Illinois General Assembly - Illinois Compiled Statutes

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65 ILCS 110/50

(65 ILCS 110/50)

Sec. 50. Special tax allocation fund.

(a) If a county clerk has certified the "total initial equalized assessed
value" of the taxable real property within an economic development project area
in the manner provided in Section 45, each year after the date of the
certification by the county clerk of the "total initial equalized assessed
value", until economic development project costs and all municipal obligations
financing economic development project costs have been paid, the ad valorem
taxes, if any, arising from the levies upon the taxable real property in the
economic development project area by taxing districts and tax rates determined
in the manner provided in subsection (b) of Section 45 shall be divided as
follows:

(1) That portion of the taxes levied upon each

taxable lot, block, tract, or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each taxable lot, block, tract, or parcel of real property existing at the time tax increment financing was adopted shall be allocated to (and when collected shall be paid by the county collector to) the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.

(2) That portion, if any, of the taxes that is

attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the economic development project area, over and above the initial equalized assessed value of each property existing at the time tax increment financing was adopted, shall be allocated to (and when collected shall be paid to) the municipal treasurer, who shall deposit the taxes into a special fund (called the special tax allocation fund of the municipality) for the purpose of paying economic development project costs and obligations incurred in the payment of those costs.

(b) The municipality, by an ordinance adopting tax increment allocation
financing, may pledge the monies in and to be deposited into the special tax
allocation fund for the payment of obligations issued under this Act and for
the payment of economic development project costs.  No part of the current
equalized assessed valuation of each property in the economic development
project area attributable to any increase above the total initial equalized
assessed value of those properties shall be used in calculating the general
State aid formula under
Section 18-8 of the School Code or the evidence-based funding formula under Section 18-8.15 of the School Code, until all economic development projects costs
have been paid as provided for in this Section.

(c) When the economic development projects costs, including without
limitation all municipal obligations financing economic development project
costs incurred under this Act, have been paid, all surplus monies then
remaining in the special tax allocation fund shall be distributed by being paid
by the municipal treasurer to the county collector, who shall immediately pay
the monies to the taxing districts having taxable property in the economic
development project area in the same manner and proportion as the most recent
distribution by the county collector to those taxing districts of real property
taxes from real property in the economic development project area.

(d) Upon the payment of all economic development project costs, retirement
of obligations, and distribution of any excess monies under this Section and
not later than 23 years from the date of the adoption of the ordinance
establishing the economic development project area, the municipality shall
adopt an ordinance dissolving the special tax allocation fund for the economic
development project area and terminating the designation of the economic
development project area as an economic development project area.
Thereafter, the rates of the taxing districts shall be extended and taxes shall
be levied, collected, and distributed in the manner applicable in the absence
of the adoption of tax increment allocation financing.

(e) Nothing in this Section shall be construed as relieving property in the
economic development project areas from being assessed as provided in the
Property Tax Code or as relieving owners or lessees of that property from
paying a uniform rate of taxes as required by Section 4 of Article IX of the
Illinois Constitution.

(Source: P.A. 100-465, eff. 8-31-17.)