Public Act 90-0258 of the 90th General Assembly
Public Act 90-0258
HB0524 Enrolled LRB9001031DNcc
AN ACT concerning districts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Enterprise Zone Act is amended
by changing Section 5.4 and adding Section 5.4.1 as follows:
(20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
Sec. 5.4. Amendment and Decertification of Enterprise
Zones. (a) The terms of a certified enterprise zone
designating ordinance may be amended to
(i) alter the boundaries of the Enterprise Zone, or
(ii) expand, limit or repeal tax incentives or benefits
provided in the ordinance, or
(iii) alter the termination date of the zone, or
(iv) make technical corrections in the enterprise zone
designating ordinance; but such amendment shall not be
effective unless the Department issues an amended certificate
for the Enterprise Zone, approving the amended designating
ordinance. Upon the adoption of any ordinance amending or
repealing the terms of a certified enterprise zone
designating ordinance, the municipality or county shall
promptly file with the Department an application for approval
thereof, containing substantially the same information as
required for an application under Section 5.1 insofar as
material to the proposed changes. The municipality or county
must hold a public hearing on the proposed changes as
specified in Section 5 and, if the amendment is to effectuate
the limitation of tax abatements under Section 5.4.1, then
the public notice of the hearing shall state that property
that is in both the enterprise zone and a redevelopment
project area may not receive tax abatements unless within 60
days after the adoption of the amendment to the designating
ordinance the municipality has determined that eligibility
for tax abatements has been established, or
(v) include an area within another municipality or
county as part of the designated enterprise zone provided the
requirements of Section 4 are complied with, or.
(vi) effectuate the limitation of tax abatements under
Section 5.4.1.
(b) The Department shall approve or disapprove a
proposed amendment to a certified enterprise zone within 90
days of its receipt of the application from the municipality
or county. The Department may not approve changes in a Zone
which are not in conformity with this Act, as now or
hereafter amended, or with other applicable laws. If the
Department issues an amended certificate for an Enterprise
Zone, the amended certificate, together with the amended zone
designating ordinance, shall be filed, recorded and
transmitted as provided in Section 5.3.
(c) An Enterprise Zone may be decertified by joint
action of the Department and the designating county or
municipality in accordance with this Section. The designating
county or municipality shall conduct at least one public
hearing within the zone prior to its adoption of an ordinance
of de-designation. The mayor of the designating municipality
or the chairman of the county board of the designating county
shall execute a joint decertification agreement with the
Department. A decertification of an Enterprise Zone shall not
become effective until at least 6 months after the execution
of the decertification agreement, which shall be filed in the
office of the Secretary of State.
(d) An Enterprise Zone may be decertified for cause by
the Department in accordance with this Section. Prior to
decertification: (1) the Department shall notify the chief
elected official of the designating county or municipality in
writing of the specific deficiencies which provide cause for
decertification; (2) the Department shall place the
designating county or municipality on probationary status for
at least 6 months during which time corrective action may be
achieved in the enterprise zone by the designating county or
municipality; and, (3) the Department shall conduct at least
one public hearing within the zone. If such corrective action
is not achieved during the probationary period, the
Department shall issue an amended certificate signed by the
Director of the Department decertifying the enterprise zone,
which certificate shall be filed in the office of the
Secretary of State. A certified copy of the amended
enterprise zone certificate, or a duplicate original thereof,
shall be recorded in the office of recorder of the county in
which the enterprise zone lies, and shall be provided to the
chief elected official of the designating county or
municipality. Decertification of an Enterprise Zone shall not
become effective until 60 days after the date of filing.
(e) In the event of a decertification, or an amendment
reducing the length of the term or the area of an Enterprise
Zone or the adoption of an ordinance reducing or eliminating
tax benefits in an Enterprise Zone, all benefits previously
extended within the Zone pursuant to this Act or pursuant to
any other Illinois law providing benefits specifically to or
within Enterprise Zones shall remain in effect for the
original stated term of the Enterprise Zone, with respect to
business enterprises within the Zone on the effective date of
such decertification or amendment, and with respect to
individuals participating in urban homestead programs under
this Act.
(f) Except as otherwise provided in Section 5.4.1, with
respect to business enterprises (or expansions thereof) which
are proposed or under development within a Zone at the time
of a decertification or an amendment reducing the length of
the term of the Zone, or excluding from the Zone area the
site of the proposed enterprise, or an ordinance reducing or
eliminating tax benefits in a Zone, such business enterprise
shall be entitled to the benefits previously applicable
within the Zone for the original stated term of the Zone, if
the business enterprise establishes:
(i) that the proposed business enterprise or expansion
has been committed to be located within the Zone;
(ii) that substantial and binding financial obligations
have been made towards the development of such enterprise;
and
(iii) that such commitments have been made in reasonable
reliance on the benefits and programs which were to have been
applicable to the enterprise by reason of the Zone, including
in the case of a reduction in term of a zone, the original
length of the term.
In declaratory judgment actions under this paragraph, the
Department and the designating municipality or county shall
be necessary parties defendant.
(Source: P.A. 86-820.)
(20 ILCS 655/5.4.1 new)
Sec. 5.4.1. Adoption of Tax Increment Financing.
(a) If (i) a redevelopment project area is, will be, or
has been created by a municipality under Division 74.4 of
the Illinois Municipal Code, (ii) the redevelopment project
area contains property that is located in an enterprise zone,
(iii) the municipality adopts an amendment to the enterprise
zone designating ordinance pursuant to Section 5.4 of this
Act specifically concerning the abatement of taxes on
property located within a redevelopment project area created
pursuant to Division 74.4 of the Illinois Municipal Code, and
(iv) the Department certifies the ordinance amendment, then
the property that is located in both the enterprise zone and
the redevelopment project area shall not be eligible for the
abatement of taxes under Section 18-170 of the Property Tax
Code.
No business enterprise or expansion or individual,
however, that has constructed a new improvement or renovated
or rehabilitated an existing improvement and has received an
abatement on the improvement under Section 18-170 of the
Property Tax Code shall be denied any benefit previously
extended within the zone pursuant to this Act or pursuant to
any other Illinois law providing benefits specifically to or
within enterprise zones. Moreover, if the business enterprise
or individual presents evidence to the municipality within 30
days after the adoption by the municipality of an amendment
to the designating ordinance the sufficiency of which shall
be determined by findings of the corporate authorities made
within 30 days of the receipt of such evidence by the
municipality, that before the date of the notice of the
public hearing provided by the municipality regarding the
amendment to the designating ordinance (i) the business
enterprise or expansion or individual was committed to
locate within the enterprise zone, (ii) substantial and
binding financial obligations were made towards the
development of the enterprise, and (iii) those commitments
were made in reasonable reliance on the benefits and programs
that were applicable to the enterprise or individual by
reason of the enterprise zone, then the enterprise or
expansion or individual shall not be denied any benefit
previously extended within the zone pursuant to this Act or
pursuant to any other Illinois law providing benefits
specifically to or within enterprise zones.
