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90_HB0524ham001
LRB9001031KDmbam01
1 AMENDMENT TO HOUSE BILL 524
2 AMENDMENT NO. . Amend House Bill 524 by replacing
3 the title with the following:
4 "AN ACT concerning districts."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Enterprise Zone Act is amended
8 by changing Section 5.4 and adding Section 5.4.1 as follows:
9 (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
10 Sec. 5.4. Amendment and De-Certification of Enterprise
11 Zones. (a) The terms of a certified enterprise zone
12 designating ordinance may be amended to
13 (i) alter the boundaries of the Enterprise Zone, or
14 (ii) expand, limit or repeal tax incentives or benefits
15 provided in the ordinance, or
16 (iii) alter the termination date of the zone, or
17 (iv) make technical corrections in the enterprise zone
18 designating ordinance; but such amendment shall not be
19 effective unless the Department issues an amended certificate
20 for the Enterprise Zone, approving the amended designating
21 ordinance. Upon the adoption of any ordinance amending or
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1 repealing the terms of a certified enterprise zone
2 designating ordinance, the municipality or county shall
3 promptly file with the Department an application for approval
4 thereof, containing substantially the same information as
5 required for an application under Section 5.1 insofar as
6 material to the proposed changes. The municipality or county
7 must hold a public hearing on the proposed changes as
8 specified in Section 5 and, if the amendment is to effectuate
9 the limitation of tax abatements under Section 5.4.1, then
10 the public notice of the hearing shall state that property
11 that is in both the enterprise zone and a redevelopment
12 project area may not receive tax abatements unless within 60
13 days after the adoption of the amendment the eligibility for
14 tax abatements is established, or
15 (v) include an area within another municipality or
16 county as part of the designated enterprise zone provided the
17 requirements of Section 4 are complied with, or.
18 (vi) effectuate the limitation of tax abatements under
19 Section 5.4.1.
20 (b) The Department shall approve or disapprove a
21 proposed amendment to a certified enterprise zone within 90
22 days of its receipt of the application from the municipality
23 or county. The Department may not approve changes in a Zone
24 which are not in conformity with this Act, as now or
25 hereafter amended, or with other applicable laws. If the
26 Department issues an amended certificate for an Enterprise
27 Zone, the amended certificate, together with the amended zone
28 designating ordinance, shall be filed, recorded and
29 transmitted as provided in Section 5.3.
30 (c) An Enterprise Zone may be de-certified by joint
31 action of the Department and the designating county or
32 municipality in accordance with this Section. The designating
33 county or municipality shall conduct at least one public
34 hearing within the zone prior to its adoption of an ordinance
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1 of de-designation. The mayor of the designating municipality
2 or the chairman of the county board of the designating county
3 shall execute a joint de-certification agreement with the
4 Department. A de-certification of an Enterprise Zone shall
5 not become effective until at least 6 months after the
6 execution of the de-certification agreement, which shall be
7 filed in the office of the Secretary of State.
8 (d) An Enterprise Zone may be decertified for cause by
9 the Department in accordance with this Section. Prior to
10 decertification: (1) the Department shall notify the chief
11 elected official of the designating county or municipality in
12 writing of the specific deficiencies which provide cause for
13 decertification; (2) the Department shall place the
14 designating county or municipality on probationary status for
15 at least 6 months during which time corrective action may be
16 achieved in the enterprise zone by the designating county or
17 municipality; and, (3) the Department shall conduct at least
18 one public hearing within the zone. If such corrective action
19 is not achieved during the probationary period, the
20 Department shall issue an amended certificate signed by the
21 Director of the Department decertifying the enterprise zone,
22 which certificate shall be filed in the office of the
23 Secretary of State. A certified copy of the amended
24 enterprise zone certificate, or a duplicate original thereof,
25 shall be recorded in the office of recorder of the county in
26 which the enterprise zone lies, and shall be provided to the
27 chief elected official of the designating county or
28 municipality. Decertification of an Enterprise Zone shall not
29 become effective until 60 days after the date of filing.
30 (e) In the event of a de-certification, or an amendment
31 reducing the length of the term or the area of an Enterprise
32 Zone or the adoption of an ordinance reducing or eliminating
33 tax benefits in an Enterprise Zone, all benefits previously
34 extended within the Zone pursuant to this Act or pursuant to
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1 any other Illinois law providing benefits specifically to or
2 within Enterprise Zones shall remain in effect for the
3 original stated term of the Enterprise Zone, with respect to
4 business enterprises within the Zone on the effective date of
5 such de-certification or amendment, and with respect to
6 individuals participating in urban homestead programs under
7 this Act.
8 (f) Except as otherwise provided in Section 5.4.1, with
9 respect to business enterprises (or expansions thereof) which
10 are proposed or under development within a Zone at the time
11 of a de-certification or an amendment reducing the length of
12 the term of the Zone, or excluding from the Zone area the
13 site of the proposed enterprise, or an ordinance reducing or
14 eliminating tax benefits in a Zone, such business enterprise
15 shall be entitled to the benefits previously applicable
16 within the Zone for the original stated term of the Zone, if
17 the business enterprise establishes:
18 (i) that the proposed business enterprise or expansion
19 has been committed to be located within the Zone;
20 (ii) that substantial and binding financial obligations
21 have been made towards the development of such enterprise;
22 and
23 (iii) that such commitments have been made in reasonable
24 reliance on the benefits and programs which were to have been
25 applicable to the enterprise by reason of the Zone, including
26 in the case of a reduction in term of a zone, the original
27 length of the term.
28 In declaratory judgment actions under this paragraph, the
29 Department and the designating municipality or county shall
30 be necessary parties defendant.
31 (Source: P.A. 86-820.)
32 (20 ILCS 655/5.4.1 new)
33 Sec. 5.4.1. Adoption of Tax Increment Financing.
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1 (a) If (i) a redevelopment project area is, will be, or
2 has been created by a municipality under Division 74.4 of
3 the Illinois Municipal Code, (ii) the redevelopment project
4 area contains property that is located in an enterprise zone,
5 (iii) the municipality adopts an amendment to the enterprise
6 zone designating ordinance pursuant to Section 5.4 of this
7 Act specifically concerning the abatement of taxes on
8 property located within a redevelopment project area created
9 pursuant to Division 74.4 of the Illinois Municipal Code, and
10 (iv) the Department certifies the ordinance amendment, then
11 the property that is located in both the enterprise zone and
12 the redevelopment project area shall not be eligible for the
13 abatement of taxes under Section 18-170 of the Property Tax
14 Code.
15 No business enterprise or expansion or individual,
16 however, that has constructed a new improvement or renovated
17 or rehabilitated an existing improvement and has received an
18 abatement on the improvement under Section 18-170 of the
19 Property Tax Code shall be denied any benefit previously
20 extended within the zone pursuant to this Act or pursuant to
21 any other Illinois law providing benefits specifically to or
22 within enterprise zones. Moreover, if the business
23 enterprise or expansion or individual establishes, within 60
24 days after the adoption by the municipality of an amendment
25 to the designating ordinance, that before the date of the
26 adoption by the municipality of the amendment to the
27 designating ordinance (i) the business enterprise or
28 expansion or individual was committed to locate within the
29 enterprise zone, (ii) substantial and binding financial
30 obligations were made towards the development of the
31 enterprise, and (iii) those commitments were made in
32 reasonable reliance on the benefits and programs that were
33 applicable to the enterprise or expansion or individual by
34 reason of the enterprise zone, then the enterprise or
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1 expansion or individual shall not be denied any benefit
2 previously extended within the zone pursuant to this Act or
3 pursuant to any other Illinois law providing benefits
4 specifically to or within enterprise zones.
