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90_HB0524eng
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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.
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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 changing Section 5.4 and adding Section 5.4.1 as follows:
6 (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
7 Sec. 5.4. Amendment and Decertification of Enterprise
8 Zones. (a) The terms of a certified enterprise zone
9 designating ordinance may be amended to
10 (i) alter the boundaries of the Enterprise Zone, or
11 (ii) expand, limit or repeal tax incentives or benefits
12 provided in the ordinance, or
13 (iii) alter the termination date of the zone, or
14 (iv) make technical corrections in the enterprise zone
15 designating ordinance; but such amendment shall not be
16 effective unless the Department issues an amended certificate
17 for the Enterprise Zone, approving the amended designating
18 ordinance. Upon the adoption of any ordinance amending or
19 repealing the terms of a certified enterprise zone
20 designating ordinance, the municipality or county shall
21 promptly file with the Department an application for approval
22 thereof, containing substantially the same information as
23 required for an application under Section 5.1 insofar as
24 material to the proposed changes. The municipality or county
25 must hold a public hearing on the proposed changes as
26 specified in Section 5 and, if the amendment is to effectuate
27 the limitation of tax abatements under Section 5.4.1, then
28 the public notice of the hearing shall state that property
29 that is in both the enterprise zone and a redevelopment
30 project area may not receive tax abatements unless within 60
31 days after the adoption of the amendment to the designating
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1 ordinance the municipality has determined that eligibility
2 for tax abatements has been established, or
3 (v) include an area within another municipality or
4 county as part of the designated enterprise zone provided the
5 requirements of Section 4 are complied with, or.
6 (vi) effectuate the limitation of tax abatements under
7 Section 5.4.1.
8 (b) The Department shall approve or disapprove a
9 proposed amendment to a certified enterprise zone within 90
10 days of its receipt of the application from the municipality
11 or county. The Department may not approve changes in a Zone
12 which are not in conformity with this Act, as now or
13 hereafter amended, or with other applicable laws. If the
14 Department issues an amended certificate for an Enterprise
15 Zone, the amended certificate, together with the amended zone
16 designating ordinance, shall be filed, recorded and
17 transmitted as provided in Section 5.3.
18 (c) An Enterprise Zone may be decertified by joint
19 action of the Department and the designating county or
20 municipality in accordance with this Section. The designating
21 county or municipality shall conduct at least one public
22 hearing within the zone prior to its adoption of an ordinance
23 of de-designation. The mayor of the designating municipality
24 or the chairman of the county board of the designating county
25 shall execute a joint decertification agreement with the
26 Department. A decertification of an Enterprise Zone shall not
27 become effective until at least 6 months after the execution
28 of the decertification agreement, which shall be filed in the
29 office of the Secretary of State.
30 (d) An Enterprise Zone may be decertified for cause by
31 the Department in accordance with this Section. Prior to
32 decertification: (1) the Department shall notify the chief
33 elected official of the designating county or municipality in
34 writing of the specific deficiencies which provide cause for
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1 decertification; (2) the Department shall place the
2 designating county or municipality on probationary status for
3 at least 6 months during which time corrective action may be
4 achieved in the enterprise zone by the designating county or
5 municipality; and, (3) the Department shall conduct at least
6 one public hearing within the zone. If such corrective action
7 is not achieved during the probationary period, the
8 Department shall issue an amended certificate signed by the
9 Director of the Department decertifying the enterprise zone,
10 which certificate shall be filed in the office of the
11 Secretary of State. A certified copy of the amended
12 enterprise zone certificate, or a duplicate original thereof,
13 shall be recorded in the office of recorder of the county in
14 which the enterprise zone lies, and shall be provided to the
15 chief elected official of the designating county or
16 municipality. Decertification of an Enterprise Zone shall not
17 become effective until 60 days after the date of filing.
18 (e) In the event of a decertification, or an amendment
19 reducing the length of the term or the area of an Enterprise
20 Zone or the adoption of an ordinance reducing or eliminating
21 tax benefits in an Enterprise Zone, all benefits previously
22 extended within the Zone pursuant to this Act or pursuant to
23 any other Illinois law providing benefits specifically to or
24 within Enterprise Zones shall remain in effect for the
25 original stated term of the Enterprise Zone, with respect to
26 business enterprises within the Zone on the effective date of
27 such decertification or amendment, and with respect to
28 individuals participating in urban homestead programs under
29 this Act.
30 (f) Except as otherwise provided in Section 5.4.1, with
31 respect to business enterprises (or expansions thereof) which
32 are proposed or under development within a Zone at the time
33 of a decertification or an amendment reducing the length of
34 the term of the Zone, or excluding from the Zone area the
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1 site of the proposed enterprise, or an ordinance reducing or
2 eliminating tax benefits in a Zone, such business enterprise
3 shall be entitled to the benefits previously applicable
4 within the Zone for the original stated term of the Zone, if
5 the business enterprise establishes:
6 (i) that the proposed business enterprise or expansion
7 has been committed to be located within the Zone;
8 (ii) that substantial and binding financial obligations
9 have been made towards the development of such enterprise;
10 and
11 (iii) that such commitments have been made in reasonable
12 reliance on the benefits and programs which were to have been
13 applicable to the enterprise by reason of the Zone, including
14 in the case of a reduction in term of a zone, the original
15 length of the term.
16 In declaratory judgment actions under this paragraph, the
17 Department and the designating municipality or county shall
18 be necessary parties defendant.
19 (Source: P.A. 86-820.)
20 (20 ILCS 655/5.4.1 new)
21 Sec. 5.4.1. Adoption of Tax Increment Financing.
22 (a) If (i) a redevelopment project area is, will be, or
23 has been created by a municipality under Division 74.4 of
24 the Illinois Municipal Code, (ii) the redevelopment project
25 area contains property that is located in an enterprise zone,
26 (iii) the municipality adopts an amendment to the enterprise
27 zone designating ordinance pursuant to Section 5.4 of this
28 Act specifically concerning the abatement of taxes on
29 property located within a redevelopment project area created
30 pursuant to Division 74.4 of the Illinois Municipal Code, and
31 (iv) the Department certifies the ordinance amendment, then
32 the property that is located in both the enterprise zone and
33 the redevelopment project area shall not be eligible for the
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1 abatement of taxes under Section 18-170 of the Property Tax
2 Code.
3 No business enterprise or expansion or individual,
4 however, that has constructed a new improvement or renovated
5 or rehabilitated an existing improvement and has received an
6 abatement on the improvement under Section 18-170 of the
7 Property Tax Code shall be denied any benefit previously
8 extended within the zone pursuant to this Act or pursuant to
9 any other Illinois law providing benefits specifically to or
10 within enterprise zones. Moreover, if the business enterprise
11 or individual presents evidence to the municipality within 30
12 days after the adoption by the municipality of an amendment
13 to the designating ordinance the sufficiency of which shall
14 be determined by findings of the corporate authorities made
15 within 30 days of the receipt of such evidence by the
16 municipality, that before the date of the notice of the
17 public hearing provided by the municipality regarding the
18 amendment to the designating ordinance (i) the business
19 enterprise or expansion or individual was committed to
20 locate within the enterprise zone, (ii) substantial and
21 binding financial obligations were made towards the
22 development of the enterprise, and (iii) those commitments
23 were made in reasonable reliance on the benefits and programs
24 that were applicable to the enterprise or individual by
25 reason of the enterprise zone, then the enterprise or
26 expansion or individual shall not be denied any benefit
27 previously extended within the zone pursuant to this Act or
28 pursuant to any other Illinois law providing benefits
29 specifically to or within enterprise zones.
30 (b) This Section applies to all property located within
31 both a redevelopment project area adopted under Division
32 74.4 of the Illinois Municipal Code and an enterprise zone
33 even if the redevelopment project area or the enterprise
34 zone was adopted before the effective date of this
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1 amendatory Act of 1997.
2 (c) After July 1, 1997, if (i) a redevelopment project
3 area is created by a municipality under Division 74.4 of the
4 Illinois Municipal Code and (ii) the redevelopment project
5 area contains property that is located in an enterprise zone,
6 the municipality must adopt an amendment to the certified
7 enterprise zone designating ordinance under Section 5.4 that
8 property that is located in both the enterprise zone and the
9 redevelopment project area shall not be eligible for any
10 abatement of taxes under Section 18-170 of the Property Tax
11 Code for new improvements or the renovation or rehabilitation
12 of existing improvements.
13 (d) In declaratory judgment actions under this Section,
14 the Department and the designating municipality shall be
15 necessary parties defendant.