(b) This Section applies to all property located within
both a redevelopment project area adopted under Division
74.4 of the Illinois Municipal Code and an enterprise zone
even if the redevelopment project area or the enterprise
zone was adopted before the effective date of this
amendatory Act of 1997.
(c) After July 1, 1997, if (i) a redevelopment project
area is created by a municipality under Division 74.4 of the
Illinois Municipal Code and (ii) the redevelopment project
area contains property that is located in an enterprise zone,
the municipality must adopt an amendment to the certified
enterprise zone designating ordinance under Section 5.4 that
property that is located in both the enterprise zone and the
redevelopment project area shall not be eligible for any
abatement of taxes under Section 18-170 of the Property Tax
Code for new improvements or the renovation or rehabilitation
of existing improvements.
(d) In declaratory judgment actions under this Section,
the Department and the designating municipality shall be
necessary parties defendant.
Section 10. The Property Tax Code is amended by changing
Section 18-170 as follows:
(35 ILCS 200/18-170)
Sec. 18-170. Enterprise zone abatement. In addition to
the authority to abate taxes under Section 18-165, any taxing
district, upon a majority vote of its governing authority,
may order the county clerk to abate any portion of its taxes
on property, or any class thereof, located within an
Enterprise Zone created under the Illinois Enterprise Zone
Act, and upon which either new improvements have been
constructed or existing improvements have been renovated or
rehabilitated after December 7, 1982. However, any abatement
of taxes on any parcel shall not exceed the amount
attributable to the construction of the improvements and the
renovation or rehabilitation of existing improvements on the
parcel. In the case of property within a redevelopment area
created under the Tax Increment Allocation Redevelopment Act,
the abatement shall not apply unless a business enterprise or
individual with regard to new improvements or renovated or
rehabilitated improvements has met the requirements of
Section 5.4.1 of the Illinois Enterprise Zone Act exceed the
amount of taxes allocable to the taxing district. If an
abatement is discontinued under this Section, a municipality
shall notify the county clerk and the board of review or
board of appeals of the change in writing not later than July
1 of the assessment year to be first affected by the change.
However, within a county economic development project area
created under the County Economic Development Project Area
Property Tax Allocation Act, any municipality or county which
has adopted tax increment allocation financing under the Tax
Increment Allocation Redevelopment Act or the County Economic
Development Project Area Tax Increment Allocation Act may
abate any portion of its taxes as provided in this Section.
Any other taxing district within the county economic
development project area may order any portion or all of its
taxes abated as provided above if the county or municipality
which created the tax increment district has agreed, in
writing, to the abatement.
A copy of an abatement order adopted under this Section
shall be delivered to the county clerk and to the board of
review or board of appeals not later than July 1 of the
assessment year to be first affected by the order. If it is
delivered on or after that date, it will first affect the
taxes extended on the assessment of the following year. The
board of review or board of appeals shall, each time the
assessment books are delivered to the county clerk, also
deliver a list of parcels affected by an abatement and the
assessed value attributable to new improvements or to the
renovation or rehabilitation of existing improvements.
(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-671, eff.
8-14-96.)
Section 15. The Illinois Municipal Code is amended by
changing Sections 11-74.4-4, 11-74.4-8, 11-74.4-8a, and
11-74.6-15 and adding Section 11-74.4-8c as follows:
(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
Sec. 11-74.4-4. Municipal powers and duties;
redevelopment project areas. A municipality may:
(a) By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the completion of the
hearing specified in Section 11-74.4-5 approve redevelopment
plans and redevelopment projects, and designate redevelopment
project areas pursuant to notice and hearing required by this
Act. No redevelopment project area shall be designated
unless a plan and project are approved prior to the
designation of such area and such area shall include only
those contiguous parcels of real property and improvements
thereon substantially benefited by the proposed redevelopment
project improvements.
(b) Make and enter into all contracts necessary or
incidental to the implementation and furtherance of its
redevelopment plan and project.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real
or personal, or rights or interests therein, and grant or
acquire licenses, easements and options with respect thereto,
all in the manner and at such price the municipality
determines is reasonably necessary to achieve the objectives
of the redevelopment plan and project. No conveyance, lease,
mortgage, disposition of land or other property, or agreement
relating to the development of the property shall be made
except upon the adoption of an ordinance by the corporate
authorities of the municipality. Furthermore, no conveyance,
lease, mortgage, or other disposition of land or agreement
relating to the development of property shall be made without
making public disclosure of the terms of the disposition and
all bids and proposals made in response to the municipality's
request. The procedures for obtaining such bids and
proposals shall provide reasonable opportunity for any person
to submit alternative proposals or bids.
(d) Within a redevelopment project area, clear any area
by demolition or removal of any existing buildings and
structures.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building.
(f) Install, repair, construct, reconstruct or relocate
streets, utilities and site improvements essential to the
preparation of the redevelopment area for use in accordance
with a redevelopment plan.
(g) Within a redevelopment project area, fix, charge and
collect fees, rents and charges for the use of any building
or property owned or leased by it or any part thereof, or
facility therein.
(h) Accept grants, guarantees and donations of property,
labor, or other things of value from a public or private
source for use within a project redevelopment area.
(i) Acquire and construct public facilities within a
redevelopment project area.
(j) Incur project redevelopment costs.
(k) Create a commission of not less than 5 or more than
15 persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the
governing board of the municipality. Members of a commission
appointed after the effective date of this amendatory Act of
1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
years, respectively, in such numbers as to provide that the
terms of not more than 1/3 of all such members shall expire
in any one year. Their successors shall be appointed for a
term of 5 years. The commission, subject to approval of the
corporate authorities may exercise the powers enumerated in
this Section. The commission shall also have the power to
hold the public hearings required by this division and make
recommendations to the corporate authorities concerning the
adoption of redevelopment plans, redevelopment projects and
designation of redevelopment project areas.
(l) Make payment in lieu of taxes or a portion thereof
to taxing districts. If payments in lieu of taxes or a
portion thereof are made to taxing districts, those payments
shall be made to all districts within a project redevelopment
area on a basis which is proportional to the current
collections of revenue which each taxing district receives
from real property in the redevelopment project area.
