101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3017

 

Introduced 2/5/2020, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-9  from Ch. 24, par. 11-74.4-9

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.


LRB101 19608 AWJ 69088 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3017LRB101 19608 AWJ 69088 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 Illinois Municipal Code is amended by
5changing Section 11-74.4-9 as follows:
 
6    (65 ILCS 5/11-74.4-9)   (from Ch. 24, par. 11-74.4-9)
7    Sec. 11-74.4-9. Equalized assessed value of property.
8    (a) Except as provided in subsection (a-5), if If a
9municipality by ordinance provides for tax increment
10allocation financing pursuant to Section 11-74.4-8, the county
11clerk immediately thereafter shall determine (1) the most
12recently ascertained equalized assessed value of each lot,
13block, tract or parcel of real property within such
14redevelopment project area from which shall be deducted the
15homestead exemptions under Article 15 of the Property Tax Code,
16which value shall be the "initial equalized assessed value" of
17each such piece of property, and (2) the total equalized
18assessed value of all taxable real property within such
19redevelopment project area by adding together the most recently
20ascertained equalized assessed value of each taxable lot,
21block, tract, or parcel of real property within such project
22area, from which shall be deducted the homestead exemptions
23provided by Sections 15-170, 15-175, and 15-176 of the Property

 

 

SB3017- 2 -LRB101 19608 AWJ 69088 b

1Tax Code, and shall certify such amount as the "total initial
2equalized assessed value" of the taxable real property within
3such project area.
4    (a-5) If the county clerk determines that any lot, block,
5tract, or parcel of real property within a redevelopment
6project area is not taxable or has an initial equalized
7assessed value of $0 as determined in subsection (a), then the
8fair market value of the lot, block, tract, or parcel shall be
9instead determined by a written MAI-certified appraisal or by a
10written certified appraisal of a State-certified or
11State-licensed real estate appraiser. The appraisal shall be
12available for public inspection no later than 90 days after the
13date that the ordinance for tax increment allocation financing
14under Section 11-74.4-8 was adopted by the municipality. The
15appraiser's conclusion of fair market value shall be converted
16by the county clerk to an assessed value using the appropriate
17level of assessment and then equalized by using the most recent
18equalization factor. The county clerk shall use the resulting
19figure as the initial equalized assessed value of the lot,
20block, tract, or parcel and shall add this initial equalized
21assessed value to the total initial equalized assessed value of
22the taxable real property within the redevelopment project
23area. For purposes of paragraphs (b) and (c), the lot, block,
24tract, or parcel of real property shall be considered taxable
25real property. This subsection applies only to ordinances
26adopted on or after the effective date of this amendatory Act

 

 

SB3017- 3 -LRB101 19608 AWJ 69088 b

1of the 101st General Assembly.
2    (b) In reference to any municipality which has adopted tax
3increment financing after January 1, 1978, and in respect to
4which the county clerk has certified the "total initial
5equalized assessed value" of the property in the redevelopment
6area, the municipality may thereafter request the clerk in
7writing to adjust the initial equalized value of all taxable
8real property within the redevelopment project area by
9deducting therefrom the exemptions under Article 15 of the
10Property Tax Code applicable to each lot, block, tract or
11parcel of real property within such redevelopment project area.
12The county clerk shall immediately after the written request to
13adjust the total initial equalized value is received determine
14the total homestead exemptions in the redevelopment project
15area provided by Sections 15-170, 15-175, and 15-176 of the
16Property Tax Code by adding together the homestead exemptions
17provided by said Sections on each lot, block, tract or parcel
18of real property within such redevelopment project area and
19then shall deduct the total of said exemptions from the total
20initial equalized assessed value. The county clerk shall then
21promptly certify such amount as the "total initial equalized
22assessed value as adjusted" of the taxable real property within
23such redevelopment project area.
24    (c) After the county clerk has certified the "total initial
25equalized assessed value" of the taxable real property in such
26area, then in respect to every taxing district containing a

 

 

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1redevelopment project area, the county clerk or any other
2official required by law to ascertain the amount of the
3equalized assessed value of all taxable property within such
4district for the purpose of computing the rate per cent of tax
5to be extended upon taxable property within such district,
6shall in every year that tax increment allocation financing is
7in effect ascertain the amount of value of taxable property in
8a redevelopment project area by including in such amount the
9lower of the current equalized assessed value or the certified
10"total initial equalized assessed value" of all taxable real
11property in such area, except that after he has certified the
12"total initial equalized assessed value as adjusted" he shall
13in the year of said certification if tax rates have not been
14extended and in every year thereafter that tax increment
15allocation financing is in effect ascertain the amount of value
16of taxable property in a redevelopment project area by
17including in such amount the lower of the current equalized
18assessed value or the certified "total initial equalized
19assessed value as adjusted" of all taxable real property in
20such area. The rate per cent of tax determined shall be
21extended to the current equalized assessed value of all
22property in the redevelopment project area in the same manner
23as the rate per cent of tax is extended to all other taxable
24property in the taxing district. The method of extending taxes
25established under this Section shall terminate when the
26municipality adopts an ordinance dissolving the special tax

 

 

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1allocation fund for the redevelopment project area. This
2Division shall not be construed as relieving property owners
3within a redevelopment project area from paying a uniform rate
4of taxes upon the current equalized assessed value of their
5taxable property as provided in the Property Tax Code.
6(Source: P.A. 95-644, eff. 10-12-07.)