16 Section 10. The Property Tax Code is amended by changing
17 Section 18-170 as follows:
18 (35 ILCS 200/18-170)
19 Sec. 18-170. Enterprise zone abatement. In addition to
20 the authority to abate taxes under Section 18-165, any taxing
21 district, upon a majority vote of its governing authority,
22 may order the county clerk to abate any portion of its taxes
23 on property, or any class thereof, located within an
24 Enterprise Zone created under the Illinois Enterprise Zone
25 Act, and upon which either new improvements have been
26 constructed or existing improvements have been renovated or
27 rehabilitated after December 7, 1982. However, any abatement
28 of taxes on any parcel shall not exceed the amount
29 attributable to the construction of the improvements and the
30 renovation or rehabilitation of existing improvements on the
31 parcel. In the case of property within a redevelopment area
32 created under the Tax Increment Allocation Redevelopment Act,
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1 the abatement shall not apply unless a business enterprise or
2 individual with regard to new improvements or renovated or
3 rehabilitated improvements has met the requirements of
4 Section 5.4.1 of the Illinois Enterprise Zone Act exceed the
5 amount of taxes allocable to the taxing district. If an
6 abatement is discontinued under this Section, a municipality
7 shall notify the county clerk and the board of review or
8 board of appeals of the change in writing not later than July
9 1 of the assessment year to be first affected by the change.
10 However, within a county economic development project area
11 created under the County Economic Development Project Area
12 Property Tax Allocation Act, any municipality or county which
13 has adopted tax increment allocation financing under the Tax
14 Increment Allocation Redevelopment Act or the County Economic
15 Development Project Area Tax Increment Allocation Act may
16 abate any portion of its taxes as provided in this Section.
17 Any other taxing district within the county economic
18 development project area may order any portion or all of its
19 taxes abated as provided above if the county or municipality
20 which created the tax increment district has agreed, in
21 writing, to the abatement.
22 A copy of an abatement order adopted under this Section
23 shall be delivered to the county clerk and to the board of
24 review or board of appeals not later than July 1 of the
25 assessment year to be first affected by the order. If it is
26 delivered on or after that date, it will first affect the
27 taxes extended on the assessment of the following year. The
28 board of review or board of appeals shall, each time the
29 assessment books are delivered to the county clerk, also
30 deliver a list of parcels affected by an abatement and the
31 assessed value attributable to new improvements or to the
32 renovation or rehabilitation of existing improvements.
33 (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
34 8-14-96.)
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1 Section 15. The Illinois Municipal Code is amended by
2 changing Sections 11-74.4-4, 11-74.4-8, 11-74.4-8a, and
3 11-74.6-15 and adding Section 11-74.4-8c as follows:
4 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
5 Sec. 11-74.4-4. Municipal powers and duties;
6 redevelopment project areas. A municipality may:
7 (a) By ordinance introduced in the governing body of the
8 municipality within 14 to 90 days from the completion of the
9 hearing specified in Section 11-74.4-5 approve redevelopment
10 plans and redevelopment projects, and designate redevelopment
11 project areas pursuant to notice and hearing required by this
12 Act. No redevelopment project area shall be designated
13 unless a plan and project are approved prior to the
14 designation of such area and such area shall include only
15 those contiguous parcels of real property and improvements
16 thereon substantially benefited by the proposed redevelopment
17 project improvements.
18 (b) Make and enter into all contracts necessary or
19 incidental to the implementation and furtherance of its
20 redevelopment plan and project.
21 (c) Within a redevelopment project area, acquire by
22 purchase, donation, lease or eminent domain; own, convey,
23 lease, mortgage or dispose of land and other property, real
24 or personal, or rights or interests therein, and grant or
25 acquire licenses, easements and options with respect thereto,
26 all in the manner and at such price the municipality
27 determines is reasonably necessary to achieve the objectives
28 of the redevelopment plan and project. No conveyance, lease,
29 mortgage, disposition of land or other property, or agreement
30 relating to the development of the property shall be made
31 except upon the adoption of an ordinance by the corporate
32 authorities of the municipality. Furthermore, no conveyance,
33 lease, mortgage, or other disposition of land or agreement
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1 relating to the development of property shall be made without
2 making public disclosure of the terms of the disposition and
3 all bids and proposals made in response to the municipality's
4 request. The procedures for obtaining such bids and
5 proposals shall provide reasonable opportunity for any person
6 to submit alternative proposals or bids.
7 (d) Within a redevelopment project area, clear any area
8 by demolition or removal of any existing buildings and
9 structures.
10 (e) Within a redevelopment project area, renovate or
11 rehabilitate or construct any structure or building.
12 (f) Install, repair, construct, reconstruct or relocate
13 streets, utilities and site improvements essential to the
14 preparation of the redevelopment area for use in accordance
15 with a redevelopment plan.
16 (g) Within a redevelopment project area, fix, charge and
17 collect fees, rents and charges for the use of any building
18 or property owned or leased by it or any part thereof, or
19 facility therein.
20 (h) Accept grants, guarantees and donations of property,
21 labor, or other things of value from a public or private
22 source for use within a project redevelopment area.
23 (i) Acquire and construct public facilities within a
24 redevelopment project area.
25 (j) Incur project redevelopment costs.
26 (k) Create a commission of not less than 5 or more than
27 15 persons to be appointed by the mayor or president of the
28 municipality with the consent of the majority of the
29 governing board of the municipality. Members of a commission
30 appointed after the effective date of this amendatory Act of
31 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
32 years, respectively, in such numbers as to provide that the
33 terms of not more than 1/3 of all such members shall expire
34 in any one year. Their successors shall be appointed for a
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1 term of 5 years. The commission, subject to approval of the
2 corporate authorities may exercise the powers enumerated in
3 this Section. The commission shall also have the power to
4 hold the public hearings required by this division and make
5 recommendations to the corporate authorities concerning the
6 adoption of redevelopment plans, redevelopment projects and
7 designation of redevelopment project areas.
8 (l) Make payment in lieu of taxes or a portion thereof
9 to taxing districts. If payments in lieu of taxes or a
10 portion thereof are made to taxing districts, those payments
11 shall be made to all districts within a project redevelopment
12 area on a basis which is proportional to the current
13 collections of revenue which each taxing district receives
14 from real property in the redevelopment project area.
15 (m) Exercise any and all other powers necessary to
16 effectuate the purposes of this Act.
17 (n) If any member of the corporate authority, a member
18 of a commission established pursuant to Section 11-74.4-4(k)
19 of this Act, or an employee or consultant of the municipality
20 involved in the planning and preparation of a redevelopment
21 plan, or project for a redevelopment project area or proposed
22 redevelopment project area, as defined in Sections
23 11-74.4-3(i) through (k) of this Act, owns or controls an
24 interest, direct or indirect, in any property included in any
25 redevelopment area, or proposed redevelopment area, he or she
26 shall disclose the same in writing to the clerk of the
27 municipality, and shall also so disclose the dates and terms
28 and conditions of any disposition of any such interest, which
29 disclosures shall be acknowledged by the corporate
30 authorities and entered upon the minute books of the
31 corporate authorities. If an individual holds such an
32 interest then that individual shall refrain from any further
33 official involvement in regard to such redevelopment plan,
34 project or area, from voting on any matter pertaining to such
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1 redevelopment plan, project or area, or communicating with
2 other members concerning corporate authorities, commission or
3 employees concerning any matter pertaining to said
4 redevelopment plan, project or area. Furthermore, no such
5 member or employee shall acquire of any interest direct, or
6 indirect, in any property in a redevelopment area or proposed
7 redevelopment area after either (a) such individual obtains
8 knowledge of such plan, project or area or (b) first public
9 notice of such plan, project or area pursuant to Section
10 11-74.4-6 of this Division, whichever occurs first.
11 (o) Create a Tax Increment Economic Development Advisory
12 Committee to be appointed by the Mayor or President of the
13 municipality with the consent of the majority of the
14 governing board of the municipality, the members of which
15 Committee shall be appointed for initial terms of 1, 2, 3, 4
16 and 5 years respectively, in such numbers as to provide that
17 the terms of not more than 1/3 of all such members shall
18 expire in any one year. Their successors shall be appointed
19 for a term of 5 years. The Committee shall have none of the
20 powers enumerated in this Section. The Committee shall serve
21 in an advisory capacity only. The Committee may advise the
22 governing Board of the municipality and other municipal
23 officials regarding development issues and opportunities
24 within the redevelopment project area or the area within the
25 State Sales Tax Boundary. The Committee may also promote and
26 publicize development opportunities in the redevelopment
27 project area or the area within the State Sales Tax Boundary.
