base year established in accordance with this
396	396	5 Act, and all future incremental increases shall be included in
397	397	6 the "local sales tax increment" under this Act. Any party
398	398	7 otherwise entitled to receipt of incremental local sales tax
399	399	8 revenues through an existing tax increment financing district
400	400	9 shall be entitled to continue to receive such revenues up to
401	401	10 the amount frozen in the base year. Nothing in this Act shall
402	402	11 affect the prior qualification of existing redevelopment
403	403	12 project costs incurred that are eligible for reimbursement
404	404	13 under the Tax Increment Allocation Redevelopment Act. In such
405	405	14 event, prior to approving a STAR bond district, the political
406	406	15 subdivision forming the STAR bond district shall take such
407	407	16 action as is necessary, including amending the existing tax
408	408	17 increment financing district redevelopment plan, to carry out
409	409	18 the provisions of this Act. The Illinois Department of Revenue
410	410	19 shall allocate the local sales tax increment only if the local
411	411	20 sales tax is administered by the Department. "Local sales tax
412	412	21 increment" does not include taxes and penalties collected on
413	413	22 aviation fuel, as defined in Section 3 of the Retailers'
414	414	23 Occupation Tax, sold on or after December 1, 2019 and through
415	415	24 December 31, 2020.
416	416	25 "Market study" means a study to determine the ability of
417	417	26 the proposed STAR bond project to gain market share locally
418	418
419	419
420	420
421	421
422	422
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424	424
425	425
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427	427	SB2470 - 12 - LRB104 09390 RTM 19449 b
428	428	1 and regionally and to remain profitable past the term of
429	429	2 repayment of STAR bonds.
430	430	3 "Master developer" means a developer cooperating with a
431	431	4 political subdivision to plan, develop, and implement a STAR
432	432	5 bond project plan for a STAR bond district. Subject to the
433	433	6 limitations of Section 25, the master developer may work with
434	434	7 and transfer certain development rights to other developers
435	435	8 for the purpose of implementing STAR bond project plans and
436	436	9 achieving the purposes of this Act. A master developer for a
437	437	10 STAR bond district shall be appointed by a political
438	438	11 subdivision in the resolution establishing the STAR bond
439	439	12 district, and the master developer must, at the time of
440	440	13 appointment, own or have control of, through purchase
441	441	14 agreements, option contracts, or other means, not less than
442	442	15 50% of the acreage within the STAR bond district and the master
443	443	16 developer or its affiliate must have ownership or control at
444	444	17 the time the STAR bond district plan is submitted to the
445	445	18 Department on June 1, 2010.
446	446	19 "Master development agreement" means an agreement between
447	447	20 the master developer and the political subdivision to govern a
448	448	21 STAR bond district and any STAR bond projects.
449	449	22 "Municipality" means the city, village, or incorporated
450	450	23 town in which a proposed STAR bond district is located.
451	451	24 "Pledged STAR revenues" means those sales tax and revenues
452	452	25 and other sources of funds pledged to pay debt service on STAR
453	453	26 bonds or to pay project costs pursuant to Section 30.
454	454
455	455
456	456
457	457
458	458
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460	460
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463	463	SB2470 - 13 - LRB104 09390 RTM 19449 b
464	464	1 Notwithstanding any provision to the contrary, the following
465	465	2 revenues shall not constitute pledged STAR revenues or be
466	466	3 available to pay principal and interest on STAR bonds: any
467	467	4 State sales tax increment or local sales tax increment from a
468	468	5 retail entity initiating operations in a STAR bond district
469	469	6 while terminating operations at another Illinois location
470	470	7 within 25 miles of the STAR bond district. For purposes of this
471	471	8 paragraph, "terminating operations" means a closing of a
472	472	9 retail operation that is directly related to the opening of
473	473	10 the same operation or like retail entity owned or operated by
474	474	11 more than 50% of the original ownership in a STAR bond district
475	475	12 within one year before or after initiating operations in the
476	476	13 STAR bond district, but it does not mean closing an operation
477	477	14 for reasons beyond the control of the retail entity, as
478	478	15 documented by the retail entity, subject to a reasonable
479	479	16 finding by the municipality (or county if such retail
480	480	17 operation is not located within a municipality) in which the
481	481	18 terminated operations were located that the closed location
482	482	19 contained inadequate space, had become economically obsolete,
483	483	20 or was no longer a viable location for the retailer or
484	484	21 serviceman.
485	485	22 "Political subdivision" means a municipality or county
486	486	23 which undertakes to establish a STAR bond district pursuant to
487	487	24 the provisions of this Act.
488	488	25 "Project costs" means and includes the sum total of all
489	489	26 costs incurred or estimated to be incurred on or following the
490	490
491	491
492	492
493	493
494	494
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496	496
497	497
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499	499	SB2470 - 14 - LRB104 09390 RTM 19449 b
500	500	1 date of establishment of a STAR bond district that are
501	501	2 reasonable or necessary to implement a STAR bond district plan
502	502	3 or any STAR bond project plans, or both, including costs
503	503	4 incurred for public improvements and private improvements that
504	504	5 serve the public purposes set forth in Section 5 of this Act.
505	505	6 Such costs include without limitation the following:
506	506	7 (a) costs of studies, surveys, development of plans
507	507	8 and specifications, formation, implementation, and
508	508	9 administration of a STAR bond district, STAR bond district
509	509	10 plan, any STAR bond projects, or any STAR bond project
510	510	11 plans, including, but not limited to, staff and
511	511	12 professional service costs for architectural, engineering,
512	512	13 legal, financial, planning, or other services, provided
513	513	14 however that no charges for professional services may be
514	514	15 based on a percentage of the tax increment collected and
515	515	16 no contracts for professional services, excluding
516	516	17 architectural and engineering services, may be entered
517	517	18 into if the terms of the contract extend beyond a period of
518	518	19 3 years;
519	519	20 (b) property assembly costs, including, but not
520	520	21 limited to, acquisition of land and other real property or
521	521	22 rights or interests therein, located within the boundaries
522	522	23 of a STAR bond district, demolition of buildings, site
523	523	24 preparation, site improvements that serve as an engineered
524	524	25 barrier addressing ground level or below ground
525	525	26 environmental contamination, including, but not limited
526	526
527	527
528	528
529	529
530	530
531	531	SB2470 - 14 - LRB104 09390 RTM 19449 b
532	532
533	533
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535	535	SB2470 - 15 - LRB104 09390 RTM 19449 b
536	536	1 to, parking lots and other concrete or asphalt barriers,
537	537	2 the clearing and grading of land, and importing additional
538	538	3 soil and fill materials, or removal of soil and fill
539	539	4 materials from the site;
540	540	5 (c) subject to paragraph (d), costs of buildings and
541	541	6 other vertical improvements that are located within the
542	542	7 boundaries of a STAR bond district and owned by a
543	543	8 political subdivision or other public entity, including
544	544	9 without limitation police and fire stations, educational
545	545	10 facilities, and public restrooms and rest areas;
546	546	11 (c-1) costs of buildings and other vertical
547	547	12 improvements that are located within the boundaries of a
548	548	13 STAR bond district; and owned by a destination user or
549	549	14 destination hotel; except that only 2 destination users in
550	550	15 a STAR bond district and one destination hotel are
551	551	16 eligible to include the cost of those vertical
552	552	17 improvements as project costs;
553	553	18 (c-5) costs of buildings; rides and attractions, which
554	554	19 include carousels, slides, roller coasters, displays,
555	555	20 models, towers, works of art, any mechanical or electrical
556	556	21 device that carries or conveys passengers along, around,
557	557	22 or over a fixed or restricted route or course, go-kart
558	558	23 tracks and equipment, zip lines, and similar theme and
559	559	24 amusement park type improvements; and other vertical
560	560	25 improvements that are located within the boundaries of a
561	561	26 STAR bond district and owned by an entertainment user;
562	562
563	563
564	564
565	565
566	566
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568	568
569	569
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571	571	SB2470 - 16 - LRB104 09390 RTM 19449 b
572	572	1 except that only one entertainment user in a STAR bond
573	573	2 district is eligible to include the cost of those vertical
574	574	3 improvements as project costs;
575	575	4 (d) costs of the design and construction of
576	576	5 infrastructure and public works located within the
577	577	6 boundaries of a STAR bond district that are reasonable or
578	578	7 necessary to implement a STAR bond district plan or any
579	579	8 STAR bond project plans, or both, except that project
580	580	9 costs shall not include the cost of constructing a new
581	581	10 municipal public building principally used to provide
582	582	11 offices, storage space, or conference facilities or
583	583	12 vehicle storage, maintenance, or repair for
584	584	13 administrative, public safety, or public works personnel
585	585	14 and that is not intended to replace an existing public
586	586	15 building unless the political subdivision makes a
587	587	16 reasonable determination in a STAR bond district plan or
588	588	17 any STAR bond project plans, supported by information that
589	589	18 provides the basis for that determination, that the new
590	590	19 municipal building is required to meet an increase in the
591	591	20 need for public safety purposes anticipated to result from
592	592	21 the implementation of the STAR bond district plan or any
593	593	22 STAR bond project plans;
594	594	23 (e) costs of the design and construction of the
595	595	24 following improvements located outside the boundaries of a
596	596	25 STAR bond district, provided that the costs are essential
597	597	26 to further the purpose and development of a STAR bond
598	598
599	599
600	600
601	601
602	602
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604	604
605	605
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607	607	SB2470 - 17 - LRB104 09390 RTM 19449 b
608	608	1 district plan and either (i) part of and connected to
609	609	2 sewer, water, or utility service lines that physically
610	610	3 connect to the STAR bond district or (ii) significant
611	611	4 improvements for adjacent offsite highways, streets,
612	612	5 roadways, and interchanges that are approved by the
613	613	6 Illinois Department of Transportation. No other cost of
614	614	7 infrastructure and public works improvements located
615	615	8 outside the boundaries of a STAR bond district may be
616	616	9 deemed project costs;
617	617	10 (f) costs of job training and retraining projects,
618	618	11 including the cost of "welfare to work" programs
619	619	12 implemented by businesses located within a STAR bond
620	620	13 district;
621	621	14 (g) financing costs, including, but not limited to,
622	622	15 all necessary and incidental expenses related to the
623	623	16 issuance of obligations and which may include payment of
624	624	17 interest on any obligations issued hereunder including
625	625	18 interest accruing during the estimated period of
626	626	19 construction of any improvements in a STAR bond district
627	627	20 or any STAR bond projects for which such obligations are
628	628	21 issued and for not exceeding 36 months thereafter and
629	629	22 including reasonable reserves related thereto;
630	630	23 (h) to the extent the political subdivision by written
631	631	24 agreement accepts and approves the same, all or a portion
632	632	25 of a taxing district's capital costs resulting from a STAR
633	633	26 bond district or STAR bond projects necessarily incurred
634	634
635	635
636	636
637	637
638	638
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640	640
641	641
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643	643	SB2470 - 18 - LRB104 09390 RTM 19449 b
644	644	1 or to be incurred within a taxing district in furtherance
645	645	2 of the objectives of a STAR bond district plan or STAR bond
646	646	3 project plans;
647	647	4 (i) interest cost incurred by a developer for project
648	648	5 costs related to the acquisition, formation,
649	649	6 implementation, development, construction, and
650	650	7 administration of a STAR bond district, STAR bond district
651	651	8 plan, STAR bond projects, or any STAR bond project plans
652	652	9 provided that:
653	653	10 (i) payment of such costs in any one year may not
654	654	11 exceed 30% of the annual interest costs incurred by
655	655	12 the developer with regard to the STAR bond district or
656	656	13 any STAR bond projects during that year; and
657	657	14 (ii) the total of such interest payments paid
658	658	15 pursuant to this Act may not exceed 30% of the total
659	659	16 cost paid or incurred by the developer for a STAR bond
660	660	17 district or STAR bond projects, plus project costs,
661	661	18 excluding any property assembly costs incurred by a
662	662	19 political subdivision pursuant to this Act;
663	663	20 (j) costs of common areas located within the
664	664	21 boundaries of a STAR bond district;
665	665	22 (k) costs of landscaping and plantings, retaining
666	666	23 walls and fences, man-made lakes and ponds, shelters,
667	667	24 benches, lighting, and similar amenities located within
668	668	25 the boundaries of a STAR bond district;
669	669	26 (l) costs of mounted building signs, site monument,
670	670
671	671
672	672
673	673
674	674
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676	676
677	677
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679	679	SB2470 - 19 - LRB104 09390 RTM 19449 b
680	680	1 and pylon signs located within the boundaries of a STAR
681	681	2 bond district; or
682	682	3 (m) if included in the STAR bond district plan and
683	683	4 approved in writing by the Director, salaries or a portion
684	684	5 of salaries for local government employees to the extent
685	685	6 the same are directly attributable to the work of such
686	686	7 employees on the establishment and management of a STAR
687	687	8 bond district or any STAR bond projects.
688	688	9 Except as specified in items (a) through (m), "project
689	689	10 costs" shall not include:
690	690	11 (i) (blank) the cost of construction of buildings that
691	691	12 are privately owned or owned by a municipality and leased
692	692	13 to a developer or retail user for non-entertainment retail
693	693	14 uses;
694	694	15 (ii) moving expenses for employees of the businesses
695	695	16 locating within the STAR bond district;
696	696	17 (iii) property taxes for property located in the STAR
697	697	18 bond district;
698	698	19 (iv) lobbying costs; and
699	699	20 (v) general overhead or administrative costs of the
700	700	21 political subdivision that would still have been incurred
701	701	22 by the political subdivision if the political subdivision
702	702	23 had not established a STAR bond district.
703	703	24 "Project development agreement" means any one or more
704	704	25 agreements, including any amendments thereto, between a master
705	705	26 developer and any co-developer or subdeveloper in connection
706	706
707	707
708	708
709	709
710	710
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712	712
713	713
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715	715	SB2470 - 20 - LRB104 09390 RTM 19449 b
716	716	1 with a STAR bond project, which project development agreement
717	717	2 may include the political subdivision as a party.
718	718	3 "Projected market area" means any area within the State in
719	719	4 which a STAR bond district or STAR bond project is projected to
720	720	5 have a significant fiscal or market impact as determined by
721	721	6 the Director.
