96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3952

 

Introduced 11/4/2010, by Sen. James F. Clayborne, Jr.

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.3-2  from Ch. 24, par. 11-74.3-2
65 ILCS 5/11-74.3-3  from Ch. 24, par. 11-74.3-3
65 ILCS 5/11-74.3-5
65 ILCS 5/11-74.3-6

    Amends the Illinois Municipal Code with respect to the Business District Development and Redevelopment Law. Corrects cross-references. Requires address information to be reported to the Department of Revenue by April 1. Effective immediately.


LRB096 23972 RLJ 43369 b

 

 

A BILL FOR

 

SB3952LRB096 23972 RLJ 43369 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 Sections 11-74.3-2, 11-74.3-3, 11-74.3-5, and
611-74.3-6 as follows:
 
7    (65 ILCS 5/11-74.3-2)  (from Ch. 24, par. 11-74.3-2)
8    Sec. 11-74.3-2. Procedures to designate business
9districts; ordinances; notice; hearings.
10    (a) The corporate authorities of a municipality shall by
11ordinance propose the approval of a business district plan and
12designation of a business district and shall fix a time and
13place for a public hearing on the proposals to approve a
14business district plan and designate a business district.
15    (b) Notice of the public hearing shall be given by
16publication at least twice, the first publication to be not
17more than 30 nor less than 10 days prior to the hearing, in a
18newspaper of general circulation within the municipality. Each
19notice published pursuant to this Section shall include the
20following:
21        (1) The time and place of the public hearing;
22        (2) The boundaries of the proposed business district by
23    legal description and, where possible, by street location;

 

 

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1        (3) A notification that all interested persons will be
2    given an opportunity to be heard at the public hearing;
3        (4) A description of the business district plan if a
4    business district plan is a subject matter of the public
5    hearing;
6        (5) The rate of any tax to be imposed pursuant to
7    subsection (10) (11) or (11) (12) of Section 11-74.3-3;
8        (6) An invitation for any person to submit alternate
9    proposals or bids for any proposed conveyance, lease,
10    mortgage, or other disposition by the municipality of land
11    or rights in land owned by the municipality and located
12    within the proposed business district; and
13        (7) Such other matters as the municipality shall deem
14    appropriate.
15    (c) At the public hearing any interested person may file
16written objections with the municipal clerk and may be heard
17orally with respect to any matters embodied in the notice. The
18municipality shall hear and determine all alternate proposals
19or bids for any proposed conveyance, lease, mortgage, or other
20disposition by the municipality of land or rights in land owned
21by the municipality and located within the proposed business
22district and all protests and objections at the hearing,
23provided, however, that the corporate authorities of the
24municipality may establish reasonable rules regarding the
25length of time provided to members of the general public. The
26hearing may be adjourned to another date without further notice

 

 

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1other than a motion to be entered upon the minutes fixing the
2time and place of the adjourned hearing. Public hearings with
3regard to approval of a business district plan or designation
4of a business district may be held simultaneously.
5    (d) At the public hearing or at any time prior to the
6adoption by the municipality of an ordinance approving a
7business district plan, the municipality may make changes in
8the business district plan. Changes which do not (i) alter the
9exterior boundaries of the proposed business district, (ii)
10substantially affect the general land uses described in the
11proposed business district plan, (iii) substantially change
12the nature of any proposed business district project, (iv)
13change the description of any proposed developer, user, or
14tenant of any property to be located or improved within the
15proposed business district, (v) increase the total estimated
16business district project costs set out in the business
17district plan by more than 5%, (vi) add additional business
18district costs to the itemized list of estimated business
19district costs as proposed in the business district plan, or
20(vii) impose or increase the rate of any tax to be imposed
21pursuant to subsection (10) (11) or (11) (12) of Section
2211-74.3-3 may be made by the municipality without further
23public hearing, provided the municipality shall give notice of
24its changes by publication in a newspaper of general
25circulation within the municipality. Such notice by
26publication shall be given not later than 30 days following the

 

 

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1adoption of an ordinance approving such changes. Changes which
2(i) alter the exterior boundaries of the proposed business
3district, (ii) substantially affect the general land uses
4described in the proposed business district plan, (iii)
5substantially change the nature of any proposed business
6district project, (iv) change the description of any proposed
7developer, user, or tenant of any property to be located or
8improved within the proposed business district, (v) increase
9the total estimated business district project costs set out in
10the business district plan by more than 5%, (vi) add additional
11business district costs to the itemized list of estimated
12business district costs as proposed in the business district
13plan, or (vii) impose or increase the rate of any tax to be
14imposed pursuant to subsection (10) (11) or (11) (12) of
15Section 11-74.3-3 may be made by the municipality only after
16the municipality by ordinance fixes a time and place for, gives
17notice by publication of, and conducts a public hearing
18pursuant to the procedures set forth hereinabove.
19    (e) By ordinance adopted within 90 days of the final
20adjournment of the public hearing a municipality may approve
21the business district plan and designate the business district.
22Any ordinance adopted which approves a business district plan
23shall contain findings that the business district on the whole
24has not been subject to growth and development through
25investment by private enterprises and would not reasonably be
26anticipated to be developed or redeveloped without the adoption

 

 

