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[ House Amendment 002 ] |
90_HB0524 SEE INDEX Amends the Illinois Enterprise Zone Act, the Property Tax Code, and the Illinois Municipal Code. Provides that if property is located in a redevelopment project area and an enterprise zone, then the enterprise zone abatement of taxes shall not be available on the property located in the redevelopment project area, except that business enterprises or individuals shall be entitled to the abatement on new improvements or the renovation or rehabilitation of existing improvements if the business enterprise or individual establishes that before the date of the adoption of tax increment financing (i) the new improvement, rehabilitation, or renovation was committed to locate within the redevelopment project area, (ii) substantial and binding financial obligations were made towards the construction, renovation, or rehabilitation of the improvements, and (iii) those commitments and obligations were made in reasonable reliance on the abatement of taxes that are applicable to the construction, renovation, or rehabilitation of the improvements. Requires a notice, published in a newspaper of general circulation within the municipality, that states that the property shall not be eligible for the abatement of taxes for enterprise zone property unless certain conditions are met. Provides that if a municipality determines that property that lies within a State Sales Tax Boundary has an improvement, rehabilitation, or renovation that is entitled to a property tax abatement, then that property and the improvements, rehabilitations, or renovations shall be removed from any State Sales Tax Boundary and the municipality that made the determination shall notify the Department of Revenue within 30 days. Amends the State Mandates Act to require implementation without reimbursement. Makes provisions severable. Effective July 1, 1997. LRB9001031DNcc LRB9001031DNcc 1 AN ACT concerning districts. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Enterprise Zone Act is amended 5 by adding Section 5.4.1 as follows: 6 (20 ILCS 655/5.4.1 new) 7 Sec. 5.4.1. Adoption of Tax Increment Financing. 8 (a) If (i) a redevelopment project area is created by a 9 municipality under Division 74.4 of the Illinois Municipal 10 Code, (ii) the redevelopment project area contains property 11 that is located in an enterprise zone, and (iii) the 12 municipality did not adopt an amendment to the certified 13 enterprise zone designating ordinance under Section 5.4, 14 then the property that is located in both the enterprise zone 15 and the redevelopment project area shall not be eligible for 16 any abatement of taxes under Section 18-170 of the Property 17 Tax Code; except that business enterprises shall be entitled 18 to the abatement on new improvements or the renovation or 19 rehabilitation of existing improvements of business 20 enterprises or individuals within the redevelopment project 21 area if the business enterprise establishes that before the 22 date of the adoption of tax increment financing (i) the new 23 improvement, rehabilitation, or renovation was committed to 24 locate within the redevelopment project area, (ii) 25 substantial and binding financial obligations were made 26 towards the construction, renovation, or rehabilitation of 27 the improvements, and (iii) those commitments and 28 obligations were made in reasonable reliance on the 29 abatement of real property taxes that are applicable to the 30 construction, renovation, or rehabilitation of the 31 improvements. -2- LRB9001031DNcc 1 (b) This Section applies to all property located within 2 both a redevelopment project area adopted under Division 3 74.4 of the Illinois Municipal Code and an enterprise zone 4 even if the redevelopment project area or the enterprise 5 zone was adopted before the effective date of this 6 amendatory Act of 1997. 7 (c) In declaratory judgment actions under this Section, 8 the Department and the designating municipality shall be 9 necessary parties defendant. 10 (d) If property is located in a redevelopment project 11 area and an enterprise zone, then the municipality where the 12 property is located shall publish a notice in a newspaper of 13 general circulation within that municipality not less than 60 14 days (i) after the effective date of this amendatory Act of 15 1997 if the municipality adopted the redevelopment project 16 area before the effective date of this amendatory Act of 17 1997 or (ii) after the adoption of tax increment financing by 18 the municipality if the municipality adopted tax increment 19 financing on or after the effective date of this amendatory 20 Act. The notice shall be published at least twice and shall 21 state: 22 (1) the legal description and street location, if 23 possible, of any property located in both the enterprise 24 zone and the redevelopment project area; 25 (2) that the municipality has adopted both tax 26 increment financing and an enterprise zone in the 27 described area and the dates of the adoption; 28 (3) that tax abatement for the enterprise zone 29 under Section 18-170 of the Property Tax Code will not be 30 available to any improvements, rehabilitation, or 31 renovation constructed in the described area unless: (i) 32 the improvement, rehabilitation, or renovation was 33 committed to before the date of the adoption of tax 34 increment financing by the municipality; (ii) substantial -3- LRB9001031DNcc 1 and binding financial obligations were made toward the 2 construction, renovation, or rehabilitation of the 3 improvements before the date of the adoption of tax 4 increment financing by the municipality; and (iii) those 5 commitments and obligations were made in reasonable 6 reliance on the abatement of real property taxes that are 7 applicable to the construction, renovation, or 8 rehabilitation of the improvements; and 9 (4) that any business enterprise or individual 10 claiming the right to such an abatement shall submit, in 11 writing, to the municipality, within 30 days after the 12 last date of publication of the notice, information that 13 substantiates the right to receive the tax abatement. 