Sen. Chuck Weaver

Filed: 4/4/2019

 

 


 

 


 
10100SB1035sam001LRB101 06530 HLH 58925 a

1
AMENDMENT TO SENATE BILL 1035

2    AMENDMENT NO. ______. Amend Senate Bill 1035 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

10100SB1035sam001- 2 -LRB101 06530 HLH 58925 a

1    "Affected county" means a county of 3,000,000 or more
2inhabitants or a county contiguous to a county of 3,000,000 or
3more inhabitants.
4    "Taxing district" has the same meaning provided in Section
51-150, except as otherwise provided in this Section. For the
61991 through 1994 levy years only, "taxing district" includes
7only each non-home rule taxing district having the majority of
8its 1990 equalized assessed value within any county or counties
9contiguous to a county with 3,000,000 or more inhabitants.
10Beginning with the 1995 levy year, "taxing district" includes
11only each non-home rule taxing district subject to this Law
12before the 1995 levy year and each non-home rule taxing
13district not subject to this Law before the 1995 levy year
14having the majority of its 1994 equalized assessed value in an
15affected county or counties. Beginning with the levy year in
16which this Law becomes applicable to a taxing district as
17provided in Section 18-213, "taxing district" also includes
18those taxing districts made subject to this Law as provided in
19Section 18-213.
20    "Aggregate extension" for taxing districts to which this
21Law applied before the 1995 levy year means the annual
22corporate extension for the taxing district and those special
23purpose extensions that are made annually for the taxing
24district, excluding special purpose extensions: (a) made for
25the taxing district to pay interest or principal on general
26obligation bonds that were approved by referendum; (b) made for

 

 

10100SB1035sam001- 3 -LRB101 06530 HLH 58925 a

1any taxing district to pay interest or principal on general
2obligation bonds issued before October 1, 1991; (c) made for
3any taxing district to pay interest or principal on bonds
4issued to refund or continue to refund those bonds issued
5before October 1, 1991; (d) made for any taxing district to pay
6interest or principal on bonds issued to refund or continue to
7refund bonds issued after October 1, 1991 that were approved by
8referendum; (e) made for any taxing district to pay interest or
9principal on revenue bonds issued before October 1, 1991 for
10payment of which a property tax levy or the full faith and
11credit of the unit of local government is pledged; however, a
12tax for the payment of interest or principal on those bonds
13shall be made only after the governing body of the unit of
14local government finds that all other sources for payment are
15insufficient to make those payments; (f) made for payments
16under a building commission lease when the lease payments are
17for the retirement of bonds issued by the commission before
18October 1, 1991, to pay for the building project; (g) made for
19payments due under installment contracts entered into before
20October 1, 1991; (h) made for payments of principal and
21interest on bonds issued under the Metropolitan Water
22Reclamation District Act to finance construction projects
23initiated before October 1, 1991; (i) made for payments of
24principal and interest on limited bonds, as defined in Section
253 of the Local Government Debt Reform Act, in an amount not to
26exceed the debt service extension base less the amount in items

 

 

10100SB1035sam001- 4 -LRB101 06530 HLH 58925 a

1(b), (c), (e), and (h) of this definition for non-referendum
2obligations, except obligations initially issued pursuant to
3referendum; (j) made for payments of principal and interest on
4bonds issued under Section 15 of the Local Government Debt
5Reform Act; (k) made by a school district that participates in
6the Special Education District of Lake County, created by
7special education joint agreement under Section 10-22.31 of the
8School Code, for payment of the school district's share of the
9amounts required to be contributed by the Special Education
10District of Lake County to the Illinois Municipal Retirement
11Fund under Article 7 of the Illinois Pension Code; the amount
12of any extension under this item (k) shall be certified by the
13school district to the county clerk; (l) made to fund expenses
14of providing joint recreational programs for persons with
15disabilities under Section 5-8 of the Park District Code or
16Section 11-95-14 of the Illinois Municipal Code; (m) made for
17temporary relocation loan repayment purposes pursuant to
18Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
19payment of principal and interest on any bonds issued under the
20authority of Section 17-2.2d of the School Code; (o) made for
21contributions to a firefighter's pension fund created under
22Article 4 of the Illinois Pension Code, to the extent of the
23amount certified under item (5) of Section 4-134 of the
24Illinois Pension Code; and (p) made for road purposes in the
25first year after a township assumes the rights, powers, duties,
26assets, property, liabilities, obligations, and

 

 