722	722	7 "Resolution" means a resolution, order, ordinance, or
723	723	8 other appropriate form of legislative action of a political
724	724	9 subdivision or other applicable public entity approved by a
725	725	10 vote of a majority of a quorum at a meeting of the governing
726	726	11 body of the political subdivision or applicable public entity.
727	727	12 "STAR bond" means a sales tax and revenue bond, note, or
728	728	13 other obligation payable from pledged STAR revenues and issued
729	729	14 by a political subdivision, the proceeds of which shall be
730	730	15 used only to pay project costs as defined in this Act.
731	731	16 "STAR bond district" means the specific area declared to
732	732	17 be an eligible area as determined by the political
733	733	18 subdivision, and approved by the Director, in which the
734	734	19 political subdivision may develop one or more STAR bond
735	735	20 projects.
736	736	21 "STAR bond district plan" means the preliminary or
737	737	22 conceptual plan that generally identifies the proposed STAR
738	738	23 bond project areas and identifies in a general manner the
739	739	24 buildings, facilities, and improvements to be constructed or
740	740	25 improved in each STAR bond project area.
741	741	26 "STAR bond project" means a project within a STAR bond
742	742
743	743
744	744
745	745
746	746
747	747	SB2470 - 20 - LRB104 09390 RTM 19449 b
748	748
749	749
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751	751	SB2470 - 21 - LRB104 09390 RTM 19449 b
752	752	1 district which is approved pursuant to Section 20.
753	753	2 "STAR bond project area" means the geographic area within
754	754	3 a STAR bond district in which there may be one or more STAR
755	755	4 bond projects.
756	756	5 "STAR bond project plan" means the written plan adopted by
757	757	6 a political subdivision for the development of a STAR bond
758	758	7 project in a STAR bond district; the plan may include, but is
759	759	8 not limited to, (i) project costs incurred prior to the date of
760	760	9 the STAR bond project plan and estimated future STAR bond
761	761	10 project costs, (ii) proposed sources of funds to pay those
762	762	11 costs, (iii) the nature and estimated term of any obligations
763	763	12 to be issued by the political subdivision to pay those costs,
764	764	13 (iv) the most recent equalized assessed valuation of the STAR
765	765	14 bond project area, (v) an estimate of the equalized assessed
766	766	15 valuation of the STAR bond district or applicable project area
767	767	16 after completion of a STAR bond project, (vi) a general
768	768	17 description of the types of any known or proposed developers,
769	769	18 users, or tenants of the STAR bond project or projects
770	770	19 included in the plan, (vii) a general description of the type,
771	771	20 structure, and character of the property or facilities to be
772	772	21 developed or improved, (viii) a description of the general
773	773	22 land uses to apply to the STAR bond project, and (ix) a general
774	774	23 description or an estimate of the type, class, and number of
775	775	24 employees to be employed in the operation of the STAR bond
776	776	25 project.
777	777	26 "State sales tax" means all of the net revenue realized
778	778
779	779
780	780
781	781
782	782
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784	784
785	785
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787	787	SB2470 - 22 - LRB104 09390 RTM 19449 b
788	788	1 under the Retailers' Occupation Tax Act, the Use Tax Act, the
789	789	2 Service Use Tax Act, and the Service Occupation Tax Act from
790	790	3 transactions at places of business located within a STAR bond
791	791	4 district, excluding that portion of the net revenue realized
792	792	5 under the Retailers' Occupation Tax Act, the Use Tax Act, the
793	793	6 Service Use Tax Act, and the Service Occupation Tax Act from
794	794	7 transactions at places of business located within a STAR bond
795	795	8 district that is deposited into the Local Government Tax Fund
796	796	9 and the County and Mass Transit District Fund.
797	797	10 "State sales tax increment" means (i) 100% of that portion
798	798	11 of the State sales tax that is in excess of the State sales tax
799	799	12 for the same month in the base year, as determined by the
800	800	13 Department of Revenue, from transactions at up to 2
801	801	14 destination users, one destination hotel, and one
802	802	15 entertainment user, and one amusement park user located within
803	803	16 a STAR bond district, which destination users, destination
804	804	17 hotel, and entertainment user, and amusement park user shall
805	805	18 be designated by the master developer and approved by the
806	806	19 political subdivision and the Director in conjunction with the
807	807	20 applicable STAR bond project approval, and (ii) 90% 25% of
808	808	21 that portion of the State sales tax that is in excess of the
809	809	22 State sales tax for the same month in the base year, as
810	810	23 determined by the Department of Revenue, from all other
811	811	24 transactions within a STAR bond district. If any portion of
812	812	25 State sales taxes are, at the time of formation of a STAR bond
813	813	26 district, already subject to tax increment financing under the
814	814
815	815
816	816
817	817
818	818
819	819	SB2470 - 22 - LRB104 09390 RTM 19449 b
820	820
821	821
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823	823	SB2470 - 23 - LRB104 09390 RTM 19449 b
824	824	1 Tax Increment Allocation Redevelopment Act, then the State
825	825	2 sales tax increment for such portion shall be frozen at the
826	826	3 base year established in accordance with this Act, and all
827	827	4 future incremental increases shall be included in the State
828	828	5 sales tax increment under this Act. Any party otherwise
829	829	6 entitled to receipt of incremental State sales tax revenues
830	830	7 through an existing tax increment financing district shall be
831	831	8 entitled to continue to receive such revenues up to the amount
832	832	9 frozen in the base year. Nothing in this Act shall affect the
833	833	10 prior qualification of existing redevelopment project costs
834	834	11 incurred that are eligible for reimbursement under the Tax
835	835	12 Increment Allocation Redevelopment Act. In such event, prior
836	836	13 to approving a STAR bond district, the political subdivision
837	837	14 forming the STAR bond district shall take such action as is
838	838	15 necessary, including amending the existing tax increment
839	839	16 financing district redevelopment plan, to carry out the
840	840	17 provisions of this Act.
841	841	18 "Substantial change" means a change wherein the proposed
842	842	19 STAR bond project plan differs substantially in size, scope,
843	843	20 or use from the approved STAR bond district plan or STAR bond
844	844	21 project plan.
845	845	22 "Taxpayer" means an individual, partnership, corporation,
846	846	23 limited liability company, trust, estate, or other entity that
847	847	24 is subject to the Illinois Income Tax Act.
848	848	25 "Total development costs" means the aggregate public and
849	849	26 private investment in a STAR bond district, including project
850	850
851	851
852	852
853	853
854	854
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856	856
857	857
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859	859	SB2470 - 24 - LRB104 09390 RTM 19449 b
860	860	1 costs and other direct and indirect costs related to the
861	861	2 development of the STAR bond district.
862	862	3 "Traditional retail use" means the operation of a business
863	863	4 that derives at least 90% of its annual gross revenue from
864	864	5 sales at retail, as that phrase is defined by Section 1 of the
865	865	6 Retailers' Occupation Tax Act, but does not include the
866	866	7 operations of destination users, entertainment users,
867	867	8 restaurants, hotels, retail uses within hotels, or any other
868	868	9 non-retail uses.
869	869	10 "Vacant" means that portion of the land in a proposed STAR
870	870	11 bond district that is not occupied by a building, facility, or
871	871	12 other vertical improvement.
872	872	13 (Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
873	873	14 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
874	874	15 (50 ILCS 470/15)
875	875	16 Sec. 15. Establishment of STAR bond district. The
876	876	17 governing body of a municipality may establish a STAR bond
877	877	18 district within an eligible area within the municipality or
878	878	19 partially outside the boundaries of the municipality in an
879	879	20 unincorporated area of the county. A STAR bond district which
880	880	21 is partially outside the boundaries of the municipality must
881	881	22 also be approved by the governing body of the county by the
882	882	23 passage of a resolution. The governing body of a county may
883	883	24 establish a STAR bond district in an eligible area in any
884	884	25 unincorporated area of the county.
885	885
886	886
887	887
888	888
889	889
890	890	SB2470 - 24 - LRB104 09390 RTM 19449 b
891	891
892	892
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894	894	SB2470 - 25 - LRB104 09390 RTM 19449 b
895	895	1 (a) When a political subdivision proposes to establish a
896	896	2 STAR bond district, the political subdivision shall adopt a
897	897	3 resolution stating that the political subdivision is
898	898	4 considering the establishment of a STAR bond district. The
899	899	5 resolution shall:
900	900	6 (1) give notice, in the same manner as set forth in
901	901	7 item (2) of subsection (e) of Section 20, that a public
902	902	8 hearing will be held to consider the establishment of a
903	903	9 STAR bond district and fix the date, hour, and place of the
904	904	10 public hearing, which shall be at a location that is
905	905	11 within 20 miles of the STAR bond district, in a facility
906	906	12 that can accommodate a large crowd, and in a facility that
907	907	13 is accessible to persons with disabilities;
908	908	14 (2) describe the proposed general boundaries of the
909	909	15 STAR bond district;
910	910	16 (3) describe the STAR bond district plan;
911	911	17 (4) require that a description and map of the proposed
912	912	18 STAR bond district are available for inspection at a time
913	913	19 and place designated;
914	914	20 (5) identify the master developer for the STAR bond
915	915	21 district; and
916	916	22 (6) require that the governing body consider findings
917	917	23 necessary for the establishment of a STAR bond district.
918	918	24 (b) Upon the conclusion of the public hearing the
919	919	25 governing body of the political subdivision may consider a
920	920	26 resolution to establish the STAR bond district.
921	921
922	922
923	923
924	924
925	925
926	926	SB2470 - 25 - LRB104 09390 RTM 19449 b
927	927
928	928
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930	930	SB2470 - 26 - LRB104 09390 RTM 19449 b
931	931	1 (1) A resolution to establish a STAR bond district
932	932	2 shall:
933	933	3 (A) make findings that the proposed STAR bond
934	934	4 district is to be developed with one or more STAR bond
935	935	5 projects;
936	936	6 (B) make findings that the STAR bond district is
937	937	7 an eligible area;
938	938	8 (C) contain a STAR bond district plan that
939	939	9 identifies in a general manner the buildings and
940	940	10 facilities that are proposed to be constructed or
941	941	11 improved in subsequent STAR bond projects and that
942	942	12 includes plans for at least one destination user;
943	943	13 (D) contain the legal description of the STAR bond
944	944	14 district;
945	945	15 (E) appoint the master developer for the STAR bond
946	946	16 district; and
947	947	17 (F) establish the STAR bonds district, contingent
948	948	18 upon approval of the Director as set forth in
949	949	19 subsection (d) or (d-5).
950	950	20 (2) If the resolution is not adopted by the political
951	951	21 subdivision within 60 days from the conclusion of the
952	952	22 public hearing, then the STAR bond district shall not be
953	953	23 established.
954	954	24 (3) Upon adoption of a resolution establishing a STAR
955	955	25 bond district, the political subdivision shall send a
956	956	26 certified copy of such resolution to the Department of
957	957
958	958
959	959
960	960
961	961
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963	963
964	964
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966	966	SB2470 - 27 - LRB104 09390 RTM 19449 b
967	967	1 Revenue.
968	968	2 (c) Upon the establishment of a STAR bond district, the
969	969	3 STAR bond district and any STAR bond projects shall be
970	970	4 governed by a master development agreement between the
971	971	5 political subdivision and the master developer. A STAR bond
972	972	6 district that is partially outside the boundaries of a
973	973	7 municipality shall only require one master development
974	974	8 agreement; the agreement shall be between the municipality and
975	975	9 the master developer. In no event shall there be more than one
976	976	10 master development agreement governing the terms and
977	977	11 conditions of a STAR bond district. The master development
978	978	12 agreement shall require the master developer to ensure
979	979	13 compliance with the following requirements to reduce the
980	980	14 ecological impact of the STAR bond district development: (i)
981	981	15 inclusion of pollution prevention, erosion, and sedimentation
982	982	16 control plans during construction; (ii) protection of
983	983	17 endangered species' habitat and wetlands mitigation; (iii)
984	984	18 preservation of at least 20% of the STAR bond district as green
985	985	19 space, including lawns, parks, landscaped areas, paths, lakes,
986	986	20 ponds, and other water features; (iv) promotion of the use of
987	987	21 renewable energy to the extent commercially feasible; (v)
988	988	22 promotion of access to mass transit and bicycle
989	989	23 transportation; (vi) implementation of recycling programs
990	990	24 during construction and at completed STAR bond projects; (vii)
991	991	25 preservation of water quality and promotion of water
992	992	26 conservation through the use of techniques such as reusing
993	993
994	994
995	995
996	996
997	997
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999	999
1000	1000
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1002	1002	SB2470 - 28 - LRB104 09390 RTM 19449 b
1003	1003	1 storm water and landscaping with native and low-maintenance
1004	1004	2 vegetation to reduce the need for irrigation and
1005	1005	3 fertilization; (viii) inclusion of comprehensive lighting
1006	1006	4 programs that reduce light pollution within the STAR bond
1007	1007	5 district; and (ix) promotion of shared parking between
1008	1008	6 different users to reduce the impact on project sites.
1009	1009	7 (d) For any STAR bond district created prior to January 1,
1010	1010	8 2025, upon Upon adoption of the resolution to establish a STAR
1011	1011	9 bond district, the political subdivision shall submit the
1012	1012	10 proposed STAR bond district to the Director for consideration.
1013	1013	11 The Director may only approve a STAR bond district if the
1014	1014	12 Director finds that: (i) the proposed STAR bond district is an
1015	1015	13 eligible area, (ii) the STAR bond district plan includes a
1016	1016	14 projected capital investment of at least $100,000,000, (iii)
1017	1017	15 the STAR bond district plan is reasonably projected to produce
1018	1018	16 at least $100,000,000 of annual gross sales revenues and 500
1019	1019	17 new jobs, (iv) the STAR bond district plan includes potential
1020	1020	18 destination users and a potential entertainment user, (v) the
1021	1021	19 creation of the STAR bond district and STAR bond district plan
1022	1022	20 are in accordance with the purpose of this Act and the public
1023	1023	21 interest, and (vi) the STAR bond district and STAR bond
1024	1024	22 district plan meet any other requirement that the Director
1025	1025	23 deems appropriate. If a proposed STAR bond district meets all
1026	1026	24 of the foregoing criteria, the Director shall not unreasonably
1027	1027	25 withhold its approval of the proposed STAR bond district. The
1028	1028	26 Director may only approve one STAR bond district within any
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034	SB2470 - 28 - LRB104 09390 RTM 19449 b
1035	1035
1036	1036
1037	1037	SB2470- 29 -LRB104 09390 RTM 19449 b SB2470 - 29 - LRB104 09390 RTM 19449 b
1038	1038	SB2470 - 29 - LRB104 09390 RTM 19449 b
1039	1039	1 projected market area. However, the Director may approve
1040	1040	2 additional STAR bond districts in a single projected market
1041	1041	3 area provided that the Director finds that the additional STAR
1042	1042	4 bond district will not thwart the purposes of this Act. The
1043	1043	5 Director shall promptly send a copy of its written findings
1044	1044	6 and approval or denial of a STAR bond district to the
1045	1045	7 requesting political subdivision.
