093_SB1474sam001

 










                                     LRB093 04111 SJM 12847 a

 1                    AMENDMENT TO SENATE BILL 1474

 2        AMENDMENT NO.     .  Amend Senate Bill 1474 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Property Tax Code is amended by changing
 5    Section 15-95 as follows:

 6        (35 ILCS 200/15-95)
 7        Sec.  15-95.   Housing authorities; low-rent housing. All
 8    property of housing authorities  created  under  the  Housing
 9    Authorities  Act  is exempt, if the property and improvements
10    are used for low rent housing and related uses. In  addition,
11    residential  rental  units,  whether or not the property of a
12    housing authority, subject to a leasing agreement, regulatory
13    and operating agreement, or similar instrument with a housing
14    authority created  under  the  Housing  Authorities  Act  are
15    exempt  if  the  residential rental units are used solely for
16    low-rent housing  and  related  uses.  However,  property  or
17    portions  thereof  intended  or  used  for  stores  or  other
18    commercial  purposes  are  not  exempt.  Nothing herein shall
19    exempt property of housing authorities or  any  part  thereof
20    from  special  assessments  or  special  taxation  for  local
21    improvements.  Nothing  contained  in  this  Section shall be
22    construed as limiting the power of any political  subdivision
 
                            -2-      LRB093 04111 SJM 12847 a
 1    of  this  State  to  sell or furnish a housing authority with
 2    water, electricity, gas, or  other  services  and  facilities
 3    under  the  same basis that those services and facilities are
 4    rendered to others under similar circumstances.
 5    (Source: Laws 1959, p.  1549,  1554,  2219,  and  2224;  P.A.
 6    88-455.)

 7        Section  10.   The  Illinois Municipal Code is amended by
 8    changing Sections 11-74.4-8 and 11-74.4-9 as follows:

 9        (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
10        Sec.  11-74.4-8.  A  municipality  may  not   adopt   tax
11    increment financing in a redevelopment project area after the
12    effective  date  of  this  amendatory  Act  of 1997 that will
13    encompass an area that is currently included in an enterprise
14    zone created under the Illinois Enterprise  Zone  Act  unless
15    that  municipality,  pursuant  to Section 5.4 of the Illinois
16    Enterprise Zone Act, amends the enterprise  zone  designating
17    ordinance  to  limit  the  eligibility  for tax abatements as
18    provided in Section 5.4.1 of  the  Illinois  Enterprise  Zone
19    Act. A municipality, at the time a redevelopment project area
20    is  designated,  may adopt tax increment allocation financing
21    by passing an ordinance providing that the ad valorem  taxes,
22    if any, arising from the levies upon taxable real property in
23    such  redevelopment  project area by taxing districts and tax
24    rates determined in the manner provided in paragraph  (c)  of
25    Section  11-74.4-9  each year after the effective date of the
26    ordinance until redevelopment project costs and all municipal
27    obligations financing redevelopment  project  costs  incurred
28    under  this  Division  have  been  paid  shall  be divided as
29    follows:
30        (a)  That portion of taxes levied upon each taxable  lot,
31    block, tract or parcel of real property which is attributable
32    to  the  lower of the current equalized assessed value or the
 
                            -3-      LRB093 04111 SJM 12847 a
 1    initial equalized assessed value of each  such  taxable  lot,
 2    block,  tract or parcel of real property in the redevelopment
 3    project area shall be allocated to and when  collected  shall
 4    be  paid  by  the county collector to the respective affected
 5    taxing districts in the manner required by law in the absence
 6    of the adoption of tax increment allocation financing.
 7        (b)  Except from a tax levied by  a  township  to  retire
 8    bonds  issued to satisfy court-ordered damages, that portion,
 9    if any, of such taxes which is attributable to  the  increase
10    in  the  current equalized assessed valuation of each taxable
11    lot,  block,  tract  or  parcel  of  real  property  in   the
12    redevelopment   project  area  over  and  above  the  initial
13    equalized assessed value of each property in the project area
14    shall be allocated to and when collected shall be paid to the
15    municipal treasurer who  shall  deposit  said  taxes  into  a
16    special  fund  called  the special tax allocation fund of the
17    municipality for the purpose of paying redevelopment  project
18    costs and obligations incurred in the payment thereof. In any
19    county  with  a  population  of  3,000,000  or  more that has
20    adopted a procedure for collecting taxes  that  provides  for
21    one or more of the installments of the taxes to be billed and
22    collected  on  an  estimated  basis,  the municipal treasurer
23    shall be paid for deposit in the special tax allocation  fund
24    of  the municipality, from the taxes collected from estimated
25    bills issued for property in the redevelopment project  area,
26    the  difference  between  the  amount actually collected from
27    each taxable lot, block, tract, or parcel  of  real  property
28    within   the   redevelopment   project  area  and  an  amount
29    determined by multiplying the rate at which taxes  were  last
30    extended  against the taxable lot, block, track, or parcel of
31    real property in the manner provided  in  subsection  (c)  of
32    Section  11-74.4-9 by the initial equalized assessed value of
33    the property divided by the number of installments  in  which
34    real estate taxes are billed and collected within the county;
 