28 (p) Municipalities may jointly undertake and perform
29 redevelopment plans and projects and utilize the provisions
30 of the Act wherever they have contiguous redevelopment
31 project areas or they determine to adopt tax increment
32 financing with respect to a redevelopment project area which
33 includes contiguous real property within the boundaries of
34 the municipalities, and in doing so, they may, by agreement
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1 between municipalities, issue obligations, separately or
2 jointly, and expend revenues received under the Act for
3 eligible expenses anywhere within contiguous redevelopment
4 project areas or as otherwise permitted in the Act.
5 (q) Utilize revenues, other than State sales tax
6 increment revenues, received under this Act from one
7 redevelopment project area for eligible costs in another
8 redevelopment project area that is either contiguous to, or
9 is separated only by a public right of way from, the
10 redevelopment project area from which the revenues are
11 received. Utilize tax increment revenues for eligible costs
12 that are received from a redevelopment project area created
13 under the Industrial Jobs Recovery Law that is either
14 contiguous to, or is separated only by a public right of way
15 from, the redevelopment project area created under this Act
16 which initially receives these revenues. Utilize revenues,
17 other than State sales tax increment revenues, by
18 transferring or loaning such revenues to a redevelopment
19 project area created under the Industrial Jobs Recovery Law
20 that is either contiguous to, or separated only by a public
21 right of way from the redevelopment project area that
22 initially produced and received those revenues.
23 (r) If no redevelopment project has been initiated in a
24 redevelopment project area within 7 years after the area was
25 designated by ordinance under subsection (a), the
26 municipality shall adopt an ordinance repealing the area's
27 designation as a redevelopment project area; provided,
28 however, that if an area received its designation more than 3
29 years before the effective date of this amendatory Act of
30 1994 and no redevelopment project has been initiated within 4
31 years after the effective date of this amendatory Act of
32 1994, the municipality shall adopt an ordinance repealing its
33 designation as a redevelopment project area. Initiation of a
34 redevelopment project shall be evidenced by either a signed
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1 redevelopment agreement or expenditures on eligible
2 redevelopment project costs associated with a redevelopment
3 project.
4 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
5 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
6 Sec. 11-74.4-8. A municipality may not adopt tax
7 increment financing in a redevelopment project area after the
8 effective date of this amendatory Act of 1997 that will
9 encompass an area that is currently included in an enterprise
10 zone created under the Illinois Enterprise Zone Act unless
11 that municipality, pursuant to Section 5.4 of the Illinois
12 Enterprise Zone Act, amends the enterprise zone designating
13 ordinance to limit the eligibility for tax abatements as
14 provided in Section 5.4.1 of the Illinois Enterprise Zone
15 Act. A municipality, at the time a redevelopment project
16 area is designated, may adopt tax increment allocation
17 financing by passing an ordinance providing that the ad
18 valorem taxes, if any, arising from the levies upon taxable
19 real property in such redevelopment project area by taxing
20 districts and tax rates determined in the manner provided in
21 paragraph (c) of Section 11-74.4-9 each year after the
22 effective date of the ordinance until redevelopment project
23 costs and all municipal obligations financing redevelopment
24 project costs incurred under this Division have been paid
25 shall be divided as follows:
26 (a) That portion of taxes levied upon each taxable lot,
27 block, tract or parcel of real property which is attributable
28 to the lower of the current equalized assessed value or the
29 initial equalized assessed value of each such taxable lot,
30 block, tract or parcel of real property in the redevelopment
31 project area shall be allocated to and when collected shall
32 be paid by the county collector to the respective affected
33 taxing districts in the manner required by law in the absence
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1 of the adoption of tax increment allocation financing.
2 (b) That portion, if any, of such taxes which is
3 attributable to the increase in the current equalized
4 assessed valuation of each taxable lot, block, tract or
5 parcel of real property in the redevelopment project area
6 over and above the initial equalized assessed value of each
7 property in the project area shall be allocated to and when
8 collected shall be paid to the municipal treasurer who shall
9 deposit said taxes into a special fund called the special tax
10 allocation fund of the municipality for the purpose of paying
11 redevelopment project costs and obligations incurred in the
12 payment thereof. In any county with a population of 3,000,000
13 or more that has adopted a procedure for collecting taxes
14 that provides for one or more of the installments of the
15 taxes to be billed and collected on an estimated basis, the
16 municipal treasurer shall be paid for deposit in the special
17 tax allocation fund of the municipality, from the taxes
18 collected from estimated bills issued for property in the
19 redevelopment project area, the difference between the amount
20 actually collected from each taxable lot, block, tract, or
21 parcel of real property within the redevelopment project area
22 and an amount determined by multiplying the rate at which
23 taxes were last extended against the taxable lot, block,
24 track, or parcel of real property in the manner provided in
25 subsection (c) of Section 11-74.4-9 by the initial equalized
26 assessed value of the property divided by the number of
27 installments in which real estate taxes are billed and
28 collected within the county, provided each of the following
29 conditions are met:
30 (1) The total equalized assessed value of the
31 redevelopment project area as last determined was not
32 less than 175% of the total initial equalized assessed
33 value.
34 (2) Not more than 50% of the total equalized
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1 assessed value of the redevelopment project area as last
2 determined is attributable to a piece of property
3 assigned a single real estate index number.
4 (3) The municipal clerk has certified to the county
5 clerk that the municipality has issued its obligations to
6 which there has been pledged the incremental property
7 taxes of the redevelopment project area or taxes levied
8 and collected on any or all property in the municipality
9 or the full faith and credit of the municipality to pay
10 or secure payment for all or a portion of the
11 redevelopment project costs. The certification shall be
12 filed annually no later than September 1 for the
13 estimated taxes to be distributed in the following year;
14 however, for the year 1992 the certification shall be
15 made at any time on or before March 31, 1992.
16 (4) The municipality has not requested that the
17 total initial equalized assessed value of real property
18 be adjusted as provided in subsection (b) of Section
19 11-74.4-9.
20 It is the intent of this Division that after the
21 effective date of this amendatory Act of 1988 a
22 municipality's own ad valorem tax arising from levies on
23 taxable real property be included in the determination of
24 incremental revenue in the manner provided in paragraph (c)
25 of Section 11-74.4-9. If the municipality does not extend
26 such a tax, it shall annually deposit in the municipality's
27 Special Tax Increment Fund an amount equal to 10% of the
28 total contributions to the fund from all other taxing
29 districts in that year. The annual 10% deposit required by
30 this paragraph shall be limited to the actual amount of
31 municipally produced incremental tax revenues available to
32 the municipality from taxpayers located in the redevelopment
33 project area in that year if: (a) the plan for the area
34 restricts the use of the property primarily to industrial
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1 purposes, (b) the municipality establishing the redevelopment
2 project area is a home-rule community with a 1990 population
3 of between 25,000 and 50,000, (c) the municipality is wholly
4 located within a county with a 1990 population of over
5 750,000 and (d) the redevelopment project area was
6 established by the municipality prior to June 1, 1990. This
7 payment shall be in lieu of a contribution of ad valorem
8 taxes on real property. If no such payment is made, any
9 redevelopment project area of the municipality shall be
10 dissolved.
11 If a municipality has adopted tax increment allocation
12 financing by ordinance and the County Clerk thereafter
13 certifies the "total initial equalized assessed value as
14 adjusted" of the taxable real property within such
15 redevelopment project area in the manner provided in
16 paragraph (b) of Section 11-74.4-9, each year after the date
17 of the certification of the total initial equalized assessed
18 value as adjusted until redevelopment project costs and all
19 municipal obligations financing redevelopment project costs
20 have been paid the ad valorem taxes, if any, arising from the
21 levies upon the taxable real property in such redevelopment
22 project area by taxing districts and tax rates determined in
23 the manner provided in paragraph (c) of Section 11-74.4-9
24 shall be divided as follows:
25 (1) That portion of the taxes levied upon each
26 taxable lot, block, tract or parcel of real property
27 which is attributable to the lower of the current
28 equalized assessed value or "current equalized assessed
29 value as adjusted" or the initial equalized assessed
30 value of each such taxable lot, block, tract, or parcel
31 of real property existing at the time tax increment
32 financing was adopted, minus the total current homestead
33 exemptions provided by Sections 15-170 and 15-175 of the
34 Property Tax Code in the redevelopment project area shall
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1 be allocated to and when collected shall be paid by the
2 county collector to the respective affected taxing
3 districts in the manner required by law in the absence of
4 the adoption of tax increment allocation financing.