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1of the business district plan. Any ordinance adopted which
2designates a business district shall contain the boundaries of
3such business district by legal description and, where
4possible, by street location, a finding that the business
5district plan conforms to the comprehensive plan for the
6development of the municipality as a whole, or, for
7municipalities with a population of 100,000 or more, regardless
8of when the business district plan was approved, the business
9district plan either (i) conforms to the strategic economic
10development or redevelopment plan issued by the designated
11planning authority or the municipality or (ii) includes land
12uses that have been approved by the planning commission of the
13municipality, and, for any business district in which the
14municipality intends to impose taxes as provided in subsection
15(10) (11) or (11) (12) of Section 11-74.3-3, a specific finding
16that the business district qualifies as a blighted area as
17defined in Section 11-74.3-5.
18    (f) After a municipality has by ordinance approved a
19business district plan and designated a business district, the
20plan may be amended, the boundaries of the business district
21may be altered, and the taxes provided for in subsections (10)
22(11) and (11) (12) of Section 11-74.3-3 may be imposed or
23altered only as provided in this subsection. Changes which do
24not (i) alter the exterior boundaries of the proposed business
25district, (ii) substantially affect the general land uses
26described in the business district plan, (iii) substantially

 

 

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1change the nature of any business district project, (iv) change
2the description of any developer, user, or tenant of any
3property to be located or improved within the proposed business
4district, (v) increase the total estimated business district
5project costs set out in the business district plan by more
6than 5% after adjustment for inflation from the date the
7business district plan was approved, (vi) add additional
8business district costs to the itemized list of estimated
9business district costs as approved in the business district
10plan, or (vii) impose or increase the rate of any tax to be
11imposed pursuant to subsection (10) (11) or (11) (12) of
12Section 11-74.3-3 may be made by the municipality without
13further public hearing, provided the municipality shall give
14notice of its changes by publication in a newspaper of general
15circulation within the municipality. Such notice by
16publication shall be given not later than 30 days following the
17adoption of an ordinance approving such changes. Changes which
18(i) alter the exterior boundaries of the business district,
19(ii) substantially affect the general land uses described in
20the business district plan, (iii) substantially change the
21nature of any business district project, (iv) change the
22description of any developer, user, or tenant of any property
23to be located or improved within the proposed business
24district, (v) increase the total estimated business district
25project costs set out in the business district plan by more
26than 5% after adjustment for inflation from the date the

 

 

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1business district plan was approved, (vi) add additional
2business district costs to the itemized list of estimated
3business district costs as approved in the business district
4plan, or (vii) impose or increase the rate of any tax to be
5imposed pursuant to subsection (10) (11) or (11) (12) of
6Section 11-74.3-3 may be made by the municipality only after
7the municipality by ordinance fixes a time and place for, gives
8notice by publication of, and conducts a public hearing
9pursuant to the procedures set forth in this Section.
10(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
11    (65 ILCS 5/11-74.3-3)  (from Ch. 24, par. 11-74.3-3)
12    Sec. 11-74.3-3. Powers of municipalities. In addition to
13the powers a municipality may now have, a municipality shall
14have the following powers:
15        (1) To make and enter into all contracts necessary or
16    incidental to the implementation and furtherance of a
17    business district plan. A contract by and between the
18    municipality and any developer or other nongovernmental
19    person to pay or reimburse said developer or other
20    nongovernmental person for business district project costs
21    incurred or to be incurred by said developer or other
22    nongovernmental person shall not be deemed an economic
23    incentive agreement under Section 8-11-20, notwithstanding
24    the fact that such contract provides for the sharing,
25    rebate, or payment of retailers' occupation taxes or

 

 

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1    service occupation taxes (including, without limitation,
2    taxes imposed pursuant to subsection (10) (11)) the
3    municipality receives from the development or
4    redevelopment of properties in the business district.
5    Contracts entered into pursuant to this subsection shall be
6    binding upon successor corporate authorities of the
7    municipality and any party to such contract may seek to
8    enforce and compel performance of the contract by civil
9    action, mandamus, injunction, or other proceeding.
10        (2) Within a business district, to acquire by purchase,
11    donation, or lease, and to own, convey, lease, mortgage, or
12    dispose of land and other real or personal property or
13    rights or interests therein; and to grant or acquire
14    licenses, easements, and options with respect thereto, all
15    in the manner and at such price authorized by law. No
16    conveyance, lease, mortgage, disposition of land or other
17    property acquired by the municipality, or agreement
18    relating to the development of property, shall be made or
19    executed except pursuant to prior official action of the
20    municipality. No conveyance, lease, mortgage, or other
21    disposition of land owned by the municipality, and no
22    agreement relating to the development of property, within a
23    business district shall be made without making public
24    disclosure of the terms and disposition of all bids and
25    proposals submitted to the municipality in connection
26    therewith.

 

 

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1        (2.5) To acquire property by eminent domain in
2    accordance with the Eminent Domain Act.
3        (3) To clear any area within a business district by
4    demolition or removal of any existing buildings,
5    structures, fixtures, utilities, or improvements, and to
6    clear and grade land.
7        (4) To install, repair, construct, reconstruct, or
8    relocate public streets, public utilities, and other
9    public site improvements within or without a business
10    district which are essential to the preparation of a
11    business district for use in accordance with a business
12    district plan.
13        (5) To renovate, rehabilitate, reconstruct, relocate,
14    repair, or remodel any existing buildings, structures,
15    works, utilities, or fixtures within any business
16    district.
17        (6) To construct public improvements, including but
18    not limited to buildings, structures, works, utilities, or
19    fixtures within any business district.
20        (7) To fix, charge, and collect fees, rents, and
21    charges for the use of any building, facility, or property
22    or any portion thereof owned or leased by the municipality
23    within a business district.
24        (8) To pay or cause to be paid business district
25    project costs. Any payments to be made by the municipality
26    to developers or other nongovernmental persons for

 

 