5 (b) This Section applies to all property located within
6 both a redevelopment project area adopted under Division
7 74.4 of the Illinois Municipal Code and an enterprise zone
8 even if the redevelopment project area or the enterprise
9 zone was adopted before the effective date of this
10 amendatory Act of 1997.
11 (c) After July 1, 1997, if (i) a redevelopment project
12 area is created by a municipality under Division 74.4 of the
13 Illinois Municipal Code and (ii) the redevelopment project
14 area contains property that is located in an enterprise zone,
15 the municipality must adopt an amendment to the certified
16 enterprise zone designating ordinance under Section 5.4 that
17 property that is located in both the enterprise zone and the
18 redevelopment project area shall not be eligible for any
19 abatement of taxes under Section 18-170 of the Property Tax
20 Code for new improvements or the renovation or rehabilitation
21 of existing improvements.
22 (d) In declaratory judgment actions under this Section,
23 the Department and the designating municipality shall be
24 necessary parties defendant.
25 Section 10. The Property Tax Code is amended by changing
26 Section 18-170 as follows:
27 (35 ILCS 200/18-170)
28 Sec. 18-170. Enterprise zone abatement. In addition to
29 the authority to abate taxes under Section 18-165, any taxing
30 district, upon a majority vote of its governing authority,
31 may order the county clerk to abate any portion of its taxes
32 on property, or any class thereof, located within an
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1 Enterprise Zone created under the Illinois Enterprise Zone
2 Act, and upon which either new improvements have been
3 constructed or existing improvements have been renovated or
4 rehabilitated after December 7, 1982. However, any abatement
5 of taxes on any parcel shall not exceed the amount
6 attributable to the construction of the improvements and the
7 renovation or rehabilitation of existing improvements on the
8 parcel. In the case of property within a redevelopment area
9 created under the Tax Increment Allocation Redevelopment Act,
10 the abatement shall not apply unless a business enterprise or
11 individual with regard to new improvements or renovated or
12 rehabilitated improvements has met the requirements of
13 Section 5.4.1 of the Illinois Enterprise Zone Act exceed the
14 amount of taxes allocable to the taxing district. If an
15 abatement is discontinued under this Section, a municipality
16 shall notify the county clerk and the board of review or
17 board of appeals of the change in writing not later than July
18 1 of the assessment year to be first affected by the change.
19 However, within a county economic development project area
20 created under the County Economic Development Project Area
21 Property Tax Allocation Act, any municipality or county which
22 has adopted tax increment allocation financing under the Tax
23 Increment Allocation Redevelopment Act or the County Economic
24 Development Project Area Tax Increment Allocation Act may
25 abate any portion of its taxes as provided in this Section.
26 Any other taxing district within the county economic
27 development project area may order any portion or all of its
28 taxes abated as provided above if the county or municipality
29 which created the tax increment district has agreed, in
30 writing, to the abatement.
31 A copy of an abatement order adopted under this Section
32 shall be delivered to the county clerk and to the board of
33 review or board of appeals not later than July 1 of the
34 assessment year to be first affected by the order. If it is
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1 delivered on or after that date, it will first affect the
2 taxes extended on the assessment of the following year. The
3 board of review or board of appeals shall, each time the
4 assessment books are delivered to the county clerk, also
5 deliver a list of parcels affected by an abatement and the
6 assessed value attributable to new improvements or to the
7 renovation or rehabilitation of existing improvements.
8 (Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
9 8-14-96.)
10 Section 15. The Illinois Municipal Code is amended by
11 changing Sections 11-74.4-8 and 11-74.4-8a and adding Section
12 11-74.4-8c as follows:
13 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
14 Sec. 11-74.4-8. A municipality may not adopt tax
15 increment financing in a redevelopment project area after the
16 effective date of this amendatory Act of 1997 that will
17 encompass an area that is currently included in an enterprise
18 zone created under the Illinois Enterprise Zone Act unless
19 that municipality, pursuant to Section 5.4 of the Illinois
20 Enterprise Zone Act, amends the enterprise zone designating
21 ordinance to limit the eligibility for tax abatements as
22 provided in Section 5.4.1 of the Illinois Enterprise Zone
23 Act. A municipality, at the time a redevelopment project
24 area is designated, may adopt tax increment allocation
25 financing by passing an ordinance providing that the ad
26 valorem taxes, if any, arising from the levies upon taxable
27 real property in such redevelopment project area by taxing
28 districts and tax rates determined in the manner provided in
29 paragraph (c) of Section 11-74.4-9 each year after the
30 effective date of the ordinance until redevelopment project
31 costs and all municipal obligations financing redevelopment
32 project costs incurred under this Division have been paid
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1 shall be divided as follows:
2 (a) That portion of taxes levied upon each taxable lot,
3 block, tract or parcel of real property which is attributable
4 to the lower of the current equalized assessed value or the
5 initial equalized assessed value of each such taxable lot,
6 block, tract or parcel of real property in the redevelopment
7 project area shall be allocated to and when collected shall
8 be paid by the county collector to the respective affected
9 taxing districts in the manner required by law in the absence
10 of the adoption of tax increment allocation financing.
11 (b) That portion, if any, of such taxes which is
12 attributable to the increase in the current equalized
13 assessed valuation of each taxable lot, block, tract or
14 parcel of real property in the redevelopment project area
15 over and above the initial equalized assessed value of each
16 property in the project area shall be allocated to and when
17 collected shall be paid to the municipal treasurer who shall
18 deposit said taxes into a special fund called the special tax
19 allocation fund of the municipality for the purpose of paying
20 redevelopment project costs and obligations incurred in the
21 payment thereof. In any county with a population of 3,000,000
22 or more that has adopted a procedure for collecting taxes
23 that provides for one or more of the installments of the
24 taxes to be billed and collected on an estimated basis, the
25 municipal treasurer shall be paid for deposit in the special
26 tax allocation fund of the municipality, from the taxes
27 collected from estimated bills issued for property in the
28 redevelopment project area, the difference between the amount
29 actually collected from each taxable lot, block, tract, or
30 parcel of real property within the redevelopment project area
31 and an amount determined by multiplying the rate at which
32 taxes were last extended against the taxable lot, block,
33 track, or parcel of real property in the manner provided in
34 subsection (c) of Section 11-74.4-9 by the initial equalized
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1 assessed value of the property divided by the number of
2 installments in which real estate taxes are billed and
3 collected within the county, provided each of the following
4 conditions are met:
5 (1) The total equalized assessed value of the
6 redevelopment project area as last determined was not
7 less than 175% of the total initial equalized assessed
8 value.
