SB1035 EngrossedLRB101 06530 AWJ 51557 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10    "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13    "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17    "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20    "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

 

 

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1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13    "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

 

 

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1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

 

 

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for persons with
8disabilities under Section 5-8 of the Park District Code or
9Section 11-95-14 of the Illinois Municipal Code; (m) made for
10temporary relocation loan repayment purposes pursuant to
11Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
12payment of principal and interest on any bonds issued under the
13authority of Section 17-2.2d of the School Code; (o) made for
14contributions to a firefighter's pension fund created under
15Article 4 of the Illinois Pension Code, to the extent of the
16amount certified under item (5) of Section 4-134 of the
17Illinois Pension Code; and (p) made for road purposes in the
18first year after a township assumes the rights, powers, duties,
19assets, property, liabilities, obligations, and
20responsibilities of a road district abolished under the
21provisions of Section 6-133 of the Illinois Highway Code.
22    "Aggregate extension" for the taxing districts to which
23this Law did not apply before the 1995 levy year (except taxing
24districts subject to this Law in accordance with Section
2518-213) means the annual corporate extension for the taxing
26district and those special purpose extensions that are made

 

 

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1annually for the taxing district, excluding special purpose
2extensions: (a) made for the taxing district to pay interest or
3principal on general obligation bonds that were approved by
4referendum; (b) made for any taxing district to pay interest or
5principal on general obligation bonds issued before March 1,
61995; (c) made for any taxing district to pay interest or
7principal on bonds issued to refund or continue to refund those
8bonds issued before March 1, 1995; (d) made for any taxing
9district to pay interest or principal on bonds issued to refund
10or continue to refund bonds issued after March 1, 1995 that
11were approved by referendum; (e) made for any taxing district
12to pay interest or principal on revenue bonds issued before
13March 1, 1995 for payment of which a property tax levy or the
14full faith and credit of the unit of local government is
15pledged; however, a tax for the payment of interest or
16principal on those bonds shall be made only after the governing
17body of the unit of local government finds that all other
18sources for payment are insufficient to make those payments;
19(f) made for payments under a building commission lease when
20the lease payments are for the retirement of bonds issued by
21the commission before March 1, 1995 to pay for the building
22project; (g) made for payments due under installment contracts
23entered into before March 1, 1995; (h) made for payments of
24principal and interest on bonds issued under the Metropolitan
25Water Reclamation District Act to finance construction
26projects initiated before October 1, 1991; (h-4) made for

 

 

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1stormwater management purposes by the Metropolitan Water
2Reclamation District of Greater Chicago under Section 12 of the
3Metropolitan Water Reclamation District Act; (i) made for
4payments of principal and interest on limited bonds, as defined
5in Section 3 of the Local Government Debt Reform Act, in an
6amount not to exceed the debt service extension base less the
7amount in items (b), (c), and (e) of this definition for
8non-referendum obligations, except obligations initially
9issued pursuant to referendum and bonds described in subsection
10(h) of this definition; (j) made for payments of principal and
11interest on bonds issued under Section 15 of the Local
12Government Debt Reform Act; (k) made for payments of principal
13and interest on bonds authorized by Public Act 88-503 and
14issued under Section 20a of the Chicago Park District Act for
15aquarium or museum projects; (l) made for payments of principal
16and interest on bonds authorized by Public Act 87-1191 or
1793-601 and (i) issued pursuant to Section 21.2 of the Cook
18County Forest Preserve District Act, (ii) issued under Section
1942 of the Cook County Forest Preserve District Act for
20zoological park projects, or (iii) issued under Section 44.1 of
21the Cook County Forest Preserve District Act for botanical
22gardens projects; (m) made pursuant to Section 34-53.5 of the
23School Code, whether levied annually or not; (n) made to fund
24expenses of providing joint recreational programs for persons
25with disabilities under Section 5-8 of the Park District Code
26or Section 11-95-14 of the Illinois Municipal Code; (o) made by

 

 