1046	1046	8 (d-5) For any STAR bond district created on or after
1047	1047	9 January 1, 2025, upon adoption of the resolution to establish
1048	1048	10 a STAR bond district, the political subdivision shall submit
1049	1049	11 the proposed STAR bond district to the Director for
1050	1050	12 consideration. The Director may only approve a STAR bond
1051	1051	13 district if the Director finds that: (i) the proposed STAR
1052	1052	14 bond district is an eligible area; (ii) the STAR bond district
1053	1053	15 plan includes a projected capital investment of at least
1054	1054	16 $500,000,000; (iii) the STAR bond district plan is reasonably
1055	1055	17 projected to produce at least $100,000,000 of annual gross
1056	1056	18 sales revenues, 1,500 new jobs, and 5,000 construction jobs;
1057	1057	19 (iv) the STAR bond district plan includes a statement of how
1058	1058	20 the jobs and taxes will contribute significantly to the
1059	1059	21 economic development of the State and region; (v) the STAR
1060	1060	22 bond district plan shows visitation expectations in excess of
1061	1061	23 1,000,000 visitors annually; (vi) the STAR bond district plan
1062	1062	24 includes potential destination users and a potential
1063	1063	25 entertainment user; (vii) the creation of the STAR bond
1064	1064	26 district and STAR bond district plan are in accordance with
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070	SB2470 - 29 - LRB104 09390 RTM 19449 b
1071	1071
1072	1072
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1074	1074	SB2470 - 30 - LRB104 09390 RTM 19449 b
1075	1075	1 the purpose of this Act and the public interest; and (viii) the
1076	1076	2 STAR bond district and STAR bond district plan meet any other
1077	1077	3 requirement the Director deems appropriate. If a proposed STAR
1078	1078	4 bond district meets all of the criteria required under this
1079	1079	5 subsection, then the Director shall not unreasonably withhold
1080	1080	6 its approval of the proposed STAR bond district. The Director
1081	1081	7 may only approve one STAR bond district within any projected
1082	1082	8 market area. However, the Director may approve additional STAR
1083	1083	9 bond districts in a single projected market area provided that
1084	1084	10 the Director finds that the additional STAR bond district will
1085	1085	11 not thwart the purposes of this Act. The Director shall
1086	1086	12 promptly send a copy of its written findings and approval or
1087	1087	13 denial of a STAR bond district to the requesting political
1088	1088	14 subdivision.
1089	1089	15 (e) Starting on the fifth anniversary of the first date of
1090	1090	16 distribution of State sales tax revenues from the first STAR
1091	1091	17 bond project in the STAR bond district and continuing each
1092	1092	18 anniversary thereafter, the Director shall, in consultation
1093	1093	19 with the political subdivision and the master developer,
1094	1094	20 determine the total number of new jobs created within the STAR
1095	1095	21 bond district, the total development cost to date, and the
1096	1096	22 master developer's compliance with its obligations under any
1097	1097	23 written agreements with the State. If, on the fifth
1098	1098	24 anniversary of the first date of distribution of State sales
1099	1099	25 tax revenues from the first STAR bond project in the STAR bond
1100	1100	26 district, the Director determines that the total development
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105
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1107	1107
1108	1108
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1110	1110	SB2470 - 31 - LRB104 09390 RTM 19449 b
1111	1111	1 cost to date is not equal to or greater than $100,000,000, or
1112	1112	2 that the master developer is in breach of any written
1113	1113	3 agreement with the State, then no new STAR bonds may be issued
1114	1114	4 in the STAR bond district until the total development cost
1115	1115	5 exceeds $100,000,000 or the breach of agreement is cured, or
1116	1116	6 both. If, on the fifth anniversary of the first date of
1117	1117	7 distribution of State sales tax revenues from the first STAR
1118	1118	8 bond project in the STAR bond district, there are not at least
1119	1119	9 500 jobs existing in the STAR bond district, the State may
1120	1120	10 require the master developer to pay the State a penalty of
1121	1121	11 $1,500 per job under 500 each year until the earlier of (i) the
1122	1122	12 twenty-third anniversary of the first date of distribution of
1123	1123	13 State sales tax revenues from the first STAR bond project in
1124	1124	14 the STAR bond district, (ii) the date that all STAR bonds
1125	1125	15 issued in the STAR bond district have been paid off, or (iii)
1126	1126	16 the date that at least 500 jobs have been created in the STAR
1127	1127	17 bond district. Upon creation of 500 jobs in the STAR bond
1128	1128	18 district, there shall not be an ongoing obligation to maintain
1129	1129	19 those jobs after the fifth anniversary of the first date of
1130	1130	20 distribution of State sales tax revenues from the first STAR
1131	1131	21 bond project in the STAR bond district, and the master
1132	1132	22 developer shall be relieved of any liability with respect to
1133	1133	23 job creation under this subsection. Notwithstanding anything
1134	1134	24 to the contrary in this subsection, the master developer shall
1135	1135	25 not be liable for the penalties set forth under this
1136	1136	26 subsection if the breach of agreement, failure to reach at
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142	SB2470 - 31 - LRB104 09390 RTM 19449 b
1143	1143
1144	1144
1145	1145	SB2470- 32 -LRB104 09390 RTM 19449 b SB2470 - 32 - LRB104 09390 RTM 19449 b
1146	1146	SB2470 - 32 - LRB104 09390 RTM 19449 b
1147	1147	1 least $100,000,000 in total development costs, or failure to
1148	1148	2 create 500 jobs is due to delays caused by force majeure, as
1149	1149	3 that term shall be defined in the master development
1150	1150	4 agreement.
1151	1151	5 (Source: P.A. 96-939, eff. 6-24-10.)
1152	1152	6 (50 ILCS 470/20)
1153	1153	7 Sec. 20. Approval of STAR bond projects. The governing
1154	1154	8 body of a political subdivision may establish one or more STAR
1155	1155	9 bond projects in any STAR bond district. A STAR bond project
1156	1156	10 which is partially outside the boundaries of a municipality
1157	1157	11 must also be approved by the governing body of the county by
1158	1158	12 resolution.
1159	1159	13 (a) After the establishment of a STAR bond district, the
1160	1160	14 master developer may propose one or more STAR bond projects to
1161	1161	15 a political subdivision and the master developer shall, in
1162	1162	16 cooperation with the political subdivision, prepare a STAR
1163	1163	17 bond project plan in consultation with the planning commission
1164	1164	18 of the political subdivision, if any. The STAR bond project
1165	1165	19 plan may be implemented in separate development stages.
1166	1166	20 (b) Any political subdivision considering a STAR bond
1167	1167	21 project within a STAR bond district shall notify the
1168	1168	22 Department, which shall cause to be prepared an independent
1169	1169	23 feasibility study by a feasibility consultant with certified
1170	1170	24 copies provided to the political subdivision, the Director,
1171	1171	25 and the Department of Commerce and Economic Opportunity. The
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176
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1178	1178
1179	1179
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1181	1181	SB2470 - 33 - LRB104 09390 RTM 19449 b
1182	1182	1 feasibility study shall include the following:
1183	1183	2 (1) the estimated amount of pledged STAR revenues
1184	1184	3 expected to be collected in each year through the maturity
1185	1185	4 date of the proposed STAR bonds;
1186	1186	5 (2) a statement of how the jobs and taxes obtained
1187	1187	6 from the STAR bond project will contribute significantly
1188	1188	7 to the economic development of the State and region;
1189	1189	8 (3) visitation expectations;
1190	1190	9 (4) the unique quality of the project;
1191	1191	10 (5) an economic impact study;
1192	1192	11 (6) a market study;
1193	1193	12 (7) integration and collaboration with other resources
1194	1194	13 or businesses;
1195	1195	14 (8) the quality of service and experience provided, as
1196	1196	15 measured against national consumer standards for the
1197	1197	16 specific target market;
1198	1198	17 (9) project accountability, measured according to best
1199	1199	18 industry practices;
1200	1200	19 (10) the expected return on State and local investment
1201	1201	20 that the STAR bond project is anticipated to produce; and
1202	1202	21 (11) an anticipated principal and interest payment
1203	1203	22 schedule on the STAR bonds.
1204	1204	23 The feasibility consultant, along with the independent
1205	1205	24 economist and any other consultants commissioned to perform
1206	1206	25 the studies and other analysis required by the feasibility
1207	1207	26 study, shall be selected by the political subdivision, and
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212
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1214	1214
1215	1215
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1217	1217	SB2470 - 34 - LRB104 09390 RTM 19449 b
1218	1218	1 approved by the Director with the approval of the political
1219	1219	2 subdivision. The consultants shall be retained by the
1220	1220	3 political subdivision and the cost of the consultants shall be
1221	1221	4 paid Director and the Department shall be reimbursed by the
1222	1222	5 master developer for the costs to retain the consultants.
1223	1223	6 The failure to include all information enumerated in this
1224	1224	7 subsection in the feasibility study for a STAR bond project
1225	1225	8 shall not affect the validity of STAR bonds issued pursuant to
1226	1226	9 this Act.
1227	1227	10 (c) If the political subdivision determines the STAR bond
1228	1228	11 project is feasible, the STAR bond project plan shall include:
1229	1229	12 (1) a summary of the feasibility study;
1230	1230	13 (2) a reference to the STAR bond district plan that
1231	1231	14 identifies the STAR bond project area that is set forth in
1232	1232	15 the STAR bond project plan that is being considered;
1233	1233	16 (3) a legal description and map of the STAR bond
1234	1234	17 project area to be developed or redeveloped;
1235	1235	18 (4) a description of the buildings and facilities
1236	1236	19 proposed to be constructed or improved in such STAR bond
1237	1237	20 project area, including at least one of the following (i)
1238	1238	21 a destination user, (ii) an amusement park user, (iii) a
1239	1239	22 destination hotel, or (iv) users and an entertainment
1240	1240	23 user, as applicable;
1241	1241	24 (5) a copy of letters of intent to locate within the
1242	1242	25 STAR bond district signed by both the master developer and
1243	1243	26 the appropriate corporate officer of at least one
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248
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1250	1250
1251	1251
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1253	1253	SB2470 - 35 - LRB104 09390 RTM 19449 b
1254	1254	1 destination user, one amusement park user, one destination
1255	1255	2 hotel, or one entertainment user for the first STAR bond
1256	1256	3 project proposed within the district; and
1257	1257	4 (6) any other information the governing body of the
1258	1258	5 political subdivision deems reasonable and necessary to
1259	1259	6 advise the public of the intent of the STAR bond project
1260	1260	7 plan.
1261	1261	8 (d) Before a political subdivision may hold a public
1262	1262	9 hearing to consider a STAR bond project plan, the political
1263	1263	10 subdivision must apply to the Department for approval of the
1264	1264	11 STAR bond project plan. An application for approval of a STAR
1265	1265	12 bond project plan must not be approved unless all of the
1266	1266	13 components of the feasibility study set forth in items (1)
1267	1267	14 through (11) of subsection (b) have been completed and
1268	1268	15 submitted to the Department for review. In addition to
1269	1269	16 reviewing all of the other elements of the STAR bond project
1270	1270	17 plan required under subsection (c), which must be included in
1271	1271	18 the application (which plan must include a letter or letters
1272	1272	19 of intent as required under subdivision (c)(5) in order to
1273	1273	20 receive Director approval), the Director must review the
1274	1274	21 feasibility study and consider all of the components of the
1275	1275	22 feasibility study set forth in items (1) through (11) of
1276	1276	23 subsection (b) of Section 20, including without limitation the
1277	1277	24 economic impact study and the financial benefit of the
1278	1278	25 proposed STAR bond project to the local, regional, and State
1279	1279	26 economies, the proposed adverse impacts on similar businesses
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285	SB2470 - 35 - LRB104 09390 RTM 19449 b
1286	1286
1287	1287
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1289	1289	SB2470 - 36 - LRB104 09390 RTM 19449 b
1290	1290	1 and projects as well as municipalities within the market area,
1291	1291	2 and the net effect of the proposed STAR bond project on the
1292	1292	3 local, regional, and State economies. In addition to the
1293	1293	4 economic impact study, the political subdivision must also
1294	1294	5 submit to the Department, as part of its application, the
1295	1295	6 financial and other information that substantiates the basis
1296	1296	7 for the conclusion of the economic impact study, in the form
1297	1297	8 and manner as required by the Department, so that the
1298	1298	9 Department can verify the results of the study. In addition to
1299	1299	10 any other criteria in this subsection, to approve the first
1300	1300	11 STAR bond project plan, the Director must be satisfied that
1301	1301	12 the proposed destination user, amusement park user,
1302	1302	13 destination hotel, or entertainment user is in fact a true
1303	1303	14 destination user, amusement park user, destination hotel, or
1304	1304	15 entertainment user and also find that the STAR bond project
1305	1305	16 plan is in accordance with the purpose of this Act and the
1306	1306	17 public interest. The Director shall either approve or deny the
1307	1307	18 STAR bond project plan based on the criteria in this
1308	1308	19 subsection. In granting its approval, the Department may
1309	1309	20 require the political subdivision to execute a binding
1310	1310	21 agreement or memorandum of understanding with the State. The
1311	1311	22 terms of the agreement or memorandum may include, among other
1312	1312	23 things, the political subdivision's repayment of the State
1313	1313	24 sales tax increment distributed to it should any violation of
1314	1314	25 the agreement or memorandum or this Act occur.