14 Section 10. The Property Tax Code is amended by changing 15 Section 18-170 as follows: 16 (35 ILCS 200/18-170) 17 Sec. 18-170. Enterprise zone abatement. In addition to 18 the authority to abate taxes under Section 18-165, any taxing 19 district, upon a majority vote of its governing authority, 20 may order the county clerk to abate any portion of its taxes 21 on property, or any class thereof, located within an 22 Enterprise Zone created under the Illinois Enterprise Zone 23 Act, and upon which either new improvements have been 24 constructed or existing improvements have been renovated or 25 rehabilitated after December 7, 1982. However, any abatement 26 of taxes on any parcel shall not exceed the amount 27 attributable to the construction of the improvements and the 28 renovation or rehabilitation of existing improvements on the 29 parcel. In the case of property within a redevelopment area 30 created under the Tax Increment Allocation Redevelopment Act, 31 the abatement shall not apply unless a business enterprise or 32 individual, with regard to new improvements or renovated or -4- LRB9001031DNcc 1 rehabilitated improvements, has met the requirements of 2 Section 5.4.1 of the Illinois Enterprise Zone Actexceed the3amount of taxes allocable to the taxing district. If an 4 abatement is granted or discontinued under this Section, a 5 municipality shall notify the county clerk and the board of 6 review or board of appeals of the change in writing not later 7 than July 1 of the assessment year to be first affected by 8 the change. However, within a county economic development 9 project area created under the County Economic Development 10 Project Area Property Tax Allocation Act, any municipality or 11 county which has adopted tax increment allocation financing 12 under the Tax Increment Allocation Redevelopment Act or the 13 County Economic Development Project Area Tax Increment 14 Allocation Act may abate any portion of its taxes as provided 15 in this Section. Any other taxing district within the county 16 economic development project area may order any portion or 17 all of its taxes abated as provided above if the county or 18 municipality which created the tax increment district has 19 agreed, in writing, to the abatement. 20 A copy of an abatement order adopted under this Section 21 shall be delivered to the county clerk and to the board of 22 review or board of appeals not later than July 1 of the 23 assessment year to be first affected by the order. If it is 24 delivered on or after that date, it will first affect the 25 taxes extended on the assessment of the following year. The 26 board of review or board of appeals shall, each time the 27 assessment books are delivered to the county clerk, also 28 deliver a list of parcels affected by an abatement and the 29 assessed value attributable to new improvements or to the 30 renovation or rehabilitation of existing improvements. 31 (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff. 32 8-14-96.) 33 Section 15. The Illinois Municipal Code is amended by -5- LRB9001031DNcc 1 changing Sections 11-74.4-6 and 11-74.4-8a and adding Section 2 11-74.4-8c as follows: 3 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6) 4 Sec. 11-74.4-6. (a) Except as provided herein, notice of 5 the public hearing shall be given by publication and mailing. 6 Notice by publication shall be given by publication at least 7 twice, the first publication to be not more than 30 nor less 8 than 10 days prior to the hearing in a newspaper of general 9 circulation within the taxing districts having property in 10 the proposed redevelopment project area. Notice by mailing 11 shall be given by depositing such notice in the United States 12 mails by certified mail addressed to the person or persons 13 in whose name the general taxes for the last preceding year 14 were paid on each lot, block, tract, or parcel of land lying 15 within the project redevelopment area. Said notice shall be 16 mailed not less than 10 days prior to the date set for the 17 public hearing. In the event taxes for the last preceding 18 year were not paid, the notice shall also be sent to the 19 persons last listed on the tax rolls within the preceding 3 20 years as the owners of such property. 21 (b) The notices issued pursuant to this Section shall 22 include the following: 23 (1) The time and place of public hearing; 24 (2) The boundaries of the proposed redevelopment 25 project area by legal description and by street location 26 where possible; 27 (3) A notification that all interested persons will 28 be given an opportunity to be heard at the public 29 hearing; 30 (4) A description of the redevelopment plan or 31 redevelopment project for the proposed redevelopment 32 project area if a plan or project is the subject matter 33 of the hearing. -6- LRB9001031DNcc 1 (5) Such other matters as the municipality may deem 2 appropriate. 3 (b-5) If the proposed redevelopment project area lies 4 wholly or partially within an enterprise zone, the notice 5 required in subsection (a) shall also include the following: 6 (1) the legal description and street location, if 7 possible, of property located in the enterprise zone and 8 the redevelopment project area; 9 (2) that any improvement, rehabilitation, or 10 renovation constructed in the described area shall not be 11 eligible for a tax abatement under Section 18-170 of the 12 Property Tax Code unless (i) the improvement, 13 rehabilitation, or renovation was committed to before the 14 date of the adoption of tax increment financing by the 15 municipality, (ii) substantial and binding financial 16 obligations were made toward the construction, 17 renovation, or rehabilitation of the improvements before 18 the date of the adoption of tax increment financing by 19 the municipality, and (iii) those commitments and 20 obligations were made in reasonable reliance on the 21 abatement of real property taxes that are applicable to 22 the construction, renovation, or rehabilitation of the 23 improvements; and 24 (3) that any business enterprise or individual who 25 claims the right to receive or continue to receive tax 26 abatements under Section 18-170 of the Property Tax Code 27 must submit, in writing, to the municipality, within 30 28 days after the last date of publication, information that 29 substantiates the right to receive the tax abatement. 30 (c) Not less than 45 days prior to the date set for 31 hearing, the municipality shall give notice by mail as 32 provided in subsection (a) to all taxing districts of which 33 taxable property is included in the redevelopment project 34 area, project or plan and to the Department of Commerce and -7- LRB9001031DNcc 1 Community Affairs, and in addition to the other requirements 2 under subsection (b) the notice shall include an invitation 3 to the Department of Commerce and Community Affairs and each 4 taxing district to submit comments to the municipality 5 concerning the subject matter of the hearing prior to the 6 date of hearing. 