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1the Chicago Park District for recreational programs for persons
2with disabilities under subsection (c) of Section 7.06 of the
3Chicago Park District Act; (p) made for contributions to a
4firefighter's pension fund created under Article 4 of the
5Illinois Pension Code, to the extent of the amount certified
6under item (5) of Section 4-134 of the Illinois Pension Code;
7(q) made by Ford Heights School District 169 under Section
817-9.02 of the School Code; and (r) made for the purpose of
9making employer contributions to the Public School Teachers'
10Pension and Retirement Fund of Chicago under Section 34-53 of
11the School Code.
12    "Aggregate extension" for all taxing districts to which
13this Law applies in accordance with Section 18-213, except for
14those taxing districts subject to paragraph (2) of subsection
15(e) of Section 18-213, means the annual corporate extension for
16the taxing district and those special purpose extensions that
17are made annually for the taxing district, excluding special
18purpose extensions: (a) made for the taxing district to pay
19interest or principal on general obligation bonds that were
20approved by referendum; (b) made for any taxing district to pay
21interest or principal on general obligation bonds issued before
22the date on which the referendum making this Law applicable to
23the taxing district is held; (c) made for any taxing district
24to pay interest or principal on bonds issued to refund or
25continue to refund those bonds issued before the date on which
26the referendum making this Law applicable to the taxing

 

 

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1district is held; (d) made for any taxing district to pay
2interest or principal on bonds issued to refund or continue to
3refund bonds issued after the date on which the referendum
4making this Law applicable to the taxing district is held if
5the bonds were approved by referendum after the date on which
6the referendum making this Law applicable to the taxing
7district is held; (e) made for any taxing district to pay
8interest or principal on revenue bonds issued before the date
9on which the referendum making this Law applicable to the
10taxing district is held for payment of which a property tax
11levy or the full faith and credit of the unit of local
12government is pledged; however, a tax for the payment of
13interest or principal on those bonds shall be made only after
14the governing body of the unit of local government finds that
15all other sources for payment are insufficient to make those
16payments; (f) made for payments under a building commission
17lease when the lease payments are for the retirement of bonds
18issued by the commission before the date on which the
19referendum making this Law applicable to the taxing district is
20held to pay for the building project; (g) made for payments due
21under installment contracts entered into before the date on
22which the referendum making this Law applicable to the taxing
23district is held; (h) made for payments of principal and
24interest on limited bonds, as defined in Section 3 of the Local
25Government Debt Reform Act, in an amount not to exceed the debt
26service extension base less the amount in items (b), (c), and

 

 

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1(e) of this definition for non-referendum obligations, except
2obligations initially issued pursuant to referendum; (i) made
3for payments of principal and interest on bonds issued under
4Section 15 of the Local Government Debt Reform Act; (j) made
5for a qualified airport authority to pay interest or principal
6on general obligation bonds issued for the purpose of paying
7obligations due under, or financing airport facilities
8required to be acquired, constructed, installed or equipped
9pursuant to, contracts entered into before March 1, 1996 (but
10not including any amendments to such a contract taking effect
11on or after that date); (k) made to fund expenses of providing
12joint recreational programs for persons with disabilities
13under Section 5-8 of the Park District Code or Section 11-95-14
14of the Illinois Municipal Code; (l) made for contributions to a
15firefighter's pension fund created under Article 4 of the
16Illinois Pension Code, to the extent of the amount certified
17under item (5) of Section 4-134 of the Illinois Pension Code;
18and (m) made for the taxing district to pay interest or
19principal on general obligation bonds issued pursuant to
20Section 19-3.10 of the School Code.
21    "Aggregate extension" for all taxing districts to which
22this Law applies in accordance with paragraph (2) of subsection
23(e) of Section 18-213 means the annual corporate extension for
24the taxing district and those special purpose extensions that
25are made annually for the taxing district, excluding special
26purpose extensions: (a) made for the taxing district to pay

 

 