1315	1315	26 (e) Upon a finding by the planning and zoning commission
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320
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1322	1322
1323	1323
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1325	1325	SB2470 - 37 - LRB104 09390 RTM 19449 b
1326	1326	1 of the political subdivision that the STAR bond project plan
1327	1327	2 is consistent with the intent of the comprehensive plan for
1328	1328	3 the development of the political subdivision and upon issuance
1329	1329	4 of written approval of the STAR bond project plan from the
1330	1330	5 Director pursuant to subsection (d) of Section 20, the
1331	1331	6 governing body of the political subdivision shall adopt a
1332	1332	7 resolution stating that the political subdivision is
1333	1333	8 considering the adoption of the STAR bond project plan. The
1334	1334	9 resolution shall:
1335	1335	10 (1) give notice that a public hearing will be held to
1336	1336	11 consider the adoption of the STAR bond project plan and
1337	1337	12 fix the date, hour, and place of the public hearing;
1338	1338	13 (2) describe the general boundaries of the STAR bond
1339	1339	14 district within which the STAR bond project will be
1340	1340	15 located and the date of establishment of the STAR bond
1341	1341	16 district;
1342	1342	17 (3) describe the general boundaries of the area
1343	1343	18 proposed to be included within the STAR bond project area;
1344	1344	19 (4) provide that the STAR bond project plan and map of
1345	1345	20 the area to be redeveloped or developed are available for
1346	1346	21 inspection during regular office hours in the offices of
1347	1347	22 the political subdivision; and
1348	1348	23 (5) contain a summary of the terms and conditions of
1349	1349	24 any proposed project development agreement with the
1350	1350	25 political subdivision.
1351	1351	26 (f) A public hearing shall be conducted to consider the
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357	SB2470 - 37 - LRB104 09390 RTM 19449 b
1358	1358
1359	1359
1360	1360	SB2470- 38 -LRB104 09390 RTM 19449 b SB2470 - 38 - LRB104 09390 RTM 19449 b
1361	1361	SB2470 - 38 - LRB104 09390 RTM 19449 b
1362	1362	1 adoption of any STAR bond project plan.
1363	1363	2 (1) The date fixed for the public hearing to consider
1364	1364	3 the adoption of the STAR bond project plan shall be not
1365	1365	4 less than 20 nor more than 90 days following the date of
1366	1366	5 the adoption of the resolution fixing the date of the
1367	1367	6 hearing.
1368	1368	7 (2) A copy of the political subdivision's resolution
1369	1369	8 providing for the public hearing shall be sent by
1370	1370	9 certified mail, return receipt requested, to the governing
1371	1371	10 body of the county. A copy of the political subdivision's
1372	1372	11 resolution providing for the public hearing shall be sent
1373	1373	12 by certified mail, return receipt requested, to each
1374	1374	13 person or persons in whose name the general taxes for the
1375	1375	14 last preceding year were paid on each parcel of land lying
1376	1376	15 within the proposed STAR bond project area within 10 days
1377	1377	16 following the date of the adoption of the resolution. The
1378	1378	17 resolution shall be published once in a newspaper of
1379	1379	18 general circulation in the political subdivision not less
1380	1380	19 than one week nor more than 3 weeks preceding the date
1381	1381	20 fixed for the public hearing. A map or aerial photo
1382	1382	21 clearly delineating the area of land proposed to be
1383	1383	22 included within the STAR bond project area shall be
1384	1384	23 published with the resolution.
1385	1385	24 (3) The hearing shall be held at a location that is
1386	1386	25 within 20 miles of the STAR bond district, in a facility
1387	1387	26 that can accommodate a large crowd, and in a facility that
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393	SB2470 - 38 - LRB104 09390 RTM 19449 b
1394	1394
1395	1395
1396	1396	SB2470- 39 -LRB104 09390 RTM 19449 b SB2470 - 39 - LRB104 09390 RTM 19449 b
1397	1397	SB2470 - 39 - LRB104 09390 RTM 19449 b
1398	1398	1 is accessible to persons with disabilities.
1399	1399	2 (4) At the public hearing, a representative of the
1400	1400	3 political subdivision or master developer shall present
1401	1401	4 the STAR bond project plan. Following the presentation of
1402	1402	5 the STAR bond project plan, all interested persons shall
1403	1403	6 be given an opportunity to be heard. The governing body
1404	1404	7 may continue the date and time of the public hearing.
1405	1405	8 (g) Upon conclusion of the public hearing, the governing
1406	1406	9 body of the political subdivision may adopt the STAR bond
1407	1407	10 project plan by a resolution approving the STAR bond project
1408	1408	11 plan.
1409	1409	12 (h) After the adoption by the corporate authorities of the
1410	1410	13 political subdivision of a STAR bond project plan, the
1411	1411	14 political subdivision may enter into a project development
1412	1412	15 agreement if the master developer has requested the political
1413	1413	16 subdivision to be a party to the project development agreement
1414	1414	17 pursuant to subsection (b) of Section 25.
1415	1415	18 (i) Within 30 days after the adoption by the political
1416	1416	19 subdivision of a STAR bond project plan, the clerk of the
1417	1417	20 political subdivision shall transmit a copy of the legal
1418	1418	21 description of the land and a list of all new and existing
1419	1419	22 mailing addresses within the STAR bond district, a copy of the
1420	1420	23 resolution adopting the STAR bond project plan, and a map or
1421	1421	24 plat indicating the boundaries of the STAR bond project area
1422	1422	25 to the clerk, treasurer, and governing body of the county and
1423	1423	26 to the Department of Revenue. Within 30 days of creation of any
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429	SB2470 - 39 - LRB104 09390 RTM 19449 b
1430	1430
1431	1431
1432	1432	SB2470- 40 -LRB104 09390 RTM 19449 b SB2470 - 40 - LRB104 09390 RTM 19449 b
1433	1433	SB2470 - 40 - LRB104 09390 RTM 19449 b
1434	1434	1 new mailing addresses within a STAR bond district, the clerk
1435	1435	2 of the political subdivision shall provide written notice of
1436	1436	3 such new addresses to the Department of Revenue.
1437	1437	4 If a certified copy of the resolution adopting the STAR
1438	1438	5 bond project plan is filed with the Department on or before the
1439	1439	6 first day of April, the Department, if all other requirements
1440	1440	7 of this subsection are met, shall proceed to collect and
1441	1441	8 allocate any local sales tax increment and any State sales tax
1442	1442	9 increment in accordance with the provisions of this Act as of
1443	1443	10 the first day of July next following the adoption and filing.
1444	1444	11 If a certified copy of the resolution adopting the STAR bond
1445	1445	12 project plan is filed with the Department after April 1 but on
1446	1446	13 or before the first day of October, the Department, if all
1447	1447	14 other requirements of this subsection are met, shall proceed
1448	1448	15 to collect and allocate any local sales tax increment and any
1449	1449	16 State sales tax increment in accordance with the provisions of
1450	1450	17 this Act as of the first day of January next following the
1451	1451	18 adoption and filing.
1452	1452	19 Any substantial changes to a STAR bond project plan as
1453	1453	20 adopted shall be subject to a public hearing following
1454	1454	21 publication of notice thereof in a newspaper of general
1455	1455	22 circulation in the political subdivision and approval by
1456	1456	23 resolution of the governing body of the political subdivision.
1457	1457	24 The Department of Revenue shall not collect or allocate
1458	1458	25 any local sales tax increment or State sales tax increment
1459	1459	26 until the political subdivision also provides, in the manner
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465	SB2470 - 40 - LRB104 09390 RTM 19449 b
1466	1466
1467	1467
1468	1468	SB2470- 41 -LRB104 09390 RTM 19449 b SB2470 - 41 - LRB104 09390 RTM 19449 b
1469	1469	SB2470 - 41 - LRB104 09390 RTM 19449 b
1470	1470	1 prescribed by the Department, the boundaries of the STAR bond
1471	1471	2 project area and each address in the STAR bond project area in
1472	1472	3 such a way that the Department can determine by its address
1473	1473	4 whether a business is located in the STAR bond project area.
1474	1474	5 The political subdivision must provide this boundary and
1475	1475	6 address information to the Department on or before April 1 for
1476	1476	7 administration and enforcement under this Act by the
1477	1477	8 Department beginning on the following July 1 and on or before
1478	1478	9 October 1 for administration and enforcement under this Act by
1479	1479	10 the Department beginning on the following January 1. The
1480	1480	11 Department of Revenue shall not administer or enforce any
1481	1481	12 change made to the boundaries of a STAR bond project or any
1482	1482	13 address change, addition, or deletion until the political
1483	1483	14 subdivision reports the boundary change or address change,
1484	1484	15 addition, or deletion to the Department in the manner
1485	1485	16 prescribed by the Department. The political subdivision must
1486	1486	17 provide this boundary change or address change, addition, or
1487	1487	18 deletion information to the Department on or before April 1
1488	1488	19 for administration and enforcement by the Department of the
1489	1489	20 change, addition, or deletion beginning on the following July
1490	1490	21 1 and on or before October 1 for administration and
1491	1491	22 enforcement by the Department of the change, addition, or
1492	1492	23 deletion beginning on the following January 1. If a retailer
1493	1493	24 is incorrectly included or excluded from the list of those
1494	1494	25 located in the STAR bond project, the Department of Revenue
1495	1495	26 shall be held harmless if it reasonably relied on information
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501	SB2470 - 41 - LRB104 09390 RTM 19449 b
1502	1502
1503	1503
1504	1504	SB2470- 42 -LRB104 09390 RTM 19449 b SB2470 - 42 - LRB104 09390 RTM 19449 b
1505	1505	SB2470 - 42 - LRB104 09390 RTM 19449 b
1506	1506	1 provided by the political subdivision.
1507	1507	2 (j) Any STAR bond project must be approved by the
1508	1508	3 political subdivision prior to that date which is 23 years
1509	1509	4 from the date of the approval of the STAR bond district,
1510	1510	5 provided however that any amendments to such STAR bond project
1511	1511	6 may occur following such date.
1512	1512	7 (k) Any developer of a STAR bond project shall commence
1513	1513	8 work on the STAR bond project within 3 years from the date of
1514	1514	9 adoption of the STAR bond project plan. If the developer fails
1515	1515	10 to commence work on the STAR bond project within the 3-year
1516	1516	11 period, funding for the project shall cease and the developer
1517	1517	12 of the project or complex shall have one year to appeal to the
1518	1518	13 political subdivision for reapproval of the project and
1519	1519	14 funding. If the project is reapproved, the 3-year period for
1520	1520	15 commencement shall begin again on the date of the reapproval.
1521	1521	16 (l) After the adoption by the corporate authorities of the
1522	1522	17 political subdivision of a STAR bond project plan and approval
1523	1523	18 of the Director pursuant to subsection (d) of Section 20, the
1524	1524	19 political subdivision may authorize the issuance of the STAR
1525	1525	20 bonds in one or more series to finance the STAR bond project,
1526	1526	21 or pay or reimburse any eligible project cost within the STAR
1527	1527	22 bond district, in accordance with the provisions of this Act.
1528	1528	23 (m) The maximum maturity of STAR bonds issued to finance a
1529	1529	24 STAR bond project shall not exceed 23 years from the first date
1530	1530	25 of distribution of State sales tax revenues from such STAR
1531	1531	26 bond project to the political subdivision unless the political
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537	SB2470 - 42 - LRB104 09390 RTM 19449 b
1538	1538
1539	1539
1540	1540	SB2470- 43 -LRB104 09390 RTM 19449 b SB2470 - 43 - LRB104 09390 RTM 19449 b
1541	1541	SB2470 - 43 - LRB104 09390 RTM 19449 b
1542	1542	1 subdivision extends such maturity by resolution up to a
1543	1543	2 maximum of 35 years from such first distribution date. Any
1544	1544	3 such extension shall require the approval of the Director. In
1545	1545	4 no event shall the maximum maturity date for any STAR bonds
1546	1546	5 exceed that date which is 35 years from the first distribution
1547	1547	6 date of the first STAR bonds issued in a STAR bond district.
1548	1548	7 (Source: P.A. 103-8, eff. 6-7-23.)
1549	1549	8 (50 ILCS 470/30)
1550	1550	9 Sec. 30. STAR bonds; source of payment. Any political
1551	1551	10 subdivision shall have the power to issue STAR bonds in one or
1552	1552	11 more series to finance the undertaking of any STAR bond
1553	1553	12 project in accordance with the provisions of this Act and the
1554	1554	13 Omnibus Bond Acts. STAR bonds may be issued as revenue bonds,
1555	1555	14 alternate bonds, or general obligation bonds as defined in and
1556	1556	15 subject to the procedures provided in the Local Government
1557	1557	16 Debt Reform Act.
1558	1558	17 (a) STAR bonds may be made payable, both as to principal
1559	1559	18 and interest, from the following revenues, which to the extent
1560	1560	19 pledged by each respective political subdivision or other
1561	1561	20 public entity for such purpose shall constitute pledged STAR
1562	1562	21 revenues:
1563	1563	22 (1) revenues of the political subdivision derived from
1564	1564	23 or held in connection with the undertaking and carrying
1565	1565	24 out of any STAR bond project or projects under this Act;
1566	1566	25 (2) available private funds and contributions, grants,
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	SB2470 - 43 - LRB104 09390 RTM 19449 b
1573	1573
1574	1574
1575	1575	SB2470- 44 -LRB104 09390 RTM 19449 b SB2470 - 44 - LRB104 09390 RTM 19449 b
1576	1576	SB2470 - 44 - LRB104 09390 RTM 19449 b
1577	1577	1 tax credits, or other financial assistance from the State
1578	1578	2 or federal government;
1579	1579	3 (3) any STAR bond occupation taxes created pursuant to
1580	1580	4 Section 31 and designated as pledged STAR revenues by the
1581	1581	5 political subdivision;
1582	1582	6 (4) all of the local sales tax increment of a
1583	1583	7 municipality, county, or other unit of local government;
1584	1584	8 (5) any special service area taxes collected within
1585	1585	9 the STAR bond district under the Special Service Area Tax
1586	1586	10 Act, may be used for the purposes of funding project costs
1587	1587	11 or paying debt service on STAR bonds in addition to the
1588	1588	12 purposes contained in the special service area plan;
1589	1589	13 (6) all of the State sales tax increment;
1590	1590	14 (7) any other revenues appropriated by the political
1591	1591	15 subdivision; and
1592	1592	16 (8) any combination of these methods.