(m) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
(n) If any member of the corporate authority, a member
of a commission established pursuant to Section 11-74.4-4(k)
of this Act, or an employee or consultant of the municipality
involved in the planning and preparation of a redevelopment
plan, or project for a redevelopment project area or proposed
redevelopment project area, as defined in Sections
11-74.4-3(i) through (k) of this Act, owns or controls an
interest, direct or indirect, in any property included in any
redevelopment area, or proposed redevelopment area, he or she
shall disclose the same in writing to the clerk of the
municipality, and shall also so disclose the dates and terms
and conditions of any disposition of any such interest, which
disclosures shall be acknowledged by the corporate
authorities and entered upon the minute books of the
corporate authorities. If an individual holds such an
interest then that individual shall refrain from any further
official involvement in regard to such redevelopment plan,
project or area, from voting on any matter pertaining to such
redevelopment plan, project or area, or communicating with
other members concerning corporate authorities, commission or
employees concerning any matter pertaining to said
redevelopment plan, project or area. Furthermore, no such
member or employee shall acquire of any interest direct, or
indirect, in any property in a redevelopment area or proposed
redevelopment area after either (a) such individual obtains
knowledge of such plan, project or area or (b) first public
notice of such plan, project or area pursuant to Section
11-74.4-6 of this Division, whichever occurs first.
(o) Create a Tax Increment Economic Development Advisory
Committee to be appointed by the Mayor or President of the
municipality with the consent of the majority of the
governing board of the municipality, the members of which
Committee shall be appointed for initial terms of 1, 2, 3, 4
and 5 years respectively, in such numbers as to provide that
the terms of not more than 1/3 of all such members shall
expire in any one year. Their successors shall be appointed
for a term of 5 years. The Committee shall have none of the
powers enumerated in this Section. The Committee shall serve
in an advisory capacity only. The Committee may advise the
governing Board of the municipality and other municipal
officials regarding development issues and opportunities
within the redevelopment project area or the area within the
State Sales Tax Boundary. The Committee may also promote and
publicize development opportunities in the redevelopment
project area or the area within the State Sales Tax Boundary.
(p) Municipalities may jointly undertake and perform
redevelopment plans and projects and utilize the provisions
of the Act wherever they have contiguous redevelopment
project areas or they determine to adopt tax increment
financing with respect to a redevelopment project area which
includes contiguous real property within the boundaries of
the municipalities, and in doing so, they may, by agreement
between municipalities, issue obligations, separately or
jointly, and expend revenues received under the Act for
eligible expenses anywhere within contiguous redevelopment
project areas or as otherwise permitted in the Act.
(q) Utilize revenues, other than State sales tax
increment revenues, received under this Act from one
redevelopment project area for eligible costs in another
redevelopment project area that is either contiguous to, or
is separated only by a public right of way from, the
redevelopment project area from which the revenues are
received. Utilize tax increment revenues for eligible costs
that are received from a redevelopment project area created
under the Industrial Jobs Recovery Law that is either
contiguous to, or is separated only by a public right of way
from, the redevelopment project area created under this Act
which initially receives these revenues. Utilize revenues,
other than State sales tax increment revenues, by
transferring or loaning such revenues to a redevelopment
project area created under the Industrial Jobs Recovery Law
that is either contiguous to, or separated only by a public
right of way from the redevelopment project area that
initially produced and received those revenues.
(r) If no redevelopment project has been initiated in a
redevelopment project area within 7 years after the area was
designated by ordinance under subsection (a), the
municipality shall adopt an ordinance repealing the area's
designation as a redevelopment project area; provided,
however, that if an area received its designation more than 3
years before the effective date of this amendatory Act of
1994 and no redevelopment project has been initiated within 4
years after the effective date of this amendatory Act of
1994, the municipality shall adopt an ordinance repealing its
designation as a redevelopment project area. Initiation of a
redevelopment project shall be evidenced by either a signed
redevelopment agreement or expenditures on eligible
redevelopment project costs associated with a redevelopment
project.
(Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. A municipality may not adopt tax
increment financing in a redevelopment project area after the
effective date of this amendatory Act of 1997 that will
encompass an area that is currently included in an enterprise
zone created under the Illinois Enterprise Zone Act unless
that municipality, pursuant to Section 5.4 of the Illinois
Enterprise Zone Act, amends the enterprise zone designating
ordinance to limit the eligibility for tax abatements as
provided in Section 5.4.1 of the Illinois Enterprise Zone
Act. 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 in such redevelopment project area by taxing
districts and tax rates determined in the manner provided in
paragraph (c) of Section 11-74.4-9 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid
shall be divided as follows:
(a) That portion of taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such 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 in the absence
of the adoption of tax increment allocation financing.
(b) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation 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 in the project area shall be allocated to and when
collected shall be paid to the municipal treasurer who shall
deposit said 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. 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,
track, or parcel of real property in the manner provided in
subsection (c) of Section 11-74.4-9 by the 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 each of the following
conditions are met:
(1) 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.
(2) 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.
(3) 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;
however, for the year 1992 the certification shall be
made at any time on or before March 31, 1992.
(4) The municipality has not requested that the
total initial equalized assessed value of real property
be adjusted as provided in subsection (b) of Section
11-74.4-9.
It is the intent of this Division that after the
effective date of this amendatory Act of 1988 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 (c)
of Section 11-74.4-9. If the municipality does not extend
such a tax, it shall annually deposit in the municipality's
Special Tax Increment Fund an amount equal to 10% of the
total contributions to the fund from all other taxing
districts in that year. The annual 10% deposit required by
this paragraph shall be limited to the actual amount of
municipally produced incremental tax revenues available to
the municipality from taxpayers located in the redevelopment
project area in that year if: (a) the plan for the area
restricts the use of the property primarily to industrial
purposes, (b) the municipality establishing the redevelopment
project area is a home-rule community with a 1990 population
of between 25,000 and 50,000, (c) the municipality is wholly
located within a county with a 1990 population of over
750,000 and (d) the redevelopment project area was
established by the municipality prior to June 1, 1990. This
payment shall be in lieu of a contribution of ad valorem
taxes on real property. If no such payment is made, any
redevelopment project area of the municipality shall be
dissolved.