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1interest or principal on general obligation bonds that were
2approved by referendum; (b) made for any taxing district to pay
3interest or principal on general obligation bonds issued before
4the effective date of this amendatory Act of 1997; (c) made for
5any taxing district to pay interest or principal on bonds
6issued to refund or continue to refund those bonds issued
7before the effective date of this amendatory Act of 1997; (d)
8made for any taxing district to pay interest or principal on
9bonds issued to refund or continue to refund bonds issued after
10the effective date of this amendatory Act of 1997 if the bonds
11were approved by referendum after the effective date of this
12amendatory Act of 1997; (e) made for any taxing district to pay
13interest or principal on revenue bonds issued before the
14effective date of this amendatory Act of 1997 for payment of
15which a property tax levy or the full faith and credit of the
16unit of local government is pledged; however, a tax for the
17payment of interest or principal on those bonds shall be made
18only after the governing body of the unit of local government
19finds that all other sources for payment are insufficient to
20make those payments; (f) made for payments under a building
21commission lease when the lease payments are for the retirement
22of bonds issued by the commission before the effective date of
23this amendatory Act of 1997 to pay for the building project;
24(g) made for payments due under installment contracts entered
25into before the effective date of this amendatory Act of 1997;
26(h) made for payments of principal and interest on limited

 

 

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1bonds, as defined in Section 3 of the Local Government Debt
2Reform Act, in an amount not to exceed the debt service
3extension base less the amount in items (b), (c), and (e) of
4this definition for non-referendum obligations, except
5obligations initially issued pursuant to referendum; (i) made
6for payments of principal and interest on bonds issued under
7Section 15 of the Local Government Debt Reform Act; (j) made
8for a qualified airport authority to pay interest or principal
9on general obligation bonds issued for the purpose of paying
10obligations due under, or financing airport facilities
11required to be acquired, constructed, installed or equipped
12pursuant to, contracts entered into before March 1, 1996 (but
13not including any amendments to such a contract taking effect
14on or after that date); (k) made to fund expenses of providing
15joint recreational programs for persons with disabilities
16under Section 5-8 of the Park District Code or Section 11-95-14
17of the Illinois Municipal Code; and (l) made for contributions
18to a firefighter's pension fund created under Article 4 of the
19Illinois Pension Code, to the extent of the amount certified
20under item (5) of Section 4-134 of the Illinois Pension Code.
21    "Debt service extension base" means an amount equal to that
22portion of the extension for a taxing district for the 1994
23levy year, or for those taxing districts subject to this Law in
24accordance with Section 18-213, except for those subject to
25paragraph (2) of subsection (e) of Section 18-213, for the levy
26year in which the referendum making this Law applicable to the

 

 

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1taxing district is held, or for those taxing districts subject
2to this Law in accordance with paragraph (2) of subsection (e)
3of Section 18-213 for the 1996 levy year, constituting an
4extension for payment of principal and interest on bonds issued
5by the taxing district without referendum, but not including
6excluded non-referendum bonds. For park districts (i) that were
7first subject to this Law in 1991 or 1995 and (ii) whose
8extension for the 1994 levy year for the payment of principal
9and interest on bonds issued by the park district without
10referendum (but not including excluded non-referendum bonds)
11was less than 51% of the amount for the 1991 levy year
12constituting an extension for payment of principal and interest
13on bonds issued by the park district without referendum (but
14not including excluded non-referendum bonds), "debt service
15extension base" means an amount equal to that portion of the
16extension for the 1991 levy year constituting an extension for
17payment of principal and interest on bonds issued by the park
18district without referendum (but not including excluded
19non-referendum bonds). A debt service extension base
20established or increased at any time pursuant to any provision
21of this Law, except Section 18-212, shall be increased each
22year commencing with the later of (i) the 2009 levy year or
23(ii) the first levy year in which this Law becomes applicable
24to the taxing district, by the lesser of 5% or the percentage
25increase in the Consumer Price Index during the 12-month
26calendar year preceding the levy year. The debt service

 

 

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1extension base may be established or increased as provided
2under Section 18-212. "Excluded non-referendum bonds" means
3(i) bonds authorized by Public Act 88-503 and issued under
4Section 20a of the Chicago Park District Act for aquarium and
5museum projects; (ii) bonds issued under Section 15 of the
6Local Government Debt Reform Act; or (iii) refunding
7obligations issued to refund or to continue to refund
8obligations initially issued pursuant to referendum.
9    "Special purpose extensions" include, but are not limited
10to, extensions for levies made on an annual basis for
11unemployment and workers' compensation, self-insurance,
12contributions to pension plans, and extensions made pursuant to
13Section 6-601 of the Illinois Highway Code for a road
14district's permanent road fund whether levied annually or not.
15The extension for a special service area is not included in the
16aggregate extension.
17    "Aggregate extension base" means the taxing district's
18last preceding aggregate extension as adjusted under Sections
1918-135, 18-215, 18-230, and 18-206. An adjustment under Section
2018-135 shall be made for the 2007 levy year and all subsequent
21levy years whenever one or more counties within which a taxing
22district is located (i) used estimated valuations or rates when
23extending taxes in the taxing district for the last preceding
24levy year that resulted in the over or under extension of
25taxes, or (ii) increased or decreased the tax extension for the
26last preceding levy year as required by Section 18-135(c).