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1    business district project costs incurred by such developer
2    or other nongovernmental person shall be made only pursuant
3    to the prior official action of the municipality evidencing
4    an intent to pay or cause to be paid such business district
5    project costs. A municipality is not required to obtain any
6    right, title, or interest in any real or personal property
7    in order to pay business district project costs associated
8    with such property. The municipality shall adopt such
9    accounting procedures as shall be necessary to determine
10    that such business district project costs are properly
11    paid.
12        (9) To apply for and accept grants, guarantees,
13    donations of property or labor or any other thing of value
14    for use in connection with a business district project.
15        (10) If the municipality has by ordinance found and
16    determined that the business district is a blighted area
17    under this Law, to impose a retailers' occupation tax and a
18    service occupation tax in the business district for the
19    planning, execution, and implementation of business
20    district plans and to pay for business district project
21    costs as set forth in the business district plan approved
22    by the municipality.
23        (11) If the municipality has by ordinance found and
24    determined that the business district is a blighted area
25    under this Law, to impose a hotel operators' occupation tax
26    in the business district for the planning, execution, and

 

 

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1    implementation of business district plans and to pay for
2    the business district project costs as set forth in the
3    business district plan approved by the municipality..
4(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
5    (65 ILCS 5/11-74.3-5)
6    Sec. 11-74.3-5. Definitions. The following terms as used in
7this Law shall have the following meanings:
8    "Blighted area" means an area that is a blighted area
9which, by reason of the predominance of defective,
10non-existent, or inadequate street layout, unsanitary or
11unsafe conditions, deterioration of site improvements,
12improper subdivision or obsolete platting, or the existence of
13conditions which endanger life or property by fire or other
14causes, or any combination of those factors, retards the
15provision of housing accommodations or constitutes an economic
16or social liability, an economic underutilization of the area,
17or a menace to the public health, safety, morals, or welfare.
18    "Business district" means a contiguous area which includes
19only parcels of real property directly and substantially
20benefited by the proposed business district plan. A business
21district may, but need not be, a blighted area, but no
22municipality shall be authorized to impose taxes pursuant to
23subsection (10) (11) or (11) (12) of Section 11-74.3-3 in a
24business district which has not been determined by ordinance to
25be a blighted area under this Law.

 

 

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1    "Business district plan" shall mean the written plan for
2the development or redevelopment of a business district. Each
3business district plan shall set forth in writing: (i) a
4specific description of the boundaries of the proposed business
5district, including a map illustrating the boundaries; (ii) a
6general description of each project proposed to be undertaken
7within the business district, including a description of the
8approximate location of each project and a description of any
9developer, user, or tenant of any property to be located or
10improved within the proposed business district; (iii) the name
11of the proposed business district; (iv) the estimated business
12district project costs; (v) the anticipated source of funds to
13pay business district project costs; (vi) the anticipated type
14and terms of any obligations to be issued; and (vii) the rate
15of any tax to be imposed pursuant to subsection (10) (11) or
16(11) (12) of Section 11-74.3-3 and the period of time for which
17the tax shall be imposed.
18    "Business district project costs" shall mean and include
19the sum total of all costs incurred by a municipality, other
20governmental entity, or nongovernmental person in connection
21with a business district, in the furtherance of a business
22district plan, including, without limitation, the following:
23        (1) costs of studies, surveys, development of plans and
24    specifications, implementation and administration of a
25    business district plan, and personnel and professional
26    service costs including architectural, engineering, legal,

 

 

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1    marketing, financial, planning, or other professional
2    services, provided that no charges for professional
3    services may be based on a percentage of tax revenues
4    received by the municipality;
5        (2) property assembly costs, including but not limited
6    to, acquisition of land and other real or personal property
7    or rights or interests therein, and specifically including
8    payments to developers or other nongovernmental persons as
9    reimbursement for property assembly costs incurred by that
10    developer or other nongovernmental person;
11        (3) site preparation costs, including but not limited
12    to clearance, demolition or removal of any existing
13    buildings, structures, fixtures, utilities, and
14    improvements and clearing and grading of land;
15        (4) costs of installation, repair, construction,
16    reconstruction, extension, or relocation of public
17    streets, public utilities, and other public site
18    improvements within or without the business district which
19    are essential to the preparation of the business district
20    for use in accordance with the business district plan, and
21    specifically including payments to developers or other
22    nongovernmental persons as reimbursement for site
23    preparation costs incurred by the developer or
24    nongovernmental person;
25        (5) costs of renovation, rehabilitation,
26    reconstruction, relocation, repair, or remodeling of any

 

 

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1    existing buildings, improvements, and fixtures within the
2    business district, and specifically including payments to
3    developers or other nongovernmental persons as
4    reimbursement for costs incurred by those developers or
5    nongovernmental persons;
6        (6) costs of installation or construction within the
7    business district of buildings, structures, works,
8    streets, improvements, equipment, utilities, or fixtures,
9    and specifically including payments to developers or other
10    nongovernmental persons as reimbursements for such costs
11    incurred by such developer or nongovernmental person;
12        (7) financing costs, including but not limited to all
13    necessary and incidental expenses related to the issuance
14    of obligations, payment of any interest on any obligations
15    issued under this Law that accrues during the estimated
16    period of construction of any development or redevelopment
17    project for which those obligations are issued and for not
18    exceeding 36 months thereafter, and any reasonable
19    reserves related to the issuance of those obligations; and
20        (8) relocation costs to the extent that a municipality
21    determines that relocation costs shall be paid or is
22    required to make payment of relocation costs by federal or
23    State law.
24    "Business district tax allocation fund" means the special
25fund to be established by a municipality for a business
26district as provided in Section 11-74.3-6.