9 (2) Not more than 50% of the total equalized
10 assessed value of the redevelopment project area as last
11 determined is attributable to a piece of property
12 assigned a single real estate index number.
13 (3) The municipal clerk has certified to the county
14 clerk that the municipality has issued its obligations to
15 which there has been pledged the incremental property
16 taxes of the redevelopment project area or taxes levied
17 and collected on any or all property in the municipality
18 or the full faith and credit of the municipality to pay
19 or secure payment for all or a portion of the
20 redevelopment project costs. The certification shall be
21 filed annually no later than September 1 for the
22 estimated taxes to be distributed in the following year;
23 however, for the year 1992 the certification shall be
24 made at any time on or before March 31, 1992.
25 (4) The municipality has not requested that the
26 total initial equalized assessed value of real property
27 be adjusted as provided in subsection (b) of Section
28 11-74.4-9.
29 It is the intent of this Division that after the
30 effective date of this amendatory Act of 1988 a
31 municipality's own ad valorem tax arising from levies on
32 taxable real property be included in the determination of
33 incremental revenue in the manner provided in paragraph (c)
34 of Section 11-74.4-9. If the municipality does not extend
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1 such a tax, it shall annually deposit in the municipality's
2 Special Tax Increment Fund an amount equal to 10% of the
3 total contributions to the fund from all other taxing
4 districts in that year. The annual 10% deposit required by
5 this paragraph shall be limited to the actual amount of
6 municipally produced incremental tax revenues available to
7 the municipality from taxpayers located in the redevelopment
8 project area in that year if: (a) the plan for the area
9 restricts the use of the property primarily to industrial
10 purposes, (b) the municipality establishing the redevelopment
11 project area is a home-rule community with a 1990 population
12 of between 25,000 and 50,000, (c) the municipality is wholly
13 located within a county with a 1990 population of over
14 750,000 and (d) the redevelopment project area was
15 established by the municipality prior to June 1, 1990. This
16 payment shall be in lieu of a contribution of ad valorem
17 taxes on real property. If no such payment is made, any
18 redevelopment project area of the municipality shall be
19 dissolved.
20 If a municipality has adopted tax increment allocation
21 financing by ordinance and the County Clerk thereafter
22 certifies the "total initial equalized assessed value as
23 adjusted" of the taxable real property within such
24 redevelopment project area in the manner provided in
25 paragraph (b) of Section 11-74.4-9, each year after the date
26 of the certification of the total initial equalized assessed
27 value as adjusted until redevelopment project costs and all
28 municipal obligations financing redevelopment project costs
29 have been paid the ad valorem taxes, if any, arising from the
30 levies upon the taxable real property in such redevelopment
31 project area by taxing districts and tax rates determined in
32 the manner provided in paragraph (c) of Section 11-74.4-9
33 shall be divided as follows:
34 (1) That portion of the taxes levied upon each
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1 taxable lot, block, tract or parcel of real property
2 which is attributable to the lower of the current
3 equalized assessed value or "current equalized assessed
4 value as adjusted" or the initial equalized assessed
5 value of each such taxable lot, block, tract, or parcel
6 of real property existing at the time tax increment
7 financing was adopted, minus the total current homestead
8 exemptions provided by Sections 15-170 and 15-175 of the
9 Property Tax Code in the redevelopment project area shall
10 be allocated to and when collected shall be paid by the
11 county collector to the respective affected taxing
12 districts in the manner required by law in the absence of
13 the adoption of tax increment allocation financing.
14 (2) That portion, if any, of such taxes which is
15 attributable to the increase in the current equalized
16 assessed valuation of each taxable lot, block, tract, or
17 parcel of real property in the redevelopment project
18 area, over and above the initial equalized assessed value
19 of each property existing at the time tax increment
20 financing was adopted, minus the total current homestead
21 exemptions pertaining to each piece of property provided
22 by Sections 15-170 and 15-175 of the Property Tax Code in
23 the redevelopment project area, shall be allocated to and
24 when collected shall be paid to the municipal Treasurer,
25 who shall deposit said taxes into a special fund called
26 the special tax allocation fund of the municipality for
27 the purpose of paying redevelopment project costs and
28 obligations incurred in the payment thereof.
29 The municipality may pledge in the ordinance the funds in
30 and to be deposited in the special tax allocation fund for
31 the payment of such costs and obligations. No part of the
32 current equalized assessed valuation of each property in the
33 redevelopment project area attributable to any increase above
34 the total initial equalized assessed value, or the total
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1 initial equalized assessed value as adjusted, of such
2 properties shall be used in calculating the general State
3 school aid formula, provided for in Section 18-8 of the
4 School Code, until such time as all redevelopment project
5 costs have been paid as provided for in this Section.
6 Whenever a municipality issues bonds for the purpose of
7 financing redevelopment project costs, such municipality may
8 provide by ordinance for the appointment of a trustee, which
9 may be any trust company within the State, and for the
10 establishment of such funds or accounts to be maintained by
11 such trustee as the municipality shall deem necessary to
12 provide for the security and payment of the bonds. If such
13 municipality provides for the appointment of a trustee, such
14 trustee shall be considered the assignee of any payments
15 assigned by the municipality pursuant to such ordinance and
16 this Section. Any amounts paid to such trustee as assignee
17 shall be deposited in the funds or accounts established
18 pursuant to such trust agreement, and shall be held by such
19 trustee in trust for the benefit of the holders of the bonds,
20 and such holders shall have a lien on and a security interest
21 in such funds or accounts so long as the bonds remain
22 outstanding and unpaid. Upon retirement of the bonds, the
23 trustee shall pay over any excess amounts held to the
24 municipality for deposit in the special tax allocation fund.
25 When such redevelopment projects costs, including without
26 limitation all municipal obligations financing redevelopment
27 project costs incurred under this Division, have been paid,
28 all surplus funds then remaining in the special tax
29 allocation fund shall be distributed by being paid by the
30 municipal treasurer to the Department of Revenue, the
31 municipality and the county collector; first to the
32 Department of Revenue and the municipality in direct
33 proportion to the tax incremental revenue received from the
34 State and the municipality, but not to exceed the total
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1 incremental revenue received from the State or the
2 municipality less any annual surplus distribution of
3 incremental revenue previously made; with any remaining funds
4 to be paid to the County Collector who shall immediately
5 thereafter pay said funds to the taxing districts in the
6 redevelopment project area in the same manner and proportion
7 as the most recent distribution by the county collector to
8 the affected districts of real property taxes from real
9 property in the redevelopment project area.
