97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1207

 

Introduced 02/08/11, by Rep. Maria Antonia Berrios

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-8  from Ch. 24, par. 11-74.4-8

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the portion of taxes levied by a school district located in a redevelopment project area that is (i) established by the City of Chicago on or after the effective date of the amendatory Act or (ii) established by the City of Chicago prior to the effective date of the amendatory Act and extended by the General Assembly on or after the effective date of the amendatory Act shall be allocated and paid to the school district in the manner required by law in the absence of the adoption of tax increment allocation financing. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-8 as follows:
 
6    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
7    Sec. 11-74.4-8. Tax increment allocation financing. A
8municipality may not adopt tax increment financing in a
9redevelopment project area after the effective date of this
10amendatory Act of 1997 that will encompass an area that is
11currently included in an enterprise zone created under the
12Illinois Enterprise Zone Act unless that municipality,
13pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
14amends the enterprise zone designating ordinance to limit the
15eligibility for tax abatements as provided in Section 5.4.1 of
16the Illinois Enterprise Zone Act. A municipality, at the time a
17redevelopment project area is designated, may adopt tax
18increment allocation financing by passing an ordinance
19providing that the ad valorem taxes, if any, arising from the
20levies upon taxable real property in such redevelopment project
21area by taxing districts and tax rates determined in the manner
22provided in paragraph (c) of Section 11-74.4-9 each year after
23the effective date of the ordinance until redevelopment project

 

 

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1costs and all municipal obligations financing redevelopment
2project costs incurred under this Division have been paid shall
3be divided as follows:
4    (a) That portion of taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract or parcel of real property in the redevelopment
9project area shall be allocated to and when collected shall be
10paid by the county collector to the respective affected taxing
11districts in the manner required by law in the absence of the
12adoption of tax increment allocation financing.
13    (a-5) That portion of taxes levied upon each taxable lot,
14block, tract, or parcel of real property which is attributable
15to a school district located in a redevelopment project area
16that is (i) established on or after the effective date of this
17amendatory Act of the 97th General Assembly by the City of
18Chicago or (ii) established by the City of Chicago prior to the
19effective date of this amendatory Act of the 97th General
20Assembly and extended by the General Assembly on or after the
21effective date of this amendatory Act of the 97th General
22Assembly shall be allocated to and when collected shall be paid
23by the county collector to the school district in the manner
24required by law in the absence of the adoption of tax increment
25allocation financing. Tax proceeds generated from a
26redevelopment project area that is established by the City of

 

 

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1Chicago prior to the effective date of this amendatory Act of
2the 97th General Assembly and extended by the General Assembly
3on or after the effective date of this amendatory Act of the
497th General Assembly shall be allocated and paid to school
5districts in accordance with this subsection (a-5) only during
6the period of the extension.
7    (b) Except from a tax levied by a township to retire bonds
8issued to satisfy court-ordered damages, that portion, if any,
9of such taxes which is attributable to the increase in the
10current equalized assessed valuation of each taxable lot,
11block, tract or parcel of real property in the redevelopment
12project area over and above the initial equalized assessed
13value of each property in the project area shall be allocated
14to and when collected shall be paid to the municipal treasurer
15who shall deposit said taxes into a special fund called the
16special tax allocation fund of the municipality for the purpose
17of paying redevelopment project costs and obligations incurred
18in the payment thereof. In any county with a population of
193,000,000 or more that has adopted a procedure for collecting
20taxes that provides for one or more of the installments of the
21taxes to be billed and collected on an estimated basis, the
22municipal treasurer shall be paid for deposit in the special
23tax allocation fund of the municipality, from the taxes
24collected from estimated bills issued for property in the
25redevelopment project area, the difference between the amount
26actually collected from each taxable lot, block, tract, or

 

 