7 (d) In the event that any municipality has by ordinance 8 adopted tax increment financing prior to 1987, and has 9 complied with the notice requirements of this Section, except 10 that the notice has not included the requirements of 11 subsection (b), paragraphs (2), (3) and (4), and within 90 12 days of the effective date of this amendatory Act of 1991, 13 that municipality passes an ordinance which contains findings 14 that: (1) all taxing districts prior to the time of the 15 hearing required by Section 11-74.4-5 were furnished with 16 copies of a map incorporated into the redevelopment plan and 17 project substantially showing the legal boundaries of the 18 redevelopment project area; (2) the redevelopment plan and 19 project, or a draft thereof, contained a map substantially 20 showing the legal boundaries of the redevelopment project 21 area and was available to the public at the time of the 22 hearing; and (3) since the adoption of any form of tax 23 increment financing authorized by this Act, and prior to June 24 1, 1991, no objection or challenge has been made in writing 25 to the municipality in respect to the notices required by 26 this Section, then the municipality shall be deemed to have 27 met the notice requirements of this Act and all actions of 28 the municipality taken in connection with such notices as 29 were given are hereby validated and hereby declared to be 30 legally sufficient for all purposes of this Act. 31 (Source: P.A. 86-142; 87-813.) 32 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a) 33 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality -8- LRB9001031DNcc 1 which has adopted tax increment allocation financing prior to 2 January 1, 1987, may by ordinance (1) authorize the 3 Department of Revenue, subject to appropriation, to annually 4 certify and cause to be paid from the Illinois Tax Increment 5 Fund to such municipality for deposit in the municipality's 6 special tax allocation fund an amount equal to the Net State 7 Sales Tax Increment and (2) authorize the Department of 8 Revenue to annually notify the municipality of the amount of 9 the Municipal Sales Tax Increment which shall be deposited by 10 the municipality in the municipality's special tax allocation 11 fund. Provided that for purposes of this Section no 12 amendments adding additional area to the redevelopment 13 project area which has been certified as the State Sales Tax 14 Boundary shall be taken into account if such amendments are 15 adopted by the municipality after January 1, 1987. If an 16 amendment is adopted which decreases the area of a State 17 Sales Tax Boundary, the municipality shall update the list 18 required by subsection (3)(a) of this Section. The Retailers' 19 Occupation Tax liability, Use Tax liability, Service 20 Occupation Tax liability and Service Use Tax liability for 21 retailers and servicemen located within the disconnected area 22 shall be excluded from the base from which tax increments are 23 calculated and the revenue from any such retailer or 24 serviceman shall not be included in calculating incremental 25 revenue payable to the municipality. A municipality adopting 26 an ordinance under this subsection (1) of this Section for a 27 redevelopment project area which is certified as a State 28 Sales Tax Boundary shall not be entitled to payments of State 29 taxes authorized under subsection (2) of this Section for the 30 same redevelopment project area. Nothing herein shall be 31 construed to prevent a municipality from receiving payment of 32 State taxes authorized under subsection (2) of this Section 33 for a separate redevelopment project area that does not 34 overlap in any way with the State Sales Tax Boundary -9- LRB9001031DNcc 1 receiving payments of State taxes pursuant to subsection (1) 2 of this Section. 3 A certified copy of such ordinance shall be submitted by 4 the municipality to the Department of Commerce and Community 5 Affairs and the Department of Revenue not later than 30 days 6 after the effective date of the ordinance. Upon submission 7 of the ordinances, and the information required pursuant to 8 subsection 3 of this Section, the Department of Revenue shall 9 promptly determine the amount of such taxes paid under the 10 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax 11 Act, the Service Occupation Tax Act, the Municipal Retailers' 12 Occupation Tax Act and the Municipal Service Occupation Tax 13 Act by retailers and servicemen on transactions at places 14 located in the redevelopment project area during the base 15 year, and shall certify all the foregoing "initial sales tax 16 amounts" to the municipality within 60 days of submission of 17 the list required of subsection (3)(a) of this Section. 18 If a retailer or serviceman with a place of business 19 located within a redevelopment project area also has one or 20 more other places of business within the municipality but 21 outside the redevelopment project area, the retailer or 22 serviceman shall, upon request of the Department of Revenue, 23 certify to the Department of Revenue the amount of taxes paid 24 pursuant to the Retailers' Occupation Tax Act, the Municipal 25 Retailers' Occupation Tax Act, the Service Occupation Tax Act 26 and the Municipal Service Occupation Tax Act at each place of 27 business which is located within the redevelopment project 28 area in the manner and for the periods of time requested by 29 the Department of Revenue. 30 When the municipality determines that a portion of an 31 increase in the aggregate amount of taxes paid by retailers 32 and servicemen under the Retailers' Occupation Tax Act, Use 33 Tax Act, Service Use Tax Act, or the Service Occupation Tax 34 Act is the result of a retailer or serviceman initiating -10- LRB9001031DNcc 1 retail or service operations in the redevelopment project 2 area by such retailer or serviceman with a resulting 3 termination of retail or service operations by such retailer 4 or serviceman at another location in Illinois in the standard 5 metropolitan statistical area of such municipality, the 6 Department of Revenue shall be notified that the retailers 7 occupation tax liability, use tax liability, service 8 occupation tax liability, or service use tax liability from 9 such retailer's or serviceman's terminated operation shall be 10 included in the base Initial Sales Tax Amounts from which the 11 State Sales Tax Increment is calculated for purposes of State 12 payments to the affected municipality; provided, however, for 13 purposes of this paragraph "termination" shall mean a closing 14 of a retail or service operation which is directly related to 15 the opening of the same retail or service operation in a 16 redevelopment project area which is included within a State 17 Sales Tax Boundary, but it shall not include retail or 18 service operations closed for reasons beyond the control of 19 the retailer or serviceman, as determined by the Department. 