10100SB1035sam001- 5 -LRB101 06530 HLH 58925 a

1responsibilities of a road district abolished under the
2provisions of Section 6-133 of the Illinois Highway Code.
3    "Aggregate extension" for the taxing districts to which
4this Law did not apply before the 1995 levy year (except taxing
5districts subject to this Law in accordance with Section
618-213) means the annual corporate extension for the taxing
7district and those special purpose extensions that are made
8annually for the taxing district, excluding special purpose
9extensions: (a) made for the taxing district to pay interest or
10principal on general obligation bonds that were approved by
11referendum; (b) made for any taxing district to pay interest or
12principal on general obligation bonds issued before March 1,
131995; (c) made for any taxing district to pay interest or
14principal on bonds issued to refund or continue to refund those
15bonds issued before March 1, 1995; (d) made for any taxing
16district to pay interest or principal on bonds issued to refund
17or continue to refund bonds issued after March 1, 1995 that
18were approved by referendum; (e) made for any taxing district
19to pay interest or principal on revenue bonds issued before
20March 1, 1995 for payment of which a property tax levy or the
21full faith and credit of the unit of local government is
22pledged; however, a tax for the payment of interest or
23principal on those bonds shall be made only after the governing
24body of the unit of local government finds that all other
25sources for payment are insufficient to make those payments;
26(f) made for payments under a building commission lease when

 

 

10100SB1035sam001- 6 -LRB101 06530 HLH 58925 a

1the lease payments are for the retirement of bonds issued by
2the commission before March 1, 1995 to pay for the building
3project; (g) made for payments due under installment contracts
4entered into before March 1, 1995; (h) made for payments of
5principal and interest on bonds issued under the Metropolitan
6Water Reclamation District Act to finance construction
7projects initiated before October 1, 1991; (h-4) made for
8stormwater management purposes by the Metropolitan Water
9Reclamation District of Greater Chicago under Section 12 of the
10Metropolitan Water Reclamation District Act; (i) made for
11payments of principal and interest on limited bonds, as defined
12in Section 3 of the Local Government Debt Reform Act, in an
13amount not to exceed the debt service extension base less the
14amount in items (b), (c), and (e) of this definition for
15non-referendum obligations, except obligations initially
16issued pursuant to referendum and bonds described in subsection
17(h) of this definition; (j) made for payments of principal and
18interest on bonds issued under Section 15 of the Local
19Government Debt Reform Act; (k) made for payments of principal
20and interest on bonds authorized by Public Act 88-503 and
21issued under Section 20a of the Chicago Park District Act for
22aquarium or museum projects; (l) made for payments of principal
23and interest on bonds authorized by Public Act 87-1191 or
2493-601 and (i) issued pursuant to Section 21.2 of the Cook
25County Forest Preserve District Act, (ii) issued under Section
2642 of the Cook County Forest Preserve District Act for

 

 

10100SB1035sam001- 7 -LRB101 06530 HLH 58925 a

1zoological park projects, or (iii) issued under Section 44.1 of
2the Cook County Forest Preserve District Act for botanical
3gardens projects; (m) made pursuant to Section 34-53.5 of the
4School Code, whether levied annually or not; (n) made to fund
5expenses of providing joint recreational programs for persons
6with disabilities under Section 5-8 of the Park District Code
7or Section 11-95-14 of the Illinois Municipal Code; (o) made by
8the Chicago Park District for recreational programs for persons
9with disabilities under subsection (c) of Section 7.06 of the
10Chicago Park District Act; (p) made for contributions to a
11firefighter's pension fund created under Article 4 of the
12Illinois Pension Code, to the extent of the amount certified
13under item (5) of Section 4-134 of the Illinois Pension Code;
14(q) made by Ford Heights School District 169 under Section
1517-9.02 of the School Code; and (r) made for the purpose of
16making employer contributions to the Public School Teachers'
17Pension and Retirement Fund of Chicago under Section 34-53 of
18the School Code.
19    "Aggregate extension" for all taxing districts to which
20this Law applies in accordance with Section 18-213, except for
21those taxing districts subject to paragraph (2) of subsection
22(e) of Section 18-213, means the annual corporate extension for
23the taxing district and those special purpose extensions that
24are made annually for the taxing district, excluding special
25purpose extensions: (a) made for the taxing district to pay
26interest or principal on general obligation bonds that were

 

 

10100SB1035sam001- 8 -LRB101 06530 HLH 58925 a

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

 