 

 

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1Whenever an adjustment is required under Section 18-135, the
2aggregate extension base of the taxing district shall be equal
3to the amount that the aggregate extension of the taxing
4district would have been for the last preceding levy year if
5either or both (i) actual, rather than estimated, valuations or
6rates had been used to calculate the extension of taxes for the
7last levy year, or (ii) the tax extension for the last
8preceding levy year had not been adjusted as required by
9subsection (c) of Section 18-135.
10    Notwithstanding any other provision of law, for levy year
112012, the aggregate extension base for West Northfield School
12District No. 31 in Cook County shall be $12,654,592.
13    "Levy year" has the same meaning as "year" under Section
141-155.
15    "New property" means (i) the assessed value, after final
16board of review or board of appeals action, of new improvements
17or additions to existing improvements on any parcel of real
18property that increase the assessed value of that real property
19during the levy year multiplied by the equalization factor
20issued by the Department under Section 17-30, (ii) the assessed
21value, after final board of review or board of appeals action,
22of real property not exempt from real estate taxation, which
23real property was exempt from real estate taxation for any
24portion of the immediately preceding levy year, multiplied by
25the equalization factor issued by the Department under Section
2617-30, including the assessed value, upon final stabilization

 

 

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1of occupancy after new construction is complete, of any real
2property located within the boundaries of an otherwise or
3previously exempt military reservation that is intended for
4residential use and owned by or leased to a private corporation
5or other entity, (iii) in counties that classify in accordance
6with Section 4 of Article IX of the Illinois Constitution, an
7incentive property's additional assessed value resulting from
8a scheduled increase in the level of assessment as applied to
9the first year final board of review market value, and (iv) any
10increase in assessed value due to oil or gas production from an
11oil or gas well required to be permitted under the Hydraulic
12Fracturing Regulatory Act that was not produced in or accounted
13for during the previous levy year. In addition, the county
14clerk in a county containing a population of 3,000,000 or more
15shall include in the 1997 recovered tax increment value for any
16school district, any recovered tax increment value that was
17applicable to the 1995 tax year calculations.
18    "Qualified airport authority" means an airport authority
19organized under the Airport Authorities Act and located in a
20county bordering on the State of Wisconsin and having a
21population in excess of 200,000 and not greater than 500,000.
22    "Recovered tax increment value" means, except as otherwise
23provided in this paragraph, the amount of the current year's
24equalized assessed value, in the first year after a
25municipality terminates the designation of an area as a
26redevelopment project area previously established under the

 

 

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1Tax Increment Allocation Development Act in the Illinois
2Municipal Code, previously established under the Industrial
3Jobs Recovery Law in the Illinois Municipal Code, previously
4established under the Economic Development Project Area Tax
5Increment Act of 1995, or previously established under the
6Economic Development Area Tax Increment Allocation Act, of each
7taxable lot, block, tract, or parcel of real property in the
8redevelopment project area over and above the initial equalized
9assessed value of each property in the redevelopment project
10area. If a municipality has failed to provide timely notice to
11all taxing bodies of the termination of a redevelopment project
12area under Section 11-74.4-8 of the Illinois Municipal Code and
13the county clerk has been notified of that failure, then
14"recovered tax increment value" means the amount of the current
15year's equalized assessed value in the first year beginning at
16least 60 days after the notice has been provided. For the taxes
17which are extended for the 1997 levy year, the recovered tax
18increment value for a non-home rule taxing district that first
19became subject to this Law for the 1995 levy year because a
20majority of its 1994 equalized assessed value was in an
21affected county or counties shall be increased if a
22municipality terminated the designation of an area in 1993 as a
23redevelopment project area previously established under the
24Tax Increment Allocation Development Act in the Illinois
25Municipal Code, previously established under the Industrial
26Jobs Recovery Law in the Illinois Municipal Code, or previously