 

 

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1    "Dissolution date" means the date on which the business
2district tax allocation fund shall be dissolved. The
3dissolution date shall be not later than 270 days following
4payment to the municipality of the last distribution of taxes
5as provided in Section 11-74.3-6.
6(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
7    (65 ILCS 5/11-74.3-6)
8    Sec. 11-74.3-6. Business district revenue and obligations;
9business district tax allocation fund.
10    (a) If the corporate authorities of a municipality have
11approved a business district plan, have designated a business
12district, and have elected to impose a tax by ordinance
13pursuant to subsection (10) (11) or (11) (12) of Section
1411-74.3-3, then each year after the date of the approval of the
15ordinance but terminating upon the date all business district
16project costs and all obligations paying or reimbursing
17business district project costs, if any, have been paid, but in
18no event later than the dissolution date, all amounts generated
19by the retailers' occupation tax and service occupation tax
20shall be collected and the tax shall be enforced by the
21Department of Revenue in the same manner as all retailers'
22occupation taxes and service occupation taxes imposed in the
23municipality imposing the tax and all amounts generated by the
24hotel operators' occupation tax shall be collected and the tax
25shall be enforced by the municipality in the same manner as all

 

 

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1hotel operators' occupation taxes imposed in the municipality
2imposing the tax. The corporate authorities of the municipality
3shall deposit the proceeds of the taxes imposed under
4subsections (10) (11) and (11) (12) of Section 11-74.3-3 into a
5special fund of the municipality called the "[Name of] Business
6District Tax Allocation Fund" for the purpose of paying or
7reimbursing business district project costs and obligations
8incurred in the payment of those costs.
9    (b) The corporate authorities of a municipality that has
10designated a business district under this Law may, by
11ordinance, impose a Business District Retailers' Occupation
12Tax upon all persons engaged in the business of selling
13tangible personal property, other than an item of tangible
14personal property titled or registered with an agency of this
15State's government, at retail in the business district at a
16rate not to exceed 1% of the gross receipts from the sales made
17in the course of such business, to be imposed only in 0.25%
18increments. The tax may not be imposed on food for human
19consumption that is to be consumed off the premises where it is
20sold (other than alcoholic beverages, soft drinks, and food
21that has been prepared for immediate consumption),
22prescription and nonprescription medicines, drugs, medical
23appliances, modifications to a motor vehicle for the purpose of
24rendering it usable by a disabled person, and insulin, urine
25testing materials, syringes, and needles used by diabetics, for
26human use.

 

 

SB3952- 17 -LRB096 23972 RLJ 43369 b

1    The tax imposed under this subsection and all civil
2penalties that may be assessed as an incident thereof shall be
3collected and enforced by the Department of Revenue. The
4certificate of registration that is issued by the Department to
5a retailer under the Retailers' Occupation Tax Act shall permit
6the retailer to engage in a business that is taxable under any
7ordinance or resolution enacted pursuant to this subsection
8without registering separately with the Department under such
9ordinance or resolution or under this subsection. The
10Department of Revenue shall have full power to administer and
11enforce this subsection; to collect all taxes and penalties due
12under this subsection in the manner hereinafter provided; and
13to determine all rights to credit memoranda arising on account
14of the erroneous payment of tax or penalty under this
15subsection. In the administration of, and compliance with, this
16subsection, the Department and persons who are subject to this
17subsection shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties, exclusions,
20exemptions, and definitions of terms and employ the same modes
21of procedure, as are prescribed in Sections 1, 1a through 1o, 2
22through 2-65 (in respect to all provisions therein other than
23the State rate of tax), 2c through 2h, 3 (except as to the
24disposition of taxes and penalties collected), 4, 5, 5a, 5c,
255d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
2612, 13, and 14 of the Retailers' Occupation Tax Act and all

 

 

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1provisions of the Uniform Penalty and Interest Act, as fully as
2if those provisions were set forth herein.
3    Persons subject to any tax imposed under this subsection
4may reimburse themselves for their seller's tax liability under
5this subsection by separately stating the tax as an additional
6charge, which charge may be stated in combination, in a single
7amount, with State taxes that sellers are required to collect
8under the Use Tax Act, in accordance with such bracket
9schedules as the Department may prescribe.
10    Whenever the Department determines that a refund should be
11made under this subsection to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the order to be drawn for the
14amount specified and to the person named in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the business district retailers' occupation
17tax fund.
18    The Department shall immediately pay over to the State
19Treasurer, ex officio, as trustee, all taxes, penalties, and
20interest collected under this subsection for deposit into the
21business district retailers' occupation tax fund.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the Department
24of Revenue, the Comptroller shall order transferred, and the
25Treasurer shall transfer, to the STAR Bonds Revenue Fund the
26local sales tax increment, as defined in the Innovation

 

 

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1Development and Economy Act, collected under this subsection
2during the second preceding calendar month for sales within a
3STAR bond district.
4    After the monthly transfer to the STAR Bonds Revenue Fund,
5on or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to named municipalities
8from the business district retailers' occupation tax fund, the
9municipalities to be those from which retailers have paid taxes
10or penalties under this subsection to the Department during the
11second preceding calendar month. The amount to be paid to each
12municipality shall be the amount (not including credit
13memoranda) collected under this subsection during the second
14preceding calendar month by the Department plus an amount the
15Department determines is necessary to offset any amounts that
16were erroneously paid to a different taxing body, and not
17including an amount equal to the amount of refunds made during
18the second preceding calendar month by the Department, less 2%
19of that amount, which shall be deposited into the Tax
20Compliance and Administration Fund and shall be used by the
21Department, subject to appropriation, to cover the costs of the
22Department in administering and enforcing the provisions of
23this subsection, on behalf of such municipality, and not
24including any amount that the Department determines is
25necessary to offset any amounts that were payable to a
26different taxing body but were erroneously paid to the