5 (2) That portion, if any, of such taxes which is
6 attributable to the increase in the current equalized
7 assessed valuation of each taxable lot, block, tract, or
8 parcel of real property in the redevelopment project
9 area, over and above the initial equalized assessed value
10 of each property existing at the time tax increment
11 financing was adopted, minus the total current homestead
12 exemptions pertaining to each piece of property provided
13 by Sections 15-170 and 15-175 of the Property Tax Code in
14 the redevelopment project area, shall be allocated to and
15 when collected shall be paid to the municipal Treasurer,
16 who shall deposit said taxes into a special fund called
17 the special tax allocation fund of the municipality for
18 the purpose of paying redevelopment project costs and
19 obligations incurred in the payment thereof.
20 The municipality may pledge in the ordinance the funds in
21 and to be deposited in the special tax allocation fund for
22 the payment of such costs and obligations. No part of the
23 current equalized assessed valuation of each property in the
24 redevelopment project area attributable to any increase above
25 the total initial equalized assessed value, or the total
26 initial equalized assessed value as adjusted, of such
27 properties shall be used in calculating the general State
28 school aid formula, provided for in Section 18-8 of the
29 School Code, until such time as all redevelopment project
30 costs have been paid as provided for in this Section.
31 Whenever a municipality issues bonds for the purpose of
32 financing redevelopment project costs, such municipality may
33 provide by ordinance for the appointment of a trustee, which
34 may be any trust company within the State, and for the
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1 establishment of such funds or accounts to be maintained by
2 such trustee as the municipality shall deem necessary to
3 provide for the security and payment of the bonds. If such
4 municipality provides for the appointment of a trustee, such
5 trustee shall be considered the assignee of any payments
6 assigned by the municipality pursuant to such ordinance and
7 this Section. Any amounts paid to such trustee as assignee
8 shall be deposited in the funds or accounts established
9 pursuant to such trust agreement, and shall be held by such
10 trustee in trust for the benefit of the holders of the bonds,
11 and such holders shall have a lien on and a security interest
12 in such funds or accounts so long as the bonds remain
13 outstanding and unpaid. Upon retirement of the bonds, the
14 trustee shall pay over any excess amounts held to the
15 municipality for deposit in the special tax allocation fund.
16 When such redevelopment projects costs, including without
17 limitation all municipal obligations financing redevelopment
18 project costs incurred under this Division, have been paid,
19 all surplus funds then remaining in the special tax
20 allocation fund shall be distributed by being paid by the
21 municipal treasurer to the Department of Revenue, the
22 municipality and the county collector; first to the
23 Department of Revenue and the municipality in direct
24 proportion to the tax incremental revenue received from the
25 State and the municipality, but not to exceed the total
26 incremental revenue received from the State or the
27 municipality less any annual surplus distribution of
28 incremental revenue previously made; with any remaining funds
29 to be paid to the County Collector who shall immediately
30 thereafter pay said funds to the taxing districts in the
31 redevelopment project area in the same manner and proportion
32 as the most recent distribution by the county collector to
33 the affected districts of real property taxes from real
34 property in the redevelopment project area.
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1 Upon the payment of all redevelopment project costs,
2 retirement of obligations and the distribution of any excess
3 monies pursuant to this Section, the municipality shall adopt
4 an ordinance dissolving the special tax allocation fund for
5 the redevelopment project area and terminating the
6 designation of the redevelopment project area as a
7 redevelopment project area. If a municipality extends
8 estimated dates of completion of a redevelopment project and
9 retirement of obligations to finance a redevelopment project,
10 as allowed by this amendatory Act of 1993, that extension
11 shall not extend the property tax increment allocation
12 financing authorized by this Section. Thereafter the rates
13 of the taxing districts shall be extended and taxes levied,
14 collected and distributed in the manner applicable in the
15 absence of the adoption of tax increment allocation
16 financing.
17 Nothing in this Section shall be construed as relieving
18 property in such redevelopment project areas from being
19 assessed as provided in the Property Tax Code or as relieving
20 owners of such property from paying a uniform rate of taxes,
21 as required by Section 4 of Article 9 of the Illinois
22 Constitution.
23 (Source: P.A. 87-813; 87-872; 87-1272; 88-670, eff. 12-2-94.)
24 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
25 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
26 which has adopted tax increment allocation financing prior to
27 January 1, 1987, may by ordinance (1) authorize the
28 Department of Revenue, subject to appropriation, to annually
29 certify and cause to be paid from the Illinois Tax Increment
30 Fund to such municipality for deposit in the municipality's
31 special tax allocation fund an amount equal to the Net State
32 Sales Tax Increment and (2) authorize the Department of
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1 Revenue to annually notify the municipality of the amount of
2 the Municipal Sales Tax Increment which shall be deposited by
3 the municipality in the municipality's special tax allocation
4 fund. Provided that for purposes of this Section no
5 amendments adding additional area to the redevelopment
6 project area which has been certified as the State Sales Tax
7 Boundary shall be taken into account if such amendments are
8 adopted by the municipality after January 1, 1987. If an
9 amendment is adopted which decreases the area of a State
10 Sales Tax Boundary, the municipality shall update the list
11 required by subsection (3)(a) of this Section. The Retailers'
12 Occupation Tax liability, Use Tax liability, Service
13 Occupation Tax liability and Service Use Tax liability for
14 retailers and servicemen located within the disconnected area
15 shall be excluded from the base from which tax increments are
16 calculated and the revenue from any such retailer or
17 serviceman shall not be included in calculating incremental
18 revenue payable to the municipality. A municipality adopting
19 an ordinance under this subsection (1) of this Section for a
20 redevelopment project area which is certified as a State
21 Sales Tax Boundary shall not be entitled to payments of State
22 taxes authorized under subsection (2) of this Section for the
23 same redevelopment project area. Nothing herein shall be
24 construed to prevent a municipality from receiving payment of
25 State taxes authorized under subsection (2) of this Section
26 for a separate redevelopment project area that does not
27 overlap in any way with the State Sales Tax Boundary
28 receiving payments of State taxes pursuant to subsection (1)
29 of this Section.
30 A certified copy of such ordinance shall be submitted by
31 the municipality to the Department of Commerce and Community
32 Affairs and the Department of Revenue not later than 30 days
33 after the effective date of the ordinance. Upon submission
34 of the ordinances, and the information required pursuant to
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1 subsection 3 of this Section, the Department of Revenue shall
2 promptly determine the amount of such taxes paid under the
3 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
4 Act, the Service Occupation Tax Act, the Municipal Retailers'
5 Occupation Tax Act and the Municipal Service Occupation Tax
6 Act by retailers and servicemen on transactions at places
7 located in the redevelopment project area during the base
8 year, and shall certify all the foregoing "initial sales tax
9 amounts" to the municipality within 60 days of submission of
10 the list required of subsection (3)(a) of this Section.
11 If a retailer or serviceman with a place of business
12 located within a redevelopment project area also has one or
13 more other places of business within the municipality but
14 outside the redevelopment project area, the retailer or
15 serviceman shall, upon request of the Department of Revenue,
16 certify to the Department of Revenue the amount of taxes paid
17 pursuant to the Retailers' Occupation Tax Act, the Municipal
18 Retailers' Occupation Tax Act, the Service Occupation Tax Act
19 and the Municipal Service Occupation Tax Act at each place of
20 business which is located within the redevelopment project
21 area in the manner and for the periods of time requested by
22 the Department of Revenue.
23 When the municipality determines that a portion of an
24 increase in the aggregate amount of taxes paid by retailers
25 and servicemen under the Retailers' Occupation Tax Act, Use
26 Tax Act, Service Use Tax Act, or the Service Occupation Tax
27 Act is the result of a retailer or serviceman initiating
28 retail or service operations in the redevelopment project
29 area by such retailer or serviceman with a resulting
30 termination of retail or service operations by such retailer
31 or serviceman at another location in Illinois in the standard
32 metropolitan statistical area of such municipality, the
33 Department of Revenue shall be notified that the retailers
34 occupation tax liability, use tax liability, service
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1 occupation tax liability, or service use tax liability from
2 such retailer's or serviceman's terminated operation shall be
3 included in the base Initial Sales Tax Amounts from which the
4 State Sales Tax Increment is calculated for purposes of State
5 payments to the affected municipality; provided, however, for
6 purposes of this paragraph "termination" shall mean a closing
7 of a retail or service operation which is directly related to
8 the opening of the same retail or service operation in a
9 redevelopment project area which is included within a State
10 Sales Tax Boundary, but it shall not include retail or
11 service operations closed for reasons beyond the control of
12 the retailer or serviceman, as determined by the Department.
13 If the municipality makes the determination referred to in
14 the prior paragraph and notifies the Department and if the
15 relocation is from a location within the municipality, the
16 Department, at the request of the municipality, shall adjust
17 the certified aggregate amount of taxes that constitute the
18 Municipal Sales Tax Increment paid by retailers and
19 servicemen on transactions at places of business located
20 within the State Sales Tax Boundary during the base year
21 using the same procedures as are employed to make the
22 adjustment referred to in the prior paragraph. The adjusted
23 Municipal Sales Tax Increment calculated by the Department
24 shall be sufficient to satisfy the requirements of subsection
25 (1) of this Section.