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1parcel of real property within the redevelopment project area
2and an amount determined by multiplying the rate at which taxes
3were last extended against the taxable lot, block, track, or
4parcel of real property in the manner provided in subsection
5(c) of Section 11-74.4-9 by the initial equalized assessed
6value of the property divided by the number of installments in
7which real estate taxes are billed and collected within the
8county; provided that the payments on or before December 31,
91999 to a municipal treasurer shall be made only if each of the
10following conditions are met:
11        (1) The total equalized assessed value of the
12    redevelopment project area as last determined was not less
13    than 175% of the total initial equalized assessed value.
14        (2) Not more than 50% of the total equalized assessed
15    value of the redevelopment project area as last determined
16    is attributable to a piece of property assigned a single
17    real estate index number.
18        (3) The municipal clerk has certified to the county
19    clerk that the municipality has issued its obligations to
20    which there has been pledged the incremental property taxes
21    of the redevelopment project area or taxes levied and
22    collected on any or all property in the municipality or the
23    full faith and credit of the municipality to pay or secure
24    payment for all or a portion of the redevelopment project
25    costs. The certification shall be filed annually no later
26    than September 1 for the estimated taxes to be distributed

 

 

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1    in the following year; however, for the year 1992 the
2    certification shall be made at any time on or before March
3    31, 1992.
4        (4) The municipality has not requested that the total
5    initial equalized assessed value of real property be
6    adjusted as provided in subsection (b) of Section
7    11-74.4-9.
8    The conditions of paragraphs (1) through (4) do not apply
9after December 31, 1999 to payments to a municipal treasurer
10made by a county with 3,000,000 or more inhabitants that has
11adopted an estimated billing procedure for collecting taxes. If
12a county that has adopted the estimated billing procedure makes
13an erroneous overpayment of tax revenue to the municipal
14treasurer, then the county may seek a refund of that
15overpayment. The county shall send the municipal treasurer a
16notice of liability for the overpayment on or before the
17mailing date of the next real estate tax bill within the
18county. The refund shall be limited to the amount of the
19overpayment.
20    It is the intent of this Division that after the effective
21date of this amendatory Act of 1988 a municipality's own ad
22valorem tax arising from levies on taxable real property be
23included in the determination of incremental revenue in the
24manner provided in paragraph (c) of Section 11-74.4-9. If the
25municipality does not extend such a tax, it shall annually
26deposit in the municipality's Special Tax Increment Fund an

 

 

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1amount equal to 10% of the total contributions to the fund from
2all other taxing districts in that year. The annual 10% deposit
3required by this paragraph shall be limited to the actual
4amount of municipally produced incremental tax revenues
5available to the municipality from taxpayers located in the
6redevelopment project area in that year if: (a) the plan for
7the area restricts the use of the property primarily to
8industrial purposes, (b) the municipality establishing the
9redevelopment project area is a home-rule community with a 1990
10population of between 25,000 and 50,000, (c) the municipality
11is wholly located within a county with a 1990 population of
12over 750,000 and (d) the redevelopment project area was
13established by the municipality prior to June 1, 1990. This
14payment shall be in lieu of a contribution of ad valorem taxes
15on real property. If no such payment is made, any redevelopment
16project area of the municipality shall be dissolved.
17    If a municipality has adopted tax increment allocation
18financing by ordinance and the County Clerk thereafter
19certifies the "total initial equalized assessed value as
20adjusted" of the taxable real property within such
21redevelopment project area in the manner provided in paragraph
22(b) of Section 11-74.4-9, each year after the date of the
23certification of the total initial equalized assessed value as
24adjusted until redevelopment project costs and all municipal
25obligations financing redevelopment project costs have been
26paid the ad valorem taxes, if any, arising from the levies upon

 

 

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1the taxable real property in such redevelopment project area by
2taxing districts and tax rates determined in the manner
3provided in paragraph (c) of Section 11-74.4-9 shall be divided
4as follows:
5        (1) That portion of the taxes levied upon each taxable
6    lot, block, tract or parcel of real property which is
7    attributable to the lower of the current equalized assessed
8    value or "current equalized assessed value as adjusted" or
9    the initial equalized assessed value of each such taxable
10    lot, block, tract, or parcel of real property existing at
11    the time tax increment financing was adopted, minus the
12    total current homestead exemptions under Article 15 of the
13    Property Tax Code in the redevelopment project area shall
14    be allocated to and when collected shall be paid by the
15    county collector to the respective affected taxing
16    districts in the manner required by law in the absence of
17    the adoption of tax increment allocation financing.
18        (2) That portion, if any, of such taxes which is
19    attributable to the increase in the current equalized
20    assessed valuation of each taxable lot, block, tract, or
21    parcel of real property in the redevelopment project area,
22    over and above the initial equalized assessed value of each
23    property existing at the time tax increment financing was
24    adopted, minus the total current homestead exemptions
25    pertaining to each piece of property provided by Article 15
26    of the Property Tax Code in the redevelopment project area,

