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Illinois Compiled Statutes
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() 65 ILCS 5/11-74.6-30
(65 ILCS 5/11-74.6-30)
Sec. 11-74.6-30.
Financing.
Obligations secured by the special tax
allocation fund set forth in Section 11-74.6-35 for the redevelopment
project area may be issued to provide for redevelopment project costs.
Those obligations, when so issued, shall be retired in the manner provided
in the ordinance authorizing the issuance of those obligations by the
receipts of taxes levied as specified in Section 11-74.6-40 against the
taxable real property included in the area and any other revenue designated by
the
municipality. A municipality may in the ordinance pledge all or any part
of the funds in and to be deposited into the special tax allocation fund
created under Section 11-74.6-35 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the special tax
allocation fund shall provide for distribution to the taxing districts of
moneys not required, pledged, earmarked, or otherwise designated for
payment and securing
of the obligations and anticipated redevelopment project costs,
and any excess funds shall be calculated annually and deemed to be
"surplus" funds. If a municipality applies or pledges only a portion of
the
funds in the special tax allocation fund for the payment or securing of
anticipated redevelopment
project costs or of obligations, any funds remaining in the special tax
allocation fund after complying with the requirements of the application or
pledge shall
also be calculated annually and deemed "surplus" funds. All surplus funds
in the special tax allocation fund shall be distributed annually within 180
days after the close of the municipality's fiscal year by being paid by the
municipal treasurer to the county collector in direct proportion to the tax
incremental revenue received as a result of an increase in the equalized
assessed value of property in the redevelopment project area but not to
exceed as to each such source the total incremental revenue received from
that source. The county collector shall subsequently distribute surplus
funds to the respective taxing districts in the same manner and proportion
as the most recent distribution by the county collector to the affected
taxing districts of real property taxes from real property in the
redevelopment project area.
Without limiting the foregoing provisions of this Section,
in addition to obligations secured by the special tax allocation fund, the
municipality may pledge, for a period not greater than the term of the
obligations, towards payment of those obligations any part or any
combination of the following: (i) net revenues of all or part of any
redevelopment project; (ii) taxes levied and collected on any or all real
property in the municipality; (iii) the full faith and credit of the
municipality; (iv) a mortgage on part or all of the redevelopment project;
or (v) any other taxes or anticipated receipts that the municipality may lawfully pledge.
The obligations may be issued in one or more series bearing interest at
a rate or rates that the corporate authorities of the municipality
determine by ordinance. The obligations shall bear a date or dates,
mature at a time or times, not exceeding 20 years from their respective
issue dates, be in a denomination, carry registration privileges, be executed
in a manner, be payable in a medium of payment at a place or places,
contain covenants, terms and conditions, and be subject to redemption
as the ordinance provides. Obligations issued under this Law
may be sold at public or private sale at a price determined
by the corporate authority of the municipality. No referendum approval
of the electors shall be required as a condition for the issuance of
obligations under this Division, except as provided in this Section.
If the municipality authorizes issuance of obligations under
the authority of this Division secured by the full faith and credit of
the municipality, which obligations are other than obligations that may
be issued under home rule powers provided by Section 6 of Article VII
of the Illinois Constitution, or pledges taxes levied and collected on
real property in the municipality or pledges the full faith and credit of
the municipality, the ordinance authorizing the issuance of those
obligations or pledging those taxes or the municipality's full faith and
credit shall be published within 10 days after the ordinance has been
passed in one or more newspapers with general circulation within that
municipality. The publication of the ordinance shall be accompanied by a
notice of (i) the specific number of voters required to sign a petition
requesting the question of the issuance of those obligations or pledging
taxes to be submitted to the electors, (ii) the time
in which the petition must be filed, and (iii) the date of the prospective
referendum. The municipal clerk shall provide a petition form to any
individual requesting one.
If no petition is filed with the municipal clerk, as provided
in this Section, within 30 days after the publication of the ordinance,
the ordinance shall become effective. If, however, within that 30 day
period, a petition is filed with the municipal clerk, signed by electors
numbering not less than 10% of the number of registered voters in the
municipality, asking that the
question of issuing obligations using full faith and credit of the
municipality as security for the cost of paying for redevelopment project
costs, or of pledging taxes for the payment of those obligations, or both,
be submitted to the electors of the municipality, the corporate authorities
of the municipality shall call a special election in the manner provided by
law to vote upon that question, or, if a general, State or municipal
election is to be held within a period of not less than 30 or more than 90
days from the date the petition is filed, shall submit the question at that
general, State or municipal election. If it appears upon the canvass of
the election by the corporate authorities that a majority of electors
voting upon the question voted in favor of the question, the ordinance
shall be effective, but if a majority of the electors voting upon the
question are not in favor of the question, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide that the obligations
shall contain a recital that they are issued under this Law.