26 When a municipality which has adopted tax increment
27 allocation financing in 1986 determines that a portion of the
28 aggregate amount of taxes paid by retailers and servicemen
29 under the Retailers Occupation Tax Act, Use Tax Act, Service
30 Use Tax Act, or Service Occupation Tax Act, the Municipal
31 Retailers' Occupation Tax Act and the Municipal Service
32 Occupation Tax Act, includes revenue of a retailer or
33 serviceman which terminated retailer or service operations in
34 1986, prior to the adoption of tax increment allocation
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1 financing, the Department of Revenue shall be notified by
2 such municipality that the retailers' occupation tax
3 liability, use tax liability, service occupation tax
4 liability or service use tax liability, from such retailer's
5 or serviceman's terminated operations shall be excluded from
6 the Initial Sales Tax Amounts for such taxes. The revenue
7 from any such retailer or serviceman which is excluded from
8 the base year under this paragraph, shall not be included in
9 calculating incremental revenues if such retailer or
10 serviceman reestablishes such business in the redevelopment
11 project area.
12 For State fiscal year 1992, the Department of Revenue
13 shall budget, and the Illinois General Assembly shall
14 appropriate from the Illinois Tax Increment Fund in the State
15 treasury, an amount not to exceed $18,000,000 to pay to each
16 eligible municipality the Net State Sales Tax Increment to
17 which such municipality is entitled.
18 Beginning on January 1, 1993, each municipality's
19 proportional share of the Illinois Tax Increment Fund shall
20 be determined by adding the annual Net State Sales Tax
21 Increment and the annual Net Utility Tax Increment to
22 determine the Annual Total Increment. The ratio of the Annual
23 Total Increment of each municipality to the Annual Total
24 Increment for all municipalities, as most recently calculated
25 by the Department, shall determine the proportional shares of
26 the Illinois Tax Increment Fund to be distributed to each
27 municipality.
28 Beginning in October, 1993, and each January, April, July
29 and October thereafter, the Department of Revenue shall
30 certify to the Treasurer and the Comptroller the amounts
31 payable quarter annually during the fiscal year to each
32 municipality under this Section. The Comptroller shall
33 promptly then draw warrants, ordering the State Treasurer to
34 pay such amounts from the Illinois Tax Increment Fund in the
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1 State treasury.
2 The Department of Revenue shall utilize the same periods
3 established for determining State Sales Tax Increment to
4 determine the Municipal Sales Tax Increment for the area
5 within a State Sales Tax Boundary and certify such amounts to
6 such municipal treasurer who shall transfer such amounts to
7 the special tax allocation fund.
8 The provisions of this subsection (1) do not apply to
9 additional municipal retailers' occupation or service
10 occupation taxes imposed by municipalities using their home
11 rule powers or imposed pursuant to Sections 8-11-1.3,
12 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
13 receive from the State any share of the Illinois Tax
14 Increment Fund unless such municipality deposits all its
15 Municipal Sales Tax Increment and the local incremental real
16 property tax revenues, as provided herein, into the
17 appropriate special tax allocation fund. A municipality
18 located within an economic development project area created
19 under the County Economic Development Project Area Property
20 Tax Allocation Act which has abated any portion of its
21 property taxes which otherwise would have been deposited in
22 its special tax allocation fund shall not receive from the
23 State the Net Sales Tax Increment.
24 (2) A municipality which has adopted tax increment
25 allocation financing with regard to an industrial park or
26 industrial park conservation area, prior to January 1, 1988,
27 may by ordinance authorize the Department of Revenue to
28 annually certify and pay from the Illinois Tax Increment Fund
29 to such municipality for deposit in the municipality's
30 special tax allocation fund an amount equal to the Net State
31 Utility Tax Increment. Provided that for purposes of this
32 Section no amendments adding additional area to the
33 redevelopment project area shall be taken into account if
34 such amendments are adopted by the municipality after January
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1 1, 1988. Municipalities adopting an ordinance under this
2 subsection (2) of this Section for a redevelopment project
3 area shall not be entitled to payment of State taxes
4 authorized under subsection (1) of this Section for the same
5 redevelopment project area which is within a State Sales Tax
6 Boundary. Nothing herein shall be construed to prevent a
7 municipality from receiving payment of State taxes authorized
8 under subsection (1) of this Section for a separate
9 redevelopment project area within a State Sales Tax Boundary
10 that does not overlap in any way with the redevelopment
11 project area receiving payments of State taxes pursuant to
12 subsection (2) of this Section.
13 A certified copy of such ordinance shall be submitted to
14 the Department of Commerce and Community Affairs and the
15 Department of Revenue not later than 30 days after the
16 effective date of the ordinance.
17 When a municipality determines that a portion of an
18 increase in the aggregate amount of taxes paid by industrial
19 or commercial facilities under the Public Utilities Act, is
20 the result of an industrial or commercial facility initiating
21 operations in the redevelopment project area with a resulting
22 termination of such operations by such industrial or
23 commercial facility at another location in Illinois, the
24 Department of Revenue shall be notified by such municipality
25 that such industrial or commercial facility's liability under
26 the Public Utility Tax Act shall be included in the base from
27 which tax increments are calculated for purposes of State
28 payments to the affected municipality.
29 After receipt of the calculations by the public utility
30 as required by subsection (4) of this Section, the Department
31 of Revenue shall annually budget and the Illinois General
32 Assembly shall annually appropriate from the General Revenue
33 Fund through State Fiscal Year 1989, and thereafter from the
34 Illinois Tax Increment Fund, an amount sufficient to pay to
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1 each eligible municipality the amount of incremental revenue
2 attributable to State electric and gas taxes as reflected by
3 the charges imposed on persons in the project area to which
4 such municipality is entitled by comparing the preceding
5 calendar year with the base year as determined by this
6 Section. Beginning on January 1, 1993, each municipality's
7 proportional share of the Illinois Tax Increment Fund shall
8 be determined by adding the annual Net State Utility Tax
9 Increment and the annual Net Utility Tax Increment to
10 determine the Annual Total Increment. The ratio of the Annual
11 Total Increment of each municipality to the Annual Total
12 Increment for all municipalities, as most recently calculated
13 by the Department, shall determine the proportional shares of
14 the Illinois Tax Increment Fund to be distributed to each
15 municipality.
16 A municipality shall not receive any share of the
17 Illinois Tax Increment Fund from the State unless such
18 municipality imposes the maximum municipal charges authorized
19 pursuant to Section 9-221 of the Public Utilities Act and
20 deposits all municipal utility tax incremental revenues as
21 certified by the public utilities, and all local real estate
22 tax increments into such municipality's special tax
23 allocation fund.
24 (3) Within 30 days after the adoption of the ordinance
25 required by either subsection (1) or subsection (2) of this
26 Section, the municipality shall transmit to the Department of
27 Commerce and Community Affairs and the Department of Revenue
28 the following:
29 (a) if applicable, a certified copy of the
30 ordinance required by subsection (1) accompanied by a
31 complete list of street names and the range of street
32 numbers of each street located within the redevelopment
33 project area for which payments are to be made under this
34 Section in both the base year and in the year preceding
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1 the payment year; and the addresses of persons registered
2 with the Department of Revenue; and, the name under which
3 each such retailer or serviceman conducts business at
4 that address, if different from the corporate name; and
5 the Illinois Business Tax Number of each such person (The
6 municipality shall update this list in the event of a
7 revision of the redevelopment project area, or the
8 opening or closing or name change of any street or part
9 thereof in the redevelopment project area, or if the
10 Department of Revenue informs the municipality of an
11 addition or deletion pursuant to the monthly updates
12 given by the Department.);
13 (b) if applicable, a certified copy of the
14 ordinance required by subsection (2) accompanied by a
15 complete list of street names and range of street numbers
16 of each street located within the redevelopment project
17 area, the utility customers in the project area, and the
18 utilities serving the redevelopment project areas;
19 (c) certified copies of the ordinances approving
20 the redevelopment plan and designating the redevelopment
21 project area;
22 (d) a copy of the redevelopment plan as approved by
23 the municipality;
24 (e) an opinion of legal counsel that the
25 municipality had complied with the requirements of this
26 Act; and
27 (f) a certification by the chief executive officer
28 of the municipality that with regard to a redevelopment
29 project area: (1) the municipality has committed all of
30 the municipal tax increment created pursuant to this Act
31 for deposit in the special tax allocation fund, (2) the
32 redevelopment projects described in the redevelopment
33 plan would not be completed without the use of State
34 incremental revenues pursuant to this Act, (3) the
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1 municipality will pursue the implementation of the
2 redevelopment plan in an expeditious manner, (4) the
3 incremental revenues created pursuant to this Section
4 will be exclusively utilized for the development of the
5 redevelopment project area, and (5) the increased revenue
6 created pursuant to this Section shall be used
7 exclusively to pay redevelopment project costs as defined
8 in this Act.