10 Upon the payment of all redevelopment project costs,
11 retirement of obligations and the distribution of any excess
12 monies pursuant to this Section, the municipality shall adopt
13 an ordinance dissolving the special tax allocation fund for
14 the redevelopment project area and terminating the
15 designation of the redevelopment project area as a
16 redevelopment project area. If a municipality extends
17 estimated dates of completion of a redevelopment project and
18 retirement of obligations to finance a redevelopment project,
19 as allowed by this amendatory Act of 1993, that extension
20 shall not extend the property tax increment allocation
21 financing authorized by this Section. Thereafter the rates
22 of the taxing districts shall be extended and taxes levied,
23 collected and distributed in the manner applicable in the
24 absence of the adoption of tax increment allocation
25 financing.
26 Nothing in this Section shall be construed as relieving
27 property in such redevelopment project areas from being
28 assessed as provided in the Property Tax Code or as relieving
29 owners of such property from paying a uniform rate of taxes,
30 as required by Section 4 of Article 9 of the Illinois
31 Constitution.
32 (Source: P.A. 87-813; 87-872; 87-1272; 88-670, eff. 12-2-94.)
33 !!!
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1 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
2 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
3 which has adopted tax increment allocation financing prior to
4 January 1, 1987, may by ordinance (1) authorize the
5 Department of Revenue, subject to appropriation, to annually
6 certify and cause to be paid from the Illinois Tax Increment
7 Fund to such municipality for deposit in the municipality's
8 special tax allocation fund an amount equal to the Net State
9 Sales Tax Increment and (2) authorize the Department of
10 Revenue to annually notify the municipality of the amount of
11 the Municipal Sales Tax Increment which shall be deposited by
12 the municipality in the municipality's special tax allocation
13 fund. Provided that for purposes of this Section no
14 amendments adding additional area to the redevelopment
15 project area which has been certified as the State Sales Tax
16 Boundary shall be taken into account if such amendments are
17 adopted by the municipality after January 1, 1987. If an
18 amendment is adopted which decreases the area of a State
19 Sales Tax Boundary, the municipality shall update the list
20 required by subsection (3)(a) of this Section. The Retailers'
21 Occupation Tax liability, Use Tax liability, Service
22 Occupation Tax liability and Service Use Tax liability for
23 retailers and servicemen located within the disconnected area
24 shall be excluded from the base from which tax increments are
25 calculated and the revenue from any such retailer or
26 serviceman shall not be included in calculating incremental
27 revenue payable to the municipality. A municipality adopting
28 an ordinance under this subsection (1) of this Section for a
29 redevelopment project area which is certified as a State
30 Sales Tax Boundary shall not be entitled to payments of State
31 taxes authorized under subsection (2) of this Section for the
32 same redevelopment project area. Nothing herein shall be
33 construed to prevent a municipality from receiving payment of
34 State taxes authorized under subsection (2) of this Section
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1 for a separate redevelopment project area that does not
2 overlap in any way with the State Sales Tax Boundary
3 receiving payments of State taxes pursuant to subsection (1)
4 of this Section.
5 A certified copy of such ordinance shall be submitted by
6 the municipality to the Department of Commerce and Community
7 Affairs and the Department of Revenue not later than 30 days
8 after the effective date of the ordinance. Upon submission
9 of the ordinances, and the information required pursuant to
10 subsection 3 of this Section, the Department of Revenue shall
11 promptly determine the amount of such taxes paid under the
12 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
13 Act, the Service Occupation Tax Act, the Municipal Retailers'
14 Occupation Tax Act and the Municipal Service Occupation Tax
15 Act by retailers and servicemen on transactions at places
16 located in the redevelopment project area during the base
17 year, and shall certify all the foregoing "initial sales tax
18 amounts" to the municipality within 60 days of submission of
19 the list required of subsection (3)(a) of this Section.
20 If a retailer or serviceman with a place of business
21 located within a redevelopment project area also has one or
22 more other places of business within the municipality but
23 outside the redevelopment project area, the retailer or
24 serviceman shall, upon request of the Department of Revenue,
25 certify to the Department of Revenue the amount of taxes paid
26 pursuant to the Retailers' Occupation Tax Act, the Municipal
27 Retailers' Occupation Tax Act, the Service Occupation Tax Act
28 and the Municipal Service Occupation Tax Act at each place of
29 business which is located within the redevelopment project
30 area in the manner and for the periods of time requested by
31 the Department of Revenue.
32 When the municipality determines that a portion of an
33 increase in the aggregate amount of taxes paid by retailers
34 and servicemen under the Retailers' Occupation Tax Act, Use
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1 Tax Act, Service Use Tax Act, or the Service Occupation Tax
2 Act is the result of a retailer or serviceman initiating
3 retail or service operations in the redevelopment project
4 area by such retailer or serviceman with a resulting
5 termination of retail or service operations by such retailer
6 or serviceman at another location in Illinois in the standard
7 metropolitan statistical area of such municipality, the
8 Department of Revenue shall be notified that the retailers
9 occupation tax liability, use tax liability, service
10 occupation tax liability, or service use tax liability from
11 such retailer's or serviceman's terminated operation shall be
12 included in the base Initial Sales Tax Amounts from which the
13 State Sales Tax Increment is calculated for purposes of State
14 payments to the affected municipality; provided, however, for
15 purposes of this paragraph "termination" shall mean a closing
16 of a retail or service operation which is directly related to
17 the opening of the same retail or service operation in a
18 redevelopment project area which is included within a State
19 Sales Tax Boundary, but it shall not include retail or
20 service operations closed for reasons beyond the control of
21 the retailer or serviceman, as determined by the Department.
22 If the municipality makes the determination referred to in
23 the prior paragraph and notifies the Department and if the
24 relocation is from a location within the municipality, the
25 Department, at the request of the municipality, shall adjust
26 the certified aggregate amount of taxes that constitute the
27 Municipal Sales Tax Increment paid by retailers and
28 servicemen on transactions at places of business located
29 within the State Sales Tax Boundary during the base year
30 using the same procedures as are employed to make the
31 adjustment referred to in the prior paragraph. The adjusted
32 Municipal Sales Tax Increment calculated by the Department
33 shall be sufficient to satisfy the requirements of subsection
34 (1) of this Section.