The recital shall be conclusive evidence of their validity and of the
regularity of their issuance.
In the event the municipality authorizes issuance of obligations under
this Section secured by the full faith and credit of the municipality,
the ordinance authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property within the
municipality sufficient to pay the principal of and interest on the obligations
as they mature. The levy may be in addition to and exclusive of the
maximum of all other taxes authorized to be levied by the municipality.
The levy, however, shall be abated to the extent that moneys from other
sources are available for payment of the obligations and the municipality
certifies the amount of those moneys available to the county clerk.
A certified copy of the ordinance shall be filed with the county clerk
of each county in which any portion of the municipality is situated, and
shall constitute the authority for the extension and collection of the taxes
to be deposited in the special tax allocation fund.
A municipality may also issue its obligations to refund, in whole or in
part, obligations previously issued by the municipality under the authority
of this Law, whether at or before maturity, except that the
last maturity of the refunding obligations shall not be expressed to mature
later than
December 31 of the year in which the payment to the municipal
treasurer as provided in subsection (b) of Section 11-74.6-35 is to
be made with respect to ad valorem taxes levied in the twenty-third
calendar year after the year in which the ordinance approving the
redevelopment project area is adopted.
If a municipality issues obligations under home rule powers or
other legislative authority, the proceeds of which are pledged to pay
for redevelopment project costs, the municipality may, if it has followed
the procedures in conformance with this Law, retire those obligations
from funds in the special tax allocation fund in amounts and in the same manner
as if those obligations had been issued under the provisions of this Law.
No obligations issued under this Law shall be regarded as indebtedness of
the municipality issuing the obligations or any other taxing district for
the purpose of any limitation imposed by law.
(Source: P.A. 91-474, eff. 11-1-99.)
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65 ILCS 5/11-74.6-35
(65 ILCS 5/11-74.6-35)
Sec. 11-74.6-35. Ordinance for tax increment allocation financing.
(a) A municipality, at the time a redevelopment project area
is designated, may adopt tax increment allocation financing by passing an
ordinance providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property within the redevelopment project
area by taxing districts and tax rates determined in the manner provided
in subsection (b) of Section 11-74.6-40 each year after the effective
date of the ordinance until redevelopment project costs and all municipal
obligations financing redevelopment project costs incurred under this Act
have been paid shall be divided as follows:
(1) That portion of the taxes levied upon each | | taxable lot, block, tract, or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value or the updated initial equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.
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(2) That portion, if any, of those taxes that is
| | attributable to the increase in the current equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value or the updated initial equalized assessed value of each property in the project area, shall be allocated to and when collected shall be paid by the county collector to the municipal treasurer who shall deposit that portion of those taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment of those costs and obligations. In any county with a population of 3,000,000 or more that has adopted a procedure for collecting taxes that provides for one or more of the installments of the taxes to be billed and collected on an estimated basis, the municipal treasurer shall be paid for deposit in the special tax allocation fund of the municipality, from the taxes collected from estimated bills issued for property in the redevelopment project area, the difference between the amount actually collected from each taxable lot, block, tract, or parcel of real property within the redevelopment project area and an amount determined by multiplying the rate at which taxes were last extended against the taxable lot, block, tract, or parcel of real property in the manner provided in subsection (b) of Section 11-74.6-40 by the initial equalized assessed value or the updated initial equalized assessed value of the property divided by the number of installments in which real estate taxes are billed and collected within the county, provided that the payments on or before December 31, 1999 to a municipal treasurer shall be made only if each of the following conditions are met:
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(A) The total equalized assessed value of the
| | redevelopment project area as last determined was not less than 175% of the total initial equalized assessed value.
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(B) Not more than 50% of the total equalized
| | assessed value of the redevelopment project area as last determined is attributable to a piece of property assigned a single real estate index number.
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(C) The municipal clerk has certified to the
| | county clerk that the municipality has issued its obligations to which there has been pledged the incremental property taxes of the redevelopment project area or taxes levied and collected on any or all property in the municipality or the full faith and credit of the municipality to pay or secure payment for all or a portion of the redevelopment project costs. The certification shall be filed annually no later than September 1 for the estimated taxes to be distributed in the following year.
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The conditions of paragraphs (A) through (C) do not apply after December
31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has adopted an
estimated billing procedure for collecting taxes.
If a county that has adopted the estimated billing
procedure makes an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that overpayment.
The county shall send the municipal treasurer a notice of liability for the
overpayment on or before the mailing date of the next real estate tax bill
within the county. The refund shall be limited to the amount of the
overpayment.
(b) It is the intent of this Act that a municipality's own ad valorem
tax arising from levies on taxable real property be included in the
determination of incremental revenue in the manner provided in paragraph
(b) of Section 11-74.6-40.