1593	1593	17 (b) The political subdivision may pledge the pledged STAR
1594	1594	18 revenues to the repayment of STAR bonds prior to,
1595	1595	19 simultaneously with, or subsequent to the issuance of the STAR
1596	1596	20 bonds.
1597	1597	21 (c) Bonds issued as revenue bonds shall not be general
1598	1598	22 obligations of the political subdivision, nor in any event
1599	1599	23 shall they give rise to a charge against its general credit or
1600	1600	24 taxing powers, or be payable out of any funds or properties
1601	1601	25 other than those set forth in subsection (a) and the bonds
1602	1602	26 shall so state on their face.
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	SB2470 - 44 - LRB104 09390 RTM 19449 b
1609	1609
1610	1610
1611	1611	SB2470- 45 -LRB104 09390 RTM 19449 b SB2470 - 45 - LRB104 09390 RTM 19449 b
1612	1612	SB2470 - 45 - LRB104 09390 RTM 19449 b
1613	1613	1 (d) For each STAR bond project financed with STAR bonds
1614	1614	2 payable from the pledged STAR revenues, the political
1615	1615	3 subdivision shall prepare and submit to the Department of
1616	1616	4 Revenue by June 1 of each year a report describing the status
1617	1617	5 of the STAR bond project, any expenditures of the proceeds of
1618	1618	6 STAR bonds that have occurred for the preceding calendar year,
1619	1619	7 and any expenditures of the proceeds of the bonds expected to
1620	1620	8 occur in the future, including the amount of pledged STAR
1621	1621	9 revenue, the amount of revenue that has been spent, the
1622	1622	10 projected amount of the revenue, and the anticipated use of
1623	1623	11 the revenue. Each annual report shall be accompanied by an
1624	1624	12 affidavit of the master developer certifying the contents of
1625	1625	13 the report as true to the best of the master developer's
1626	1626	14 knowledge. The Department of Revenue shall have the right, but
1627	1627	15 not the obligation, to request the Illinois Auditor General to
1628	1628	16 review the annual report and the political subdivision's
1629	1629	17 records containing the source information for the report for
1630	1630	18 the purpose of verifying the report's contents. If the
1631	1631	19 Illinois Auditor General declines the request for review, the
1632	1632	20 Department of Revenue shall have the right to select an
1633	1633	21 independent third-party auditor to conduct an audit of the
1634	1634	22 annual report and the political subdivision's records
1635	1635	23 containing the source information for the report. The
1636	1636	24 reasonable cost of the audit shall be paid by the master
1637	1637	25 developer. The master development agreement shall grant the
1638	1638	26 Department of Revenue and the Illinois Auditor General the
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	SB2470 - 45 - LRB104 09390 RTM 19449 b
1645	1645
1646	1646
1647	1647	SB2470- 46 -LRB104 09390 RTM 19449 b SB2470 - 46 - LRB104 09390 RTM 19449 b
1648	1648	SB2470 - 46 - LRB104 09390 RTM 19449 b
1649	1649	1 right to review the records of the political subdivision
1650	1650	2 containing the source information for the report.
1651	1651	3 (e) There is created in the State treasury a special fund
1652	1652	4 to be known as the STAR Bonds Revenue Fund. As soon as possible
1653	1653	5 after the first day of each month, beginning January 1, 2011,
1654	1654	6 upon certification of the Department of Revenue, the
1655	1655	7 Comptroller shall order transferred, and the Treasurer shall
1656	1656	8 transfer, from the General Revenue Fund to the STAR Bonds
1657	1657	9 Revenue Fund the State sales tax increment for the second
1658	1658	10 preceding month, less 3% of that amount, which shall be
1659	1659	11 transferred into the Tax Compliance and Administration Fund
1660	1660	12 and shall be used by the Department, subject to appropriation,
1661	1661	13 to cover the costs of the Department in administering the
1662	1662	14 Innovation Development and Economy Act. As soon as possible
1663	1663	15 after the first day of each month, beginning January 1, 2011,
1664	1664	16 upon certification of the Department of Revenue, the
1665	1665	17 Comptroller shall order transferred, and the Treasurer shall
1666	1666	18 transfer, from the Local Government Tax Fund to the STAR Bonds
1667	1667	19 Revenue Fund the local sales tax increment for the second
1668	1668	20 preceding month, as provided in Section 6z-18 of the State
1669	1669	21 Finance Act and from the County and Mass Transit District Fund
1670	1670	22 to the STAR Bonds Revenue Fund the local sales tax increment
1671	1671	23 for the second preceding month, as provided in Section 6z-20
1672	1672	24 of the State Finance Act.
1673	1673	25 On or before the 25th day of each calendar month,
1674	1674	26 beginning on January 1, 2011, the Department shall prepare and
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	SB2470 - 46 - LRB104 09390 RTM 19449 b
1681	1681
1682	1682
1683	1683	SB2470- 47 -LRB104 09390 RTM 19449 b SB2470 - 47 - LRB104 09390 RTM 19449 b
1684	1684	SB2470 - 47 - LRB104 09390 RTM 19449 b
1685	1685	1 certify to the Comptroller the disbursement of stated sums of
1686	1686	2 money out of the STAR Bonds Revenue Fund to named
1687	1687	3 municipalities and counties, the municipalities and counties
1688	1688	4 to be those entitled to distribution of taxes or penalties
1689	1689	5 paid to the Department during the second preceding calendar
1690	1690	6 month. The amount to be paid to each municipality or county
1691	1691	7 shall be the amount of the State sales tax increment and the
1692	1692	8 local sales tax increment (not including credit memoranda or
1693	1693	9 the amount transferred into the Tax Compliance and
1694	1694	10 Administration Fund) collected during the second preceding
1695	1695	11 calendar month by the Department from retailers and servicemen
1696	1696	12 on transactions at places of business located within a STAR
1697	1697	13 bond district in that municipality or county, plus an amount
1698	1698	14 the Department determines is necessary to offset any amounts
1699	1699	15 which were erroneously paid to a different taxing body, and
1700	1700	16 not including an amount equal to the amount of refunds made
1701	1701	17 during the second preceding calendar month by the Department,
1702	1702	18 and not including any amount which the Department determines
1703	1703	19 is necessary to offset any amounts which are payable to a
1704	1704	20 different taxing body but were erroneously paid to the
1705	1705	21 municipality or county. Within 10 days after receipt, by the
1706	1706	22 Comptroller, of the disbursement certification to the
1707	1707	23 municipalities and counties, provided for in this Section to
1708	1708	24 be given to the Comptroller by the Department, the Comptroller
1709	1709	25 shall cause the orders to be drawn for the respective amounts
1710	1710	26 in accordance with the directions contained in such
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716	SB2470 - 47 - LRB104 09390 RTM 19449 b
1717	1717
1718	1718
1719	1719	SB2470- 48 -LRB104 09390 RTM 19449 b SB2470 - 48 - LRB104 09390 RTM 19449 b
1720	1720	SB2470 - 48 - LRB104 09390 RTM 19449 b
1721	1721	1 certification.
1722	1722	2 When certifying the amount of monthly disbursement to a
1723	1723	3 municipality or county under this subsection, the Department
1724	1724	4 shall increase or decrease that amount by an amount necessary
1725	1725	5 to offset any misallocation of previous disbursements. The
1726	1726	6 offset amount shall be the amount erroneously disbursed within
1727	1727	7 the 6 months preceding the time a misallocation is discovered.
1728	1728	8 The corporate authorities of the political subdivision
1729	1729	9 shall deposit the proceeds for the STAR Bonds Revenue Fund
1730	1730	10 into a special fund of the political subdivision called the
1731	1731	11 "(Name of political subdivision) STAR Bond District Revenue
1732	1732	12 Fund" for the purpose of paying or reimbursing STAR bond
1733	1733	13 project costs and obligations incurred in the payment of those
1734	1734	14 costs.
1735	1735	15 If the political subdivision fails to issue STAR bonds
1736	1736	16 within 180 days after the first distribution to the political
1737	1737	17 subdivision from the STAR Bonds Revenue Fund, the Department
1738	1738	18 of Revenue shall cease distribution of the State sales tax
1739	1739	19 increment to the political subdivision, shall transfer any
1740	1740	20 State sales tax increment in the STAR Bonds Revenue Fund to the
1741	1741	21 General Revenue Fund, and shall cease deposits of State sales
1742	1742	22 tax increment amounts into the STAR Bonds Revenue Fund. The
1743	1743	23 political subdivision shall repay all of the State sales tax
1744	1744	24 increment distributed to the political subdivision to date,
1745	1745	25 which amounts shall be deposited into the General Revenue
1746	1746	26 Fund. If not repaid within 90 days after notice from the State,
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751
1752	1752	SB2470 - 48 - LRB104 09390 RTM 19449 b
1753	1753
1754	1754
1755	1755	SB2470- 49 -LRB104 09390 RTM 19449 b SB2470 - 49 - LRB104 09390 RTM 19449 b
1756	1756	SB2470 - 49 - LRB104 09390 RTM 19449 b
1757	1757	1 the Department of Revenue shall withhold distributions to the
1758	1758	2 political subdivision from the Local Government Tax Fund until
1759	1759	3 the excess amount is repaid, which withheld amounts shall be
1760	1760	4 transferred to the General Revenue Fund. At such time as the
1761	1761	5 political subdivision notifies the Department of Revenue in
1762	1762	6 writing that it has issued STAR Bonds in accordance with this
1763	1763	7 Act and provides the Department with a copy of the political
1764	1764	8 subdivision's official statement, bond purchase agreements,
1765	1765	9 indenture, or other evidence of bond sale, the Department of
1766	1766	10 Revenue shall resume deposits of the State sales tax increment
1767	1767	11 into the STAR Bonds Revenue Fund and distribution of the State
1768	1768	12 sales tax increment to the political subdivision in accordance
1769	1769	13 with this Section.
1770	1770	14 (f) As of the seventh anniversary of the first date of
1771	1771	15 distribution of State sales tax revenues from the first STAR
1772	1772	16 bond project in the STAR bond district, and as of every fifth
1773	1773	17 anniversary thereafter until final maturity of all STAR bonds
1774	1774	18 issued in a STAR bond district, the portion of the aggregate
1775	1775	19 proceeds of STAR bonds issued to date that is derived from the
1776	1776	20 State sales tax increment pledged to pay STAR bonds in any STAR
1777	1777	21 bond district shall not exceed 50% of the total development
1778	1778	22 costs in the STAR bond district to date. The Illinois Auditor
1779	1779	23 General shall make the foregoing determination on said seventh
1780	1780	24 anniversary and every 5 years thereafter until final maturity
1781	1781	25 of all STAR bonds issued in a STAR bond district. If at any
1782	1782	26 time after the seventh anniversary of the first date of
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787
1788	1788	SB2470 - 49 - LRB104 09390 RTM 19449 b
1789	1789
1790	1790
1791	1791	SB2470- 50 -LRB104 09390 RTM 19449 b SB2470 - 50 - LRB104 09390 RTM 19449 b
1792	1792	SB2470 - 50 - LRB104 09390 RTM 19449 b
1793	1793	1 distribution of State sales tax revenues from the first STAR
1794	1794	2 bond project in the STAR bond district the Illinois Auditor
1795	1795	3 General determines that the portion of the aggregate proceeds
1796	1796	4 of STAR bonds issued to date that is derived from the State
1797	1797	5 sales tax increment pledged to pay STAR bonds in any STAR bond
1798	1798	6 district has exceeded 50% of the total development costs in
1799	1799	7 the STAR bond district, no additional STAR bonds may be issued
1800	1800	8 in the STAR bond district until the percentage is reduced to
1801	1801	9 50% or below. When the percentage has been reduced to 50% or
1802	1802	10 below, the master developer shall have the right, at its own
1803	1803	11 cost, to obtain a new audit prepared by an independent
1804	1804	12 third-party auditor verifying compliance and shall provide
1805	1805	13 such audit to the Illinois Auditor General for review and
1806	1806	14 approval. Upon the Illinois Auditor General's determination
1807	1807	15 from the audit that the percentage has been reduced to 50% or
1808	1808	16 below, STAR bonds may again be issued in the STAR bond
1809	1809	17 district.
1810	1810	18 (g) Notwithstanding the provisions of the Tax Increment
1811	1811	19 Allocation Redevelopment Act, if any portion of property taxes
1812	1812	20 attributable to the increase in equalized assessed value
1813	1813	21 within a STAR bond district are, at the time of formation of
1814	1814	22 the STAR bond district, already subject to tax increment
1815	1815	23 financing under the Tax Increment Allocation Redevelopment
1816	1816	24 Act, then the tax increment for such portion shall be frozen at
1817	1817	25 the base year established in accordance with this Act, and all
1818	1818	26 future incremental increases over the base year shall not be
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823
1824	1824	SB2470 - 50 - LRB104 09390 RTM 19449 b
1825	1825
1826	1826
1827	1827	SB2470- 51 -LRB104 09390 RTM 19449 b SB2470 - 51 - LRB104 09390 RTM 19449 b
1828	1828	SB2470 - 51 - LRB104 09390 RTM 19449 b
1829	1829	1 subject to tax increment financing under the Tax Increment
1830	1830	2 Allocation Redevelopment Act. Any party otherwise entitled to
1831	1831	3 receipt of incremental tax revenues through an existing tax
1832	1832	4 increment financing district shall be entitled to continue to
1833	1833	5 receive such revenues up to the amount frozen in the base year.
1834	1834	6 Nothing in this Act shall affect the prior qualification of
1835	1835	7 existing redevelopment project costs incurred that are
1836	1836	8 eligible for reimbursement under the Tax Increment Allocation
1837	1837	9 Redevelopment Act. In such event, prior to approving a STAR
1838	1838	10 bond district, the political subdivision forming the STAR bond
1839	1839	11 district shall take such action as is necessary, including
1840	1840	12 amending the existing tax increment financing district
1841	1841	13 redevelopment plan, to carry out the provisions of this Act.
1842	1842	14 (Source: P.A. 103-8, eff. 6-7-23.)