 

10100SB1035sam001- 9 -LRB101 06530 HLH 58925 a

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

 

 

10100SB1035sam001- 10 -LRB101 06530 HLH 58925 a

1Section 19-3.10 of the School Code.
2    "Aggregate extension" for all taxing districts to which
3this Law applies in accordance with paragraph (2) of subsection
4(e) of Section 18-213 means the annual corporate extension for
5the taxing district and those special purpose extensions that
6are made annually for the taxing district, excluding special
7purpose extensions: (a) made for the taxing district to pay
8interest or principal on general obligation bonds that were
9approved by referendum; (b) made for any taxing district to pay
10interest or principal on general obligation bonds issued before
11the effective date of this amendatory Act of 1997; (c) made for
12any taxing district to pay interest or principal on bonds
13issued to refund or continue to refund those bonds issued
14before the effective date of this amendatory Act of 1997; (d)
15made for any taxing district to pay interest or principal on
16bonds issued to refund or continue to refund bonds issued after
17the effective date of this amendatory Act of 1997 if the bonds
18were approved by referendum after the effective date of this
19amendatory Act of 1997; (e) made for any taxing district to pay
20interest or principal on revenue bonds issued before the
21effective date of this amendatory Act of 1997 for payment of
22which a property tax levy or the full faith and credit of the
23unit of local government is pledged; however, a tax for the
24payment of interest or principal on those bonds shall be made
25only after the governing body of the unit of local government
26finds that all other sources for payment are insufficient to

 

 

10100SB1035sam001- 11 -LRB101 06530 HLH 58925 a

1make those payments; (f) made for payments under a building
2commission lease when the lease payments are for the retirement
3of bonds issued by the commission before the effective date of
4this amendatory Act of 1997 to pay for the building project;
5(g) made for payments due under installment contracts entered
6into before the effective date of this amendatory Act of 1997;
7(h) made for payments of principal and interest on limited
8bonds, as defined in Section 3 of the Local Government Debt
9Reform Act, in an amount not to exceed the debt service
10extension base less the amount in items (b), (c), and (e) of
11this definition for non-referendum obligations, except
12obligations initially issued pursuant to referendum; (i) made
13for payments of principal and interest on bonds issued under
14Section 15 of the Local Government Debt Reform Act; (j) made
15for a qualified airport authority to pay interest or principal
16on general obligation bonds issued for the purpose of paying
17obligations due under, or financing airport facilities
18required to be acquired, constructed, installed or equipped
19pursuant to, contracts entered into before March 1, 1996 (but
20not including any amendments to such a contract taking effect
21on or after that date); (k) made to fund expenses of providing
22joint recreational programs for persons with disabilities
23under Section 5-8 of the Park District Code or Section 11-95-14
24of the Illinois Municipal Code; and (l) made for contributions
25to a firefighter's pension fund created under Article 4 of the
26Illinois Pension Code, to the extent of the amount certified

 

 

10100SB1035sam001- 12 -LRB101 06530 HLH 58925 a

1under item (5) of Section 4-134 of the Illinois Pension Code.
2    "Debt service extension base" means an amount equal to that
3portion of the extension for a taxing district for the 1994
4levy year, or for those taxing districts subject to this Law in
5accordance with Section 18-213, except for those subject to
6paragraph (2) of subsection (e) of Section 18-213, for the levy
7year in which the referendum making this Law applicable to the
8taxing district is held, or for those taxing districts subject
9to this Law in accordance with paragraph (2) of subsection (e)
10of Section 18-213 for the 1996 levy year, constituting an
11extension for payment of principal and interest on bonds issued
12by the taxing district without referendum, but not including
13excluded non-referendum bonds. For park districts (i) that were
14first subject to this Law in 1991 or 1995 and (ii) whose
15extension for the 1994 levy year for the payment of principal
16and interest on bonds issued by the park district without
17referendum (but not including excluded non-referendum bonds)
18was less than 51% of the amount for the 1991 levy year
19constituting an extension for payment of principal and interest
20on bonds issued by the park district without referendum (but
21not including excluded non-referendum bonds), "debt service
22extension base" means an amount equal to that portion of the
23extension for the 1991 levy year constituting an extension for
24payment of principal and interest on bonds issued by the park
25district without referendum (but not including excluded
26non-referendum bonds). A debt service extension base

 

 