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1 When a municipality which has adopted tax increment
2 allocation financing in 1986 determines that a portion of the
3 aggregate amount of taxes paid by retailers and servicemen
4 under the Retailers Occupation Tax Act, Use Tax Act, Service
5 Use Tax Act, or Service Occupation Tax Act, the Municipal
6 Retailers' Occupation Tax Act and the Municipal Service
7 Occupation Tax Act, includes revenue of a retailer or
8 serviceman which terminated retailer or service operations in
9 1986, prior to the adoption of tax increment allocation
10 financing, the Department of Revenue shall be notified by
11 such municipality that the retailers' occupation tax
12 liability, use tax liability, service occupation tax
13 liability or service use tax liability, from such retailer's
14 or serviceman's terminated operations shall be excluded from
15 the Initial Sales Tax Amounts for such taxes. The revenue
16 from any such retailer or serviceman which is excluded from
17 the base year under this paragraph, shall not be included in
18 calculating incremental revenues if such retailer or
19 serviceman reestablishes such business in the redevelopment
20 project area.
21 For State fiscal year 1992, the Department of Revenue
22 shall budget, and the Illinois General Assembly shall
23 appropriate from the Illinois Tax Increment Fund in the State
24 treasury, an amount not to exceed $18,000,000 to pay to each
25 eligible municipality the Net State Sales Tax Increment to
26 which such municipality is entitled.
27 Beginning on January 1, 1993, each municipality's
28 proportional share of the Illinois Tax Increment Fund shall
29 be determined by adding the annual Net State Sales Tax
30 Increment and the annual Net Utility Tax Increment to
31 determine the Annual Total Increment. The ratio of the Annual
32 Total Increment of each municipality to the Annual Total
33 Increment for all municipalities, as most recently calculated
34 by the Department, shall determine the proportional shares of
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1 the Illinois Tax Increment Fund to be distributed to each
2 municipality.
3 Beginning in October, 1993, and each January, April, July
4 and October thereafter, the Department of Revenue shall
5 certify to the Treasurer and the Comptroller the amounts
6 payable quarter annually during the fiscal year to each
7 municipality under this Section. The Comptroller shall
8 promptly then draw warrants, ordering the State Treasurer to
9 pay such amounts from the Illinois Tax Increment Fund in the
10 State treasury.
11 The Department of Revenue shall utilize the same periods
12 established for determining State Sales Tax Increment to
13 determine the Municipal Sales Tax Increment for the area
14 within a State Sales Tax Boundary and certify such amounts to
15 such municipal treasurer who shall transfer such amounts to
16 the special tax allocation fund.
17 The provisions of this subsection (1) do not apply to
18 additional municipal retailers' occupation or service
19 occupation taxes imposed by municipalities using their home
20 rule powers or imposed pursuant to Sections 8-11-1.3,
21 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
22 receive from the State any share of the Illinois Tax
23 Increment Fund unless such municipality deposits all its
24 Municipal Sales Tax Increment and the local incremental real
25 property tax revenues, as provided herein, into the
26 appropriate special tax allocation fund. A municipality
27 located within an economic development project area created
28 under the County Economic Development Project Area Property
29 Tax Allocation Act which has abated any portion of its
30 property taxes which otherwise would have been deposited in
31 its special tax allocation fund shall not receive from the
32 State the Net Sales Tax Increment.
33 (2) A municipality which has adopted tax increment
34 allocation financing with regard to an industrial park or
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1 industrial park conservation area, prior to January 1, 1988,
2 may by ordinance authorize the Department of Revenue to
3 annually certify and pay from the Illinois Tax Increment Fund
4 to such municipality for deposit in the municipality's
5 special tax allocation fund an amount equal to the Net State
6 Utility Tax Increment. Provided that for purposes of this
7 Section no amendments adding additional area to the
8 redevelopment project area shall be taken into account if
9 such amendments are adopted by the municipality after January
10 1, 1988. Municipalities adopting an ordinance under this
11 subsection (2) of this Section for a redevelopment project
12 area shall not be entitled to payment of State taxes
13 authorized under subsection (1) of this Section for the same
14 redevelopment project area which is within a State Sales Tax
15 Boundary. Nothing herein shall be construed to prevent a
16 municipality from receiving payment of State taxes authorized
17 under subsection (1) of this Section for a separate
18 redevelopment project area within a State Sales Tax Boundary
19 that does not overlap in any way with the redevelopment
20 project area receiving payments of State taxes pursuant to
21 subsection (2) of this Section.
22 A certified copy of such ordinance shall be submitted to
23 the Department of Commerce and Community Affairs and the
24 Department of Revenue not later than 30 days after the
25 effective date of the ordinance.
26 When a municipality determines that a portion of an
27 increase in the aggregate amount of taxes paid by industrial
28 or commercial facilities under the Public Utilities Act, is
29 the result of an industrial or commercial facility initiating
30 operations in the redevelopment project area with a resulting
31 termination of such operations by such industrial or
32 commercial facility at another location in Illinois, the
33 Department of Revenue shall be notified by such municipality
34 that such industrial or commercial facility's liability under
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1 the Public Utility Tax Act shall be included in the base from
2 which tax increments are calculated for purposes of State
3 payments to the affected municipality.
4 After receipt of the calculations by the public utility
5 as required by subsection (4) of this Section, the Department
6 of Revenue shall annually budget and the Illinois General
7 Assembly shall annually appropriate from the General Revenue
8 Fund through State Fiscal Year 1989, and thereafter from the
9 Illinois Tax Increment Fund, an amount sufficient to pay to
10 each eligible municipality the amount of incremental revenue
11 attributable to State electric and gas taxes as reflected by
12 the charges imposed on persons in the project area to which
13 such municipality is entitled by comparing the preceding
14 calendar year with the base year as determined by this
15 Section. Beginning on January 1, 1993, each municipality's
16 proportional share of the Illinois Tax Increment Fund shall
17 be determined by adding the annual Net State Utility Tax
18 Increment and the annual Net Utility Tax Increment to
19 determine the Annual Total Increment. The ratio of the Annual
20 Total Increment of each municipality to the Annual Total
21 Increment for all municipalities, as most recently calculated
22 by the Department, shall determine the proportional shares of
23 the Illinois Tax Increment Fund to be distributed to each
24 municipality.
25 A municipality shall not receive any share of the
26 Illinois Tax Increment Fund from the State unless such
27 municipality imposes the maximum municipal charges authorized
28 pursuant to Section 9-221 of the Public Utilities Act and
29 deposits all municipal utility tax incremental revenues as
30 certified by the public utilities, and all local real estate
31 tax increments into such municipality's special tax
32 allocation fund.