20 If the municipality makes the determination referred to in 21 the prior paragraph and notifies the Department and if the 22 relocation is from a location within the municipality, the 23 Department, at the request of the municipality, shall adjust 24 the certified aggregate amount of taxes that constitute the 25 Municipal Sales Tax Increment paid by retailers and 26 servicemen on transactions at places of business located 27 within the State Sales Tax Boundary during the base year 28 using the same procedures as are employed to make the 29 adjustment referred to in the prior paragraph. The adjusted 30 Municipal Sales Tax Increment calculated by the Department 31 shall be sufficient to satisfy the requirements of subsection 32 (1) of this Section. 33 When a municipality which has adopted tax increment 34 allocation financing in 1986 determines that a portion of the -11- LRB9001031DNcc 1 aggregate amount of taxes paid by retailers and servicemen 2 under the Retailers Occupation Tax Act, Use Tax Act, Service 3 Use Tax Act, or Service Occupation Tax Act, the Municipal 4 Retailers' Occupation Tax Act and the Municipal Service 5 Occupation Tax Act, includes revenue of a retailer or 6 serviceman which terminated retailer or service operations in 7 1986, prior to the adoption of tax increment allocation 8 financing, the Department of Revenue shall be notified by 9 such municipality that the retailers' occupation tax 10 liability, use tax liability, service occupation tax 11 liability or service use tax liability, from such retailer's 12 or serviceman's terminated operations shall be excluded from 13 the Initial Sales Tax Amounts for such taxes. The revenue 14 from any such retailer or serviceman which is excluded from 15 the base year under this paragraph, shall not be included in 16 calculating incremental revenues if such retailer or 17 serviceman reestablishes such business in the redevelopment 18 project area. 19 For State fiscal year 1992, the Department of Revenue 20 shall budget, and the Illinois General Assembly shall 21 appropriate from the Illinois Tax Increment Fund in the State 22 treasury, an amount not to exceed $18,000,000 to pay to each 23 eligible municipality the Net State Sales Tax Increment to 24 which such municipality is entitled. 25 Beginning on January 1, 1993, each municipality's 26 proportional share of the Illinois Tax Increment Fund shall 27 be determined by adding the annual Net State Sales Tax 28 Increment and the annual Net Utility Tax Increment to 29 determine the Annual Total Increment. The ratio of the Annual 30 Total Increment of each municipality to the Annual Total 31 Increment for all municipalities, as most recently calculated 32 by the Department, shall determine the proportional shares of 33 the Illinois Tax Increment Fund to be distributed to each 34 municipality. -12- LRB9001031DNcc 1 Beginning in October, 1993, and each January, April, July 2 and October thereafter, the Department of Revenue shall 3 certify to the Treasurer and the Comptroller the amounts 4 payable quarter annually during the fiscal year to each 5 municipality under this Section. The Comptroller shall 6 promptly then draw warrants, ordering the State Treasurer to 7 pay such amounts from the Illinois Tax Increment Fund in the 8 State treasury. 9 The Department of Revenue shall utilize the same periods 10 established for determining State Sales Tax Increment to 11 determine the Municipal Sales Tax Increment for the area 12 within a State Sales Tax Boundary and certify such amounts to 13 such municipal treasurer who shall transfer such amounts to 14 the special tax allocation fund. 15 The provisions of this subsection (1) do not apply to 16 additional municipal retailers' occupation or service 17 occupation taxes imposed by municipalities using their home 18 rule powers or imposed pursuant to Sections 8-11-1.3, 19 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not 20 receive from the State any share of the Illinois Tax 21 Increment Fund unless such municipality deposits all its 22 Municipal Sales Tax Increment and the local incremental real 23 property tax revenues, as provided herein, into the 24 appropriate special tax allocation fund. A municipality 25 located within an economic development project area created 26 under the County Economic Development Project Area Property 27 Tax Allocation Act which has abated any portion of its 28 property taxes which otherwise would have been deposited in 29 its special tax allocation fund shall not receive from the 30 State the Net Sales Tax Increment. 31 (2) A municipality which has adopted tax increment 32 allocation financing with regard to an industrial park or 33 industrial park conservation area, prior to January 1, 1988, 34 may by ordinance authorize the Department of Revenue to -13- LRB9001031DNcc 1 annually certify and pay from the Illinois Tax Increment Fund 2 to such municipality for deposit in the municipality's 3 special tax allocation fund an amount equal to the Net State 4 Utility Tax Increment. Provided that for purposes of this 5 Section no amendments adding additional area to the 6 redevelopment project area shall be taken into account if 7 such amendments are adopted by the municipality after January 8 1, 1988. Municipalities adopting an ordinance under this 9 subsection (2) of this Section for a redevelopment project 10 area shall not be entitled to payment of State taxes 11 authorized under subsection (1) of this Section for the same 12 redevelopment project area which is within a State Sales Tax 13 Boundary. Nothing herein shall be construed to prevent a 14 municipality from receiving payment of State taxes authorized 15 under subsection (1) of this Section for a separate 16 redevelopment project area within a State Sales Tax Boundary 17 that does not overlap in any way with the redevelopment 18 project area receiving payments of State taxes pursuant to 19 subsection (2) of this Section. 20 A certified copy of such ordinance shall be submitted to 21 the Department of Commerce and Community Affairs and the 22 Department of Revenue not later than 30 days after the 23 effective date of the ordinance. 