103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1681

 

Introduced 2/8/2023, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-9  from Ch. 24, par. 11-74.4-9

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.


LRB103 27804 AWJ 54182 b

 

 

A BILL FOR

 

SB1681LRB103 27804 AWJ 54182 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-9 as follows:
 
6    (65 ILCS 5/11-74.4-9)   (from Ch. 24, par. 11-74.4-9)
7    Sec. 11-74.4-9. Equalized assessed value of property.
8    (a) Except as provided in subsection (a-5), if If a
9municipality by ordinance provides for tax increment
10allocation financing pursuant to Section 11-74.4-8, the county
11clerk immediately thereafter shall determine (1) the most
12recently ascertained equalized assessed value of each lot,
13block, tract or parcel of real property within such
14redevelopment project area from which shall be deducted the
15homestead exemptions under Article 15 of the Property Tax
16Code, which value shall be the "initial equalized assessed
17value" of each such piece of property, and (2) the total
18equalized assessed value of all taxable real property within
19such redevelopment project area by adding together the most
20recently ascertained equalized assessed value of each taxable
21lot, block, tract, or parcel of real property within such
22project area, from which shall be deducted the homestead
23exemptions provided by Sections 15-170, 15-175, and 15-176 of

 

 

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1the Property Tax Code, and shall certify such amount as the
2"total initial equalized assessed value" of the taxable real
3property within such project area.
4    (a-5) If the county clerk determines that any lot, block,
5tract, or parcel of real property within a redevelopment
6project area is not taxable or has an initial equalized
7assessed value of $0 as determined in subsection (a), then the
8fair market value of the lot, block, tract, or parcel shall be
9instead determined by a written MAI-certified appraisal or by
10a written certified appraisal of a State-certified or
11State-licensed real estate appraiser. The appraisal shall be
12available for public inspection no later than 90 days after
13the date that the ordinance for tax increment allocation
14financing under Section 11-74.4-8 was adopted by the
15municipality. The appraiser's conclusion of fair market value
16shall be converted by the county clerk to an assessed value
17using the appropriate level of assessment and then equalized
18by using the most recent equalization factor. The county clerk
19shall use the resulting figure as the initial equalized
20assessed value of the lot, block, tract, or parcel and shall
21add this initial equalized assessed value to the total initial
22equalized assessed value of the taxable real property within
23the redevelopment project area. For purposes of paragraphs (b)
24and (c), the lot, block, tract, or parcel of real property
25shall be considered taxable real property. This subsection
26applies only to ordinances adopted on or after the effective

 

 

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1date of this amendatory Act of the 103rd General Assembly.
2    (b) In reference to any municipality which has adopted tax
3increment financing after January 1, 1978, and in respect to
4which the county clerk has certified the "total initial
5equalized assessed value" of the property in the redevelopment
6area, the municipality may thereafter request the clerk in
7writing to adjust the initial equalized value of all taxable
8real property within the redevelopment project area by
9deducting therefrom the exemptions under Article 15 of the
10Property Tax Code applicable to each lot, block, tract or
11parcel of real property within such redevelopment project
12area. The county clerk shall immediately after the written
13request to adjust the total initial equalized value is
14received determine the total homestead exemptions in the
15redevelopment project area provided by Sections 15-170,
1615-175, and 15-176 of the Property Tax Code by adding together
17the homestead exemptions provided by said Sections on each
18lot, block, tract or parcel of real property within such
19redevelopment project area and then shall deduct the total of
20said exemptions from the total initial equalized assessed
21value. The county clerk shall then promptly certify such
22amount as the "total initial equalized assessed value as
23adjusted" of the taxable real property within such
24redevelopment project area.
25    (c) After the county clerk has certified the "total
26initial equalized assessed value" of the taxable real property

 

 

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1in such area, then in respect to every taxing district
2containing a redevelopment project area, the county clerk or
3any other official required by law to ascertain the amount of
4the equalized assessed value of all taxable property within
5such district for the purpose of computing the rate per cent of
6tax to be extended upon taxable property within such district,
7shall in every year that tax increment allocation financing is
8in effect ascertain the amount of value of taxable property in
9a redevelopment project area by including in such amount the
10lower of the current equalized assessed value or the certified
11"total initial equalized assessed value" of all taxable real
12property in such area, except that after he has certified the
13"total initial equalized assessed value as adjusted" he shall
14in the year of said certification if tax rates have not been
15extended and in every year thereafter that tax increment
16allocation financing is in effect ascertain the amount of
17value of taxable property in a redevelopment project area by
18including in such amount the lower of the current equalized
19assessed value or the certified "total initial equalized
20assessed value as adjusted" of all taxable real property in
21such area. The rate per cent of tax determined shall be
22extended to the current equalized assessed value of all
23property in the redevelopment project area in the same manner
24as the rate per cent of tax is extended to all other taxable
25property in the taxing district. The method of extending taxes
26established under this Section shall terminate when the

 

 

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1municipality adopts an ordinance dissolving the special tax
2allocation fund for the redevelopment project area. This
3Division shall not be construed as relieving property owners
4within a redevelopment project area from paying a uniform rate
5of taxes upon the current equalized assessed value of their
6taxable property as provided in the Property Tax Code.
7(Source: P.A. 95-644, eff. 10-12-07.)