 

 

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1established under the Economic Development Area Tax Increment
2Allocation Act, by an amount equal to the 1994 equalized
3assessed value of each taxable lot, block, tract, or parcel of
4real property in the redevelopment project area over and above
5the initial equalized assessed value of each property in the
6redevelopment project area. In the first year after a
7municipality removes a taxable lot, block, tract, or parcel of
8real property from a redevelopment project area established
9under the Tax Increment Allocation Development Act in the
10Illinois Municipal Code, the Industrial Jobs Recovery Law in
11the Illinois Municipal Code, or the Economic Development Area
12Tax Increment Allocation Act, "recovered tax increment value"
13means the amount of the current year's equalized assessed value
14of each taxable lot, block, tract, or parcel of real property
15removed from the redevelopment project area over and above the
16initial equalized assessed value of that real property before
17removal from the redevelopment project area.
18    Except as otherwise provided in this Section, "limiting
19rate" means a fraction the numerator of which is the last
20preceding aggregate extension base times an amount equal to one
21plus the extension limitation defined in this Section and the
22denominator of which is the current year's equalized assessed
23value of all real property in the territory under the
24jurisdiction of the taxing district during the prior levy year.
25For those taxing districts that reduced their aggregate
26extension for the last preceding levy year, except for school

 

 

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1districts that reduced their extension for educational
2purposes pursuant to Section 18-206, the highest aggregate
3extension in any of the last 3 preceding levy years shall be
4used for the purpose of computing the limiting rate. The
5denominator shall not include new property or the recovered tax
6increment value. If a new rate, a rate decrease, or a limiting
7rate increase has been approved at an election held after March
821, 2006, then (i) the otherwise applicable limiting rate shall
9be increased by the amount of the new rate or shall be reduced
10by the amount of the rate decrease, as the case may be, or (ii)
11in the case of a limiting rate increase, the limiting rate
12shall be equal to the rate set forth in the proposition
13approved by the voters for each of the years specified in the
14proposition, after which the limiting rate of the taxing
15district shall be calculated as otherwise provided. In the case
16of a taxing district that obtained referendum approval for an
17increased limiting rate on March 20, 2012, the limiting rate
18for tax year 2012 shall be the rate that generates the
19approximate total amount of taxes extendable for that tax year,
20as set forth in the proposition approved by the voters; this
21rate shall be the final rate applied by the county clerk for
22the aggregate of all capped funds of the district for tax year
232012.
24(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
25100-465, eff. 8-31-17.)
 

 

 

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1    Section 10. The Illinois Municipal Code is amended by
2changing Section 11-74.4-8 as follows:
 
3    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
4    Sec. 11-74.4-8. Tax increment allocation financing. A
5municipality may not adopt tax increment financing in a
6redevelopment project area after the effective date of this
7amendatory Act of 1997 that will encompass an area that is
8currently included in an enterprise zone created under the
9Illinois Enterprise Zone Act unless that municipality,
10pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
11amends the enterprise zone designating ordinance to limit the
12eligibility for tax abatements as provided in Section 5.4.1 of
13the Illinois Enterprise Zone Act. A municipality, at the time a
14redevelopment project area is designated, may adopt tax
15increment allocation financing by passing an ordinance
16providing that the ad valorem taxes, if any, arising from the
17levies upon taxable real property in such redevelopment project
18area by taxing districts and tax rates determined in the manner
19provided in paragraph (c) of Section 11-74.4-9 each year after
20the effective date of the ordinance until redevelopment project
21costs and all municipal obligations financing redevelopment
22project costs incurred under this Division have been paid shall
23be divided as follows, provided, however, that with respect to
24any redevelopment project area located within a transit
25facility improvement area established pursuant to Section

 

 