10100SB1035sam001- 13 -LRB101 06530 HLH 58925 a

1established or increased at any time pursuant to any provision
2of this Law, except Section 18-212, shall be increased each
3year commencing with the later of (i) the 2009 levy year or
4(ii) the first levy year in which this Law becomes applicable
5to the taxing district, by the lesser of 5% or the percentage
6increase in the Consumer Price Index during the 12-month
7calendar year preceding the levy year. The debt service
8extension base may be established or increased as provided
9under Section 18-212. "Excluded non-referendum bonds" means
10(i) bonds authorized by Public Act 88-503 and issued under
11Section 20a of the Chicago Park District Act for aquarium and
12museum projects; (ii) bonds issued under Section 15 of the
13Local Government Debt Reform Act; or (iii) refunding
14obligations issued to refund or to continue to refund
15obligations initially issued pursuant to referendum.
16    "Special purpose extensions" include, but are not limited
17to, extensions for levies made on an annual basis for
18unemployment and workers' compensation, self-insurance,
19contributions to pension plans, and extensions made pursuant to
20Section 6-601 of the Illinois Highway Code for a road
21district's permanent road fund whether levied annually or not.
22The extension for a special service area is not included in the
23aggregate extension.
24    "Aggregate extension base" means the taxing district's
25last preceding aggregate extension as adjusted under Sections
2618-135, 18-215, 18-230, and 18-206. An adjustment under Section

 

 

10100SB1035sam001- 14 -LRB101 06530 HLH 58925 a

118-135 shall be made for the 2007 levy year and all subsequent
2levy years whenever one or more counties within which a taxing
3district is located (i) used estimated valuations or rates when
4extending taxes in the taxing district for the last preceding
5levy year that resulted in the over or under extension of
6taxes, or (ii) increased or decreased the tax extension for the
7last preceding levy year as required by Section 18-135(c).
8Whenever an adjustment is required under Section 18-135, the
9aggregate extension base of the taxing district shall be equal
10to the amount that the aggregate extension of the taxing
11district would have been for the last preceding levy year if
12either or both (i) actual, rather than estimated, valuations or
13rates had been used to calculate the extension of taxes for the
14last levy year, or (ii) the tax extension for the last
15preceding levy year had not been adjusted as required by
16subsection (c) of Section 18-135.
17    Notwithstanding any other provision of law, for levy year
182012, the aggregate extension base for West Northfield School
19District No. 31 in Cook County shall be $12,654,592.
20    "Levy year" has the same meaning as "year" under Section
211-155.
22    "New property" means (i) the assessed value, after final
23board of review or board of appeals action, of new improvements
24or additions to existing improvements on any parcel of real
25property that increase the assessed value of that real property
26during the levy year multiplied by the equalization factor

 

 

10100SB1035sam001- 15 -LRB101 06530 HLH 58925 a

1issued by the Department under Section 17-30, (ii) the assessed
2value, after final board of review or board of appeals action,
3of real property not exempt from real estate taxation, which
4real property was exempt from real estate taxation for any
5portion of the immediately preceding levy year, multiplied by
6the equalization factor issued by the Department under Section
717-30, including the assessed value, upon final stabilization
8of occupancy after new construction is complete, of any real
9property located within the boundaries of an otherwise or
10previously exempt military reservation that is intended for
11residential use and owned by or leased to a private corporation
12or other entity, (iii) in counties that classify in accordance
13with Section 4 of Article IX of the Illinois Constitution, an
14incentive property's additional assessed value resulting from
15a scheduled increase in the level of assessment as applied to
16the first year final board of review market value, and (iv) any
17increase in assessed value due to oil or gas production from an
18oil or gas well required to be permitted under the Hydraulic
19Fracturing Regulatory Act that was not produced in or accounted
20for during the previous levy year. In addition, the county
21clerk in a county containing a population of 3,000,000 or more
22shall include in the 1997 recovered tax increment value for any
23school district, any recovered tax increment value that was
24applicable to the 1995 tax year calculations.
25    "Qualified airport authority" means an airport authority
26organized under the Airport Authorities Act and located in a

 

 