24 When a municipality determines that a portion of an 25 increase in the aggregate amount of taxes paid by industrial 26 or commercial facilities under the Public Utilities Act, is 27 the result of an industrial or commercial facility initiating 28 operations in the redevelopment project area with a resulting 29 termination of such operations by such industrial or 30 commercial facility at another location in Illinois, the 31 Department of Revenue shall be notified by such municipality 32 that such industrial or commercial facility's liability under 33 the Public Utility Tax Act shall be included in the base from 34 which tax increments are calculated for purposes of State -14- LRB9001031DNcc 1 payments to the affected municipality. 2 After receipt of the calculations by the public utility 3 as required by subsection (4) of this Section, the Department 4 of Revenue shall annually budget and the Illinois General 5 Assembly shall annually appropriate from the General Revenue 6 Fund through State Fiscal Year 1989, and thereafter from the 7 Illinois Tax Increment Fund, an amount sufficient to pay to 8 each eligible municipality the amount of incremental revenue 9 attributable to State electric and gas taxes as reflected by 10 the charges imposed on persons in the project area to which 11 such municipality is entitled by comparing the preceding 12 calendar year with the base year as determined by this 13 Section. Beginning on January 1, 1993, each municipality's 14 proportional share of the Illinois Tax Increment Fund shall 15 be determined by adding the annual Net State Utility Tax 16 Increment and the annual Net Utility Tax Increment to 17 determine the Annual Total Increment. The ratio of the Annual 18 Total Increment of each municipality to the Annual Total 19 Increment for all municipalities, as most recently calculated 20 by the Department, shall determine the proportional shares of 21 the Illinois Tax Increment Fund to be distributed to each 22 municipality. 23 A municipality shall not receive any share of the 24 Illinois Tax Increment Fund from the State unless such 25 municipality imposes the maximum municipal charges authorized 26 pursuant to Section 9-221 of the Public Utilities Act and 27 deposits all municipal utility tax incremental revenues as 28 certified by the public utilities, and all local real estate 29 tax increments into such municipality's special tax 30 allocation fund. 31 (3) Within 30 days after the adoption of the ordinance 32 required by either subsection (1) or subsection (2) of this 33 Section, the municipality shall transmit to the Department of 34 Commerce and Community Affairs and the Department of Revenue -15- LRB9001031DNcc 1 the following: 2 (a) if applicable, a certified copy of the 3 ordinance required by subsection (1) accompanied by a 4 complete list of street names and the range of street 5 numbers of each street located within the redevelopment 6 project area for which payments are to be made under this 7 Section in both the base year and in the year preceding 8 the payment year; and the addresses of persons registered 9 with the Department of Revenue; and, the name under which 10 each such retailer or serviceman conducts business at 11 that address, if different from the corporate name; and 12 the Illinois Business Tax Number of each such person (The 13 municipality shall update this list in the event of a 14 revision of the redevelopment project area, or the 15 opening or closing or name change of any street or part 16 thereof in the redevelopment project area, or if the 17 Department of Revenue informs the municipality of an 18 addition or deletion pursuant to the monthly updates 19 given by the Department.); 20 (b) if applicable, a certified copy of the 21 ordinance required by subsection (2) accompanied by a 22 complete list of street names and range of street numbers 23 of each street located within the redevelopment project 24 area, the utility customers in the project area, and the 25 utilities serving the redevelopment project areas; 26 (c) certified copies of the ordinances approving 27 the redevelopment plan and designating the redevelopment 28 project area; 29 (d) a copy of the redevelopment plan as approved by 30 the municipality; 31 (e) an opinion of legal counsel that the 32 municipality had complied with the requirements of this 33 Act; and 34 (f) a certification by the chief executive officer -16- LRB9001031DNcc 1 of the municipality that with regard to a redevelopment 2 project area: (1) the municipality has committed all of 3 the municipal tax increment created pursuant to this Act 4 for deposit in the special tax allocation fund, (2) the 5 redevelopment projects described in the redevelopment 6 plan would not be completed without the use of State 7 incremental revenues pursuant to this Act, (3) the 8 municipality will pursue the implementation of the 9 redevelopment plan in an expeditious manner, (4) the 10 incremental revenues created pursuant to this Section 11 will be exclusively utilized for the development of the 12 redevelopment project area, and (5) the increased revenue 13 created pursuant to this Section shall be used 14 exclusively to pay redevelopment project costs as defined 15 in this Act. 16 (4) The Department of Revenue upon receipt of the 17 information set forth in paragraph (b) of subsection (3) 18 shall immediately forward such information to each public 19 utility furnishing natural gas or electricity to buildings 20 within the redevelopment project area. Upon receipt of such 21 information, each public utility shall promptly: 22 (a) provide to the Department of Revenue and the 23 municipality separate lists of the names and addresses of 24 persons within the redevelopment project area receiving 25 natural gas or electricity from such public utility. 26 Such list shall be updated as necessary by the public 27 utility. Each month thereafter the public utility shall 28 furnish the Department of Revenue and the municipality 29 with an itemized listing of charges imposed pursuant to 30 Sections 9-221 and 9-222 of the Public Utilities Act on 31 persons within the redevelopment project area. 32 (b) determine the amount of charges imposed 33 pursuant to Sections 9-221 and 9-222 of the Public 34 Utilities Act on persons in the redevelopment project -17- LRB9001031DNcc 1 area during the base year, both as a result of municipal 2 taxes on electricity and gas and as a result of State 3 taxes on electricity and gas and certify such amounts 4 both to the municipality and the Department of Revenue; 5 and 6 (c) determine the amount of charges imposed 7 pursuant to Sections 9-221 and 9-222 of the Public 8 Utilities Act on persons in the redevelopment project 9 area on a monthly basis during the base year, both as a 10 result of State and municipal taxes on electricity and 11 gas and certify such separate amounts both to the 12 municipality and the Department of Revenue. 