9 (4) The Department of Revenue upon receipt of the
10 information set forth in paragraph (b) of subsection (3)
11 shall immediately forward such information to each public
12 utility furnishing natural gas or electricity to buildings
13 within the redevelopment project area. Upon receipt of such
14 information, each public utility shall promptly:
15 (a) provide to the Department of Revenue and the
16 municipality separate lists of the names and addresses of
17 persons within the redevelopment project area receiving
18 natural gas or electricity from such public utility.
19 Such list shall be updated as necessary by the public
20 utility. Each month thereafter the public utility shall
21 furnish the Department of Revenue and the municipality
22 with an itemized listing of charges imposed pursuant to
23 Sections 9-221 and 9-222 of the Public Utilities Act on
24 persons within the redevelopment project area.
25 (b) determine the amount of charges imposed
26 pursuant to Sections 9-221 and 9-222 of the Public
27 Utilities Act on persons in the redevelopment project
28 area during the base year, both as a result of municipal
29 taxes on electricity and gas and as a result of State
30 taxes on electricity and gas and certify such amounts
31 both to the municipality and the Department of Revenue;
32 and
33 (c) determine the amount of charges imposed
34 pursuant to Sections 9-221 and 9-222 of the Public
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1 Utilities Act on persons in the redevelopment project
2 area on a monthly basis during the base year, both as a
3 result of State and municipal taxes on electricity and
4 gas and certify such separate amounts both to the
5 municipality and the Department of Revenue.
6 After the determinations are made in paragraphs (b) and
7 (c), the public utility shall monthly during the existence of
8 the redevelopment project area notify the Department of
9 Revenue and the municipality of any increase in charges over
10 the base year determinations made pursuant to paragraphs (b)
11 and (c).
12 (5) The payments authorized under this Section shall be
13 deposited by the municipal treasurer in the special tax
14 allocation fund of the municipality, which for accounting
15 purposes shall identify the sources of each payment as:
16 municipal receipts from the State retailers occupation,
17 service occupation, use and service use taxes; and municipal
18 public utility taxes charged to customers under the Public
19 Utilities Act and State public utility taxes charged to
20 customers under the Public Utilities Act.
21 (6) Any municipality receiving payments authorized under
22 this Section for any redevelopment project area or area
23 within a State Sales Tax Boundary within the municipality
24 shall submit to the Department of Revenue and to the taxing
25 districts which are sent the notice required by Section 6 of
26 this Act annually within 180 days after the close of each
27 municipal fiscal year the following information for the
28 immediately preceding fiscal year:
29 (a) Any amendments to the redevelopment plan, the
30 redevelopment project area, or the State Sales Tax
31 Boundary.
32 (b) Audited financial statements of the special tax
33 allocation fund.
34 (c) Certification of the Chief Executive Officer of
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1 the municipality that the municipality has complied with
2 all of the requirements of this Act during the preceding
3 fiscal year.
4 (d) An opinion of legal counsel that the
5 municipality is in compliance with this Act.
6 (e) An analysis of the special tax allocation fund
7 which sets forth:
8 (1) the balance in the special tax allocation
9 fund at the beginning of the fiscal year;
10 (2) all amounts deposited in the special tax
11 allocation fund by source;
12 (3) all expenditures from the special tax
13 allocation fund by category of permissible
14 redevelopment project cost; and
15 (4) the balance in the special tax allocation
16 fund at the end of the fiscal year including a
17 breakdown of that balance by source. Such ending
18 balance shall be designated as surplus if it is not
19 required for anticipated redevelopment project costs
20 or to pay debt service on bonds issued to finance
21 redevelopment project costs, as set forth in Section
22 11-74.4-7 hereof.
23 (f) A description of all property purchased by the
24 municipality within the redevelopment project area
25 including
26 1. Street address
27 2. Approximate size or description of property
28 3. Purchase price
29 4. Seller of property.
30 (g) A statement setting forth all activities
31 undertaken in furtherance of the objectives of the
32 redevelopment plan, including:
33 1. Any project implemented in the preceding
34 fiscal year
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1 2. A description of the redevelopment
2 activities undertaken
3 3. A description of any agreements entered
4 into by the municipality with regard to the
5 disposition or redevelopment of any property within
6 the redevelopment project area or the area within
7 the State Sales Tax Boundary.
8 (h) With regard to any obligations issued by the
9 municipality:
10 1. copies of bond ordinances or resolutions
11 2. copies of any official statements
12 3. an analysis prepared by financial advisor
13 or underwriter setting forth: (a) nature and term of
14 obligation; and (b) projected debt service including
15 required reserves and debt coverage.
16 (i) A certified audit report reviewing compliance
17 with this statute performed by an independent public
18 accountant certified and licensed by the authority of the
19 State of Illinois. The financial portion of the audit
20 must be conducted in accordance with Standards for Audits
21 of Governmental Organizations, Programs, Activities, and
22 Functions adopted by the Comptroller General of the
23 United States (1981), as amended. The audit report shall
24 contain a letter from the independent certified public
25 accountant indicating compliance or noncompliance with
26 the requirements of subsection (q) of Section 11-74.4-3.
27 If the audit indicates that expenditures are not in
28 compliance with the law, the Department of Revenue shall
29 withhold State sales and utility tax increment payments
30 to the municipality until compliance has been reached,
31 and an amount equal to the ineligible expenditures has
32 been returned to the Special Tax Allocation Fund.
33 (6.1) After July 29, 1988, any funds which have not been
34 designated for use in a specific development project in the
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1 annual report shall be designated as surplus. No funds may be
2 held in the Special Tax Allocation Fund for more than 36
3 months from the date of receipt unless the money is required
4 for payment of contractual obligations for specific
5 development project costs. If held for more than 36 months in
6 violation of the preceding sentence, such funds shall be
7 designated as surplus. Any funds designated as surplus must
8 first be used for early redemption of any bond obligations.
9 Any funds designated as surplus which are not disposed of as
10 otherwise provided in this paragraph, shall be distributed as
11 surplus as provided in Section 11-74.4-7.
12 (7) Any appropriation made pursuant to this Section for
13 the 1987 State fiscal year shall not exceed the amount of $7
14 million and for the 1988 State fiscal year the amount of $10
15 million. The amount which shall be distributed to each
16 municipality shall be the incremental revenue to which each
17 municipality is entitled as calculated by the Department of
18 Revenue, unless the requests of the municipality exceed the
19 appropriation, then the amount to which each municipality
20 shall be entitled shall be prorated among the municipalities
21 in the same proportion as the increment to which the
22 municipality would be entitled bears to the total increment
23 which all municipalities would receive in the absence of this
24 limitation, provided that no municipality may receive an
25 amount in excess of 15% of the appropriation. For the 1987
26 Net State Sales Tax Increment payable in Fiscal Year 1989, no
27 municipality shall receive more than 7.5% of the total
28 appropriation; provided, however, that any of the
29 appropriation remaining after such distribution shall be
30 prorated among municipalities on the basis of their pro rata
31 share of the total increment. Beginning on January 1, 1993,
32 each municipality's proportional share of the Illinois Tax
33 Increment Fund shall be determined by adding the annual Net
34 State Sales Tax Increment and the annual Net Utility Tax
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1 Increment to determine the Annual Total Increment. The ratio
2 of the Annual Total Increment of each municipality to the
3 Annual Total Increment for all municipalities, as most
4 recently calculated by the Department, shall determine the
5 proportional shares of the Illinois Tax Increment Fund to be
6 distributed to each municipality.
7 (7.1) No distribution of Net State Sales Tax Increment
8 to a municipality for an area within a State Sales Tax
9 Boundary shall exceed in any State Fiscal Year an amount
10 equal to 3 times the sum of the Municipal Sales Tax
11 Increment, the real property tax increment and deposits of
12 funds from other sources, excluding state and federal funds,
13 as certified by the city treasurer to the Department of
14 Revenue for an area within a State Sales Tax Boundary. After
15 July 29, 1988, for those municipalities which issue bonds
16 between June 1, 1988 and 3 years from July 29, 1988 to
17 finance redevelopment projects within the area in a State
18 Sales Tax Boundary, the distribution of Net State Sales Tax
19 Increment during the 16th through 20th years from the date of
20 issuance of the bonds shall not exceed in any State Fiscal
21 Year an amount equal to 2 times the sum of the Municipal
22 Sales Tax Increment, the real property tax increment and
23 deposits of funds from other sources, excluding State and
24 federal funds.