If a municipality has adopted tax increment allocation
financing by ordinance and the County Clerk thereafter
certifies the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area in the manner provided in
paragraph (b) of Section 11-74.4-9, each year after the date
of the certification of the total initial equalized assessed
value as adjusted 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 such redevelopment
project area by taxing districts and tax rates determined in
the manner provided in paragraph (c) of Section 11-74.4-9
shall be divided as follows:
(1) That portion of the taxes levied upon each
taxable lot, block, tract or parcel of real property
which is attributable to the lower of the current
equalized assessed value or "current equalized assessed
value as adjusted" or the initial equalized assessed
value of each such taxable lot, block, tract, or parcel
of real property existing at the time tax increment
financing was adopted, minus the total current homestead
exemptions provided by Sections 15-170 and 15-175 of the
Property Tax Code 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 in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation 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
financing was adopted, minus the total current homestead
exemptions pertaining to each piece of property provided
by Sections 15-170 and 15-175 of the Property Tax Code in
the redevelopment project area, shall be allocated to and
when collected shall be paid to the municipal Treasurer,
who shall deposit said 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.
The municipality may pledge in the ordinance the funds in
and to be deposited in the special tax allocation fund for
the payment of such costs and obligations. No part of the
current equalized assessed valuation of each property in the
redevelopment project area attributable to any increase above
the total initial equalized assessed value, or the total
initial equalized assessed value as adjusted, of such
properties shall be used in calculating the general State
school aid formula, provided for in Section 18-8 of the
School Code, until such time as 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, such 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 such funds or accounts to be maintained by
such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If such
municipality provides for the appointment of a trustee, such
trustee shall be considered the assignee of any payments
assigned by the municipality pursuant to such ordinance and
this Section. Any amounts paid to such trustee as assignee
shall be deposited in the funds or accounts established
pursuant to such trust agreement, and shall be held by such
trustee in trust for the benefit of the holders of the bonds,
and such holders shall have a lien on and a security interest
in such funds or accounts so long as 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 such redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Division, 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 Department of Revenue, the
municipality and the county collector; first to the
Department of Revenue and the municipality in direct
proportion to the tax incremental revenue received from the
State and the municipality, but not to exceed the total
incremental revenue received from the State or the
municipality less any annual surplus distribution of
incremental revenue previously made; with any remaining funds
to be paid to the County Collector who shall immediately
thereafter pay said funds 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 in the redevelopment project area.
Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
monies pursuant to 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. If a municipality extends
estimated dates of completion of a redevelopment project and
retirement of obligations to finance a redevelopment project,
as allowed by this amendatory Act of 1993, that extension
shall not extend the property tax increment allocation
financing authorized by this Section. Thereafter the rates
of the taxing districts shall be extended and taxes levied,
collected and distributed in the manner applicable in the
absence of the adoption of tax increment allocation
financing.
Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes,
as required by Section 4 of Article 9 of the Illinois
Constitution.
(Source: P.A. 87-813; 87-872; 87-1272; 88-670, eff. 12-2-94.)
(65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
which has adopted tax increment allocation financing prior to
January 1, 1987, may by ordinance (1) authorize the
Department of Revenue, subject to appropriation, to annually
certify and cause to be paid from the Illinois Tax Increment
Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Sales Tax Increment and (2) authorize the Department of
Revenue to annually notify the municipality of the amount of
the Municipal Sales Tax Increment which shall be deposited by
the municipality in the municipality's special tax allocation
fund. Provided that for purposes of this Section no
amendments adding additional area to the redevelopment
project area which has been certified as the State Sales Tax
Boundary shall be taken into account if such amendments are
adopted by the municipality after January 1, 1987. If an
amendment is adopted which decreases the area of a State
Sales Tax Boundary, the municipality shall update the list
required by subsection (3)(a) of this Section. The Retailers'
Occupation Tax liability, Use Tax liability, Service
Occupation Tax liability and Service Use Tax liability for
retailers and servicemen located within the disconnected area
shall be excluded from the base from which tax increments are
calculated and the revenue from any such retailer or
serviceman shall not be included in calculating incremental
revenue payable to the municipality. A municipality adopting
an ordinance under this subsection (1) of this Section for a
redevelopment project area which is certified as a State
Sales Tax Boundary shall not be entitled to payments of State
taxes authorized under subsection (2) of this Section for the
same redevelopment project area. Nothing herein shall be
construed to prevent a municipality from receiving payment of
State taxes authorized under subsection (2) of this Section
for a separate redevelopment project area that does not
overlap in any way with the State Sales Tax Boundary
receiving payments of State taxes pursuant to subsection (1)
of this Section.
A certified copy of such ordinance shall be submitted by
the municipality to the Department of Commerce and Community
Affairs and the Department of Revenue not later than 30 days
after the effective date of the ordinance. Upon submission
of the ordinances, and the information required pursuant to
subsection 3 of this Section, the Department of Revenue shall
promptly determine the amount of such taxes paid under the
Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
Act, the Service Occupation Tax Act, the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen on transactions at places
located in the redevelopment project area during the base
year, and shall certify all the foregoing "initial sales tax
amounts" to the municipality within 60 days of submission of
the list required of subsection (3)(a) of this Section.
If a retailer or serviceman with a place of business
located within a redevelopment project area also has one or
more other places of business within the municipality but
outside the redevelopment project area, the retailer or
serviceman shall, upon request of the Department of Revenue,
certify to the Department of Revenue the amount of taxes paid
pursuant to the Retailers' Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act, the Service Occupation Tax Act
and the Municipal Service Occupation Tax Act at each place of
business which is located within the redevelopment project
area in the manner and for the periods of time requested by
the Department of Revenue.
When the municipality determines that a portion of an
increase in the aggregate amount of taxes paid by retailers
and servicemen under the Retailers' Occupation Tax Act, Use
Tax Act, Service Use Tax Act, or the Service Occupation Tax
Act is the result of a retailer or serviceman initiating
retail or service operations in the redevelopment project
area by such retailer or serviceman with a resulting
termination of retail or service operations by such retailer
or serviceman at another location in Illinois in the standard
metropolitan statistical area of such municipality, the
Department of Revenue shall be notified that the retailers
occupation tax liability, use tax liability, service
occupation tax liability, or service use tax liability from
such retailer's or serviceman's terminated operation shall be
included in the base Initial Sales Tax Amounts from which the
State Sales Tax Increment is calculated for purposes of State
payments to the affected municipality; provided, however, for
purposes of this paragraph "termination" shall mean a closing
of a retail or service operation which is directly related to
the opening of the same retail or service operation in a
redevelopment project area which is included within a State
Sales Tax Boundary, but it shall not include retail or
service operations closed for reasons beyond the control of
the retailer or serviceman, as determined by the Department.
If the municipality makes the determination referred to in
the prior paragraph and notifies the Department and if the
relocation is from a location within the municipality, the
Department, at the request of the municipality, shall adjust
the certified aggregate amount of taxes that constitute the
Municipal Sales Tax Increment paid by retailers and
servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year
using the same procedures as are employed to make the
adjustment referred to in the prior paragraph. The adjusted
Municipal Sales Tax Increment calculated by the Department
shall be sufficient to satisfy the requirements of subsection
(1) of this Section.