13 After the determinations are made in paragraphs (b) and 14 (c), the public utility shall monthly during the existence of 15 the redevelopment project area notify the Department of 16 Revenue and the municipality of any increase in charges over 17 the base year determinations made pursuant to paragraphs (b) 18 and (c). 19 (5) The payments authorized under this Section shall be 20 deposited by the municipal treasurer in the special tax 21 allocation fund of the municipality, which for accounting 22 purposes shall identify the sources of each payment as: 23 municipal receipts from the State retailers occupation, 24 service occupation, use and service use taxes; and municipal 25 public utility taxes charged to customers under the Public 26 Utilities Act and State public utility taxes charged to 27 customers under the Public Utilities Act. 28 (6) Any municipality receiving payments authorized under 29 this Section for any redevelopment project area or area 30 within a State Sales Tax Boundary within the municipality 31 shall submit to the Department of Revenue and to the taxing 32 districts which are sent the notice required by Section 6 of 33 this Act annually within 180 days after the close of each 34 municipal fiscal year the following information for the -18- LRB9001031DNcc 1 immediately preceding fiscal year: 2 (a) Any amendments to the redevelopment plan, the 3 redevelopment project area, or the State Sales Tax 4 Boundary. 5 (b) Audited financial statements of the special tax 6 allocation fund. 7 (c) Certification of the Chief Executive Officer of 8 the municipality that the municipality has complied with 9 all of the requirements of this Act during the preceding 10 fiscal year. 11 (d) An opinion of legal counsel that the 12 municipality is in compliance with this Act. 13 (e) An analysis of the special tax allocation fund 14 which sets forth: 15 (1) the balance in the special tax allocation 16 fund at the beginning of the fiscal year; 17 (2) all amounts deposited in the special tax 18 allocation fund by source; 19 (3) all expenditures from the special tax 20 allocation fund by category of permissible 21 redevelopment project cost; and 22 (4) the balance in the special tax allocation 23 fund at the end of the fiscal year including a 24 breakdown of that balance by source. Such ending 25 balance shall be designated as surplus if it is not 26 required for anticipated redevelopment project costs 27 or to pay debt service on bonds issued to finance 28 redevelopment project costs, as set forth in Section 29 11-74.4-7 hereof. 30 (f) A description of all property purchased by the 31 municipality within the redevelopment project area 32 including 33 1. Street address 34 2. Approximate size or description of property -19- LRB9001031DNcc 1 3. Purchase price 2 4. Seller of property. 3 (g) A statement setting forth all activities 4 undertaken in furtherance of the objectives of the 5 redevelopment plan, including: 6 1. Any project implemented in the preceding 7 fiscal year 8 2. A description of the redevelopment 9 activities undertaken 10 3. A description of any agreements entered 11 into by the municipality with regard to the 12 disposition or redevelopment of any property within 13 the redevelopment project area or the area within 14 the State Sales Tax Boundary. 15 (h) With regard to any obligations issued by the 16 municipality: 17 1. copies of bond ordinances or resolutions 18 2. copies of any official statements 19 3. an analysis prepared by financial advisor 20 or underwriter setting forth: (a) nature and term of 21 obligation; and (b) projected debt service including 22 required reserves and debt coverage. 23 (i) A certified audit report reviewing compliance 24 with this statute performed by an independent public 25 accountant certified and licensed by the authority of the 26 State of Illinois. The financial portion of the audit 27 must be conducted in accordance with Standards for Audits 28 of Governmental Organizations, Programs, Activities, and 29 Functions adopted by the Comptroller General of the 30 United States (1981), as amended. The audit report shall 31 contain a letter from the independent certified public 32 accountant indicating compliance or noncompliance with 33 the requirements of subsection (q) of Section 11-74.4-3. 34 If the audit indicates that expenditures are not in -20- LRB9001031DNcc 1 compliance with the law, the Department of Revenue shall 2 withhold State sales and utility tax increment payments 3 to the municipality until compliance has been reached, 4 and an amount equal to the ineligible expenditures has 5 been returned to the Special Tax Allocation Fund. 6 (6.1) After July 29, 1988, any funds which have not been 7 designated for use in a specific development project in the 8 annual report shall be designated as surplus. No funds may be 9 held in the Special Tax Allocation Fund for more than 36 10 months from the date of receipt unless the money is required 11 for payment of contractual obligations for specific 12 development project costs. If held for more than 36 months in 13 violation of the preceding sentence, such funds shall be 14 designated as surplus. Any funds designated as surplus must 15 first be used for early redemption of any bond obligations. 16 Any funds designated as surplus which are not disposed of as 17 otherwise provided in this paragraph, shall be distributed as 18 surplus as provided in Section 11-74.4-7. 19 (7) Any appropriation made pursuant to this Section for 20 the 1987 State fiscal year shall not exceed the amount of $7 21 million and for the 1988 State fiscal year the amount of $10 22 million. The amount which shall be distributed to each 23 municipality shall be the incremental revenue to which each 24 municipality is entitled as calculated by the Department of 25 Revenue, unless the requests of the municipality exceed the 26 appropriation, then the amount to which each municipality 27 shall be entitled shall be prorated among the municipalities 28 in the same proportion as the increment to which the 29 municipality would be entitled bears to the total increment 30 which all municipalities would receive in the absence of this 31 limitation, provided that no municipality may receive an 32 amount in excess of 15% of the appropriation. For the 1987 33 Net State Sales Tax Increment payable in Fiscal Year 1989, no 34 municipality shall receive more than 7.5% of the total -21- LRB9001031DNcc 1 appropriation; provided, however, that any of the 2 appropriation remaining after such distribution shall be 3 prorated among municipalities on the basis of their pro rata 4 share of the total increment. Beginning on January 1, 1993, 5 each municipality's proportional share of the Illinois Tax 6 Increment Fund shall be determined by adding the annual Net 7 State Sales Tax Increment and the annual Net Utility Tax 8 Increment to determine the Annual Total Increment. The ratio 9 of the Annual Total Increment of each municipality to the 10 Annual Total Increment for all municipalities, as most 11 recently calculated by the Department, shall determine the 12 proportional shares of the Illinois Tax Increment Fund to be 13 distributed to each municipality. 