33 (3) Within 30 days after the adoption of the ordinance
34 required by either subsection (1) or subsection (2) of this
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1 Section, the municipality shall transmit to the Department of
2 Commerce and Community Affairs and the Department of Revenue
3 the following:
4 (a) if applicable, a certified copy of the
5 ordinance required by subsection (1) accompanied by a
6 complete list of street names and the range of street
7 numbers of each street located within the redevelopment
8 project area for which payments are to be made under this
9 Section in both the base year and in the year preceding
10 the payment year; and the addresses of persons registered
11 with the Department of Revenue; and, the name under which
12 each such retailer or serviceman conducts business at
13 that address, if different from the corporate name; and
14 the Illinois Business Tax Number of each such person (The
15 municipality shall update this list in the event of a
16 revision of the redevelopment project area, or the
17 opening or closing or name change of any street or part
18 thereof in the redevelopment project area, or if the
19 Department of Revenue informs the municipality of an
20 addition or deletion pursuant to the monthly updates
21 given by the Department.);
22 (b) if applicable, a certified copy of the
23 ordinance required by subsection (2) accompanied by a
24 complete list of street names and range of street numbers
25 of each street located within the redevelopment project
26 area, the utility customers in the project area, and the
27 utilities serving the redevelopment project areas;
28 (c) certified copies of the ordinances approving
29 the redevelopment plan and designating the redevelopment
30 project area;
31 (d) a copy of the redevelopment plan as approved by
32 the municipality;
33 (e) an opinion of legal counsel that the
34 municipality had complied with the requirements of this
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1 Act; and
2 (f) a certification by the chief executive officer
3 of the municipality that with regard to a redevelopment
4 project area: (1) the municipality has committed all of
5 the municipal tax increment created pursuant to this Act
6 for deposit in the special tax allocation fund, (2) the
7 redevelopment projects described in the redevelopment
8 plan would not be completed without the use of State
9 incremental revenues pursuant to this Act, (3) the
10 municipality will pursue the implementation of the
11 redevelopment plan in an expeditious manner, (4) the
12 incremental revenues created pursuant to this Section
13 will be exclusively utilized for the development of the
14 redevelopment project area, and (5) the increased revenue
15 created pursuant to this Section shall be used
16 exclusively to pay redevelopment project costs as defined
17 in this Act.
18 (4) The Department of Revenue upon receipt of the
19 information set forth in paragraph (b) of subsection (3)
20 shall immediately forward such information to each public
21 utility furnishing natural gas or electricity to buildings
22 within the redevelopment project area. Upon receipt of such
23 information, each public utility shall promptly:
24 (a) provide to the Department of Revenue and the
25 municipality separate lists of the names and addresses of
26 persons within the redevelopment project area receiving
27 natural gas or electricity from such public utility.
28 Such list shall be updated as necessary by the public
29 utility. Each month thereafter the public utility shall
30 furnish the Department of Revenue and the municipality
31 with an itemized listing of charges imposed pursuant to
32 Sections 9-221 and 9-222 of the Public Utilities Act on
33 persons within the redevelopment project area.
34 (b) determine the amount of charges imposed
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1 pursuant to Sections 9-221 and 9-222 of the Public
2 Utilities Act on persons in the redevelopment project
3 area during the base year, both as a result of municipal
4 taxes on electricity and gas and as a result of State
5 taxes on electricity and gas and certify such amounts
6 both to the municipality and the Department of Revenue;
7 and
8 (c) determine the amount of charges imposed
9 pursuant to Sections 9-221 and 9-222 of the Public
10 Utilities Act on persons in the redevelopment project
11 area on a monthly basis during the base year, both as a
12 result of State and municipal taxes on electricity and
13 gas and certify such separate amounts both to the
14 municipality and the Department of Revenue.
15 After the determinations are made in paragraphs (b) and
16 (c), the public utility shall monthly during the existence of
17 the redevelopment project area notify the Department of
18 Revenue and the municipality of any increase in charges over
19 the base year determinations made pursuant to paragraphs (b)
20 and (c).
21 (5) The payments authorized under this Section shall be
22 deposited by the municipal treasurer in the special tax
23 allocation fund of the municipality, which for accounting
24 purposes shall identify the sources of each payment as:
25 municipal receipts from the State retailers occupation,
26 service occupation, use and service use taxes; and municipal
27 public utility taxes charged to customers under the Public
28 Utilities Act and State public utility taxes charged to
29 customers under the Public Utilities Act.
30 (6) Any municipality receiving payments authorized under
31 this Section for any redevelopment project area or area
32 within a State Sales Tax Boundary within the municipality
33 shall submit to the Department of Revenue and to the taxing
34 districts which are sent the notice required by Section 6 of
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1 this Act annually within 180 days after the close of each
2 municipal fiscal year the following information for the
3 immediately preceding fiscal year:
4 (a) Any amendments to the redevelopment plan, the
5 redevelopment project area, or the State Sales Tax
6 Boundary.
7 (b) Audited financial statements of the special tax
8 allocation fund.
9 (c) Certification of the Chief Executive Officer of
10 the municipality that the municipality has complied with
11 all of the requirements of this Act during the preceding
12 fiscal year.
13 (d) An opinion of legal counsel that the
14 municipality is in compliance with this Act.
15 (e) An analysis of the special tax allocation fund
16 which sets forth:
17 (1) the balance in the special tax allocation
18 fund at the beginning of the fiscal year;
19 (2) all amounts deposited in the special tax
20 allocation fund by source;
21 (3) all expenditures from the special tax
22 allocation fund by category of permissible
23 redevelopment project cost; and
24 (4) the balance in the special tax allocation
25 fund at the end of the fiscal year including a
26 breakdown of that balance by source. Such ending
27 balance shall be designated as surplus if it is not
28 required for anticipated redevelopment project costs
29 or to pay debt service on bonds issued to finance
30 redevelopment project costs, as set forth in Section
31 11-74.4-7 hereof.
32 (f) A description of all property purchased by the
33 municipality within the redevelopment project area
34 including
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1 1. Street address
2 2. Approximate size or description of property
3 3. Purchase price
4 4. Seller of property.
5 (g) A statement setting forth all activities
6 undertaken in furtherance of the objectives of the
7 redevelopment plan, including:
8 1. Any project implemented in the preceding
9 fiscal year
10 2. A description of the redevelopment
11 activities undertaken
12 3. A description of any agreements entered
13 into by the municipality with regard to the
14 disposition or redevelopment of any property within
15 the redevelopment project area or the area within
16 the State Sales Tax Boundary.
17 (h) With regard to any obligations issued by the
18 municipality:
19 1. copies of bond ordinances or resolutions
20 2. copies of any official statements
21 3. an analysis prepared by financial advisor
22 or underwriter setting forth: (a) nature and term of
23 obligation; and (b) projected debt service including
24 required reserves and debt coverage.
25 (i) A certified audit report reviewing compliance
26 with this statute performed by an independent public
27 accountant certified and licensed by the authority of the
28 State of Illinois. The financial portion of the audit
29 must be conducted in accordance with Standards for Audits
30 of Governmental Organizations, Programs, Activities, and
31 Functions adopted by the Comptroller General of the
32 United States (1981), as amended. The audit report shall
33 contain a letter from the independent certified public
34 accountant indicating compliance or noncompliance with
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1 the requirements of subsection (q) of Section 11-74.4-3.