10100SB1035sam001- 16 -LRB101 06530 HLH 58925 a

1county bordering on the State of Wisconsin and having a
2population in excess of 200,000 and not greater than 500,000.
3    "Recovered tax increment value" means, except as otherwise
4provided in this paragraph, the amount of the current year's
5equalized assessed value, in the first year after a
6municipality terminates the designation of an area as a
7redevelopment project area previously established under the
8Tax Increment Allocation Development Act in the Illinois
9Municipal Code, previously established under the Industrial
10Jobs Recovery Law in the Illinois Municipal Code, previously
11established under the Economic Development Project Area Tax
12Increment Act of 1995, or previously established under the
13Economic Development Area Tax Increment Allocation Act, of each
14taxable lot, block, tract, or parcel of real property in the
15redevelopment project area over and above the initial equalized
16assessed value of each property in the redevelopment project
17area. If a municipality has failed to provide timely notice to
18all taxing bodies of the termination of a redevelopment project
19area under Section 11-74.4-8 of the Illinois Municipal Code and
20the county clerk has been notified of that failure, then
21"recovered tax increment value" means the amount of the current
22year's equalized assessed value in the first year beginning at
23least 60 days after the notice has been provided. For the taxes
24which are extended for the 1997 levy year, the recovered tax
25increment value for a non-home rule taxing district that first
26became subject to this Law for the 1995 levy year because a

 

 

10100SB1035sam001- 17 -LRB101 06530 HLH 58925 a

1majority of its 1994 equalized assessed value was in an
2affected county or counties shall be increased if a
3municipality terminated the designation of an area in 1993 as a
4redevelopment project area previously established under the
5Tax Increment Allocation Development Act in the Illinois
6Municipal Code, previously established under the Industrial
7Jobs Recovery Law in the Illinois Municipal Code, or previously
8established under the Economic Development Area Tax Increment
9Allocation Act, by an amount equal to the 1994 equalized
10assessed value of each taxable lot, block, tract, or parcel of
11real property in the redevelopment project area over and above
12the initial equalized assessed value of each property in the
13redevelopment project area. In the first year after a
14municipality removes a taxable lot, block, tract, or parcel of
15real property from a redevelopment project area established
16under the Tax Increment Allocation Development Act in the
17Illinois Municipal Code, the Industrial Jobs Recovery Law in
18the Illinois Municipal Code, or the Economic Development Area
19Tax Increment Allocation Act, "recovered tax increment value"
20means the amount of the current year's equalized assessed value
21of each taxable lot, block, tract, or parcel of real property
22removed from the redevelopment project area over and above the
23initial equalized assessed value of that real property before
24removal from the redevelopment project area.
25    Except as otherwise provided in this Section, "limiting
26rate" means a fraction the numerator of which is the last

 

 

10100SB1035sam001- 18 -LRB101 06530 HLH 58925 a

1preceding aggregate extension base times an amount equal to one
2plus the extension limitation defined in this Section and the
3denominator of which is the current year's equalized assessed
4value of all real property in the territory under the
5jurisdiction of the taxing district during the prior levy year.
6For those taxing districts that reduced their aggregate
7extension for the last preceding levy year, except for school
8districts that reduced their extension for educational
9purposes pursuant to Section 18-206, the highest aggregate
10extension in any of the last 3 preceding levy years shall be
11used for the purpose of computing the limiting rate. The
12denominator shall not include new property or the recovered tax
13increment value. If a new rate, a rate decrease, or a limiting
14rate increase has been approved at an election held after March
1521, 2006, then (i) the otherwise applicable limiting rate shall
16be increased by the amount of the new rate or shall be reduced
17by the amount of the rate decrease, as the case may be, or (ii)
18in the case of a limiting rate increase, the limiting rate
19shall be equal to the rate set forth in the proposition
20approved by the voters for each of the years specified in the
21proposition, after which the limiting rate of the taxing
22district shall be calculated as otherwise provided. In the case
23of a taxing district that obtained referendum approval for an
24increased limiting rate on March 20, 2012, the limiting rate
25for tax year 2012 shall be the rate that generates the
26approximate total amount of taxes extendable for that tax year,

 

 

10100SB1035sam001- 19 -LRB101 06530 HLH 58925 a

1as set forth in the proposition approved by the voters; this
2rate shall be the final rate applied by the county clerk for
3the aggregate of all capped funds of the district for tax year
42012.
5(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
6100-465, eff. 8-31-17.)
 
