HB4929 93RD GENERAL ASSEMBLY

LRB093 19188 MKM 44923 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4929

Introduced 02/04/04, by Arthur L. Turner, Robert S. Molaro, Jay C. Hoffman, Angelo Saviano, Kenneth Dunkin, et al.

SYNOPSIS AS INTRODUCED:

65 ILCS 5/11-74.3-3	from Ch. 24, par. 11-74.3-3
65 ILCS 5/11-74.3-5 new
65 ILCS 5/11-74.3-6 new

Amends the Illinois Municipal Code. Authorizes a municipality carrying out a business district development or redevelopment plan to impose a tax on the retail sale of tangible personal property and the sale or charge for a sleeping room, not to exceed 1% of the selling price of the tangible personal property or the charge for the sleeping room and only to be imposed in 0.25% increments. Requires a municipality imposing these taxes to follow certain additional procedures in applying for designation as a business district and approval of a business district development or redevelopment plan. Requires that the revenue generated by the tax be deposited into the municipality's Business District Tax Allocation Fund. Authorizes a municipality to issue obligations in one or more series bearing interest at rates determined by the corporate authorities of the municipality by ordinance and secured by the Business District Tax Allocation Fund. Requires the ordinance (i) to pledge any amounts in and to be deposited into the Business District Tax Allocation Fund for the payment of business district costs and obligations and (ii) to contain certain recitals. Authorizes the public or private sale of the obligations and the issuance of obligations to refunded previously issued obligations. Upon payment of all business district costs, requires all surplus funds to be deposited into the general corporate fund. Requires the corporate authorities of the municipality to adopt an ordinance immediately rescinding the tax when all business district costs and obligations have been paid. Effective immediately.

A BILL FOR

AN ACT concerning municipalities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Municipal Code is amended by changing Section 11-74.3-3 and by adding Sections 11-74.3-5 and 11-74.3-6 as follows:

(65 ILCS 5/11-74.3-3) (from Ch. 24, par. 11-74.3-3)

Sec. 11-74.3-3. In carrying out a business district development or redevelopment plan, the corporate authorities of each municipality shall have the following powers:

(1) To approve all development and redevelopment proposals for a business district.

(2) To exercise the use of eminent domain for the acquisition of real and personal property for the purpose of a development or redevelopment project.

(3) To acquire, manage, convey or otherwise dispose of real and personal property according to the provisions of a development or redevelopment plan.

(4) To apply for and accept capital grants and loans from the United States and the State of Illinois, or any instrumentality of the United States or the State, for business district development and redevelopment.

(5) To borrow funds as it may be deemed necessary for the purpose of business district development and redevelopment, and in this connection issue such obligation or revenue bonds as it shall be deemed necessary, subject to applicable statutory limitations.

(6) To enter into contracts with any public or private agency or person.

(7) To sell, lease, trade or improve real property in connection with business district development and redevelopment plans.

(8) To employ all such persons as may be necessary for the planning, administration and implementation of business district plans.

(9) To expend such public funds as may be necessary for the planning, execution and implementation of the business district plans.

(10) To establish by ordinance or resolution procedures for the planning, execution and implementation of business district plans.

(11) To create a Business District Development and Redevelopment Commission to act as agent for the municipality for the purposes of business district development and redevelopment.

(12) To impose a tax on the retail sale of tangible personal property and the sale or charge for a sleeping room paid by a transient guest of a hotel or motel, based on the selling price or charge, not to exceed 1% of the selling price of the tangible personal property or the charge for the sleeping room and to be imposed only in 0.25% increments, within a business district, for the planning, execution, and implementation of business district plans and to pay for business district project costs as set forth in the business district plan approved by the municipality.

(13) To issue obligations in one or more series bearing interest at rates determined by the corporate authorities of the municipality by ordinance and secured by the business district tax allocation fund set forth in Section 11-74.3-6 for the business district to provide for the payment of business district project costs.

This amendatory Act of the 91st General Assembly is declarative of existing law and is not a new enactment.

(Source: P.A. 91-418, eff. 1-1-00.)