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111-74.4-3.3 in a municipality with a population of 1,000,000 or
2more, ad valorem taxes, if any, arising from the levies upon
3taxable real property in such redevelopment project area shall
4be allocated as specifically provided in this Section:
5        (a) That portion of taxes levied upon each taxable lot,
6    block, tract or parcel of real property which is
7    attributable to the lower of the current equalized assessed
8    value or the initial equalized assessed value of each such
9    taxable lot, block, tract or parcel of real property in the
10    redevelopment project area shall be allocated to and when
11    collected shall be paid by the county collector to the
12    respective affected taxing districts in the manner
13    required by law in the absence of the adoption of tax
14    increment allocation financing.
15        (b) Except from a tax levied by a township to retire
16    bonds issued to satisfy court-ordered damages, that
17    portion, if any, of such taxes which is attributable to the
18    increase in the current equalized assessed valuation of
19    each taxable lot, block, tract or parcel of real property
20    in the redevelopment project area over and above the
21    initial equalized assessed value of each property in the
22    project area shall be allocated to and when collected shall
23    be paid to the municipal treasurer who shall deposit said
24    taxes into a special fund called the special tax allocation
25    fund of the municipality for the purpose of paying
26    redevelopment project costs and obligations incurred in

 

 

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1    the payment thereof. In any county with a population of
2    3,000,000 or more that has adopted a procedure for
3    collecting taxes that provides for one or more of the
4    installments of the taxes to be billed and collected on an
5    estimated basis, the municipal treasurer shall be paid for
6    deposit in the special tax allocation fund of the
7    municipality, from the taxes collected from estimated
8    bills issued for property in the redevelopment project
9    area, the difference between the amount actually collected
10    from each taxable lot, block, tract, or parcel of real
11    property within the redevelopment project area and an
12    amount determined by multiplying the rate at which taxes
13    were last extended against the taxable lot, block, track,
14    or parcel of real property in the manner provided in
15    subsection (c) of Section 11-74.4-9 by the initial
16    equalized assessed value of the property divided by the
17    number of installments in which real estate taxes are
18    billed and collected within the county; provided that the
19    payments on or before December 31, 1999 to a municipal
20    treasurer shall be made only if each of the following
21    conditions are met:
22            (1) The total equalized assessed value of the
23        redevelopment project area as last determined was not
24        less than 175% of the total initial equalized assessed
25        value.
26            (2) Not more than 50% of the total equalized

 

 

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1        assessed value of the redevelopment project area as
2        last determined is attributable to a piece of property
3        assigned a single real estate index number.
4            (3) The municipal clerk has certified to the county
5        clerk that the municipality has issued its obligations
6        to which there has been pledged the incremental
7        property taxes of the redevelopment project area or
8        taxes levied and collected on any or all property in
9        the municipality or the full faith and credit of the
10        municipality to pay or secure payment for all or a
11        portion of the redevelopment project costs. The
12        certification shall be filed annually no later than
13        September 1 for the estimated taxes to be distributed
14        in the following year; however, for the year 1992 the
15        certification shall be made at any time on or before
16        March 31, 1992.
17            (4) The municipality has not requested that the
18        total initial equalized assessed value of real
19        property be adjusted as provided in subsection (b) of
20        Section 11-74.4-9.
21        The conditions of paragraphs (1) through (4) do not
22    apply after December 31, 1999 to payments to a municipal
23    treasurer made by a county with 3,000,000 or more
24    inhabitants that has adopted an estimated billing
25    procedure for collecting taxes. If a county that has
26    adopted the estimated billing procedure makes an erroneous

 

 

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1    overpayment of tax revenue to the municipal treasurer, then
2    the county may seek a refund of that overpayment. The
3    county shall send the municipal treasurer a notice of
4    liability for the overpayment on or before the mailing date
5    of the next real estate tax bill within the county. The
6    refund shall be limited to the amount of the overpayment.
7        It is the intent of this Division that after the
8    effective date of this amendatory Act of 1988 a
9    municipality's own ad valorem tax arising from levies on
10    taxable real property be included in the determination of
11    incremental revenue in the manner provided in paragraph (c)
12    of Section 11-74.4-9. If the municipality does not extend
13    such a tax, it shall annually deposit in the municipality's
14    Special Tax Increment Fund an amount equal to 10% of the
15    total contributions to the fund from all other taxing
16    districts in that year. The annual 10% deposit required by
17    this paragraph shall be limited to the actual amount of
18    municipally produced incremental tax revenues available to
19    the municipality from taxpayers located in the
20    redevelopment project area in that year if: (a) the plan
21    for the area restricts the use of the property primarily to
22    industrial purposes, (b) the municipality establishing the
23    redevelopment project area is a home-rule community with a
24    1990 population of between 25,000 and 50,000, (c) the
25    municipality is wholly located within a county with a 1990
26    population of over 750,000 and (d) the redevelopment