7    Section 10. The Illinois Municipal Code is amended by
8changing Section 11-74.4-8 as follows:
 
9    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
10    Sec. 11-74.4-8. Tax increment allocation financing. A
11municipality may not adopt tax increment financing in a
12redevelopment project area after the effective date of this
13amendatory Act of 1997 that will encompass an area that is
14currently included in an enterprise zone created under the
15Illinois Enterprise Zone Act unless that municipality,
16pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
17amends the enterprise zone designating ordinance to limit the
18eligibility for tax abatements as provided in Section 5.4.1 of
19the Illinois Enterprise Zone Act. A municipality, at the time a
20redevelopment project area is designated, may adopt tax
21increment allocation financing by passing an ordinance
22providing that the ad valorem taxes, if any, arising from the
23levies upon taxable real property in such redevelopment project
24area by taxing districts and tax rates determined in the manner

 

 

10100SB1035sam001- 20 -LRB101 06530 HLH 58925 a

1provided in paragraph (c) of Section 11-74.4-9 each year after
2the effective date of the ordinance until redevelopment project
3costs and all municipal obligations financing redevelopment
4project costs incurred under this Division have been paid shall
5be divided as follows, provided, however, that with respect to
6any redevelopment project area located within a transit
7facility improvement area established pursuant to Section
811-74.4-3.3 in a municipality with a population of 1,000,000 or
9more, ad valorem taxes, if any, arising from the levies upon
10taxable real property in such redevelopment project area shall
11be allocated as specifically provided in this Section:
12        (a) That portion of taxes levied upon each taxable lot,
13    block, tract or parcel of real property which is
14    attributable to the lower of the current equalized assessed
15    value or the initial equalized assessed value of each such
16    taxable lot, block, tract or parcel of real property in the
17    redevelopment project area shall be allocated to and when
18    collected shall be paid by the county collector to the
19    respective affected taxing districts in the manner
20    required by law in the absence of the adoption of tax
21    increment allocation financing.
22        (b) Except from a tax levied by a township to retire
23    bonds issued to satisfy court-ordered damages, that
24    portion, if any, of such taxes which is attributable to the
25    increase in the current equalized assessed valuation of
26    each taxable lot, block, tract or parcel of real property

 

 

10100SB1035sam001- 21 -LRB101 06530 HLH 58925 a

1    in the redevelopment project area over and above the
2    initial equalized assessed value of each property in the
3    project area shall be allocated to and when collected shall
4    be paid to the municipal treasurer who shall deposit said
5    taxes into a special fund called the special tax allocation
6    fund of the municipality for the purpose of paying
7    redevelopment project costs and obligations incurred in
8    the payment thereof. In any county with a population of
9    3,000,000 or more that has adopted a procedure for
10    collecting taxes that provides for one or more of the
11    installments of the taxes to be billed and collected on an
12    estimated basis, the municipal treasurer shall be paid for
13    deposit in the special tax allocation fund of the
14    municipality, from the taxes collected from estimated
15    bills issued for property in the redevelopment project
16    area, the difference between the amount actually collected
17    from each taxable lot, block, tract, or parcel of real
18    property within the redevelopment project area and an
19    amount determined by multiplying the rate at which taxes
20    were last extended against the taxable lot, block, track,
21    or parcel of real property in the manner provided in
22    subsection (c) of Section 11-74.4-9 by the initial
23    equalized assessed value of the property divided by the
24    number of installments in which real estate taxes are
25    billed and collected within the county; provided that the
26    payments on or before December 31, 1999 to a municipal

 

 

10100SB1035sam001- 22 -LRB101 06530 HLH 58925 a

1    treasurer shall be made only if each of the following
2    conditions are met:
3            (1) The total equalized assessed value of the
4        redevelopment project area as last determined was not
5        less than 175% of the total initial equalized assessed
6        value.
7            (2) Not more than 50% of the total equalized
8        assessed value of the redevelopment project area as
9        last determined is attributable to a piece of property
10        assigned a single real estate index number.
11            (3) The municipal clerk has certified to the county
12        clerk that the municipality has issued its obligations
13        to which there has been pledged the incremental
14        property taxes of the redevelopment project area or
15        taxes levied and collected on any or all property in
16        the municipality or the full faith and credit of the
17        municipality to pay or secure payment for all or a
18        portion of the redevelopment project costs. The
19        certification shall be filed annually no later than
20        September 1 for the estimated taxes to be distributed
21        in the following year; however, for the year 1992 the
22        certification shall be made at any time on or before
23        March 31, 1992.
24            (4) The municipality has not requested that the
25        total initial equalized assessed value of real
26        property be adjusted as provided in subsection (b) of

 

 