(65 ILCS 5/11-74.3-5 new)

Sec. 11-74.3-5. Business district; additional procedures for designation of district and approval of development or redevelopment plan. If the corporate authorities of a municipality desire to impose a tax by ordinance pursuant to subsection (12) of Section 11-74.3-3, the following additional procedures shall apply to the designation of the business district and the approval of the business district development or redevelopment plan:

(1) The corporate authorities of the municipality shall hold public hearings at least one week prior to designation of the business district and approval of the business district development or redevelopment plan.

(2) The area proposed to be designated as tourist district must be contiguous and must include only parcels of real property directly and substantially benefited by the proposed business district development or redevelopment plan.

(3) The proposed business district development or redevelopment plan shall set forth in writing: (i) a specific description of the proposed boundaries of the district, including a map illustrating the boundaries; (ii) a general description of each project proposed to be undertaken within the business district, including a description of the approximate location of each project; (iii) the name of the proposed business district; (iv) the estimated business district project costs; (v) the anticipated source of funds to pay business district project costs; (vi) the anticipated type and terms of any obligations to be issued; and (vii) the rate of any tax to be imposed pursuant to subsection (12) of Section 11-74.3-3 and the period of time for which the tax shall be imposed.

(65 ILCS 5/11-74.3-6 new)

Sec. 11-74.3-6. Business district revenue and obligations.

(a) If the corporate authorities of a municipality have approved a business district development or redevelopment plan and have elected to impose a tax by ordinance pursuant to subsection (12) of Section 11-74.3-3, each year after the date of the approval of the ordinance and until all business district project costs and all municipal obligations financing the business district project costs, if any, have been paid in accordance with the business district development or redevelopment plan, but in no event longer than 23 years after the date of adoption of the ordinance approving the business district development or redevelopment plan, all amounts generated by the tax shall be collected and the tax shall be enforced by the Department of Revenue in the same manner as all retailers' occupation taxes imposed upon persons engaged in the business of selling tangible personal property at retail in the municipality imposing the tax. The corporate authorities of the municipality shall deposit the proceeds of the tax into a special fund called the Business District Tax Allocation Fund for the purpose of paying business district project costs and obligations incurred in the payment of those costs and obligations.

(b) Obligations issued pursuant to subsection (13) of Section 11-74.3-3 shall be retired in the manner provided in the ordinance authorizing the issuance of those obligations by the receipts of taxes levied as specified in subsection (12) of Section 11-74.3-3 against the retail sale of tangible personal property in the business district. The ordinance shall pledge all of the amounts in and to be deposited in the Business District Tax Allocation Fund to the payment of business district project costs and obligations. Obligations issued pursuant to subsection (13) Section 11-74.3-3 may be sold at public or private sale at a price determined by the corporate authorities of the municipality and no referendum approval of the electors shall be required as a condition to the issuance of those obligations. The ordinance authorizing the obligations may require that the obligations contain a recital that they are issued pursuant to subsection (13) of Section 11-74.3-3 and this recital shall be conclusive evidence of their validity and of the regularity of their issuance. The corporate authorities of the municipality may also issue its obligations to refund, in whole or in part, obligations previously issued by the municipality under the authority of this Code, whether at or prior to maturity. All obligations issued pursuant to subsection (13) of Section 11-74.3-3 shall not be regarded as indebtedness of the municipality issuing the obligations for the purpose of any limitation imposed by law.

(c) When business district costs, including, without limitation, all municipal obligations financing business district project costs incurred under Section 11-74.3-3 have been paid, any surplus funds then remaining in the Business District Tax Allocation Fund shall be distributed to the municipal treasurer for deposit into the municipal general corporate fund. Upon payment of all business district project costs and retirement of obligations, but in no event more than 23 years after the date of adoption of the ordinance approving the business district development or redevelopment plan, the municipality shall adopt an ordinance immediately rescinding the tax imposed pursuant to subsection (12) of Section 11-74.3-3.

Section 99. Effective date. This Act takes effect upon becoming law.