(c) If a municipality has adopted tax increment allocation financing for a
redevelopment project area by
ordinance and the county clerk thereafter certifies the total initial
equalized assessed value or the total updated initial equalized
assessed value of the taxable real property within such redevelopment
project area in the manner provided in paragraph (a) or (b) of Section
11-74.6-40, each year after the date of the certification of the total
initial equalized assessed value or the total updated initial
equalized assessed value until redevelopment project costs and all
municipal obligations financing redevelopment project costs have been paid,
the ad valorem taxes, if any, arising from the levies upon the taxable real
property in the redevelopment project area by taxing districts and tax
rates determined in the manner provided in paragraph (b) of Section
11-74.6-40 shall be divided as follows:
(1) That portion of the taxes levied upon each
| | taxable lot, block, tract or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value, or the updated initial equalized assessed value of each parcel if the updated initial equalized assessed value of that parcel has been certified in accordance with Section 11-74.6-40, whichever has been most recently certified, of each taxable lot, block, tract, or parcel of real property existing at the time tax increment allocation financing was adopted in the redevelopment project area, shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.
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(2) That portion, if any, of those taxes that is
| | attributable to the increase in the current equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value of each property existing at the time tax increment allocation financing was adopted in the redevelopment project area, or the updated initial equalized assessed value of each parcel if the updated initial equalized assessed value of that parcel has been certified in accordance with Section 11-74.6-40, shall be allocated to and when collected shall be paid to the municipal treasurer, who shall deposit those taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof.
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(d) The municipality may pledge in the ordinance the funds in and to be
deposited in the special tax allocation fund for the payment of
redevelopment project costs and obligations. No part of the current
equalized assessed value of each property in the redevelopment project
area attributable to any increase above the total initial equalized
assessed value
or the total initial updated equalized assessed value of the property,
shall be used in calculating the general State aid formula, provided
for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code, until all redevelopment project
costs have been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of financing
redevelopment project costs, that municipality may provide by ordinance for the
appointment of a trustee, which may be any trust company within the State,
and for the establishment of any funds or accounts to be maintained by
that trustee, as the municipality deems necessary to provide for the
security and payment of the bonds. If the municipality provides for
the appointment of a trustee, the trustee shall be considered the assignee
of any payments assigned by the municipality under that ordinance
and this Section. Any amounts paid to the trustee as
assignee shall be deposited into the funds or accounts established
under the trust agreement, and shall be held by the trustee in trust for the
benefit of the holders of the bonds. The holders of those bonds shall have a
lien on and a security interest in those funds or accounts while the
bonds remain outstanding and unpaid. Upon retirement of the bonds,
the trustee shall pay over any excess amounts held to the municipality for
deposit in the special tax allocation fund.
When the redevelopment projects costs, including without limitation all
municipal obligations financing redevelopment project costs incurred under
this Law, have been paid, all surplus funds then remaining in the
special tax allocation fund shall be distributed by being paid by the
municipal treasurer to the municipality and the county collector; first to
the municipality in direct proportion to the tax incremental revenue
received from the municipality, but not to exceed the total incremental
revenue received from the municipality, minus any annual surplus
distribution of incremental revenue previously made. Any remaining funds
shall be paid to the county collector who shall immediately distribute that
payment to the taxing districts in the redevelopment project area in the
same manner and proportion as the most recent distribution by the county
collector to the affected districts of real property taxes from real
property situated in the redevelopment project area.
Upon the payment of all redevelopment project costs, retirement of
obligations and the distribution of any excess moneys under this
Section, the municipality shall adopt an ordinance dissolving the special
tax allocation fund for the redevelopment project area and terminating the
designation of the redevelopment project area as a redevelopment project
area. Thereafter the tax levies of taxing districts shall be extended,
collected and distributed in the same manner applicable
before the adoption of tax increment allocation financing.
Municipality shall notify affected taxing districts prior to November if the
redevelopment project area is to be terminated by December 31 of that same
year.
Nothing in this Section shall be construed as relieving property in a
redevelopment project area from being assessed as provided in the Property
Tax Code or as relieving owners of that property
from paying a uniform rate of taxes, as required by Section 4 of Article IX
of the Illinois Constitution.
(Source: P.A. 102-558, eff. 8-20-21.)
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65 ILCS 5/11-74.6-37
(65 ILCS 5/11-74.6-37)
Sec. 11-74.6-37.
Cancellation and repayment of tax benefits.
Any tax
abatement or
benefit granted by a taxing district under an agreement entered into under this
Act to a private individual or entity for the purpose of originating, locating,
maintaining, rehabilitating, or expanding a business facility shall be
cancelled if the individual or entity relocated its entire facility in
violation of the agreement, and the amount of the abatements or tax benefits
granted before the cancellation shall be repaid to the taxing district within
30 days, as provided in Section 18-183 of the Property Tax Code.
(Source: P.A. 89-591, eff. 8-1-96.)
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