14 (7.1) No distribution of Net State Sales Tax Increment 15 to a municipality for an area within a State Sales Tax 16 Boundary shall exceed in any State Fiscal Year an amount 17 equal to 3 times the sum of the Municipal Sales Tax 18 Increment, the real property tax increment and deposits of 19 funds from other sources, excluding state and federal funds, 20 as certified by the city treasurer to the Department of 21 Revenue for an area within a State Sales Tax Boundary. After 22 July 29, 1988, for those municipalities which issue bonds 23 between June 1, 1988 and 3 years from July 29, 1988 to 24 finance redevelopment projects within the area in a State 25 Sales Tax Boundary, the distribution of Net State Sales Tax 26 Increment during the 16th through 20th years from the date of 27 issuance of the bonds shall not exceed in any State Fiscal 28 Year an amount equal to 2 times the sum of the Municipal 29 Sales Tax Increment, the real property tax increment and 30 deposits of funds from other sources, excluding State and 31 federal funds. 32 (8) Any person who knowingly files or causes to be filed 33 false information for the purpose of increasing the amount of 34 any State tax incremental revenue commits a Class A -22- LRB9001031DNcc 1 misdemeanor. 2 (9) The following procedures shall be followed to 3 determine whether municipalities have complied with the Act 4 for the purpose of receiving distributions after July 1, 1989 5 pursuant to subsection (1) of this Section 11-74.4-8a. 6 (a) The Department of Revenue shall conduct a 7 preliminary review of the redevelopment project areas and 8 redevelopment plans pertaining to those municipalities 9 receiving payments from the State pursuant to subsection 10 (1) of Section 8a of this Act for the purpose of 11 determining compliance with the following standards: 12 (1) For any municipality with a population of 13 more than 12,000 as determined by the 1980 U.S. 14 Census: (a) the redevelopment project area, or in 15 the case of a municipality which has more than one 16 redevelopment project area, each such area, must be 17 contiguous and the total of all such areas shall not 18 comprise more than 25% of the area within the 19 municipal boundaries nor more than 20% of the 20 equalized assessed value of the municipality; (b) 21 the aggregate amount of 1985 taxes in the 22 redevelopment project area, or in the case of a 23 municipality which has more than one redevelopment 24 project area, the total of all such areas, shall be 25 not more than 25% of the total base year taxes paid 26 by retailers and servicemen on transactions at 27 places of business located within the municipality 28 under the Retailers' Occupation Tax Act, the Use Tax 29 Act, the Service Use Tax Act, and the Service 30 Occupation Tax Act. Redevelopment project areas 31 created prior to 1986 are not subject to the above 32 standards if their boundaries were not amended in 33 1986. 34 (2) For any municipality with a population of -23- LRB9001031DNcc 1 12,000 or less as determined by the 1980 U.S. 2 Census: (a) the redevelopment project area, or in 3 the case of a municipality which has more than one 4 redevelopment project area, each such area, must be 5 contiguous and the total of all such areas shall not 6 comprise more than 35% of the area within the 7 municipal boundaries nor more than 30% of the 8 equalized assessed value of the municipality; (b) 9 the aggregate amount of 1985 taxes in the 10 redevelopment project area, or in the case of a 11 municipality which has more than one redevelopment 12 project area, the total of all such areas, shall not 13 be more than 35% of the total base year taxes paid 14 by retailers and servicemen on transactions at 15 places of business located within the municipality 16 under the Retailers' Occupation Tax Act, the Use Tax 17 Act, the Service Use Tax Act, and the Service 18 Occupation Tax Act. Redevelopment project areas 19 created prior to 1986 are not subject to the above 20 standards if their boundaries were not amended in 21 1986. 22 (3) Such preliminary review of the 23 redevelopment project areas applying the above 24 standards shall be completed by November 1, 1988, 25 and on or before November 1, 1988, the Department 26 shall notify each municipality by certified mail, 27 return receipt requested that either (1) the 28 Department requires additional time in which to 29 complete its preliminary review; or (2) the 30 Department is issuing either (a) a Certificate of 31 Eligibility or (b) a Notice of Review. If the 32 Department notifies a municipality that it requires 33 additional time to complete its preliminary 34 investigation, it shall complete its preliminary -24- LRB9001031DNcc 1 investigation no later than February 1, 1989, and by 2 February 1, 1989 shall issue to each municipality 3 either (a) a Certificate of Eligibility or (b) a 4 Notice of Review. A redevelopment project area for 5 which a Certificate of Eligibility has been issued 6 shall be deemed a "State Sales Tax Boundary." 7 (4) The Department of Revenue shall also issue 8 a Notice of Review if the Department has received a 9 request by November 1, 1988 to conduct such a review 10 from taxpayers in the municipality, local taxing 11 districts located in the municipality or the State 12 of Illinois, or if the redevelopment project area 13 has more than 5 retailers and has had growth in 14 State sales tax revenue of more than 15% from 15 calendar year 1985 to 1986. 16 (b) For those municipalities receiving a Notice of 17 Review, the Department will conduct a secondary review 18 consisting of: (i) application of the above standards 19 contained in subsection (9)(a)(1)(a) and (b) or 20 (9)(a)(2)(a) and (b), and (ii) the definitions of 21 blighted and conservation area provided for in Section 22 11-74.4-3. Such secondary review shall be completed by 23 July 1, 1989. 