2 If the audit indicates that expenditures are not in
3 compliance with the law, the Department of Revenue shall
4 withhold State sales and utility tax increment payments
5 to the municipality until compliance has been reached,
6 and an amount equal to the ineligible expenditures has
7 been returned to the Special Tax Allocation Fund.
8 (6.1) After July 29, 1988, any funds which have not been
9 designated for use in a specific development project in the
10 annual report shall be designated as surplus. No funds may be
11 held in the Special Tax Allocation Fund for more than 36
12 months from the date of receipt unless the money is required
13 for payment of contractual obligations for specific
14 development project costs. If held for more than 36 months in
15 violation of the preceding sentence, such funds shall be
16 designated as surplus. Any funds designated as surplus must
17 first be used for early redemption of any bond obligations.
18 Any funds designated as surplus which are not disposed of as
19 otherwise provided in this paragraph, shall be distributed as
20 surplus as provided in Section 11-74.4-7.
21 (7) Any appropriation made pursuant to this Section for
22 the 1987 State fiscal year shall not exceed the amount of $7
23 million and for the 1988 State fiscal year the amount of $10
24 million. The amount which shall be distributed to each
25 municipality shall be the incremental revenue to which each
26 municipality is entitled as calculated by the Department of
27 Revenue, unless the requests of the municipality exceed the
28 appropriation, then the amount to which each municipality
29 shall be entitled shall be prorated among the municipalities
30 in the same proportion as the increment to which the
31 municipality would be entitled bears to the total increment
32 which all municipalities would receive in the absence of this
33 limitation, provided that no municipality may receive an
34 amount in excess of 15% of the appropriation. For the 1987
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1 Net State Sales Tax Increment payable in Fiscal Year 1989, no
2 municipality shall receive more than 7.5% of the total
3 appropriation; provided, however, that any of the
4 appropriation remaining after such distribution shall be
5 prorated among municipalities on the basis of their pro rata
6 share of the total increment. Beginning on January 1, 1993,
7 each municipality's proportional share of the Illinois Tax
8 Increment Fund shall be determined by adding the annual Net
9 State Sales Tax Increment and the annual Net Utility Tax
10 Increment to determine the Annual Total Increment. The ratio
11 of the Annual Total Increment of each municipality to the
12 Annual Total Increment for all municipalities, as most
13 recently calculated by the Department, shall determine the
14 proportional shares of the Illinois Tax Increment Fund to be
15 distributed to each municipality.
16 (7.1) No distribution of Net State Sales Tax Increment
17 to a municipality for an area within a State Sales Tax
18 Boundary shall exceed in any State Fiscal Year an amount
19 equal to 3 times the sum of the Municipal Sales Tax
20 Increment, the real property tax increment and deposits of
21 funds from other sources, excluding state and federal funds,
22 as certified by the city treasurer to the Department of
23 Revenue for an area within a State Sales Tax Boundary. After
24 July 29, 1988, for those municipalities which issue bonds
25 between June 1, 1988 and 3 years from July 29, 1988 to
26 finance redevelopment projects within the area in a State
27 Sales Tax Boundary, the distribution of Net State Sales Tax
28 Increment during the 16th through 20th years from the date of
29 issuance of the bonds shall not exceed in any State Fiscal
30 Year an amount equal to 2 times the sum of the Municipal
31 Sales Tax Increment, the real property tax increment and
32 deposits of funds from other sources, excluding State and
33 federal funds.
34 (8) Any person who knowingly files or causes to be filed
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1 false information for the purpose of increasing the amount of
2 any State tax incremental revenue commits a Class A
3 misdemeanor.
4 (9) The following procedures shall be followed to
5 determine whether municipalities have complied with the Act
6 for the purpose of receiving distributions after July 1, 1989
7 pursuant to subsection (1) of this Section 11-74.4-8a.
8 (a) The Department of Revenue shall conduct a
9 preliminary review of the redevelopment project areas and
10 redevelopment plans pertaining to those municipalities
11 receiving payments from the State pursuant to subsection
12 (1) of Section 8a of this Act for the purpose of
13 determining compliance with the following standards:
14 (1) For any municipality with a population of
15 more than 12,000 as determined by the 1980 U.S.
16 Census: (a) the redevelopment project area, or in
17 the case of a municipality which has more than one
18 redevelopment project area, each such area, must be
19 contiguous and the total of all such areas shall not
20 comprise more than 25% of the area within the
21 municipal boundaries nor more than 20% of the
22 equalized assessed value of the municipality; (b)
23 the aggregate amount of 1985 taxes in the
24 redevelopment project area, or in the case of a
25 municipality which has more than one redevelopment
26 project area, the total of all such areas, shall be
27 not more than 25% of the total base year taxes paid
28 by retailers and servicemen on transactions at
29 places of business located within the municipality
30 under the Retailers' Occupation Tax Act, the Use Tax
31 Act, the Service Use Tax Act, and the Service
32 Occupation Tax Act. Redevelopment project areas
33 created prior to 1986 are not subject to the above
34 standards if their boundaries were not amended in
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1 1986.
2 (2) For any municipality with a population of
3 12,000 or less as determined by the 1980 U.S.
4 Census: (a) the redevelopment project area, or in
5 the case of a municipality which has more than one
6 redevelopment project area, each such area, must be
7 contiguous and the total of all such areas shall not
8 comprise more than 35% of the area within the
9 municipal boundaries nor more than 30% of the
10 equalized assessed value of the municipality; (b)
11 the aggregate amount of 1985 taxes in the
12 redevelopment project area, or in the case of a
13 municipality which has more than one redevelopment
14 project area, the total of all such areas, shall not
15 be more than 35% of the total base year taxes paid
16 by retailers and servicemen on transactions at
17 places of business located within the municipality
18 under the Retailers' Occupation Tax Act, the Use Tax
19 Act, the Service Use Tax Act, and the Service
20 Occupation Tax Act. Redevelopment project areas
21 created prior to 1986 are not subject to the above
22 standards if their boundaries were not amended in
23 1986.
24 (3) Such preliminary review of the
25 redevelopment project areas applying the above
26 standards shall be completed by November 1, 1988,
27 and on or before November 1, 1988, the Department
28 shall notify each municipality by certified mail,
29 return receipt requested that either (1) the
30 Department requires additional time in which to
31 complete its preliminary review; or (2) the
32 Department is issuing either (a) a Certificate of
33 Eligibility or (b) a Notice of Review. If the
34 Department notifies a municipality that it requires
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1 additional time to complete its preliminary
2 investigation, it shall complete its preliminary
3 investigation no later than February 1, 1989, and by
4 February 1, 1989 shall issue to each municipality
5 either (a) a Certificate of Eligibility or (b) a
6 Notice of Review. A redevelopment project area for
7 which a Certificate of Eligibility has been issued
8 shall be deemed a "State Sales Tax Boundary."