When a municipality which has adopted tax increment
allocation financing in 1986 determines that a portion of the
aggregate amount of taxes paid by retailers and servicemen
under the Retailers Occupation Tax Act, Use Tax Act, Service
Use Tax Act, or Service Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act, includes revenue of a retailer or
serviceman which terminated retailer or service operations in
1986, prior to the adoption of tax increment allocation
financing, the Department of Revenue shall be notified by
such municipality that the retailers' occupation tax
liability, use tax liability, service occupation tax
liability or service use tax liability, from such retailer's
or serviceman's terminated operations shall be excluded from
the Initial Sales Tax Amounts for such taxes. The revenue
from any such retailer or serviceman which is excluded from
the base year under this paragraph, shall not be included in
calculating incremental revenues if such retailer or
serviceman reestablishes such business in the redevelopment
project area.
For State fiscal year 1992, the Department of Revenue
shall budget, and the Illinois General Assembly shall
appropriate from the Illinois Tax Increment Fund in the State
treasury, an amount not to exceed $18,000,000 to pay to each
eligible municipality the Net State Sales Tax Increment to
which such municipality is entitled.
Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Sales Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
Beginning in October, 1993, and each January, April, July
and October thereafter, the Department of Revenue shall
certify to the Treasurer and the Comptroller the amounts
payable quarter annually during the fiscal year to each
municipality under this Section. The Comptroller shall
promptly then draw warrants, ordering the State Treasurer to
pay such amounts from the Illinois Tax Increment Fund in the
State treasury.
The Department of Revenue shall utilize the same periods
established for determining State Sales Tax Increment to
determine the Municipal Sales Tax Increment for the area
within a State Sales Tax Boundary and certify such amounts to
such municipal treasurer who shall transfer such amounts to
the special tax allocation fund.
The provisions of this subsection (1) do not apply to
additional municipal retailers' occupation or service
occupation taxes imposed by municipalities using their home
rule powers or imposed pursuant to Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
receive from the State any share of the Illinois Tax
Increment Fund unless such municipality deposits all its
Municipal Sales Tax Increment and the local incremental real
property tax revenues, as provided herein, into the
appropriate special tax allocation fund. A municipality
located within an economic development project area created
under the County Economic Development Project Area Property
Tax Allocation Act which has abated any portion of its
property taxes which otherwise would have been deposited in
its special tax allocation fund shall not receive from the
State the Net Sales Tax Increment.
(2) A municipality which has adopted tax increment
allocation financing with regard to an industrial park or
industrial park conservation area, prior to January 1, 1988,
may by ordinance authorize the Department of Revenue to
annually certify and pay from the Illinois Tax Increment Fund
to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Utility Tax Increment. Provided that for purposes of this
Section no amendments adding additional area to the
redevelopment project area shall be taken into account if
such amendments are adopted by the municipality after January
1, 1988. Municipalities adopting an ordinance under this
subsection (2) of this Section for a redevelopment project
area shall not be entitled to payment of State taxes
authorized under subsection (1) of this Section for the same
redevelopment project area which is within a State Sales Tax
Boundary. Nothing herein shall be construed to prevent a
municipality from receiving payment of State taxes authorized
under subsection (1) of this Section for a separate
redevelopment project area within a State Sales Tax Boundary
that does not overlap in any way with the redevelopment
project area receiving payments of State taxes pursuant to
subsection (2) of this Section.
A certified copy of such ordinance shall be submitted to
the Department of Commerce and Community Affairs and the
Department of Revenue not later than 30 days after the
effective date of the ordinance.
When a municipality determines that a portion of an
increase in the aggregate amount of taxes paid by industrial
or commercial facilities under the Public Utilities Act, is
the result of an industrial or commercial facility initiating
operations in the redevelopment project area with a resulting
termination of such operations by such industrial or
commercial facility at another location in Illinois, the
Department of Revenue shall be notified by such municipality
that such industrial or commercial facility's liability under
the Public Utility Tax Act shall be included in the base from
which tax increments are calculated for purposes of State
payments to the affected municipality.
After receipt of the calculations by the public utility
as required by subsection (4) of this Section, the Department
of Revenue shall annually budget and the Illinois General
Assembly shall annually appropriate from the General Revenue
Fund through State Fiscal Year 1989, and thereafter from the
Illinois Tax Increment Fund, an amount sufficient to pay to
each eligible municipality the amount of incremental revenue
attributable to State electric and gas taxes as reflected by
the charges imposed on persons in the project area to which
such municipality is entitled by comparing the preceding
calendar year with the base year as determined by this
Section. Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Utility Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
A municipality shall not receive any share of the
Illinois Tax Increment Fund from the State unless such
municipality imposes the maximum municipal charges authorized
pursuant to Section 9-221 of the Public Utilities Act and
deposits all municipal utility tax incremental revenues as
certified by the public utilities, and all local real estate
tax increments into such municipality's special tax
allocation fund.
(3) Within 30 days after the adoption of the ordinance
required by either subsection (1) or subsection (2) of this
Section, the municipality shall transmit to the Department of
Commerce and Community Affairs and the Department of Revenue
the following:
(a) if applicable, a certified copy of the
ordinance required by subsection (1) accompanied by a
complete list of street names and the range of street
numbers of each street located within the redevelopment
project area for which payments are to be made under this
Section in both the base year and in the year preceding
the payment year; and the addresses of persons registered
with the Department of Revenue; and, the name under which
each such retailer or serviceman conducts business at
that address, if different from the corporate name; and
the Illinois Business Tax Number of each such person (The
municipality shall update this list in the event of a
revision of the redevelopment project area, or the
opening or closing or name change of any street or part
thereof in the redevelopment project area, or if the
Department of Revenue informs the municipality of an
addition or deletion pursuant to the monthly updates
given by the Department.);
(b) if applicable, a certified copy of the
ordinance required by subsection (2) accompanied by a
complete list of street names and range of street numbers
of each street located within the redevelopment project
area, the utility customers in the project area, and the
utilities serving the redevelopment project areas;
(c) certified copies of the ordinances approving
the redevelopment plan and designating the redevelopment
project area;
(d) a copy of the redevelopment plan as approved by
the municipality;
(e) an opinion of legal counsel that the
municipality had complied with the requirements of this
Act; and
(f) a certification by the chief executive officer
of the municipality that with regard to a redevelopment
project area: (1) the municipality has committed all of
the municipal tax increment created pursuant to this Act
for deposit in the special tax allocation fund, (2) the
redevelopment projects described in the redevelopment
plan would not be completed without the use of State
incremental revenues pursuant to this Act, (3) the
municipality will pursue the implementation of the
redevelopment plan in an expeditious manner, (4) the
incremental revenues created pursuant to this Section
will be exclusively utilized for the development of the
redevelopment project area, and (5) the increased revenue
created pursuant to this Section shall be used
exclusively to pay redevelopment project costs as defined
in this Act.