1843	1843	15 (50 ILCS 470/31)
1844	1844	16 Sec. 31. STAR bond occupation taxes.
1845	1845	17 (a) If the corporate authorities of a political
1846	1846	18 subdivision have established a STAR bond district and have
1847	1847	19 elected to impose a tax by ordinance pursuant to subsection
1848	1848	20 (b), or (c), or (d) of this Section, each year after the date
1849	1849	21 of the adoption of the ordinance and until all STAR bond
1850	1850	22 project costs and all political subdivision obligations
1851	1851	23 financing the STAR bond project costs, if any, have been paid
1852	1852	24 in accordance with the STAR bond project plans, but in no event
1853	1853	25 longer than the maximum maturity date of the last of the STAR
1854	1854
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859	SB2470 - 51 - LRB104 09390 RTM 19449 b
1860	1860
1861	1861
1862	1862	SB2470- 52 -LRB104 09390 RTM 19449 b SB2470 - 52 - LRB104 09390 RTM 19449 b
1863	1863	SB2470 - 52 - LRB104 09390 RTM 19449 b
1864	1864	1 bonds issued for projects in the STAR bond district, all
1865	1865	2 amounts generated by the retailers' occupation tax, and
1866	1866	3 service occupation tax, and tourism tax shall be collected and
1867	1867	4 the tax shall be enforced by the Department of Revenue in the
1868	1868	5 same manner as all retailers' occupation taxes, and service
1869	1869	6 occupation taxes, and tourism taxes imposed in the political
1870	1870	7 subdivision imposing the tax. The corporate authorities of the
1871	1871	8 political subdivision shall deposit the proceeds of the taxes
1872	1872	9 imposed under subsections (b), and (c), and (d) into either
1873	1873	10 (i) a special fund held by the corporate authorities of the
1874	1874	11 political subdivision called the STAR Bonds Tax Allocation
1875	1875	12 Fund for the purpose of paying STAR bond project costs and
1876	1876	13 obligations incurred in the payment of those costs if such
1877	1877	14 taxes are designated as pledged STAR revenues by resolution or
1878	1878	15 ordinance of the political subdivision or (ii) the political
1879	1879	16 subdivision's general corporate fund if such taxes are not
1880	1880	17 designated as pledged STAR revenues by resolution or
1881	1881	18 ordinance.
1882	1882	19 The tax imposed under this Section by a municipality may
1883	1883	20 be imposed only on the portion of a STAR bond district that is
1884	1884	21 within the boundaries of the municipality. For any part of a
1885	1885	22 STAR bond district that lies outside of the boundaries of that
1886	1886	23 municipality, the municipality in which the other part of the
1887	1887	24 STAR bond district lies (or the county, in cases where a
1888	1888	25 portion of the STAR bond district lies in the unincorporated
1889	1889	26 area of a county) is authorized to impose the tax under this
1890	1890
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895	SB2470 - 52 - LRB104 09390 RTM 19449 b
1896	1896
1897	1897
1898	1898	SB2470- 53 -LRB104 09390 RTM 19449 b SB2470 - 53 - LRB104 09390 RTM 19449 b
1899	1899	SB2470 - 53 - LRB104 09390 RTM 19449 b
1900	1900	1 Section on that part of the STAR bond district.
1901	1901	2 (b) The corporate authorities of a political subdivision
1902	1902	3 that has established a STAR bond district under this Act may,
1903	1903	4 by ordinance or resolution, impose a STAR Bond Retailers'
1904	1904	5 Occupation Tax upon all persons engaged in the business of
1905	1905	6 selling tangible personal property, other than an item of
1906	1906	7 tangible personal property titled or registered with an agency
1907	1907	8 of this State's government, at retail in the STAR bond
1908	1908	9 district, or in any STAR bond project area within a STAR bond
1909	1909	10 district, at a rate not to exceed 2% 1% of the gross receipts
1910	1910	11 from the sales made in the course of that business, to be
1911	1911	12 imposed only in 0.25% increments. The tax may not be imposed on
1912	1912	13 tangible personal property taxed at the 1% rate under the
1913	1913	14 Retailers' Occupation Tax Act (or at the 0% rate imposed under
1914	1914	15 this amendatory Act of the 102nd General Assembly). Beginning
1915	1915	16 December 1, 2019 and through December 31, 2020, this tax is not
1916	1916	17 imposed on sales of aviation fuel unless the tax revenue is
1917	1917	18 expended for airport-related purposes. If the District does
1918	1918	19 not have an airport-related purpose to which aviation fuel tax
1919	1919	20 revenue is dedicated, then aviation fuel is excluded from the
1920	1920	21 tax. The municipality must comply with the certification
1921	1921	22 requirements for airport-related purposes under Section 2-22
1922	1922	23 of the Retailers' Occupation Tax Act. For purposes of this
1923	1923	24 Act, "airport-related purposes" has the meaning ascribed in
1924	1924	25 Section 6z-20.2 of the State Finance Act. Beginning January 1,
1925	1925	26 2021, this tax is not imposed on sales of aviation fuel for so
1926	1926
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931	SB2470 - 53 - LRB104 09390 RTM 19449 b
1932	1932
1933	1933
1934	1934	SB2470- 54 -LRB104 09390 RTM 19449 b SB2470 - 54 - LRB104 09390 RTM 19449 b
1935	1935	SB2470 - 54 - LRB104 09390 RTM 19449 b
1936	1936	1 long as the revenue use requirements of 49 U.S.C. 47107(b) and
1937	1937	2 49 U.S.C. 47133 are binding on the District or STAR bond
1938	1938	3 project area.
1939	1939	4 The tax imposed under this subsection and all civil
1940	1940	5 penalties that may be assessed as an incident thereof shall be
1941	1941	6 collected and enforced by the Department of Revenue. The
1942	1942	7 certificate of registration that is issued by the Department
1943	1943	8 to a retailer under the Retailers' Occupation Tax Act shall
1944	1944	9 permit the retailer to engage in a business that is taxable
1945	1945	10 under any ordinance or resolution enacted pursuant to this
1946	1946	11 subsection without registering separately with the Department
1947	1947	12 under such ordinance or resolution or under this subsection.
1948	1948	13 The Department of Revenue shall have full power to administer
1949	1949	14 and enforce this subsection, to collect all taxes and
1950	1950	15 penalties due under this subsection in the manner hereinafter
1951	1951	16 provided, and to determine all rights to credit memoranda
1952	1952	17 arising on account of the erroneous payment of tax or penalty
1953	1953	18 under this subsection. In the administration of, and
1954	1954	19 compliance with, this subsection, the Department and persons
1955	1955	20 who are subject to this subsection shall have the same rights,
1956	1956	21 remedies, privileges, immunities, powers, and duties, and be
1957	1957	22 subject to the same conditions, restrictions, limitations,
1958	1958	23 penalties, exclusions, exemptions, and definitions of terms
1959	1959	24 and employ the same modes of procedure, as are prescribed in
1960	1960	25 Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
1961	1961	26 provisions therein other than the State rate of tax), 2c
1962	1962
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967	SB2470 - 54 - LRB104 09390 RTM 19449 b
1968	1968
1969	1969
1970	1970	SB2470- 55 -LRB104 09390 RTM 19449 b SB2470 - 55 - LRB104 09390 RTM 19449 b
1971	1971	SB2470 - 55 - LRB104 09390 RTM 19449 b
1972	1972	1 through 2h, 3 (except as to the disposition of taxes and
1973	1973	2 penalties collected, and except that the retailer's discount
1974	1974	3 is not allowed for taxes paid on aviation fuel that are subject
1975	1975	4 to the revenue use requirements of 49 U.S.C. 47107(b) and 49
1976	1976	5 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
1977	1977	6 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
1978	1978	7 Retailers' Occupation Tax Act and all provisions of the
1979	1979	8 Uniform Penalty and Interest Act, as fully as if those
1980	1980	9 provisions were set forth herein.
1981	1981	10 If a tax is imposed under this subsection (b), a tax shall
1982	1982	11 also be imposed under subsection (c) of this Section.
1983	1983	12 (c) If a tax has been imposed under subsection (b), a STAR
1984	1984	13 Bond Service Occupation Tax shall also be imposed upon all
1985	1985	14 persons engaged, in the STAR bond district or STAR bond
1986	1986	15 project area within such STAR bond district, in the business
1987	1987	16 of making sales of service, who, as an incident to making those
1988	1988	17 sales of service, transfer tangible personal property within
1989	1989	18 the STAR bond district or STAR bond project area, either in the
1990	1990	19 form of tangible personal property or in the form of real
1991	1991	20 estate as an incident to a sale of service. The tax shall be
1992	1992	21 imposed at the same rate as the tax imposed in subsection (b)
1993	1993	22 and shall not exceed 1% of the selling price of tangible
1994	1994	23 personal property so transferred within the STAR bond
1995	1995	24 district, to be imposed only in 0.25% increments. The tax may
1996	1996	25 not be imposed on tangible personal property taxed at the 2% 1%
1997	1997	26 rate under the Service Occupation Tax Act (or at the 0% rate
1998	1998
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003	SB2470 - 55 - LRB104 09390 RTM 19449 b
2004	2004
2005	2005
2006	2006	SB2470- 56 -LRB104 09390 RTM 19449 b SB2470 - 56 - LRB104 09390 RTM 19449 b
2007	2007	SB2470 - 56 - LRB104 09390 RTM 19449 b
2008	2008	1 imposed under this amendatory Act of the 102nd General
2009	2009	2 Assembly). Beginning December 1, 2019 and through December 31,
2010	2010	3 2020, this tax is not imposed on sales of aviation fuel unless
2011	2011	4 the tax revenue is expended for airport-related purposes. If
2012	2012	5 the District does not have an airport-related purpose to which
2013	2013	6 aviation fuel tax revenue is dedicated, then aviation fuel is
2014	2014	7 excluded from the tax. The municipality must comply with the
2015	2015	8 certification requirements for airport-related purposes under
2016	2016	9 Section 2-22 of the Retailers' Occupation Tax Act. For
2017	2017	10 purposes of this Act, "airport-related purposes" has the
2018	2018	11 meaning ascribed in Section 6z-20.2 of the State Finance Act.
2019	2019	12 Beginning January 1, 2021, this tax is not imposed on sales of
2020	2020	13 aviation fuel for so long as the revenue use requirements of 49
2021	2021	14 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2022	2022	15 District or STAR bond project area.
2023	2023	16 The tax imposed under this subsection and all civil
2024	2024	17 penalties that may be assessed as an incident thereof shall be
2025	2025	18 collected and enforced by the Department of Revenue. The
2026	2026	19 certificate of registration that is issued by the Department
2027	2027	20 to a retailer under the Retailers' Occupation Tax Act or under
2028	2028	21 the Service Occupation Tax Act shall permit the registrant to
2029	2029	22 engage in a business that is taxable under any ordinance or
2030	2030	23 resolution enacted pursuant to this subsection without
2031	2031	24 registering separately with the Department under that
2032	2032	25 ordinance or resolution or under this subsection. The
2033	2033	26 Department of Revenue shall have full power to administer and
2034	2034
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039	SB2470 - 56 - LRB104 09390 RTM 19449 b
2040	2040
2041	2041
2042	2042	SB2470- 57 -LRB104 09390 RTM 19449 b SB2470 - 57 - LRB104 09390 RTM 19449 b
2043	2043	SB2470 - 57 - LRB104 09390 RTM 19449 b
2044	2044	1 enforce this subsection, to collect all taxes and penalties
2045	2045	2 due under this subsection, to dispose of taxes and penalties
2046	2046	3 so collected in the manner hereinafter provided, and to
2047	2047	4 determine all rights to credit memoranda arising on account of
2048	2048	5 the erroneous payment of tax or penalty under this subsection.
2049	2049	6 In the administration of, and compliance with this subsection,
2050	2050	7 the Department and persons who are subject to this subsection
2051	2051	8 shall have the same rights, remedies, privileges, immunities,
2052	2052	9 powers, and duties, and be subject to the same conditions,
2053	2053	10 restrictions, limitations, penalties, exclusions, exemptions,
2054	2054	11 and definitions of terms and employ the same modes of
2055	2055	12 procedure as are prescribed in Sections 2, 2a through 2d, 3
2056	2056	13 through 3-50 (in respect to all provisions therein other than
2057	2057	14 the State rate of tax), 4 (except that the reference to the
2058	2058	15 State shall be to the STAR bond district), 5, 7, 8 (except that
2059	2059	16 the jurisdiction to which the tax shall be a debt to the extent
2060	2060	17 indicated in that Section 8 shall be the political
2061	2061	18 subdivision), 9 (except as to the disposition of taxes and
2062	2062	19 penalties collected, and except that the returned merchandise
2063	2063	20 credit for this tax may not be taken against any State tax, and
2064	2064	21 except that the retailer's discount is not allowed for taxes
2065	2065	22 paid on aviation fuel that are subject to the revenue use
2066	2066	23 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
2067	2067	24 11, 12 (except the reference therein to Section 2b of the
2068	2068	25 Retailers' Occupation Tax Act), 13 (except that any reference
2069	2069	26 to the State shall mean the political subdivision), the first
2070	2070
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075	SB2470 - 57 - LRB104 09390 RTM 19449 b
2076	2076
2077	2077
2078	2078	SB2470- 58 -LRB104 09390 RTM 19449 b SB2470 - 58 - LRB104 09390 RTM 19449 b
2079	2079	SB2470 - 58 - LRB104 09390 RTM 19449 b
2080	2080	1 paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
2081	2081	2 the Service Occupation Tax Act and all provisions of the
2082	2082	3 Uniform Penalty and Interest Act, as fully as if those
2083	2083	4 provisions were set forth herein.
2084	2084	5 If a tax is imposed under this subsection (c), a tax shall
2085	2085	6 also be imposed under subsection (b) of this Section.
2086	2086	7 (c-5) If, on January 1, 2025, a unit of local government
2087	2087	8 has in effect a tax under this Section, or if, after January 1,
2088	2088	9 2025, a unit of local government imposes a tax under this
2089	2089	10 Section, then that tax applies to leases of tangible personal
2090	2090	11 property in effect, entered into, or renewed on or after that
2091	2091	12 date in the same manner as the tax under this Section and in
2092	2092	13 accordance with the changes made by this amendatory Act of the
2093	2093	14 103rd General Assembly.