24 Upon completion of the secondary review, the 25 Department will issue (a) a Certificate of Eligibility or 26 (b) a Preliminary Notice of Deficiency. Any municipality 27 receiving a Preliminary Notice of Deficiency may amend 28 its redevelopment project area to meet the standards and 29 definitions set forth in this paragraph (b). This amended 30 redevelopment project area shall become the "State Sales 31 Tax Boundary" for purposes of determining the State Sales 32 Tax Increment. 33 (c) If the municipality advises the Department of 34 its intent to comply with the requirements of paragraph -25- LRB9001031DNcc 1 (b) of this subsection outlined in the Preliminary Notice 2 of Deficiency, within 120 days of receiving such notice 3 from the Department, the municipality shall submit 4 documentation to the Department of the actions it has 5 taken to cure any deficiencies. Thereafter, within 30 6 days of the receipt of the documentation, the Department 7 shall either issue a Certificate of Eligibility or a 8 Final Notice of Deficiency. If the municipality fails to 9 advise the Department of its intent to comply or fails to 10 submit adequate documentation of such cure of 11 deficiencies the Department shall issue a Final Notice of 12 Deficiency that provides that the municipality is 13 ineligible for payment of the Net State Sales Tax 14 Increment. 15 (d) If the Department issues a final determination 16 of ineligibility, the municipality shall have 30 days 17 from the receipt of determination to protest and request 18 a hearing. Such hearing shall be conducted in accordance 19 with Sections 10-25, 10-35, 10-40, and 10-50 of the 20 Illinois Administrative Procedure Act. The decision 21 following the hearing shall be subject to review under 22 the Administrative Review Law. 23 (e) Any Certificate of Eligibility issued pursuant 24 to this subsection 9 shall be binding only on the State 25 for the purposes of establishing municipal eligibility to 26 receive revenue pursuant to subsection (1) of this 27 Section 11-74.4-8a. 28 (f) It is the intent of this subsection that the 29 periods of time to cure deficiencies shall be in addition 30 to all other periods of time permitted by this Section, 31 regardless of the date by which plans were originally 32 required to be adopted. To cure said deficiencies, 33 however, the municipality shall be required to follow the 34 procedures and requirements pertaining to amendments, as -26- LRB9001031DNcc 1 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act. 2 (10) If a municipality adopts a State Sales Tax Boundary 3 in accordance with the provisions of subsection (9) of this 4 Section, such boundaries shall subsequently be utilized to 5 determine Revised Initial Sales Tax Amounts and the Net State 6 Sales Tax Increment; provided, however, that such revised 7 State Sales Tax Boundary shall not have any effect upon the 8 boundary of the redevelopment project area established for 9 the purposes of determining the ad valorem taxes on real 10 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this 11 Act nor upon the municipality's authority to implement the 12 redevelopment plan for that redevelopment project area. For 13 any redevelopment project area with a smaller State Sales Tax 14 Boundary within its area, the municipality may annually elect 15 to deposit the Municipal Sales Tax Increment for the 16 redevelopment project area in the special tax allocation fund 17 and shall certify the amount to the Department prior to 18 receipt of the Net State Sales Tax Increment. Any 19 municipality required by subsection (9) to establish a State 20 Sales Tax Boundary for one or more of its redevelopment 21 project areas shall submit all necessary information required 22 by the Department concerning such boundary and the retailers 23 therein, by October 1, 1989, after complying with the 24 procedures for amendment set forth in Sections 11-74.4-5 and 25 11-74.4-6 of this Act. Net State Sales Tax Increment 26 produced within the State Sales Tax Boundary shall be spent 27 only within that area. However expenditures of all municipal 28 property tax increment and municipal sales tax increment in a 29 redevelopment project area are not required to be spent 30 within the smaller State Sales Tax Boundary within such 31 redevelopment project area. 32 (11) The Department of Revenue shall have the authority 33 to issue rules and regulations for purposes of this Section. 34 (12) If, under Section 5.4.1 of the Illinois Enterprise -27- LRB9001031DNcc 1 Zone Act, a municipality determines that property that lies 2 within a State Sales Tax Boundary has an improvement, 3 rehabilitation, or renovation that is entitled to a property 4 tax abatement, then that property along with any 5 improvements, rehabilitations, or renovations shall be 6 immediately removed from any State Sales Tax Boundary. The 7 municipality that made the determination shall notify the 8 Department of Revenue within 30 days after the determination. 9 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.) 10 (65 ILCS 5/11-74.4-8c new) 11 Sec. 11-74.4-8c. Enterprise zone abatements. If a 12 redevelopment project area is or has been established under 13 Section 11-74.4-4 on or before the effective date of this 14 amendatory Act of 1997 and the redevelopment project area 15 contains property that is located within an enterprise zone 16 established under the Illinois Enterprise Zone Act, then the 17 property that is located in both the redevelopment project 18 area and the enterprise zone shall not be eligible for the 19 abatement of taxes under Section 18-170 of the Property Tax 20 Code unless the requirements of Section 5.4.1 of the 21 Illinois Enterprise Zone Act are satisfied. If an abatement 22 is granted or discontinued under this Section, a municipality 23 shall notify the county clerk and the board of review or 24 board of appeals of the change in writing not later than July 25 1 of the assessment year to be first affected by the change. 26 Section 90. The State Mandates Act is amended by adding 27 Section 8.21 as follows: 28 (30 ILCS 805/8.21 new) 29 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 30 and 8 of this Act, no reimbursement by the State is required 31 for the implementation of any mandate created by this -28- LRB9001031DNcc 1 amendatory Act of 1997. 2 Section 95. Severability. The provisions of this Act 3 are severable under Section 1.31 of the Statute on Statutes. 4 Section 99. Effective date. This Act takes effect July 5 1, 1997. -29- LRB9001031DNcc 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 655/5.4.1 new 4 35 ILCS 200/18-170 5 65 ILCS 5/11-74.4-6 from Ch. 24, par. 11-74.4-6 6 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a 7 65 ILCS 5/11-74.4-8c new 8 30 ILCS 805/8.21 new