HB4725 96TH GENERAL ASSEMBLY

LRB096 16238 HLH 31494 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4725

Introduced 1/4/2010, by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.756 new
35 ILCS 200/20-157 new

Amends the Property Tax Code and the State Finance Act. Creates the Tax Anticipation Revolving Loan Fund. Provides that moneys in the Fund may be used by the Department of Revenue to make short-term loans to taxing districts that (i) are located within Cook County and (ii) are authorized to issue tax anticipation warrants. Provides that loans may be made if (i) any property tax proceeds are not distributed to the taxing district in a timely manner and (ii) as a result of the delay, it will be necessary for the taxing district to issue tax anticipation warrants. Contains provisions concerning repayment of the loans. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.756 as follows:

(30 ILCS 105/5.756 new)

Sec. 5.756. The Tax Anticipation Revolving Loan Fund.

Section 10. The Property Tax Code is amended by adding Section 20-157 as follows:

(35 ILCS 200/20-157 new)

Sec. 20-157. Tax Anticipation Revolving Loan Fund.

(a) The Tax Anticipation Revolving Loan Fund is created within the State Treasury. Subject to appropriation, moneys in the Fund may be used by the Department of Revenue to make short-term loans to taxing districts as provided in this Section. Any taxing district that is authorized to issue tax anticipation warrants and is located, in whole or in part, within Cook County may enter into an agreement with the Department of Revenue for a short-term loan from the Fund if (i) any property tax proceeds are not distributed to the taxing district in a timely manner as provided in this Article and (ii) as a result of the delay, it will be necessary for the taxing district to issue tax anticipation warrants. Taxing districts shall repay any moneys received from the Fund, including any accrued interest, as provided in the agreement with the Department.

(b) The Treasurer may invest any moneys available in the Tax Anticipation Revolving Loan Fund and shall deposit any accrued interest or income from investments into the Fund.

Section 99. Effective date. This Act takes effect upon becoming law.