2094	2094	15 (c-10) The corporate authorities of any political
2095	2095	16 subdivision that (i) is not a home-rule unit and (ii) has
2096	2096	17 established a STAR bond district under this Act may, by
2097	2097	18 ordinance or resolution, impose a tourism tax upon all
2098	2098	19 admission and amusement charges from transactions at places of
2099	2099	20 business located within the STAR bond district, at a rate not
2100	2100	21 to exceed 9% of the gross receipts derived from any admission
2101	2101	22 and amusement charge within the STAR bond district, to be
2102	2102	23 imposed only in 0.25% increments. The tax imposed under this
2103	2103	24 subsection and all civil penalties that may be assessed as an
2104	2104	25 incident of the tax under this subsection shall be collected
2105	2105	26 and enforced by the Department of Revenue. For purposes of
2106	2106
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111	SB2470 - 58 - LRB104 09390 RTM 19449 b
2112	2112
2113	2113
2114	2114	SB2470- 59 -LRB104 09390 RTM 19449 b SB2470 - 59 - LRB104 09390 RTM 19449 b
2115	2115	SB2470 - 59 - LRB104 09390 RTM 19449 b
2116	2116	1 this subsection, "admission and amusement charges" shall
2117	2117	2 include, but shall not be limited to charges for: (i)
2118	2118	3 admission or rental to any physical space or venue in which
2119	2119	4 attendees gather for entertainment or amusement, including but
2120	2120	5 not limited to facilities owned or operated by amusement park
2121	2121	6 users, entertainment users, destination retailers, destination
2122	2122	7 hotels, traditional retailers, resorts, golf or pickle ball
2123	2123	8 type facilities, simulator type facilities, music venues,
2124	2124	9 water parks, RV parks, surf parks, ice rinks, family
2125	2125	10 entertainment type facilities, zip line courses, wake boarding
2126	2126	11 courses, miniature golf courses, go-cart tracks or facilities,
2127	2127	12 arcades and other venues designed for the playing of video
2128	2128	13 games, pinball machines, air-hockey, billiards tables or other
2129	2129	14 games operated by coins or other payment methods, theaters,
2130	2130	15 trade shows and convention centers, and athletic stadiums or
2131	2131	16 venues for the hosting of any athletic context and (ii) any
2132	2132	17 separate charge for admission or rental to or use of
2133	2133	18 entertainment attractions, rides, or other activities within
2134	2134	19 the aforementioned venues. Notwithstanding any other provision
2135	2135	20 of this subsection, the tourism tax contemplated under this
2136	2136	21 subsection shall not apply to any transactions that are
2137	2137	22 subject to the Retailers' Occupation Tax Act, the Use Tax Act,
2138	2138	23 the Service Use Tax Act, or the Service Occupation Tax Act.
2139	2139	24 (d) Persons subject to any tax imposed under this Section
2140	2140	25 may reimburse themselves for their seller's tax liability
2141	2141	26 under this Section by separately stating the tax as an
2142	2142
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147	SB2470 - 59 - LRB104 09390 RTM 19449 b
2148	2148
2149	2149
2150	2150	SB2470- 60 -LRB104 09390 RTM 19449 b SB2470 - 60 - LRB104 09390 RTM 19449 b
2151	2151	SB2470 - 60 - LRB104 09390 RTM 19449 b
2152	2152	1 additional charge, which charge may be stated in combination,
2153	2153	2 in a single amount, with State taxes that sellers are required
2154	2154	3 to collect under the Use Tax Act, in accordance with such
2155	2155	4 bracket schedules as the Department may prescribe.
2156	2156	5 Whenever the Department determines that a refund should be
2157	2157	6 made under this Section to a claimant instead of issuing a
2158	2158	7 credit memorandum, the Department shall notify the State
2159	2159	8 Comptroller, who shall cause the order to be drawn for the
2160	2160	9 amount specified and to the person named in the notification
2161	2161	10 from the Department. The refund shall be paid by the State
2162	2162	11 Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
2163	2163	12 or the Local Government Aviation Trust Fund, as appropriate.
2164	2164	13 Except as otherwise provided in this paragraph, the
2165	2165	14 Department shall immediately pay over to the State Treasurer,
2166	2166	15 ex officio, as trustee, all taxes, penalties, and interest
2167	2167	16 collected under this Section for deposit into the STAR Bond
2168	2168	17 Retailers' Occupation Tax Fund. Taxes and penalties collected
2169	2169	18 on aviation fuel sold on or after December 1, 2019, shall be
2170	2170	19 immediately paid over by the Department to the State
2171	2171	20 Treasurer, ex officio, as trustee, for deposit into the Local
2172	2172	21 Government Aviation Trust Fund. The Department shall only pay
2173	2173	22 moneys into the Local Government Aviation Trust Fund under
2174	2174	23 this Section for so long as the revenue use requirements of 49
2175	2175	24 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2176	2176	25 District. On or before the 25th day of each calendar month, the
2177	2177	26 Department shall prepare and certify to the Comptroller the
2178	2178
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183	SB2470 - 60 - LRB104 09390 RTM 19449 b
2184	2184
2185	2185
2186	2186	SB2470- 61 -LRB104 09390 RTM 19449 b SB2470 - 61 - LRB104 09390 RTM 19449 b
2187	2187	SB2470 - 61 - LRB104 09390 RTM 19449 b
2188	2188	1 disbursement of stated sums of money to named political
2189	2189	2 subdivisions from the STAR Bond Retailers' Occupation Tax
2190	2190	3 Fund, the political subdivisions to be those from which
2191	2191	4 retailers have paid taxes or penalties under this Section to
2192	2192	5 the Department during the second preceding calendar month. The
2193	2193	6 amount to be paid to each political subdivision shall be the
2194	2194	7 amount (not including credit memoranda and not including taxes
2195	2195	8 and penalties collected on aviation fuel sold on or after
2196	2196	9 December 1, 2019) collected under this Section during the
2197	2197	10 second preceding calendar month by the Department plus an
2198	2198	11 amount the Department determines is necessary to offset any
2199	2199	12 amounts that were erroneously paid to a different taxing body,
2200	2200	13 and not including an amount equal to the amount of refunds made
2201	2201	14 during the second preceding calendar month by the Department,
2202	2202	15 less 3% of that amount, which shall be deposited into the Tax
2203	2203	16 Compliance and Administration Fund and shall be used by the
2204	2204	17 Department, subject to appropriation, to cover the costs of
2205	2205	18 the Department in administering and enforcing the provisions
2206	2206	19 of this Section, on behalf of such political subdivision, and
2207	2207	20 not including any amount that the Department determines is
2208	2208	21 necessary to offset any amounts that were payable to a
2209	2209	22 different taxing body but were erroneously paid to the
2210	2210	23 political subdivision. Within 10 days after receipt by the
2211	2211	24 Comptroller of the disbursement certification to the political
2212	2212	25 subdivisions provided for in this Section to be given to the
2213	2213	26 Comptroller by the Department, the Comptroller shall cause the
2214	2214
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219	SB2470 - 61 - LRB104 09390 RTM 19449 b
2220	2220
2221	2221
2222	2222	SB2470- 62 -LRB104 09390 RTM 19449 b SB2470 - 62 - LRB104 09390 RTM 19449 b
2223	2223	SB2470 - 62 - LRB104 09390 RTM 19449 b
2224	2224	1 orders to be drawn for the respective amounts in accordance
2225	2225	2 with the directions contained in the certification. The
2226	2226	3 proceeds of the tax paid to political subdivisions under this
2227	2227	4 Section shall be deposited into either (i) the STAR Bonds Tax
2228	2228	5 Allocation Fund by the political subdivision if the political
2229	2229	6 subdivision has designated them as pledged STAR revenues by
2230	2230	7 resolution or ordinance or (ii) the political subdivision's
2231	2231	8 general corporate fund if the political subdivision has not
2232	2232	9 designated them as pledged STAR revenues.
2233	2233	10 An ordinance or resolution imposing or discontinuing the
2234	2234	11 tax under this Section or effecting a change in the rate
2235	2235	12 thereof shall either (i) be adopted and a certified copy
2236	2236	13 thereof filed with the Department on or before the first day of
2237	2237	14 April, whereupon the Department, if all other requirements of
2238	2238	15 this Section are met, shall proceed to administer and enforce
2239	2239	16 this Section as of the first day of July next following the
2240	2240	17 adoption and filing; or (ii) be adopted and a certified copy
2241	2241	18 thereof filed with the Department on or before the first day of
2242	2242	19 October, whereupon, if all other requirements of this Section
2243	2243	20 are met, the Department shall proceed to administer and
2244	2244	21 enforce this Section as of the first day of January next
2245	2245	22 following the adoption and filing.
2246	2246	23 The Department of Revenue shall not administer or enforce
2247	2247	24 an ordinance imposing, discontinuing, or changing the rate of
2248	2248	25 the tax under this Section until the political subdivision
2249	2249	26 also provides, in the manner prescribed by the Department, the
2250	2250
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255	SB2470 - 62 - LRB104 09390 RTM 19449 b
2256	2256
2257	2257
2258	2258	SB2470- 63 -LRB104 09390 RTM 19449 b SB2470 - 63 - LRB104 09390 RTM 19449 b
2259	2259	SB2470 - 63 - LRB104 09390 RTM 19449 b
2260	2260	1 boundaries of the STAR bond district and each address in the
2261	2261	2 STAR bond district in such a way that the Department can
2262	2262	3 determine by its address whether a business is located in the
2263	2263	4 STAR bond district. The political subdivision must provide
2264	2264	5 this boundary and address information to the Department on or
2265	2265	6 before April 1 for administration and enforcement of the tax
2266	2266	7 under this Section by the Department beginning on the
2267	2267	8 following July 1 and on or before October 1 for administration
2268	2268	9 and enforcement of the tax under this Section by the
2269	2269	10 Department beginning on the following January 1. The
2270	2270	11 Department of Revenue shall not administer or enforce any
2271	2271	12 change made to the boundaries of a STAR bond district or any
2272	2272	13 address change, addition, or deletion until the political
2273	2273	14 subdivision reports the boundary change or address change,
2274	2274	15 addition, or deletion to the Department in the manner
2275	2275	16 prescribed by the Department. The political subdivision must
2276	2276	17 provide this boundary change or address change, addition, or
2277	2277	18 deletion information to the Department on or before April 1
2278	2278	19 for administration and enforcement by the Department of the
2279	2279	20 change, addition, or deletion beginning on the following July
2280	2280	21 1 and on or before October 1 for administration and
2281	2281	22 enforcement by the Department of the change, addition, or
2282	2282	23 deletion beginning on the following January 1. The retailers
2283	2283	24 in the STAR bond district shall be responsible for charging
2284	2284	25 the tax imposed under this Section. If a retailer is
2285	2285	26 incorrectly included or excluded from the list of those
2286	2286
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291	SB2470 - 63 - LRB104 09390 RTM 19449 b
2292	2292
2293	2293
2294	2294	SB2470- 64 -LRB104 09390 RTM 19449 b SB2470 - 64 - LRB104 09390 RTM 19449 b
2295	2295	SB2470 - 64 - LRB104 09390 RTM 19449 b
2296	2296	1 required to collect the tax under this Section, both the
2297	2297	2 Department of Revenue and the retailer shall be held harmless
2298	2298	3 if they reasonably relied on information provided by the
2299	2299	4 political subdivision.
2300	2300	5 A political subdivision that imposes the tax under this
2301	2301	6 Section must submit to the Department of Revenue any other
2302	2302	7 information as the Department may require that is necessary
2303	2303	8 for the administration and enforcement of the tax.
2304	2304	9 When certifying the amount of a monthly disbursement to a
2305	2305	10 political subdivision under this Section, the Department shall
2306	2306	11 increase or decrease the amount by an amount necessary to
2307	2307	12 offset any misallocation of previous disbursements. The offset
2308	2308	13 amount shall be the amount erroneously disbursed within the
2309	2309	14 previous 6 months from the time a misallocation is discovered.
2310	2310	15 Nothing in this Section shall be construed to authorize
2311	2311	16 the political subdivision to impose a tax upon the privilege
2312	2312	17 of engaging in any business which under the Constitution of
2313	2313	18 the United States may not be made the subject of taxation by
2314	2314	19 this State.
2315	2315	20 (e) When STAR bond project costs, including, without
2316	2316	21 limitation, all political subdivision obligations financing
2317	2317	22 STAR bond project costs, have been paid, any surplus funds
2318	2318	23 then remaining in the STAR Bonds Tax Allocation Fund shall be
2319	2319	24 distributed to the treasurer of the political subdivision for
2320	2320	25 deposit into the political subdivision's general corporate
2321	2321	26 fund. Upon payment of all STAR bond project costs and
2322	2322
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327	SB2470 - 64 - LRB104 09390 RTM 19449 b
2328	2328
2329	2329
2330	2330	SB2470- 65 -LRB104 09390 RTM 19449 b SB2470 - 65 - LRB104 09390 RTM 19449 b
2331	2331	SB2470 - 65 - LRB104 09390 RTM 19449 b
2332	2332	1 retirement of obligations, but in no event later than the
2333	2333	2 maximum maturity date of the last of the STAR bonds issued in
2334	2334	3 the STAR bond district, the political subdivision shall adopt
2335	2335	4 an ordinance immediately rescinding the taxes imposed pursuant
2336	2336	5 to this Section and file a certified copy of the ordinance with
2337	2337	6 the Department in the form and manner as described in this
2338	2338	7 Section.
2339	2339	8 (Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
2340	2340	9 (50 ILCS 470/33)
2341	2341	10 Sec. 33. STAR Bonds School Improvement and Operations
2342	2342	11 Trust Fund.