25 (8) Any person who knowingly files or causes to be filed
26 false information for the purpose of increasing the amount of
27 any State tax incremental revenue commits a Class A
28 misdemeanor.
29 (9) The following procedures shall be followed to
30 determine whether municipalities have complied with the Act
31 for the purpose of receiving distributions after July 1, 1989
32 pursuant to subsection (1) of this Section 11-74.4-8a.
33 (a) The Department of Revenue shall conduct a
34 preliminary review of the redevelopment project areas and
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1 redevelopment plans pertaining to those municipalities
2 receiving payments from the State pursuant to subsection
3 (1) of Section 8a of this Act for the purpose of
4 determining compliance with the following standards:
5 (1) For any municipality with a population of
6 more than 12,000 as determined by the 1980 U.S.
7 Census: (a) the redevelopment project area, or in
8 the case of a municipality which has more than one
9 redevelopment project area, each such area, must be
10 contiguous and the total of all such areas shall not
11 comprise more than 25% of the area within the
12 municipal boundaries nor more than 20% of the
13 equalized assessed value of the municipality; (b)
14 the aggregate amount of 1985 taxes in the
15 redevelopment project area, or in the case of a
16 municipality which has more than one redevelopment
17 project area, the total of all such areas, shall be
18 not more than 25% of the total base year taxes paid
19 by retailers and servicemen on transactions at
20 places of business located within the municipality
21 under the Retailers' Occupation Tax Act, the Use Tax
22 Act, the Service Use Tax Act, and the Service
23 Occupation Tax Act. Redevelopment project areas
24 created prior to 1986 are not subject to the above
25 standards if their boundaries were not amended in
26 1986.
27 (2) For any municipality with a population of
28 12,000 or less as determined by the 1980 U.S.
29 Census: (a) the redevelopment project area, or in
30 the case of a municipality which has more than one
31 redevelopment project area, each such area, must be
32 contiguous and the total of all such areas shall not
33 comprise more than 35% of the area within the
34 municipal boundaries nor more than 30% of the
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1 equalized assessed value of the municipality; (b)
2 the aggregate amount of 1985 taxes in the
3 redevelopment project area, or in the case of a
4 municipality which has more than one redevelopment
5 project area, the total of all such areas, shall not
6 be more than 35% of the total base year taxes paid
7 by retailers and servicemen on transactions at
8 places of business located within the municipality
9 under the Retailers' Occupation Tax Act, the Use Tax
10 Act, the Service Use Tax Act, and the Service
11 Occupation Tax Act. Redevelopment project areas
12 created prior to 1986 are not subject to the above
13 standards if their boundaries were not amended in
14 1986.
15 (3) Such preliminary review of the
16 redevelopment project areas applying the above
17 standards shall be completed by November 1, 1988,
18 and on or before November 1, 1988, the Department
19 shall notify each municipality by certified mail,
20 return receipt requested that either (1) the
21 Department requires additional time in which to
22 complete its preliminary review; or (2) the
23 Department is issuing either (a) a Certificate of
24 Eligibility or (b) a Notice of Review. If the
25 Department notifies a municipality that it requires
26 additional time to complete its preliminary
27 investigation, it shall complete its preliminary
28 investigation no later than February 1, 1989, and by
29 February 1, 1989 shall issue to each municipality
30 either (a) a Certificate of Eligibility or (b) a
31 Notice of Review. A redevelopment project area for
32 which a Certificate of Eligibility has been issued
33 shall be deemed a "State Sales Tax Boundary."
34 (4) The Department of Revenue shall also issue
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1 a Notice of Review if the Department has received a
2 request by November 1, 1988 to conduct such a review
3 from taxpayers in the municipality, local taxing
4 districts located in the municipality or the State
5 of Illinois, or if the redevelopment project area
6 has more than 5 retailers and has had growth in
7 State sales tax revenue of more than 15% from
8 calendar year 1985 to 1986.
9 (b) For those municipalities receiving a Notice of
10 Review, the Department will conduct a secondary review
11 consisting of: (i) application of the above standards
12 contained in subsection (9)(a)(1)(a) and (b) or
13 (9)(a)(2)(a) and (b), and (ii) the definitions of
14 blighted and conservation area provided for in Section
15 11-74.4-3. Such secondary review shall be completed by
16 July 1, 1989.
17 Upon completion of the secondary review, the
18 Department will issue (a) a Certificate of Eligibility or
19 (b) a Preliminary Notice of Deficiency. Any municipality
20 receiving a Preliminary Notice of Deficiency may amend
21 its redevelopment project area to meet the standards and
22 definitions set forth in this paragraph (b). This amended
23 redevelopment project area shall become the "State Sales
24 Tax Boundary" for purposes of determining the State Sales
25 Tax Increment.
26 (c) If the municipality advises the Department of
27 its intent to comply with the requirements of paragraph
28 (b) of this subsection outlined in the Preliminary Notice
29 of Deficiency, within 120 days of receiving such notice
30 from the Department, the municipality shall submit
31 documentation to the Department of the actions it has
32 taken to cure any deficiencies. Thereafter, within 30
33 days of the receipt of the documentation, the Department
34 shall either issue a Certificate of Eligibility or a
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1 Final Notice of Deficiency. If the municipality fails to
2 advise the Department of its intent to comply or fails to
3 submit adequate documentation of such cure of
4 deficiencies the Department shall issue a Final Notice of
5 Deficiency that provides that the municipality is
6 ineligible for payment of the Net State Sales Tax
7 Increment.
8 (d) If the Department issues a final determination
9 of ineligibility, the municipality shall have 30 days
10 from the receipt of determination to protest and request
11 a hearing. Such hearing shall be conducted in accordance
12 with Sections 10-25, 10-35, 10-40, and 10-50 of the
13 Illinois Administrative Procedure Act. The decision
14 following the hearing shall be subject to review under
15 the Administrative Review Law.
16 (e) Any Certificate of Eligibility issued pursuant
17 to this subsection 9 shall be binding only on the State
18 for the purposes of establishing municipal eligibility to
19 receive revenue pursuant to subsection (1) of this
20 Section 11-74.4-8a.
21 (f) It is the intent of this subsection that the
22 periods of time to cure deficiencies shall be in addition
23 to all other periods of time permitted by this Section,
24 regardless of the date by which plans were originally
25 required to be adopted. To cure said deficiencies,
26 however, the municipality shall be required to follow the
27 procedures and requirements pertaining to amendments, as
28 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
29 (10) If a municipality adopts a State Sales Tax Boundary
30 in accordance with the provisions of subsection (9) of this
31 Section, such boundaries shall subsequently be utilized to
32 determine Revised Initial Sales Tax Amounts and the Net State
33 Sales Tax Increment; provided, however, that such revised
34 State Sales Tax Boundary shall not have any effect upon the
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1 boundary of the redevelopment project area established for
2 the purposes of determining the ad valorem taxes on real
3 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
4 Act nor upon the municipality's authority to implement the
5 redevelopment plan for that redevelopment project area. For
6 any redevelopment project area with a smaller State Sales Tax
7 Boundary within its area, the municipality may annually elect
8 to deposit the Municipal Sales Tax Increment for the
9 redevelopment project area in the special tax allocation fund
10 and shall certify the amount to the Department prior to
11 receipt of the Net State Sales Tax Increment. Any
12 municipality required by subsection (9) to establish a State
13 Sales Tax Boundary for one or more of its redevelopment
14 project areas shall submit all necessary information required
15 by the Department concerning such boundary and the retailers
16 therein, by October 1, 1989, after complying with the
17 procedures for amendment set forth in Sections 11-74.4-5 and
18 11-74.4-6 of this Act. Net State Sales Tax Increment
19 produced within the State Sales Tax Boundary shall be spent
20 only within that area. However expenditures of all municipal
21 property tax increment and municipal sales tax increment in a
22 redevelopment project area are not required to be spent
23 within the smaller State Sales Tax Boundary within such
24 redevelopment project area.
25 (11) The Department of Revenue shall have the authority
26 to issue rules and regulations for purposes of this Section.
27 and regulations for purposes of this Section.