 

 

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1    project area was established by the municipality prior to
2    June 1, 1990. This payment shall be in lieu of a
3    contribution of ad valorem taxes on real property. If no
4    such payment is made, any redevelopment project area of the
5    municipality shall be dissolved.
6        If a municipality has adopted tax increment allocation
7    financing by ordinance and the County Clerk thereafter
8    certifies the "total initial equalized assessed value as
9    adjusted" of the taxable real property within such
10    redevelopment project area in the manner provided in
11    paragraph (b) of Section 11-74.4-9, each year after the
12    date of the certification of the total initial equalized
13    assessed value as adjusted until redevelopment project
14    costs and all municipal obligations financing
15    redevelopment project costs have been paid the ad valorem
16    taxes, if any, arising from the levies upon the taxable
17    real property in such redevelopment project area by taxing
18    districts and tax rates determined in the manner provided
19    in paragraph (c) of Section 11-74.4-9 shall be divided as
20    follows, provided, however, that with respect to any
21    redevelopment project area located within a transit
22    facility improvement area established pursuant to Section
23    11-74.4-3.3 in a municipality with a population of
24    1,000,000 or more, ad valorem taxes, if any, arising from
25    the levies upon the taxable real property in such
26    redevelopment project area shall be allocated as

 

 

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

 

 

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1        allocated to and when collected shall be paid to the
2        municipal Treasurer, who shall deposit said taxes into
3        a special fund called the special tax allocation fund
4        of the municipality for the purpose of paying
5        redevelopment project costs and obligations incurred
6        in the payment thereof.
7        The municipality may pledge in the ordinance the funds
8    in and to be deposited in the special tax allocation fund
9    for the payment of such costs and obligations. No part of
10    the current equalized assessed valuation of each property
11    in the redevelopment project area attributable to any
12    increase above the total initial equalized assessed value,
13    or the total initial equalized assessed value as adjusted,
14    of such properties shall be used in calculating the general
15    State aid formula, provided for in Section 18-8 of the
16    School Code, or the evidence-based funding formula,
17    provided for in Section 18-8.15 of the School Code, until
18    such time as all redevelopment project costs have been paid
19    as provided for in this Section.
20        Whenever a municipality issues bonds for the purpose of
21    financing redevelopment project costs, such municipality
22    may provide by ordinance for the appointment of a trustee,
23    which may be any trust company within the State, and for
24    the establishment of such funds or accounts to be
25    maintained by such trustee as the municipality shall deem
26    necessary to provide for the security and payment of the

 

 

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

 

 

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1    funds to be paid to the County Collector who shall
2    immediately thereafter pay said funds to the taxing
3    districts in the redevelopment project area in the same
4    manner and proportion as the most recent distribution by
5    the county collector to the affected districts of real
6    property taxes from real property in the redevelopment
7    project area.
8        Upon the payment of all redevelopment project costs,
9    the retirement of obligations, the distribution of any
10    excess monies pursuant to this Section, and final closing
11    of the books and records of the redevelopment project area,
12    the municipality, if it has not already done so, shall
13    adopt an ordinance dissolving the special tax allocation
14    fund for the redevelopment project area and terminating the
15    designation of the redevelopment project area as a
16    redevelopment project area. Title to real or personal
17    property and public improvements acquired by or for the
18    municipality as a result of the redevelopment project and
19    plan shall vest in the municipality when acquired and shall
20    continue to be held by the municipality after the
21    redevelopment project area has been terminated.
22    Municipalities shall notify affected taxing districts
23    prior to July 1 November 1 if the redevelopment project
24    area is to be terminated by December 31 of that same year.
25    If a municipality extends estimated dates of completion of
26    a redevelopment project and retirement of obligations to

 

 