 

 

SB3952- 20 -LRB096 23972 RLJ 43369 b

1municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund. Within 10 days
3after receipt by the Comptroller of the disbursement
4certification to the municipalities provided for in this
5subsection to be given to the Comptroller by the Department,
6the Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with the directions contained
8in the certification. The proceeds of the tax paid to
9municipalities under this subsection shall be deposited into
10the Business District Tax Allocation Fund by the municipality.
11    An ordinance imposing or discontinuing the tax under this
12subsection or effecting a change in the rate thereof shall
13either (i) be adopted and a certified copy thereof filed with
14the Department on or before the first day of April, whereupon
15the Department, if all other requirements of this subsection
16are met, shall proceed to administer and enforce this
17subsection as of the first day of July next following the
18adoption and filing; or (ii) be adopted and a certified copy
19thereof filed with the Department on or before the first day of
20October, whereupon, if all other requirements of this
21subsection are met, the Department shall proceed to administer
22and enforce this subsection as of the first day of January next
23following the adoption and filing.
24    The Department of Revenue shall not administer or enforce
25an ordinance imposing, discontinuing, or changing the rate of
26the tax under this subsection, until the municipality also

 

 

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1provides, in the manner prescribed by the Department, the
2boundaries of the business district and each address in the
3business district in such a way that the Department can
4determine by its address whether a business is located in the
5business district. The municipality must provide this boundary
6and address information to the Department on or before April 1
7for administration and enforcement of the tax under this
8subsection by the Department beginning on the following July 1
9and on or before October 1 for administration and enforcement
10of the tax under this subsection by the Department beginning on
11the following January 1. The Department of Revenue shall not
12administer or enforce any change made to the boundaries of a
13business district or address change, addition, or deletion
14until the municipality reports the boundary change or address
15change, addition, or deletion to the Department in the manner
16prescribed by the Department. The municipality must provide
17this boundary change information or address change, addition,
18or deletion to the Department on or before April 1 for
19administration and enforcement by the Department of the change
20beginning on the following July 1 and on or before October 1
21for administration and enforcement by the Department of the
22change beginning on the following January 1. The retailers in
23the business district shall be responsible for charging the tax
24imposed under this subsection. If a retailer is incorrectly
25included or excluded from the list of those required to collect
26the tax under this subsection, both the Department of Revenue

 

 

SB3952- 22 -LRB096 23972 RLJ 43369 b

1and the retailer shall be held harmless if they reasonably
2relied on information provided by the municipality.
3    A municipality that imposes the tax under this subsection
4must submit to the Department of Revenue any other information
5as the Department may require for the administration and
6enforcement of the tax.
7    When certifying the amount of a monthly disbursement to a
8municipality under this subsection, the Department shall
9increase or decrease the amount by an amount necessary to
10offset any misallocation of previous disbursements. The offset
11amount shall be the amount erroneously disbursed within the
12previous 6 months from the time a misallocation is discovered.
13    Nothing in this subsection shall be construed to authorize
14the municipality to impose a tax upon the privilege of engaging
15in any business which under the Constitution of the United
16States may not be made the subject of taxation by this State.
17    If a tax is imposed under this subsection (b), a tax shall
18also be imposed under subsection (c) of this Section.
19    (c) If a tax has been imposed under subsection (b), a
20Business District Service Occupation Tax shall also be imposed
21upon all persons engaged, in the business district, in the
22business of making sales of service, who, as an incident to
23making those sales of service, transfer tangible personal
24property within the business district, either in the form of
25tangible personal property or in the form of real estate as an
26incident to a sale of service. The tax shall be imposed at the

 

 

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1same rate as the tax imposed in subsection (b) and shall not
2exceed 1% of the selling price of tangible personal property so
3transferred within the business district, to be imposed only in
40.25% increments. The tax may not be imposed on food for human
5consumption that is to be consumed off the premises where it is
6sold (other than alcoholic beverages, soft drinks, and food
7that has been prepared for immediate consumption),
8prescription and nonprescription medicines, drugs, medical
9appliances, modifications to a motor vehicle for the purpose of
10rendering it usable by a disabled person, and insulin, urine
11testing materials, syringes, and needles used by diabetics, for
12human use.
13    The tax imposed under this subsection and all civil
14penalties that may be assessed as an incident thereof shall be
15collected and enforced by the Department of Revenue. The
16certificate of registration which is issued by the Department
17to a retailer under the Retailers' Occupation Tax Act or under
18the Service Occupation Tax Act shall permit such registrant to
19engage in a business which is taxable under any ordinance or
20resolution enacted pursuant to this subsection without
21registering separately with the Department under such
22ordinance or resolution or under this subsection. The
23Department of Revenue shall have full power to administer and
24enforce this subsection; to collect all taxes and penalties due
25under this subsection; to dispose of taxes and penalties so
26collected in the manner hereinafter provided; and to determine

 

 

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1all rights to credit memoranda arising on account of the
2erroneous payment of tax or penalty under this subsection. In
3the administration of, and compliance with this subsection, the
4Department and persons who are subject to this subsection shall
5have the same rights, remedies, privileges, immunities, powers
6and duties, and be subject to the same conditions,
7restrictions, limitations, penalties, exclusions, exemptions,
8and definitions of terms and employ the same modes of procedure
9as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
10(in respect to all provisions therein other than the State rate
11of tax), 4 (except that the reference to the State shall be to
12the business district), 5, 7, 8 (except that the jurisdiction
13to which the tax shall be a debt to the extent indicated in
14that Section 8 shall be the municipality), 9 (except as to the
15disposition of taxes and penalties collected, and except that
16the returned merchandise credit for this tax may not be taken
17against any State tax), 10, 11, 12 (except the reference
18therein to Section 2b of the Retailers' Occupation Tax Act), 13
19(except that any reference to the State shall mean the
20municipality), the first paragraph of Section 15, and Sections
2116, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
22provisions of the Uniform Penalty and Interest Act, as fully as
23if those provisions were set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26serviceman's tax liability hereunder by separately stating the