2343	2343	12 (a) The STAR Bonds School Improvement and Operations Trust
2344	2344	13 Fund is created as a trust fund in the State treasury. Deposits
2345	2345	14 into the Trust Fund shall be made as provided under this
2346	2346	15 Section. Moneys in the Trust Fund shall be used by the
2347	2347	16 Department of Revenue only for the purpose of making payments
2348	2348	17 to school districts in educational service regions that
2349	2349	18 include or are adjacent to the STAR bond district. Moneys in
2350	2350	19 the Trust Fund are not subject to appropriation and shall be
2351	2351	20 used solely as provided in this Section. All deposits into the
2352	2352	21 Trust Fund shall be held in the Trust Fund by the State
2353	2353	22 Treasurer as ex officio custodian separate and apart from all
2354	2354	23 public moneys or funds of this State and shall be administered
2355	2355	24 by the Department exclusively for the purposes set forth in
2356	2356	25 this Section. All moneys in the Trust Fund shall be invested
2357	2357
2358	2358
2359	2359
2360	2360
2361	2361
2362	2362	SB2470 - 65 - LRB104 09390 RTM 19449 b
2363	2363
2364	2364
2365	2365	SB2470- 66 -LRB104 09390 RTM 19449 b SB2470 - 66 - LRB104 09390 RTM 19449 b
2366	2366	SB2470 - 66 - LRB104 09390 RTM 19449 b
2367	2367	1 and reinvested by the State Treasurer. All interest accruing
2368	2368	2 from these investments shall be deposited in the Trust Fund.
2369	2369	3 (b) Upon approval of a STAR bond district, the political
2370	2370	4 subdivision shall immediately transmit to the county clerk of
2371	2371	5 the county in which the district is located a certified copy of
2372	2372	6 the ordinance creating the district, a legal description of
2373	2373	7 the district, a map of the district, identification of the
2374	2374	8 year that the county clerk shall use for determining the total
2375	2375	9 initial equalized assessed value of the district consistent
2376	2376	10 with subsection (c), and a list of the parcel or tax
2377	2377	11 identification number of each parcel of property included in
2378	2378	12 the district.
2379	2379	13 (c) Upon approval of a STAR bond district, the county
2380	2380	14 clerk immediately thereafter shall determine (i) the most
2381	2381	15 recently ascertained equalized assessed value of each lot,
2382	2382	16 block, tract, or parcel of real property within the STAR bond
2383	2383	17 district, from which shall be deducted the homestead
2384	2384	18 exemptions under Article 15 of the Property Tax Code, which
2385	2385	19 value shall be the initial equalized assessed value of each
2386	2386	20 such piece of property, and (ii) the total equalized assessed
2387	2387	21 value of all taxable real property within the district by
2388	2388	22 adding together the most recently ascertained equalized
2389	2389	23 assessed value of each taxable lot, block, tract, or parcel of
2390	2390	24 real property within the district, from which shall be
2391	2391	25 deducted the homestead exemptions under Article 15 of the
2392	2392	26 Property Tax Code, and shall certify that amount as the total
2393	2393
2394	2394
2395	2395
2396	2396
2397	2397
2398	2398	SB2470 - 66 - LRB104 09390 RTM 19449 b
2399	2399
2400	2400
2401	2401	SB2470- 67 -LRB104 09390 RTM 19449 b SB2470 - 67 - LRB104 09390 RTM 19449 b
2402	2402	SB2470 - 67 - LRB104 09390 RTM 19449 b
2403	2403	1 initial equalized assessed value of the taxable real property
2404	2404	2 within the STAR bond district.
2405	2405	3 (d) In reference to any STAR bond district created within
2406	2406	4 any political subdivision, and in respect to which the county
2407	2407	5 clerk has certified the total initial equalized assessed value
2408	2408	6 of the property in the area, the political subdivision may
2409	2409	7 thereafter request the clerk in writing to adjust the initial
2410	2410	8 equalized value of all taxable real property within the STAR
2411	2411	9 bond district by deducting therefrom the exemptions under
2412	2412	10 Article 15 of the Property Tax Code applicable to each lot,
2413	2413	11 block, tract, or parcel of real property within the STAR bond
2414	2414	12 district. The county clerk shall immediately, after the
2415	2415	13 written request to adjust the total initial equalized value is
2416	2416	14 received, determine the total homestead exemptions in the STAR
2417	2417	15 bond district as provided under Article 15 of the Property Tax
2418	2418	16 Code by adding together the homestead exemptions provided by
2419	2419	17 said Article on each lot, block, tract, or parcel of real
2420	2420	18 property within the STAR bond district and then shall deduct
2421	2421	19 the total of said exemptions from the total initial equalized
2422	2422	20 assessed value. The county clerk shall then promptly certify
2423	2423	21 that amount as the total initial equalized assessed value as
2424	2424	22 adjusted of the taxable real property within the STAR bond
2425	2425	23 district.
2426	2426	24 (e) The county clerk or other person authorized by law
2427	2427	25 shall compute the tax rates for each taxing district with all
2428	2428	26 or a portion of its equalized assessed value located in the
2429	2429
2430	2430
2431	2431
2432	2432
2433	2433
2434	2434	SB2470 - 67 - LRB104 09390 RTM 19449 b
2435	2435
2436	2436
2437	2437	SB2470- 68 -LRB104 09390 RTM 19449 b SB2470 - 68 - LRB104 09390 RTM 19449 b
2438	2438	SB2470 - 68 - LRB104 09390 RTM 19449 b
2439	2439	1 STAR bond district. The rate per cent of tax determined shall
2440	2440	2 be extended to the current equalized assessed value of all
2441	2441	3 property in the district in the same manner as the rate per
2442	2442	4 cent of tax is extended to all other taxable property in the
2443	2443	5 taxing district.
2444	2444	6 (f) Beginning with the assessment year in which the first
2445	2445	7 destination user, first amusement park user, first destination
2446	2446	8 hotel, or first entertainment user in the first STAR bond
2447	2447	9 project in a STAR bond district makes its first retail sales
2448	2448	10 and for each assessment year thereafter until final maturity
2449	2449	11 of the last STAR bonds issued in the district, the county clerk
2450	2450	12 or other person authorized by law shall determine the increase
2451	2451	13 in equalized assessed value of all real property within the
2452	2452	14 STAR bond district by subtracting the initial equalized
2453	2453	15 assessed value of all property in the district certified under
2454	2454	16 subsection (c) from the current equalized assessed value of
2455	2455	17 all property in the district. Each year, the property taxes
2456	2456	18 arising from the increase in equalized assessed value in the
2457	2457	19 STAR bond district shall be determined for each taxing
2458	2458	20 district and shall be certified to the county collector.
2459	2459	21 (g) Beginning with the year in which taxes are collected
2460	2460	22 based on the assessment year in which the first destination
2461	2461	23 user, first amusement park user, or first entertainment user
2462	2462	24 in the first STAR bond project in a STAR bond district makes
2463	2463	25 its first retail sales and for each year thereafter until
2464	2464	26 final maturity of the last STAR bonds issued in the district,
2465	2465
2466	2466
2467	2467
2468	2468
2469	2469
2470	2470	SB2470 - 68 - LRB104 09390 RTM 19449 b
2471	2471
2472	2472
2473	2473	SB2470- 69 -LRB104 09390 RTM 19449 b SB2470 - 69 - LRB104 09390 RTM 19449 b
2474	2474	SB2470 - 69 - LRB104 09390 RTM 19449 b
2475	2475	1 the county collector shall, within 30 days after receipt of
2476	2476	2 property taxes, transmit to the Department to be deposited
2477	2477	3 into the STAR Bonds School Improvement and Operations Trust
2478	2478	4 Fund 15% of property taxes attributable to the increase in
2479	2479	5 equalized assessed value within the STAR bond district from
2480	2480	6 each taxing district as certified in subsection (f).
2481	2481	7 (h) The Department shall pay to the regional
2482	2482	8 superintendent of schools whose educational service region
2483	2483	9 includes Franklin and Williamson Counties or to the local
2484	2484	10 school superintendent in which the STAR bond district is
2485	2485	11 primarily located, for each year for which money is remitted
2486	2486	12 to the Department and paid into the STAR Bonds School
2487	2487	13 Improvement and Operations Trust Fund, the money in the Fund
2488	2488	14 as provided in this Section. The amount paid to each school
2489	2489	15 district within the county, or within the counties if the STAR
2490	2490	16 bond district is located across multiple counties, shall be
2491	2491	17 allocated proportionately, based on each qualifying school
2492	2492	18 district's fall enrollment for the then-current school year,
2493	2493	19 such that the school district with the largest fall enrollment
2494	2494	20 receives the largest proportionate share of money paid out of
2495	2495	21 the Fund or by any other method or formula that the regional
2496	2496	22 superintendent or local superintendent of schools deems fit,
2497	2497	23 equitable, and in the public interest. The regional
2498	2498	24 superintendent or local superintendent may allocate moneys to
2499	2499	25 school districts that are outside of his or her educational
2500	2500	26 service region or to other regional superintendents.
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505
2506	2506	SB2470 - 69 - LRB104 09390 RTM 19449 b
2507	2507
2508	2508
2509	2509	SB2470- 70 -LRB104 09390 RTM 19449 b SB2470 - 70 - LRB104 09390 RTM 19449 b
2510	2510	SB2470 - 70 - LRB104 09390 RTM 19449 b
2511	2511	1 The Department shall determine the distributions under
2512	2512	2 this Section using its best judgment and information. The
2513	2513	3 Department shall be held harmless for the distributions made
2514	2514	4 under this Section and all distributions shall be final.
2515	2515	5 (i) In any year that an assessment appeal is filed, the
2516	2516	6 extension of taxes on any assessment so appealed shall not be
2517	2517	7 delayed. In the case of an assessment that is altered, any
2518	2518	8 taxes extended upon the unauthorized assessment or part
2519	2519	9 thereof shall be abated, or, if already paid, shall be
2520	2520	10 refunded with interest as provided in Section 23-20 of the
2521	2521	11 Property Tax Code. In the case of an assessment appeal, the
2522	2522	12 county collector shall notify the Department that an
2523	2523	13 assessment appeal has been filed and the amount of the tax that
2524	2524	14 would have been deposited in the STAR Bonds School Improvement
2525	2525	15 and Operations Trust Fund. The county collector shall hold
2526	2526	16 that amount in a separate fund until the appeal process is
2527	2527	17 final. After the appeal process is finalized, the county
2528	2528	18 collector shall transmit to the Department the amount of tax
2529	2529	19 that remains, if any, after all required refunds are made. The
2530	2530	20 Department shall pay any amount deposited into the Trust Fund
2531	2531	21 under this Section in the same proportion as determined for
2532	2532	22 payments for that taxable year under subsection (h).
2533	2533	23 (j) In any year that ad valorem taxes are allocated to the
2534	2534	24 STAR Bonds School Improvement and Operations Trust Fund, that
2535	2535	25 allocation shall not reduce or otherwise impact the school aid
2536	2536	26 provided to any school district under the general State school
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541
2542	2542	SB2470 - 70 - LRB104 09390 RTM 19449 b
2543	2543
2544	2544
2545	2545	SB2470- 71 -LRB104 09390 RTM 19449 b SB2470 - 71 - LRB104 09390 RTM 19449 b
2546	2546	SB2470 - 71 - LRB104 09390 RTM 19449 b
2547	2547	1 aid formula provided for in Section 18-8.05 of the School Code
2548	2548	2 or the evidence-based funding formula provided for in Section
2549	2549	3 18-8.15 of the School Code.
2550	2550	4 (Source: P.A. 100-465, eff. 8-31-17.)
2551	2551	5 (50 ILCS 470/45)
2552	2552	6 Sec. 45. Restrictions. STAR bond districts may lie within
2553	2553	7 an enterprise zone, but no portion of a STAR bond project shall
2554	2554	8 be financed with funds allocated pursuant to the Illinois
2555	2555	9 Enterprise Zone Act. STAR bond districts may overlay and
2556	2556	10 benefit from existing tax increment financing districts
2557	2557	11 created pursuant to the Tax Increment Allocation Redevelopment
2558	2558	12 Act, but no portion of a STAR bond project, except for one
2559	2559	13 amusement park user, one destination hotel, and an outdoor
2560	2560	14 turf sports complex and subject to Section 33, shall be
2561	2561	15 financed with tax increment financing under said Act. During
2562	2562	16 any period of time that STAR bonds are outstanding for a STAR
2563	2563	17 bond district, a developer may not use any land located in the
2564	2564	18 STAR bond district for any (i) retail store whose primary
2565	2565	19 business is the sale of automobiles, including trucks and
2566	2566	20 other automotive vehicles with 4 wheels designed for passenger
2567	2567	21 transportation on public streets and thoroughfares or (ii)
2568	2568	22 multi-screen motion picture theater complexes containing more
2569	2569	23 than 12 auditoriums for viewing motion pictures. No STAR bond
2570	2570	24 district may contain more than 900,000 square feet of floor
2571	2571	25 space devoted to traditional retail use.
2572	2572
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577	SB2470 - 71 - LRB104 09390 RTM 19449 b
2578	2578
2579	2579
2580	2580	SB2470- 72 -LRB104 09390 RTM 19449 b SB2470 - 72 - LRB104 09390 RTM 19449 b
2581	2581	SB2470 - 72 - LRB104 09390 RTM 19449 b
2582	2582	1 (Source: P.A. 96-939, eff. 6-24-10.)
2583	2583	SB2470- 73 -LRB104 09390 RTM 19449 b 1 INDEX 2 Statutes amended in order of appearance SB2470- 73 -LRB104 09390 RTM 19449 b SB2470 - 73 - LRB104 09390 RTM 19449 b 1 INDEX 2 Statutes amended in order of appearance
2584	2584	SB2470- 73 -LRB104 09390 RTM 19449 b SB2470 - 73 - LRB104 09390 RTM 19449 b
2585	2585	SB2470 - 73 - LRB104 09390 RTM 19449 b
2586	2586	1 INDEX
2587	2587	2 Statutes amended in order of appearance
2588	2588
2589	2589
2590	2590
2591	2591
2592	2592
2593	2593	SB2470 - 72 - LRB104 09390 RTM 19449 b
2594	2594
2595	2595
2596	2596
2597	2597	SB2470- 73 -LRB104 09390 RTM 19449 b SB2470 - 73 - LRB104 09390 RTM 19449 b
2598	2598	SB2470 - 73 - LRB104 09390 RTM 19449 b
2599	2599	1 INDEX
2600	2600	2 Statutes amended in order of appearance
2601	2601
2602	2602
2603	2603
2604	2604
2605	2605
2606	2606	SB2470 - 73 - LRB104 09390 RTM 19449 b