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1    finance a redevelopment project, as allowed by this
2    amendatory Act of 1993, that extension shall not extend the
3    property tax increment allocation financing authorized by
4    this Section. Thereafter the rates of the taxing districts
5    shall be extended and taxes levied, collected and
6    distributed in the manner applicable in the absence of the
7    adoption of tax increment allocation financing.
8        After the effective date of this amendatory Act of the
9    101st General Assembly, any new ordinance adopting tax
10    increment financing in a redevelopment project area shall
11    specify a date for the dissolution of the special tax
12    allocation fund for the redevelopment project area and a
13    date for the termination of the designation of the
14    redevelopment project area as a redevelopment project
15    area. The municipality may amend the ordinance at any time
16    to change the date of termination. No later than 90 days
17    after the effective date of this amendatory Act of the
18    101st General Assembly, each municipality shall amend all
19    existing tax increment financing ordinances to specify a
20    date for the dissolution of the special tax allocation fund
21    for the redevelopment project area and a date for
22    termination of the designation of the redevelopment
23    project area as a redevelopment project area. The date of
24    termination as originally designated or designated by the
25    amendment of the ordinance shall be consistent with the
26    terms of Section 11-74.4-3.5.

 

 

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1        If a municipality with a population of 1,000,000 or
2    more has adopted by ordinance tax increment allocation
3    financing for a redevelopment project area located in a
4    transit facility improvement area established pursuant to
5    Section 11-74.4-3.3, for each year after the effective date
6    of the ordinance until redevelopment project costs and all
7    municipal obligations financing redevelopment project
8    costs have been paid, the ad valorem taxes, if any, arising
9    from the levies upon the taxable real property in that
10    redevelopment project area by taxing districts and tax
11    rates determined in the manner provided in paragraph (c) of
12    Section 11-74.4-9 shall be divided as follows:
13            (1) That portion of the taxes levied upon each
14        taxable lot, block, tract or parcel of real property
15        which is attributable to the lower of (i) the current
16        equalized assessed value or "current equalized
17        assessed value as adjusted" or (ii) the initial
18        equalized assessed value of each such taxable lot,
19        block, tract, or parcel of real property existing at
20        the time tax increment financing was adopted, minus the
21        total current homestead exemptions under Article 15 of
22        the Property Tax Code in the redevelopment project area
23        shall be allocated to and when collected shall be paid
24        by the county collector to the respective affected
25        taxing districts in the manner required by law in the
26        absence of the adoption of tax increment allocation

 

 

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1        financing.
2            (2) That portion, if any, of such taxes which is
3        attributable to the increase in the current equalized
4        assessed valuation of each taxable lot, block, tract,
5        or parcel of real property in the redevelopment project
6        area, over and above the initial equalized assessed
7        value of each property existing at the time tax
8        increment financing was adopted, minus the total
9        current homestead exemptions pertaining to each piece
10        of property provided by Article 15 of the Property Tax
11        Code in the redevelopment project area, shall be
12        allocated to and when collected shall be paid by the
13        county collector as follows:
14                (A) First, that portion which would be payable
15            to a school district whose boundaries are
16            coterminous with such municipality in the absence
17            of the adoption of tax increment allocation
18            financing, shall be paid to such school district in
19            the manner required by law in the absence of the
20            adoption of tax increment allocation financing;
21            then
22                (B) 80% of the remaining portion shall be paid
23            to the municipal Treasurer, who shall deposit said
24            taxes into a special fund called the special tax
25            allocation fund of the municipality for the
26            purpose of paying redevelopment project costs and

 

 

SB1035 Engrossed- 32 -LRB101 06530 AWJ 51557 b

1            obligations incurred in the payment thereof; and
2            then
3                (C) 20% of the remaining portion shall be paid
4            to the respective affected taxing districts, other
5            than the school district described in clause (a)
6            above, in the manner required by law in the absence
7            of the adoption of tax increment allocation
8            financing.
9    Nothing in this Section shall be construed as relieving
10property in such redevelopment project areas from being
11assessed as provided in the Property Tax Code or as relieving
12owners of such property from paying a uniform rate of taxes, as
13required by Section 4 of Article IX of the Illinois
14Constitution.
15(Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17.)