10100SB1035sam001- 23 -LRB101 06530 HLH 58925 a

1        Section 11-74.4-9.
2        The conditions of paragraphs (1) through (4) do not
3    apply after December 31, 1999 to payments to a municipal
4    treasurer made by a county with 3,000,000 or more
5    inhabitants that has adopted an estimated billing
6    procedure for collecting taxes. If a county that has
7    adopted the estimated billing procedure makes an erroneous
8    overpayment of tax revenue to the municipal treasurer, then
9    the county may seek a refund of that overpayment. The
10    county shall send the municipal treasurer a notice of
11    liability for the overpayment on or before the mailing date
12    of the next real estate tax bill within the county. The
13    refund shall be limited to the amount of the overpayment.
14        It is the intent of this Division that after the
15    effective date of this amendatory Act of 1988 a
16    municipality's own ad valorem tax arising from levies on
17    taxable real property be included in the determination of
18    incremental revenue in the manner provided in paragraph (c)
19    of Section 11-74.4-9. If the municipality does not extend
20    such a tax, it shall annually deposit in the municipality's
21    Special Tax Increment Fund an amount equal to 10% of the
22    total contributions to the fund from all other taxing
23    districts in that year. The annual 10% deposit required by
24    this paragraph shall be limited to the actual amount of
25    municipally produced incremental tax revenues available to
26    the municipality from taxpayers located in the

 

 

10100SB1035sam001- 24 -LRB101 06530 HLH 58925 a

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

 

 

10100SB1035sam001- 25 -LRB101 06530 HLH 58925 a

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

 

 

10100SB1035sam001- 26 -LRB101 06530 HLH 58925 a

1        or parcel of real property in the redevelopment project
2        area, over and above the initial equalized assessed
3        value of each property existing at the time tax
4        increment financing was adopted, minus the total
5        current homestead exemptions pertaining to each piece
6        of property provided by Article 15 of the Property Tax
7        Code in the redevelopment project area, shall be
8        allocated to and when collected shall be paid to the
9        municipal Treasurer, who shall deposit said taxes into
10        a special fund called the special tax allocation fund
11        of the municipality for the purpose of paying
12        redevelopment project costs and obligations incurred
13        in the payment thereof.
14        The municipality may pledge in the ordinance the funds
15    in and to be deposited in the special tax allocation fund
16    for the payment of such costs and obligations. No part of
17    the current equalized assessed valuation of each property
18    in the redevelopment project area attributable to any
19    increase above the total initial equalized assessed value,
20    or the total initial equalized assessed value as adjusted,
21    of such properties shall be used in calculating the general
22    State aid formula, provided for in Section 18-8 of the
23    School Code, or the evidence-based funding formula,
24    provided for in Section 18-8.15 of the School Code, until
25    such time as all redevelopment project costs have been paid
26    as provided for in this Section.

 

 

10100SB1035sam001- 27 -LRB101 06530 HLH 58925 a

1        Whenever a municipality issues bonds for the purpose of
2    financing redevelopment project costs, such municipality
3    may provide by ordinance for the appointment of a trustee,
4    which may be any trust company within the State, and for
5    the establishment of such funds or accounts to be
6    maintained by such trustee as the municipality shall deem
7    necessary to provide for the security and payment of the
8    bonds. If such municipality provides for the appointment of
9    a trustee, such trustee shall be considered the assignee of
10    any payments assigned by the municipality pursuant to such
11    ordinance and this Section. Any amounts paid to such
12    trustee as assignee shall be deposited in the funds or
13    accounts established pursuant to such trust agreement, and
14    shall be held by such trustee in trust for the benefit of
15    the holders of the bonds, and such holders shall have a
16    lien on and a security interest in such funds or accounts
17    so long as the bonds remain outstanding and unpaid. Upon
18    retirement of the bonds, the trustee shall pay over any
19    excess amounts held to the municipality for deposit in the
20    special tax allocation fund.
21        When such redevelopment projects costs, including
22    without limitation all municipal obligations financing
23    redevelopment project costs incurred under this Division,
24    have been paid, all surplus funds then remaining in the
25    special tax allocation fund shall be distributed by being
26    paid by the municipal treasurer to the Department of

 

 