 

 

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1tax as an additional charge, which charge may be stated in
2combination, in a single amount, with State tax that servicemen
3are authorized to collect under the Service Use Tax Act, in
4accordance with such bracket schedules as the Department may
5prescribe.
6    Whenever the Department determines that a refund should be
7made under this subsection to a claimant instead of issuing
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order to be drawn for the
10amount specified, and to the person named, in such notification
11from the Department. Such refund shall be paid by the State
12Treasurer out of the business district retailers' occupation
13tax fund.
14    The Department shall forthwith pay over to the State
15Treasurer, ex-officio, as trustee, all taxes, penalties, and
16interest collected under this subsection for deposit into the
17business district retailers' occupation tax fund.
18    As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the Department
20of Revenue, the Comptroller shall order transferred, and the
21Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22local sales tax increment, as defined in the Innovation
23Development and Economy Act, collected under this subsection
24during the second preceding calendar month for sales within a
25STAR bond district.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

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1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities
4from the business district retailers' occupation tax fund, the
5municipalities to be those from which suppliers and servicemen
6have paid taxes or penalties under this subsection to the
7Department during the second preceding calendar month. The
8amount to be paid to each municipality shall be the amount (not
9including credit memoranda) collected under this subsection
10during the second preceding calendar month by the Department,
11less 2% of that amount, which shall be deposited into the Tax
12Compliance and Administration Fund and shall be used by the
13Department, subject to appropriation, to cover the costs of the
14Department in administering and enforcing the provisions of
15this subsection, and not including an amount equal to the
16amount of refunds made during the second preceding calendar
17month by the Department on behalf of such municipality, and not
18including any amounts that are transferred to the STAR Bonds
19Revenue Fund. Within 10 days after receipt, by the Comptroller,
20of the disbursement certification to the municipalities,
21provided for in this subsection to be given to the Comptroller
22by the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in such certification. The proceeds of the
25tax paid to municipalities under this subsection shall be
26deposited into the Business District Tax Allocation Fund by the

 

 

SB3952- 27 -LRB096 23972 RLJ 43369 b

1municipality.
2    An ordinance imposing or discontinuing the tax under this
3subsection or effecting a change in the rate thereof shall
4either (i) be adopted and a certified copy thereof filed with
5the Department on or before the first day of April, whereupon
6the Department, if all other requirements of this subsection
7are met, shall proceed to administer and enforce this
8subsection as of the first day of July next following the
9adoption and filing; or (ii) be adopted and a certified copy
10thereof filed with the Department on or before the first day of
11October, whereupon, if all other conditions of this subsection
12are met, the Department shall proceed to administer and enforce
13this subsection as of the first day of January next following
14the adoption and filing.
15    The Department of Revenue shall not administer or enforce
16an ordinance imposing, discontinuing, or changing the rate of
17the tax under this subsection, until the municipality also
18provides, in the manner prescribed by the Department, the
19boundaries of the business district in such a way that the
20Department can determine by its address whether a business is
21located in the business district. The municipality must provide
22this boundary and address information to the Department on or
23before April 1 for administration and enforcement of the tax
24under this subsection by the Department beginning on the
25following July 1 and on or before October 1 for administration
26and enforcement of the tax under this subsection by the

 

 

SB3952- 28 -LRB096 23972 RLJ 43369 b

1Department beginning on the following January 1. The Department
2of Revenue shall not administer or enforce any change made to
3the boundaries of a business district or address change,
4addition, or deletion until the municipality reports the
5boundary change or address change, addition, or deletion to the
6Department in the manner prescribed by the Department. The
7municipality must provide this boundary change information or
8address change, addition, or deletion to the Department on or
9before April 1 for administration and enforcement by the
10Department of the change beginning on the following July 1 and
11on or before October 1 for administration and enforcement by
12the Department of the change beginning on the following January
131. The retailers in the business district shall be responsible
14for charging the tax imposed under this subsection. If a
15retailer is incorrectly included or excluded from the list of
16those required to collect the tax under this subsection, both
17the Department of Revenue and the retailer shall be held
18harmless if they reasonably relied on information provided by
19the municipality.
20    A municipality that imposes the tax under this subsection
21must submit to the Department of Revenue any other information
22as the Department may require for the administration and
23enforcement of the tax.
24    Nothing in this subsection shall be construed to authorize
25the municipality to impose a tax upon the privilege of engaging
26in any business which under the Constitution of the United

 

 