 

 

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1    shall be allocated to and when collected shall be paid to
2    the municipal Treasurer, who shall deposit said taxes into
3    a special fund called the special tax allocation fund of
4    the municipality for the purpose of paying redevelopment
5    project costs and obligations incurred in the payment
6    thereof.
7    The municipality may pledge in the ordinance the funds in
8and to be deposited in the special tax allocation fund for the
9payment of such costs and obligations. No part of the current
10equalized assessed valuation of each property in the
11redevelopment project area attributable to any increase above
12the total initial equalized assessed value, or the total
13initial equalized assessed value as adjusted, of such
14properties shall be used in calculating the general State
15school aid formula, provided for in Section 18-8 of the School
16Code, until such time as all redevelopment project costs have
17been paid as provided for in this Section.
18    Whenever a municipality issues bonds for the purpose of
19financing redevelopment project costs, such municipality may
20provide by ordinance for the appointment of a trustee, which
21may be any trust company within the State, and for the
22establishment of such funds or accounts to be maintained by
23such trustee as the municipality shall deem necessary to
24provide for the security and payment of the bonds. If such
25municipality provides for the appointment of a trustee, such
26trustee shall be considered the assignee of any payments

 

 

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1assigned by the municipality pursuant to such ordinance and
2this Section. Any amounts paid to such trustee as assignee
3shall be deposited in the funds or accounts established
4pursuant to such trust agreement, and shall be held by such
5trustee in trust for the benefit of the holders of the bonds,
6and such holders shall have a lien on and a security interest
7in such funds or accounts so long as the bonds remain
8outstanding and unpaid. Upon retirement of the bonds, the
9trustee shall pay over any excess amounts held to the
10municipality for deposit in the special tax allocation fund.
11    When such redevelopment projects costs, including without
12limitation all municipal obligations financing redevelopment
13project costs incurred under this Division, have been paid, all
14surplus funds then remaining in the special tax allocation fund
15shall be distributed by being paid by the municipal treasurer
16to the Department of Revenue, the municipality and the county
17collector; first to the Department of Revenue and the
18municipality in direct proportion to the tax incremental
19revenue received from the State and the municipality, but not
20to exceed the total incremental revenue received from the State
21or the municipality less any annual surplus distribution of
22incremental revenue previously made; with any remaining funds
23to be paid to the County Collector who shall immediately
24thereafter pay said funds to the taxing districts in the
25redevelopment project area in the same manner and proportion as
26the most recent distribution by the county collector to the

 

 

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1affected districts of real property taxes from real property in
2the redevelopment project area.
3    Upon the payment of all redevelopment project costs, the
4retirement of obligations, the distribution of any excess
5monies pursuant to this Section, and final closing of the books
6and records of the redevelopment project area, the municipality
7shall adopt an ordinance dissolving the special tax allocation
8fund for the redevelopment project area and terminating the
9designation of the redevelopment project area as a
10redevelopment project area. Title to real or personal property
11and public improvements acquired by or for the municipality as
12a result of the redevelopment project and plan shall vest in
13the municipality when acquired and shall continue to be held by
14the municipality after the redevelopment project area has been
15terminated. Municipalities shall notify affected taxing
16districts prior to November 1 if the redevelopment project area
17is to be terminated by December 31 of that same year. If a
18municipality extends estimated dates of completion of a
19redevelopment project and retirement of obligations to finance
20a redevelopment project, as allowed by this amendatory Act of
211993, that extension shall not extend the property tax
22increment allocation financing authorized by this Section.
23Thereafter the rates of the taxing districts shall be extended
24and taxes levied, collected and distributed in the manner
25applicable in the absence of the adoption of tax increment
26allocation financing.

 

 

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1    Nothing in this Section shall be construed as relieving
2property in such redevelopment project areas from being
3assessed as provided in the Property Tax Code or as relieving
4owners of such property from paying a uniform rate of taxes, as
5required by Section 4 of Article 9 of the Illinois
6Constitution.
7(Source: P.A. 95-644, eff. 10-12-07.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.