(4) The Department of Revenue upon receipt of the
information set forth in paragraph (b) of subsection (3)
shall immediately forward such information to each public
utility furnishing natural gas or electricity to buildings
within the redevelopment project area. Upon receipt of such
information, each public utility shall promptly:
(a) provide to the Department of Revenue and the
municipality separate lists of the names and addresses of
persons within the redevelopment project area receiving
natural gas or electricity from such public utility.
Such list shall be updated as necessary by the public
utility. Each month thereafter the public utility shall
furnish the Department of Revenue and the municipality
with an itemized listing of charges imposed pursuant to
Sections 9-221 and 9-222 of the Public Utilities Act on
persons within the redevelopment project area.
(b) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area during the base year, both as a result of municipal
taxes on electricity and gas and as a result of State
taxes on electricity and gas and certify such amounts
both to the municipality and the Department of Revenue;
and
(c) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area on a monthly basis during the base year, both as a
result of State and municipal taxes on electricity and
gas and certify such separate amounts both to the
municipality and the Department of Revenue.
After the determinations are made in paragraphs (b) and
(c), the public utility shall monthly during the existence of
the redevelopment project area notify the Department of
Revenue and the municipality of any increase in charges over
the base year determinations made pursuant to paragraphs (b)
and (c).
(5) The payments authorized under this Section shall be
deposited by the municipal treasurer in the special tax
allocation fund of the municipality, which for accounting
purposes shall identify the sources of each payment as:
municipal receipts from the State retailers occupation,
service occupation, use and service use taxes; and municipal
public utility taxes charged to customers under the Public
Utilities Act and State public utility taxes charged to
customers under the Public Utilities Act.
(6) Any municipality receiving payments authorized under
this Section for any redevelopment project area or area
within a State Sales Tax Boundary within the municipality
shall submit to the Department of Revenue and to the taxing
districts which are sent the notice required by Section 6 of
this Act annually within 180 days after the close of each
municipal fiscal year the following information for the
immediately preceding fiscal year:
(a) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(b) Audited financial statements of the special tax
allocation fund.
(c) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(d) An opinion of legal counsel that the
municipality is in compliance with this Act.
(e) An analysis of the special tax allocation fund
which sets forth:
(1) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(2) all amounts deposited in the special tax
allocation fund by source;
(3) all expenditures from the special tax
allocation fund by category of permissible
redevelopment project cost; and
(4) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source. Such ending
balance shall be designated as surplus if it is not
required for anticipated redevelopment project costs
or to pay debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.4-7 hereof.
(f) A description of all property purchased by the
municipality within the redevelopment project area
including
1. Street address
2. Approximate size or description of property
3. Purchase price
4. Seller of property.
(g) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
1. Any project implemented in the preceding
fiscal year
2. A description of the redevelopment
activities undertaken
3. A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(h) With regard to any obligations issued by the
municipality:
1. copies of bond ordinances or resolutions
2. copies of any official statements
3. an analysis prepared by financial advisor
or underwriter setting forth: (a) nature and term of
obligation; and (b) projected debt service including
required reserves and debt coverage.
(i) A certified audit report reviewing compliance
with this statute performed by an independent public
accountant certified and licensed by the authority of the
State of Illinois. The financial portion of the audit
must be conducted in accordance with Standards for Audits
of Governmental Organizations, Programs, Activities, and
Functions adopted by the Comptroller General of the
United States (1981), as amended. The audit report shall
contain a letter from the independent certified public
accountant indicating compliance or noncompliance with
the requirements of subsection (q) of Section 11-74.4-3.
If the audit indicates that expenditures are not in
compliance with the law, the Department of Revenue shall
withhold State sales and utility tax increment payments
to the municipality until compliance has been reached,
and an amount equal to the ineligible expenditures has
been returned to the Special Tax Allocation Fund.
(6.1) After July 29, 1988, any funds which have not been
designated for use in a specific development project in the
annual report shall be designated as surplus. No funds may be
held in the Special Tax Allocation Fund for more than 36
months from the date of receipt unless the money is required
for payment of contractual obligations for specific
development project costs. If held for more than 36 months in
violation of the preceding sentence, such funds shall be
designated as surplus. Any funds designated as surplus must
first be used for early redemption of any bond obligations.
Any funds designated as surplus which are not disposed of as
otherwise provided in this paragraph, shall be distributed as
surplus as provided in Section 11-74.4-7.
(7) Any appropriation made pursuant to this Section for
the 1987 State fiscal year shall not exceed the amount of $7
million and for the 1988 State fiscal year the amount of $10
million. The amount which shall be distributed to each
municipality shall be the incremental revenue to which each
municipality is entitled as calculated by the Department of
Revenue, unless the requests of the municipality exceed the
appropriation, then the amount to which each municipality
shall be entitled shall be prorated among the municipalities
in the same proportion as the increment to which the
municipality would be entitled bears to the total increment
which all municipalities would receive in the absence of this
limitation, provided that no municipality may receive an
amount in excess of 15% of the appropriation. For the 1987
Net State Sales Tax Increment payable in Fiscal Year 1989, no
municipality shall receive more than 7.5% of the total
appropriation; provided, however, that any of the
appropriation remaining after such distribution shall be
prorated among municipalities on the basis of their pro rata
share of the total increment. Beginning on January 1, 1993,
each municipality's proportional share of the Illinois Tax
Increment Fund shall be determined by adding the annual Net
State Sales Tax Increment and the annual Net Utility Tax
Increment to determine the Annual Total Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(7.1) No distribution of Net State Sales Tax Increment
to a municipality for an area within a State Sales Tax
Boundary shall exceed in any State Fiscal Year an amount
equal to 3 times the sum of the Municipal Sales Tax
Increment, the real property tax increment and deposits of
funds from other sources, excluding state and federal funds,
as certified by the city treasurer to the Department of
Revenue for an area within a State Sales Tax Boundary. After
July 29, 1988, for those municipalities which issue bonds
between June 1, 1988 and 3 years from July 29, 1988 to
finance redevelopment projects within the area in a State
Sales Tax Boundary, the distribution of Net State Sales Tax
Increment during the 16th through 20th years from the date of
issuance of the bonds shall not exceed in any State Fiscal
Year an amount equal to 2 times the sum of the Municipal
Sales Tax Increment, the real property tax increment and
deposits of funds from other sources, excluding State and
federal funds.