SB3952- 29 -LRB096 23972 RLJ 43369 b

1States may not be made the subject of taxation by the State.
2    If a tax is imposed under this subsection (c), a tax shall
3also be imposed under subsection (b) of this Section.
4    (d) By ordinance, a municipality that has designated a
5business district under this Law may impose an occupation tax
6upon all persons engaged in the business district in the
7business of renting, leasing, or letting rooms in a hotel, as
8defined in the Hotel Operators' Occupation Tax Act, at a rate
9not to exceed 1% of the gross rental receipts from the renting,
10leasing, or letting of hotel rooms within the business
11district, to be imposed only in 0.25% increments, excluding,
12however, from gross rental receipts the proceeds of renting,
13leasing, or letting to permanent residents of a hotel, as
14defined in the Hotel Operators' Occupation Tax Act, and
15proceeds from the tax imposed under subsection (c) of Section
1613 of the Metropolitan Pier and Exposition Authority Act.
17    The tax imposed by the municipality under this subsection
18and all civil penalties that may be assessed as an incident to
19that tax shall be collected and enforced by the municipality
20imposing the tax. The municipality shall have full power to
21administer and enforce this subsection, to collect all taxes
22and penalties due under this subsection, to dispose of taxes
23and penalties so collected in the manner provided in this
24subsection, and to determine all rights to credit memoranda
25arising on account of the erroneous payment of tax or penalty
26under this subsection. In the administration of and compliance

 

 

SB3952- 30 -LRB096 23972 RLJ 43369 b

1with this subsection, the municipality and persons who are
2subject to this subsection shall have the same rights,
3remedies, privileges, immunities, powers, and duties, shall be
4subject to the same conditions, restrictions, limitations,
5penalties, and definitions of terms, and shall employ the same
6modes of procedure as are employed with respect to a tax
7adopted by the municipality under Section 8-3-14 of this Code.
8    Persons subject to any tax imposed under the authority
9granted in this subsection may reimburse themselves for their
10tax liability for that tax by separately stating that tax as an
11additional charge, which charge may be stated in combination,
12in a single amount, with State taxes imposed under the Hotel
13Operators' Occupation Tax Act, and with any other tax.
14    Nothing in this subsection shall be construed to authorize
15a municipality to impose a tax upon the privilege of engaging
16in any business which under the Constitution of the United
17States may not be made the subject of taxation by this State.
18    The proceeds of the tax imposed under this subsection shall
19be deposited into the Business District Tax Allocation Fund.
20    (e) Obligations secured by the Business District Tax
21Allocation Fund may be issued to provide for the payment or
22reimbursement of business district project costs. Those
23obligations, when so issued, shall be retired in the manner
24provided in the ordinance authorizing the issuance of those
25obligations by the receipts of taxes imposed pursuant to
26subsections (10) (11) and (11) (12) of Section 11-74.3-3 and by

 

 

SB3952- 31 -LRB096 23972 RLJ 43369 b

1other revenue designated or pledged by the municipality. A
2municipality may in the ordinance pledge, for any period of
3time up to and including the dissolution date, all or any part
4of the funds in and to be deposited in the Business District
5Tax Allocation Fund to the payment of business district project
6costs and obligations. Whenever a municipality pledges all of
7the funds to the credit of a business district tax allocation
8fund to secure obligations issued or to be issued to pay or
9reimburse business district project costs, the municipality
10may specifically provide that funds remaining to the credit of
11such business district tax allocation fund after the payment of
12such obligations shall be accounted for annually and shall be
13deemed to be "surplus" funds, and such "surplus" funds shall be
14expended by the municipality for any business district project
15cost as approved in the business district plan. Whenever a
16municipality pledges less than all of the monies to the credit
17of a business district tax allocation fund to secure
18obligations issued or to be issued to pay or reimburse business
19district project costs, the municipality shall provide that
20monies to the credit of the business district tax allocation
21fund and not subject to such pledge or otherwise encumbered or
22required for payment of contractual obligations for specific
23business district project costs shall be calculated annually
24and shall be deemed to be "surplus" funds, and such "surplus"
25funds shall be expended by the municipality for any business
26district project cost as approved in the business district

 

 

SB3952- 32 -LRB096 23972 RLJ 43369 b

1plan.
2    No obligation issued pursuant to this Law and secured by a
3pledge of all or any portion of any revenues received or to be
4received by the municipality from the imposition of taxes
5pursuant to subsection (10) (11) of Section 11-74.3-3, shall be
6deemed to constitute an economic incentive agreement under
7Section 8-11-20, notwithstanding the fact that such pledge
8provides for the sharing, rebate, or payment of retailers'
9occupation taxes or service occupation taxes imposed pursuant
10to subsection (10) (11) of Section 11-74.3-3 and received or to
11be received by the municipality from the development or
12redevelopment of properties in the business district.
13    Without limiting the foregoing in this Section, the
14municipality may further secure obligations secured by the
15business district tax allocation fund with a pledge, for a
16period not greater than the term of the obligations and in any
17case not longer than the dissolution date, of any part or any
18combination of the following: (i) net revenues of all or part
19of any business district project; (ii) taxes levied or imposed
20by the municipality on any or all property in the municipality,
21including, specifically, taxes levied or imposed by the
22municipality in a special service area pursuant to the Special
23Service Area Tax Law; (iii) the full faith and credit of the
24municipality; (iv) a mortgage on part or all of the business
25district project; or (v) any other taxes or anticipated
26receipts that the municipality may lawfully pledge.

 

 

SB3952- 33 -LRB096 23972 RLJ 43369 b

1    Such obligations may be issued in one or more series, bear
2such date or dates, become due at such time or times as therein
3provided, but in any case not later than (i) 20 years after the
4date of issue or (ii) the dissolution date, whichever is
5earlier, bear interest payable at such intervals and at such
6rate or rates as set forth therein, except as may be limited by
7applicable law, which rate or rates may be fixed or variable,
8be in such denominations, be in such form, either coupon,
9registered, or book-entry, carry such conversion, registration
10and exchange privileges, be subject to defeasance upon such
11terms, have such rank or priority, be executed in such manner,
12be payable in such medium or payment at such place or places
13within or without the State, make provision for a corporate
14trustee within or without the State with respect to such
15obligations, prescribe the rights, powers, and duties thereof
16to be exercised for the benefit of the municipality and the
17benefit of the owners of such obligations, provide for the
18holding in trust, investment, and use of moneys, funds, and
19accounts held under an ordinance, provide for assignment of and
20direct payment of the moneys to pay such obligations or to be
21deposited into such funds or accounts directly to such trustee,
22be subject to such terms of redemption with or without premium,
23and be sold at such price, all as the corporate authorities
24shall determine. No referendum approval of the electors shall
25be required as a condition to the issuance of obligations
26pursuant to this Law except as provided in this Section.