9 (4) The Department of Revenue shall also issue
10 a Notice of Review if the Department has received a
11 request by November 1, 1988 to conduct such a review
12 from taxpayers in the municipality, local taxing
13 districts located in the municipality or the State
14 of Illinois, or if the redevelopment project area
15 has more than 5 retailers and has had growth in
16 State sales tax revenue of more than 15% from
17 calendar year 1985 to 1986.
18 (b) For those municipalities receiving a Notice of
19 Review, the Department will conduct a secondary review
20 consisting of: (i) application of the above standards
21 contained in subsection (9)(a)(1)(a) and (b) or
22 (9)(a)(2)(a) and (b), and (ii) the definitions of
23 blighted and conservation area provided for in Section
24 11-74.4-3. Such secondary review shall be completed by
25 July 1, 1989.
26 Upon completion of the secondary review, the
27 Department will issue (a) a Certificate of Eligibility or
28 (b) a Preliminary Notice of Deficiency. Any municipality
29 receiving a Preliminary Notice of Deficiency may amend
30 its redevelopment project area to meet the standards and
31 definitions set forth in this paragraph (b). This amended
32 redevelopment project area shall become the "State Sales
33 Tax Boundary" for purposes of determining the State Sales
34 Tax Increment.
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1 (c) If the municipality advises the Department of
2 its intent to comply with the requirements of paragraph
3 (b) of this subsection outlined in the Preliminary Notice
4 of Deficiency, within 120 days of receiving such notice
5 from the Department, the municipality shall submit
6 documentation to the Department of the actions it has
7 taken to cure any deficiencies. Thereafter, within 30
8 days of the receipt of the documentation, the Department
9 shall either issue a Certificate of Eligibility or a
10 Final Notice of Deficiency. If the municipality fails to
11 advise the Department of its intent to comply or fails to
12 submit adequate documentation of such cure of
13 deficiencies the Department shall issue a Final Notice of
14 Deficiency that provides that the municipality is
15 ineligible for payment of the Net State Sales Tax
16 Increment.
17 (d) If the Department issues a final determination
18 of ineligibility, the municipality shall have 30 days
19 from the receipt of determination to protest and request
20 a hearing. Such hearing shall be conducted in accordance
21 with Sections 10-25, 10-35, 10-40, and 10-50 of the
22 Illinois Administrative Procedure Act. The decision
23 following the hearing shall be subject to review under
24 the Administrative Review Law.
25 (e) Any Certificate of Eligibility issued pursuant
26 to this subsection 9 shall be binding only on the State
27 for the purposes of establishing municipal eligibility to
28 receive revenue pursuant to subsection (1) of this
29 Section 11-74.4-8a.
30 (f) It is the intent of this subsection that the
31 periods of time to cure deficiencies shall be in addition
32 to all other periods of time permitted by this Section,
33 regardless of the date by which plans were originally
34 required to be adopted. To cure said deficiencies,
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1 however, the municipality shall be required to follow the
2 procedures and requirements pertaining to amendments, as
3 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
4 (10) If a municipality adopts a State Sales Tax Boundary
5 in accordance with the provisions of subsection (9) of this
6 Section, such boundaries shall subsequently be utilized to
7 determine Revised Initial Sales Tax Amounts and the Net State
8 Sales Tax Increment; provided, however, that such revised
9 State Sales Tax Boundary shall not have any effect upon the
10 boundary of the redevelopment project area established for
11 the purposes of determining the ad valorem taxes on real
12 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
13 Act nor upon the municipality's authority to implement the
14 redevelopment plan for that redevelopment project area. For
15 any redevelopment project area with a smaller State Sales Tax
16 Boundary within its area, the municipality may annually elect
17 to deposit the Municipal Sales Tax Increment for the
18 redevelopment project area in the special tax allocation fund
19 and shall certify the amount to the Department prior to
20 receipt of the Net State Sales Tax Increment. Any
21 municipality required by subsection (9) to establish a State
22 Sales Tax Boundary for one or more of its redevelopment
23 project areas shall submit all necessary information required
24 by the Department concerning such boundary and the retailers
25 therein, by October 1, 1989, after complying with the
26 procedures for amendment set forth in Sections 11-74.4-5 and
27 11-74.4-6 of this Act. Net State Sales Tax Increment
28 produced within the State Sales Tax Boundary shall be spent
29 only within that area. However expenditures of all municipal
30 property tax increment and municipal sales tax increment in a
31 redevelopment project area are not required to be spent
32 within the smaller State Sales Tax Boundary within such
33 redevelopment project area.
34 (11) The Department of Revenue shall have the authority
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1 to issue rules and regulations for purposes of this Section.
2 and regulations for purposes of this Section.
3 (12) If, under Section 5.4.1 of the Illinois Enterprise
4 Zone Act, a municipality determines that property that lies
5 within a State Sales Tax Boundary has an improvement,
6 rehabilitation, or renovation that is entitled to a property
7 tax abatement, then that property along with any
8 improvements, rehabilitation, or renovations shall be
9 immediately removed from any State Sales Tax Boundary. The
10 municipality that made the determination shall notify the
11 Department of Revenue within 30 days after the determination.
12 Once a property is removed from the State Sales Tax Boundary
13 because of the existence of a property tax abatement
14 resulting from an enterprise zone, then that property shall
15 not be permitted to be amended into a State Sales Tax
16 Boundary.
17 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
18 (65 ILCS 5/11-74.4-8c new)
19 Sec. 11-74.4-8c. Enterprise zone abatements. If a
20 redevelopment project area is or has been established under
21 Section 11-74.4-4 on or before the effective date of this
22 amendatory Act of 1997 and the redevelopment project area
23 contains property that is located within an enterprise zone
24 established under the Illinois Enterprise Zone Act, then the
25 property that is located in both the redevelopment project
26 area and the enterprise zone shall not be eligible for the
27 abatement of taxes under Section 18-170 of the Property Tax
28 Code if the requirements of Section 5.4.1 of the Illinois
29 Enterprise Zone Act are satisfied. If an abatement is limited
30 under Section 5.4.1 of the Illinois Enterprise Zone Act, a
31 municipality shall notify the county clerk and the board of
32 review or board of appeals of the change in writing not later
33 than July 1 of the assessment year to be first affected by
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1 the change.
2 Section 90. The State Mandates Act is amended by adding
3 Section 8.21 as follows:
4 (30 ILCS 805/8.21 new)
5 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
6 and 8 of this Act, no reimbursement by the State is required
7 for the implementation of any mandate created by this
8 amendatory Act of 1997.
9 Section 95. Severability. The provisions of this Act
10 are severable under Section 1.31 of the Statute on Statutes.
11 Section 99. Effective date. This Act takes effect on
12 July 1, 1997.".