(8) Any person who knowingly files or causes to be filed
false information for the purpose of increasing the amount of
any State tax incremental revenue commits a Class A
misdemeanor.
(9) The following procedures shall be followed to
determine whether municipalities have complied with the Act
for the purpose of receiving distributions after July 1, 1989
pursuant to subsection (1) of this Section 11-74.4-8a.
(a) The Department of Revenue shall conduct a
preliminary review of the redevelopment project areas and
redevelopment plans pertaining to those municipalities
receiving payments from the State pursuant to subsection
(1) of Section 8a of this Act for the purpose of
determining compliance with the following standards:
(1) For any municipality with a population of
more than 12,000 as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 25% of the area within the
municipal boundaries nor more than 20% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall be
not more than 25% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(2) For any municipality with a population of
12,000 or less as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 35% of the area within the
municipal boundaries nor more than 30% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall not
be more than 35% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(3) Such preliminary review of the
redevelopment project areas applying the above
standards shall be completed by November 1, 1988,
and on or before November 1, 1988, the Department
shall notify each municipality by certified mail,
return receipt requested that either (1) the
Department requires additional time in which to
complete its preliminary review; or (2) the
Department is issuing either (a) a Certificate of
Eligibility or (b) a Notice of Review. If the
Department notifies a municipality that it requires
additional time to complete its preliminary
investigation, it shall complete its preliminary
investigation no later than February 1, 1989, and by
February 1, 1989 shall issue to each municipality
either (a) a Certificate of Eligibility or (b) a
Notice of Review. A redevelopment project area for
which a Certificate of Eligibility has been issued
shall be deemed a "State Sales Tax Boundary."
(4) The Department of Revenue shall also issue
a Notice of Review if the Department has received a
request by November 1, 1988 to conduct such a review
from taxpayers in the municipality, local taxing
districts located in the municipality or the State
of Illinois, or if the redevelopment project area
has more than 5 retailers and has had growth in
State sales tax revenue of more than 15% from
calendar year 1985 to 1986.
(b) For those municipalities receiving a Notice of
Review, the Department will conduct a secondary review
consisting of: (i) application of the above standards
contained in subsection (9)(a)(1)(a) and (b) or
(9)(a)(2)(a) and (b), and (ii) the definitions of
blighted and conservation area provided for in Section
11-74.4-3. Such secondary review shall be completed by
July 1, 1989.
Upon completion of the secondary review, the
Department will issue (a) a Certificate of Eligibility or
(b) a Preliminary Notice of Deficiency. Any municipality
receiving a Preliminary Notice of Deficiency may amend
its redevelopment project area to meet the standards and
definitions set forth in this paragraph (b). This amended
redevelopment project area shall become the "State Sales
Tax Boundary" for purposes of determining the State Sales
Tax Increment.
(c) If the municipality advises the Department of
its intent to comply with the requirements of paragraph
(b) of this subsection outlined in the Preliminary Notice
of Deficiency, within 120 days of receiving such notice
from the Department, the municipality shall submit
documentation to the Department of the actions it has
taken to cure any deficiencies. Thereafter, within 30
days of the receipt of the documentation, the Department
shall either issue a Certificate of Eligibility or a
Final Notice of Deficiency. If the municipality fails to
advise the Department of its intent to comply or fails to
submit adequate documentation of such cure of
deficiencies the Department shall issue a Final Notice of
Deficiency that provides that the municipality is
ineligible for payment of the Net State Sales Tax
Increment.
(d) If the Department issues a final determination
of ineligibility, the municipality shall have 30 days
from the receipt of determination to protest and request
a hearing. Such hearing shall be conducted in accordance
with Sections 10-25, 10-35, 10-40, and 10-50 of the
Illinois Administrative Procedure Act. The decision
following the hearing shall be subject to review under
the Administrative Review Law.
(e) Any Certificate of Eligibility issued pursuant
to this subsection 9 shall be binding only on the State
for the purposes of establishing municipal eligibility to
receive revenue pursuant to subsection (1) of this
Section 11-74.4-8a.
(f) It is the intent of this subsection that the
periods of time to cure deficiencies shall be in addition
to all other periods of time permitted by this Section,
regardless of the date by which plans were originally
required to be adopted. To cure said deficiencies,
however, the municipality shall be required to follow the
procedures and requirements pertaining to amendments, as
provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
(10) If a municipality adopts a State Sales Tax Boundary
in accordance with the provisions of subsection (9) of this
Section, such boundaries shall subsequently be utilized to
determine Revised Initial Sales Tax Amounts and the Net State
Sales Tax Increment; provided, however, that such revised
State Sales Tax Boundary shall not have any effect upon the
boundary of the redevelopment project area established for
the purposes of determining the ad valorem taxes on real
property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
Act nor upon the municipality's authority to implement the
redevelopment plan for that redevelopment project area. For
any redevelopment project area with a smaller State Sales Tax
Boundary within its area, the municipality may annually elect
to deposit the Municipal Sales Tax Increment for the
redevelopment project area in the special tax allocation fund
and shall certify the amount to the Department prior to
receipt of the Net State Sales Tax Increment. Any
municipality required by subsection (9) to establish a State
Sales Tax Boundary for one or more of its redevelopment
project areas shall submit all necessary information required
by the Department concerning such boundary and the retailers
therein, by October 1, 1989, after complying with the
procedures for amendment set forth in Sections 11-74.4-5 and
11-74.4-6 of this Act. Net State Sales Tax Increment
produced within the State Sales Tax Boundary shall be spent
only within that area. However expenditures of all municipal
property tax increment and municipal sales tax increment in a
redevelopment project area are not required to be spent
within the smaller State Sales Tax Boundary within such
redevelopment project area.
(11) The Department of Revenue shall have the authority
to issue rules and regulations for purposes of this Section.
and regulations for purposes of this Section.
(12) If, under Section 5.4.1 of the Illinois Enterprise
Zone Act, a municipality determines that property that lies
within a State Sales Tax Boundary has an improvement,
rehabilitation, or renovation that is entitled to a property
tax abatement, then that property along with any
improvements, rehabilitation, or renovations shall be
immediately removed from any State Sales Tax Boundary. The
municipality that made the determination shall notify the
Department of Revenue within 30 days after the determination.
Once a property is removed from the State Sales Tax Boundary
because of the existence of a property tax abatement
resulting from an enterprise zone, then that property shall
not be permitted to be amended into a State Sales Tax
Boundary.
(Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
(65 ILCS 5/11-74.4-8c new)
Sec. 11-74.4-8c. Enterprise zone abatements. If a
redevelopment project area is or has been established under
Section 11-74.4-4 on or before the effective date of this
amendatory Act of 1997 and the redevelopment project area
contains property that is located within an enterprise zone
established under the Illinois Enterprise Zone Act, then the
property that is located in both the redevelopment project
area and the enterprise zone shall not be eligible for the
abatement of taxes under Section 18-170 of the Property Tax
Code if the requirements of Section 5.4.1 of the Illinois
Enterprise Zone Act are satisfied. If an abatement is limited
under Section 5.4.1 of the Illinois Enterprise Zone Act, a
municipality shall notify the county clerk and the board of
review or board of appeals of the change in writing not later
than July 1 of the assessment year to be first affected by
the change.
(65 ILCS 5/11-74.6-15)
Sec. 11-74.6-15. Municipal Powers and Duties. A
municipality may:
(a) By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the final adjournment
of the hearing specified in Section 11-74.6-22, approve
redevelopment plans and redevelopment projects, and designate
redevelopment planning areas and redevelopment project areas
pursuant to notice and hearing required by this Act. No
redevelopment planning area or redevelopment project area
shall be designated unless a plan and project are approved
before the designation of the area and the area shall include
only those parcels of real property and improvements on those
parcels substantially benefited by the proposed redevelopment
project improvements.
(b) Make and enter into all contracts necessary or
incidental to the implementation and furtherance of its
redevelopment plan and project.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real
or personal, or rights or interests therein, and grant or
acquire licenses, easements and options with respect to that
property, all in the manner and at a price that the
municipality determines is reasonably necessary to achieve
the objectives of the redevelopment plan and project. No
conveyance, lease, mortgage, disposition of land or other
property, or agreement relating to the development of the
property shall be made or executed except pursuant to prior
official action of the corporate authorities of the
municipality. No conveyance, lease, mortgage, or other
disposition of land, and no agreement relating to the
development of property, shall be made without making public
disclosure of the terms and the disposition of all bids and
proposals submitted to the municipality in connection
therewith. The procedures for obtaining the bids and
proposals shall provide reasonable opportunity for any person
to submit alternative proposals or bids.
(d) Within a redevelopment project area, clear any area
by demolition or removal of any existing buildings,
structures, fixtures, utilities or improvements, and to clear
and grade land.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building.
(f) Within or without a redevelopment project area,
install, repair, construct, reconstruct or relocate streets,
utilities and site improvements essential to the preparation
of the redevelopment area for use in accordance with a
redevelopment plan.
(g) Within a redevelopment project area, fix, charge and
collect fees, rents and charges for the use of all or any
part of any building or property owned or leased by it.
(h) Issue obligations as provided in this Act.
(i) Accept grants, guarantees and donations of property,
labor, or other things of value from a public or private
source for use within a project redevelopment area.
(j) Acquire and construct public facilities within a
redevelopment project area.
(k) Incur, pay or cause to be paid redevelopment project
costs. Any payments to be made by the municipality to
redevelopers or other nongovernmental persons for
redevelopment project costs incurred by such redeveloper or
other nongovernmental person shall be made only pursuant to
the prior official action of the municipality evidencing an
intent to pay or cause to be paid such redevelopment project
costs. A municipality is not required to obtain any right,
title or interest in any real or personal property in order
to pay redevelopment project costs associated with such
property. The municipality shall adopt such accounting
procedures as may be necessary to determine that such
redevelopment project costs are properly paid.
(l) Create a commission of not less than 5 or more than
15 persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the
governing board of the municipality. Members of a commission
appointed after the effective date of this Law shall be
appointed for initial terms of 1, 2, 3, 4 and 5 years,
respectively, in numbers so that the terms of not more than
1/3 of all members expire in any one year. Their successors
shall be appointed for a term of 5 years. The commission,
subject to approval of the corporate authorities of the
municipality, may exercise the powers enumerated in this
Section. The commission shall also have the power to hold the
public hearings required by this Act and make recommendations
to the corporate authorities concerning the adoption of
redevelopment plans, redevelopment projects and designation
of redevelopment project areas.
(m) Make payment in lieu of all or a portion of real
property taxes due to taxing districts. If payments in lieu
of all or a portion of taxes are made to taxing districts,
those payments shall be made to all districts within a
redevelopment project area on a basis that is proportional to
the current collection of revenue which each taxing district
receives from real property in the redevelopment project
area.
(n) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
(o) In conjunction with other municipalities, undertake
and perform redevelopment plans and projects and utilize the
provisions of the Act wherever they have contiguous
redevelopment project areas or they determine to adopt tax
increment allocation financing with respect to a
redevelopment project area that includes contiguous real
property within the boundaries of the municipalities, and, by
agreement between participating municipalities, to issue
obligations, separately or jointly, and expend revenues
received under this Act for eligible expenses anywhere within
contiguous redevelopment project areas or as otherwise
permitted in the Act.
(p) Create an Industrial Jobs Recovery Advisory
Committee of not more than 15 members to be appointed by the
mayor or president of the municipality with the consent of
the majority of the governing board of the municipality. The
members of that Committee shall be appointed for initial
terms of 1, 2, and 3 years respectively, in numbers so that
the terms of not more than 1/3 of all members expire in any
one year. Their successors shall be appointed for a term of
3 years. The Committee shall have none of the powers
enumerated in this Section. The Committee shall serve in an
advisory capacity only. The Committee may advise the
governing board of the municipality and other municipal
officials regarding development issues and opportunities
within the redevelopment project area. The Committee may also
promote and publicize development opportunities in the
redevelopment project area.
(q) If a redevelopment project has not been initiated in
a redevelopment project area within 5 years after the area
was designated by ordinance under subsection (a), the
municipality shall adopt an ordinance repealing the area's
designation as a redevelopment project area. Initiation of a
redevelopment project shall be evidenced by either a signed
redevelopment agreement or expenditures on eligible
redevelopment project costs associated with a redevelopment
project.
(r) Within a redevelopment planning area, transfer or
loan tax increment revenues from one redevelopment project
area to another redevelopment project area for expenditure on
eligible costs in the receiving area.
(s) Use tax increment revenue produced in a
redevelopment project area created under this Law by
transferring or loaning such revenues to a redevelopment
project area created under the Tax Increment Allocation
Redevelopment Act that is either contiguous to, or separated
only by a public right of way from, the redevelopment project
area that initially produced and received those revenues.
(Source: P.A. 88-537.)
Section 90. The State Mandates Act is amended by adding
Section 8.21 as follows:
(30 ILCS 805/8.21 new)
Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of 1997.
Section 95. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect on
July 1, 1997.