 

 

SB3952- 34 -LRB096 23972 RLJ 43369 b

1    In the event the municipality authorizes the issuance of
2obligations pursuant to the authority of this Law secured by
3the full faith and credit of the municipality, or pledges ad
4valorem taxes pursuant to this subsection, which obligations
5are other than obligations which may be issued under home rule
6powers provided by Section 6 of Article VII of the Illinois
7Constitution or which ad valorem taxes are other than ad
8valorem taxes which may be pledged under home rule powers
9provided by Section 6 of Article VII of the Illinois
10Constitution or which are levied in a special service area
11pursuant to the Special Service Area Tax Law, the ordinance
12authorizing the issuance of those obligations or pledging those
13taxes shall be published within 10 days after the ordinance has
14been adopted, in a newspaper having a general circulation
15within the municipality. The publication of the ordinance shall
16be accompanied by a notice of (i) the specific number of voters
17required to sign a petition requesting the question of the
18issuance of the obligations or pledging such ad valorem taxes
19to be submitted to the electors; (ii) the time within which the
20petition must be filed; and (iii) the date of the prospective
21referendum. The municipal clerk shall provide a petition form
22to any individual requesting one.
23    If no petition is filed with the municipal clerk, as
24hereinafter provided in this Section, within 21 days after the
25publication of the ordinance, the ordinance shall be in effect.
26However, if within that 21-day period a petition is filed with

 

 

SB3952- 35 -LRB096 23972 RLJ 43369 b

1the municipal clerk, signed by electors numbering not less than
215% of the number of electors voting for the mayor or president
3at the last general municipal election, asking that the
4question of issuing obligations using full faith and credit of
5the municipality as security for the cost of paying or
6reimbursing business district project costs, or of pledging
7such ad valorem taxes for the payment of those obligations, or
8both, be submitted to the electors of the municipality, the
9municipality shall not be authorized to issue obligations of
10the municipality using the full faith and credit of the
11municipality as security or pledging such ad valorem taxes for
12the payment of those obligations, or both, until the
13proposition has been submitted to and approved by a majority of
14the voters voting on the proposition at a regularly scheduled
15election. The municipality shall certify the proposition to the
16proper election authorities for submission in accordance with
17the general election law.
18    The ordinance authorizing the obligations may provide that
19the obligations shall contain a recital that they are issued
20pursuant to this Law, which recital shall be conclusive
21evidence of their validity and of the regularity of their
22issuance.
23    In the event the municipality authorizes issuance of
24obligations pursuant to this Law secured by the full faith and
25credit of the municipality, the ordinance authorizing the
26obligations may provide for the levy and collection of a direct

 

 

SB3952- 36 -LRB096 23972 RLJ 43369 b

1annual tax upon all taxable property within the municipality
2sufficient to pay the principal thereof and interest thereon as
3it matures, which levy may be in addition to and exclusive of
4the maximum of all other taxes authorized to be levied by the
5municipality, which levy, however, shall be abated to the
6extent that monies from other sources are available for payment
7of the obligations and the municipality certifies the amount of
8those monies available to the county clerk.
9    A certified copy of the ordinance shall be filed with the
10county clerk of each county in which any portion of the
11municipality is situated, and shall constitute the authority
12for the extension and collection of the taxes to be deposited
13in the business district tax allocation fund.
14    A municipality may also issue its obligations to refund, in
15whole or in part, obligations theretofore issued by the
16municipality under the authority of this Law, whether at or
17prior to maturity. However, the last maturity of the refunding
18obligations shall not be expressed to mature later than the
19dissolution date.
20    In the event a municipality issues obligations under home
21rule powers or other legislative authority, the proceeds of
22which are pledged to pay or reimburse business district project
23costs, the municipality may, if it has followed the procedures
24in conformance with this Law, retire those obligations from
25funds in the business district tax allocation fund in amounts
26and in such manner as if those obligations had been issued

 

 

SB3952- 37 -LRB096 23972 RLJ 43369 b

1pursuant to the provisions of this Law.
2    No obligations issued pursuant to this Law shall be
3regarded as indebtedness of the municipality issuing those
4obligations or any other taxing district for the purpose of any
5limitation imposed by law.
6    Obligations issued pursuant to this Law shall not be
7subject to the provisions of the Bond Authorization Act.
8    (f) When business district project costs, including,
9without limitation, all obligations paying or reimbursing
10business district project costs have been paid, any surplus
11funds then remaining in the Business District Tax Allocation
12Fund shall be distributed to the municipal treasurer for
13deposit into the general corporate fund of the municipality.
14Upon payment of all business district project costs and
15retirement of all obligations paying or reimbursing business
16district project costs, but in no event more than 23 years
17after the date of adoption of the ordinance imposing taxes
18pursuant to subsection (10) subsections (11) or (11) (12) of
19Section 11-74.3-3, the municipality shall adopt an ordinance
20immediately rescinding the taxes imposed pursuant to
21subsection (10) or (11) of Section 11-74.3-3 said subsections.
22(Source: P.A. 96-939, eff. 6-24-10; 96-1394, eff. 7-29-10;
23revised 9-2-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.