10100SB1035sam001- 28 -LRB101 06530 HLH 58925 a

1    Revenue, the municipality and the county collector; first
2    to the Department of Revenue and the municipality in direct
3    proportion to the tax incremental revenue received from the
4    State and the municipality, but not to exceed the total
5    incremental revenue received from the State or the
6    municipality less any annual surplus distribution of
7    incremental revenue previously made; with any remaining
8    funds to be paid to the County Collector who shall
9    immediately thereafter pay said funds to the taxing
10    districts in the redevelopment project area in the same
11    manner and proportion as the most recent distribution by
12    the county collector to the affected districts of real
13    property taxes from real property in the redevelopment
14    project area.
15        Upon the payment of all redevelopment project costs,
16    the retirement of obligations, the distribution of any
17    excess monies pursuant to this Section, and final closing
18    of the books and records of the redevelopment project area,
19    the municipality, if it has not already done so, shall
20    adopt an ordinance dissolving the special tax allocation
21    fund for the redevelopment project area and terminating the
22    designation of the redevelopment project area as a
23    redevelopment project area. Title to real or personal
24    property and public improvements acquired by or for the
25    municipality as a result of the redevelopment project and
26    plan shall vest in the municipality when acquired and shall

 

 

10100SB1035sam001- 29 -LRB101 06530 HLH 58925 a

1    continue to be held by the municipality after the
2    redevelopment project area has been terminated.
3    Municipalities shall notify affected taxing districts
4    prior to July 1 November 1 if the redevelopment project
5    area is to be terminated by December 31 of that same year.
6    If a municipality extends estimated dates of completion of
7    a redevelopment project and retirement of obligations to
8    finance a redevelopment project, as allowed by this
9    amendatory Act of 1993, that extension shall not extend the
10    property tax increment allocation financing authorized by
11    this Section. Thereafter the rates of the taxing districts
12    shall be extended and taxes levied, collected and
13    distributed in the manner applicable in the absence of the
14    adoption of tax increment allocation financing.
15        After the effective date of this amendatory Act of the
16    101st General Assembly, any new ordinance adopting tax
17    increment financing in a redevelopment project area shall
18    specify a date for the dissolution of the special tax
19    allocation fund for the redevelopment project area and a
20    date for the termination of the designation of the
21    redevelopment project area as a redevelopment project
22    area. The municipality may amend the ordinance at any time
23    to change the date of termination. No later than 90 days
24    after the effective date of this amendatory Act of the
25    101st General Assembly, each municipality shall amend all
26    existing tax increment financing ordinances to specify a

 

 

10100SB1035sam001- 30 -LRB101 06530 HLH 58925 a

1    date for the dissolution of the special tax allocation fund
2    for the redevelopment project area and a date for
3    termination of the designation of the redevelopment
4    project area as a redevelopment project area. The date of
5    termination as originally designated or designated by the
6    amendment of the ordinance shall be consistent with the
7    terms of Section 11-74.4-3.5.
8        If a municipality with a population of 1,000,000 or
9    more has adopted by ordinance tax increment allocation
10    financing for a redevelopment project area located in a
11    transit facility improvement area established pursuant to
12    Section 11-74.4-3.3, for each year after the effective date
13    of the ordinance until redevelopment project costs and all
14    municipal obligations financing redevelopment project
15    costs have been paid, the ad valorem taxes, if any, arising
16    from the levies upon the taxable real property in that
17    redevelopment project area by taxing districts and tax
18    rates determined in the manner provided in paragraph (c) of
19    Section 11-74.4-9 shall be divided as follows:
20            (1) That portion of the taxes levied upon each
21        taxable lot, block, tract or parcel of real property
22        which is attributable to the lower of (i) the current
23        equalized assessed value or "current equalized
24        assessed value as adjusted" or (ii) the initial
25        equalized assessed value of each such taxable lot,
26        block, tract, or parcel of real property existing at

 

 

10100SB1035sam001- 31 -LRB101 06530 HLH 58925 a

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

 

 

10100SB1035sam001- 32 -LRB101 06530 HLH 58925 a

1            adoption of tax increment allocation financing;
2            then
3                (B) 80% of the remaining portion shall be paid
4            to the municipal Treasurer, who shall deposit said
5            taxes into a special fund called the special tax
6            allocation fund of the municipality for the
7            purpose of paying redevelopment project costs and
8            obligations incurred in the payment thereof; and
9            then
10                (C) 20% of the remaining portion shall be paid
11            to the respective affected taxing districts, other
12            than the school district described in clause (a)
13            above, in the manner required by law in the absence
14            of the adoption of tax increment allocation
15            financing.
16    Nothing in this Section shall be construed as relieving
17property in such redevelopment project areas from being
18assessed as provided in the Property Tax Code or as relieving
19owners of such property from paying a uniform rate of taxes, as
20required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17.)".