28 (12) If, under Section 5.4.1 of the Illinois Enterprise
29 Zone Act, a municipality determines that property that lies
30 within a State Sales Tax Boundary has an improvement,
31 rehabilitation, or renovation that is entitled to a property
32 tax abatement, then that property along with any
33 improvements, rehabilitation, or renovations shall be
34 immediately removed from any State Sales Tax Boundary. The
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1 municipality that made the determination shall notify the
2 Department of Revenue within 30 days after the determination.
3 Once a property is removed from the State Sales Tax Boundary
4 because of the existence of a property tax abatement
5 resulting from an enterprise zone, then that property shall
6 not be permitted to be amended into a State Sales Tax
7 Boundary.
8 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
9 (65 ILCS 5/11-74.4-8c new)
10 Sec. 11-74.4-8c. Enterprise zone abatements. If a
11 redevelopment project area is or has been established under
12 Section 11-74.4-4 on or before the effective date of this
13 amendatory Act of 1997 and the redevelopment project area
14 contains property that is located within an enterprise zone
15 established under the Illinois Enterprise Zone Act, then the
16 property that is located in both the redevelopment project
17 area and the enterprise zone shall not be eligible for the
18 abatement of taxes under Section 18-170 of the Property Tax
19 Code if the requirements of Section 5.4.1 of the Illinois
20 Enterprise Zone Act are satisfied. If an abatement is limited
21 under Section 5.4.1 of the Illinois Enterprise Zone Act, a
22 municipality shall notify the county clerk and the board of
23 review or board of appeals of the change in writing not later
24 than July 1 of the assessment year to be first affected by
25 the change.
26 (65 ILCS 5/11-74.6-15)
27 Sec. 11-74.6-15. Municipal Powers and Duties. A
28 municipality may:
29 (a) By ordinance introduced in the governing body of the
30 municipality within 14 to 90 days from the final adjournment
31 of the hearing specified in Section 11-74.6-22, approve
32 redevelopment plans and redevelopment projects, and designate
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1 redevelopment planning areas and redevelopment project areas
2 pursuant to notice and hearing required by this Act. No
3 redevelopment planning area or redevelopment project area
4 shall be designated unless a plan and project are approved
5 before the designation of the area and the area shall include
6 only those parcels of real property and improvements on those
7 parcels substantially benefited by the proposed redevelopment
8 project improvements.
9 (b) Make and enter into all contracts necessary or
10 incidental to the implementation and furtherance of its
11 redevelopment plan and project.
12 (c) Within a redevelopment project area, acquire by
13 purchase, donation, lease or eminent domain; own, convey,
14 lease, mortgage or dispose of land and other property, real
15 or personal, or rights or interests therein, and grant or
16 acquire licenses, easements and options with respect to that
17 property, all in the manner and at a price that the
18 municipality determines is reasonably necessary to achieve
19 the objectives of the redevelopment plan and project. No
20 conveyance, lease, mortgage, disposition of land or other
21 property, or agreement relating to the development of the
22 property shall be made or executed except pursuant to prior
23 official action of the corporate authorities of the
24 municipality. No conveyance, lease, mortgage, or other
25 disposition of land, and no agreement relating to the
26 development of property, shall be made without making public
27 disclosure of the terms and the disposition of all bids and
28 proposals submitted to the municipality in connection
29 therewith. The procedures for obtaining the bids and
30 proposals shall provide reasonable opportunity for any person
31 to submit alternative proposals or bids.
32 (d) Within a redevelopment project area, clear any area
33 by demolition or removal of any existing buildings,
34 structures, fixtures, utilities or improvements, and to clear
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1 and grade land.
2 (e) Within a redevelopment project area, renovate or
3 rehabilitate or construct any structure or building.
4 (f) Within or without a redevelopment project area,
5 install, repair, construct, reconstruct or relocate streets,
6 utilities and site improvements essential to the preparation
7 of the redevelopment area for use in accordance with a
8 redevelopment plan.
9 (g) Within a redevelopment project area, fix, charge and
10 collect fees, rents and charges for the use of all or any
11 part of any building or property owned or leased by it.
12 (h) Issue obligations as provided in this Act.
13 (i) Accept grants, guarantees and donations of property,
14 labor, or other things of value from a public or private
15 source for use within a project redevelopment area.
16 (j) Acquire and construct public facilities within a
17 redevelopment project area.
18 (k) Incur, pay or cause to be paid redevelopment project
19 costs. Any payments to be made by the municipality to
20 redevelopers or other nongovernmental persons for
21 redevelopment project costs incurred by such redeveloper or
22 other nongovernmental person shall be made only pursuant to
23 the prior official action of the municipality evidencing an
24 intent to pay or cause to be paid such redevelopment project
25 costs. A municipality is not required to obtain any right,
26 title or interest in any real or personal property in order
27 to pay redevelopment project costs associated with such
28 property. The municipality shall adopt such accounting
29 procedures as may be necessary to determine that such
30 redevelopment project costs are properly paid.
31 (l) Create a commission of not less than 5 or more than
32 15 persons to be appointed by the mayor or president of the
33 municipality with the consent of the majority of the
34 governing board of the municipality. Members of a commission
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1 appointed after the effective date of this Law shall be
2 appointed for initial terms of 1, 2, 3, 4 and 5 years,
3 respectively, in numbers so that the terms of not more than
4 1/3 of all members expire in any one year. Their successors
5 shall be appointed for a term of 5 years. The commission,
6 subject to approval of the corporate authorities of the
7 municipality, may exercise the powers enumerated in this
8 Section. The commission shall also have the power to hold the
9 public hearings required by this Act and make recommendations
10 to the corporate authorities concerning the adoption of
11 redevelopment plans, redevelopment projects and designation
12 of redevelopment project areas.
13 (m) Make payment in lieu of all or a portion of real
14 property taxes due to taxing districts. If payments in lieu
15 of all or a portion of taxes are made to taxing districts,
16 those payments shall be made to all districts within a
17 redevelopment project area on a basis that is proportional to
18 the current collection of revenue which each taxing district
19 receives from real property in the redevelopment project
20 area.
21 (n) Exercise any and all other powers necessary to
22 effectuate the purposes of this Act.
23 (o) In conjunction with other municipalities, undertake
24 and perform redevelopment plans and projects and utilize the
25 provisions of the Act wherever they have contiguous
26 redevelopment project areas or they determine to adopt tax
27 increment allocation financing with respect to a
28 redevelopment project area that includes contiguous real
29 property within the boundaries of the municipalities, and, by
30 agreement between participating municipalities, to issue
31 obligations, separately or jointly, and expend revenues
32 received under this Act for eligible expenses anywhere within
33 contiguous redevelopment project areas or as otherwise
34 permitted in the Act.
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1 (p) Create an Industrial Jobs Recovery Advisory
2 Committee of not more than 15 members to be appointed by the
3 mayor or president of the municipality with the consent of
4 the majority of the governing board of the municipality. The
5 members of that Committee shall be appointed for initial
6 terms of 1, 2, and 3 years respectively, in numbers so that
7 the terms of not more than 1/3 of all members expire in any
8 one year. Their successors shall be appointed for a term of
9 3 years. The Committee shall have none of the powers
10 enumerated in this Section. The Committee shall serve in an
11 advisory capacity only. The Committee may advise the
12 governing board of the municipality and other municipal
13 officials regarding development issues and opportunities
14 within the redevelopment project area. The Committee may also
15 promote and publicize development opportunities in the
16 redevelopment project area.
17 (q) If a redevelopment project has not been initiated in
18 a redevelopment project area within 5 years after the area
19 was designated by ordinance under subsection (a), the
20 municipality shall adopt an ordinance repealing the area's
21 designation as a redevelopment project area. Initiation of a
22 redevelopment project shall be evidenced by either a signed
23 redevelopment agreement or expenditures on eligible
24 redevelopment project costs associated with a redevelopment
25 project.
26 (r) Within a redevelopment planning area, transfer or
27 loan tax increment revenues from one redevelopment project
28 area to another redevelopment project area for expenditure on
29 eligible costs in the receiving area.
30 (s) Use tax increment revenue produced in a
31 redevelopment project area created under this Law by
32 transferring or loaning such revenues to a redevelopment
33 project area created under the Tax Increment Allocation
34 Redevelopment Act that is either contiguous to, or separated
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1 only by a public right of way from, the redevelopment project
2 area that initially produced and received those revenues.
3 (Source: P.A. 88-537.)
4 Section 90. The State Mandates Act is amended by adding
5 Section 8.21 as follows:
6 (30 ILCS 805/8.21 new)
7 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
8 and 8 of this Act, no reimbursement by the State is required
9 for the implementation of any mandate created by this
10 amendatory Act of 1997.
11 Section 95. Severability. The provisions of this Act
12 are severable under Section 1.31 of the Statute on Statutes.
13 Section 99. Effective date. This Act takes effect on
14 July 1, 1997.