                            -4-      LRB093 04111 SJM 12847 a
 1    provided  that the payments on or before December 31, 1999 to
 2    a municipal treasurer shall be  made  only  if  each  of  the
 3    following conditions are met:
 4             (1)  The  total  equalized  assessed  value  of  the
 5        redevelopment  project  area  as  last determined was not
 6        less than 175% of the total  initial  equalized  assessed
 7        value.
 8             (2)  Not  more  than  50%  of  the  total  equalized
 9        assessed  value of the redevelopment project area as last
10        determined  is  attributable  to  a  piece  of   property
11        assigned a single real estate index number.
12             (3)  The municipal clerk has certified to the county
13        clerk that the municipality has issued its obligations to
14        which  there  has  been  pledged the incremental property
15        taxes of the redevelopment project area or  taxes  levied
16        and  collected on any or all property in the municipality
17        or the full faith and credit of the municipality  to  pay
18        or   secure   payment   for  all  or  a  portion  of  the
19        redevelopment project costs. The certification  shall  be
20        filed   annually  no  later  than  September  1  for  the
21        estimated taxes to be distributed in the following  year;
22        however,  for  the  year  1992 the certification shall be
23        made at any time on or before March 31, 1992.
24             (4)  The municipality has  not  requested  that  the
25        total  initial  equalized assessed value of real property
26        be adjusted as provided  in  subsection  (b)  of  Section
27        11-74.4-9.
28    The  conditions  of  paragraphs  (1) through (4) do not apply
29    after December 31, 1999 to payments to a municipal  treasurer
30    made  by a county with 3,000,000 or more inhabitants that has
31    adopted an estimated billing procedure for collecting  taxes.
32    If  a county that has adopted the estimated billing procedure
33    makes  an  erroneous  overpayment  of  tax  revenue  to   the
34    municipal  treasurer,  then  the  county may seek a refund of
 
                            -5-      LRB093 04111 SJM 12847 a
 1    that  overpayment.  The  county  shall  send  the   municipal
 2    treasurer  a  notice  of  liability for the overpayment on or
 3    before the mailing date of the  next  real  estate  tax  bill
 4    within the county.  The refund shall be limited to the amount
 5    of the overpayment.
 6        It  is  the  intent  of  this  Division  that  after  the
 7    effective   date   of   this   amendatory   Act   of  1988  a
 8    municipality's own ad valorem  tax  arising  from  levies  on
 9    taxable  real  property  be  included in the determination of
10    incremental revenue in the manner provided in  paragraph  (c)
11    of  Section  11-74.4-9.  If  the municipality does not extend
12    such a tax, it shall annually deposit in  the  municipality's
13    Special  Tax  Increment  Fund  an  amount equal to 10% of the
14    total  contributions  to  the  fund  from  all  other  taxing
15    districts in that year.  The annual 10% deposit  required  by
16    this  paragraph  shall  be  limited  to  the actual amount of
17    municipally produced incremental tax  revenues  available  to
18    the  municipality from taxpayers located in the redevelopment
19    project area in that year if:  (a)  the  plan  for  the  area
20    restricts  the  use  of  the property primarily to industrial
21    purposes, (b) the municipality establishing the redevelopment
22    project area is a home-rule community with a 1990  population
23    of  between 25,000 and 50,000, (c) the municipality is wholly
24    located within a  county  with  a  1990  population  of  over
25    750,000   and   (d)   the   redevelopment  project  area  was
26    established by the municipality prior to June 1, 1990.   This
27    payment  shall  be  in  lieu  of a contribution of ad valorem
28    taxes on real property. If  no  such  payment  is  made,  any
29    redevelopment  project  area  of  the  municipality  shall be
30    dissolved.
31        If a municipality has adopted  tax  increment  allocation
32    financing  by  ordinance  and  the  County  Clerk  thereafter
33    certifies  the  "total  initial  equalized  assessed value as
34    adjusted"  of  the  taxable   real   property   within   such
 
                            -6-      LRB093 04111 SJM 12847 a
 1    redevelopment   project   area  in  the  manner  provided  in
 2    paragraph (b) of Section 11-74.4-9, each year after the  date
 3    of  the certification of the total initial equalized assessed
 4    value as adjusted until redevelopment project costs  and  all
 5    municipal  obligations  financing redevelopment project costs
 6    have been paid the ad valorem taxes, if any, arising from the
 7    levies upon the taxable real property in  such  redevelopment
 8    project  area by taxing districts and tax rates determined in
 9    the manner provided in paragraph  (c)  of  Section  11-74.4-9
10    shall be divided as follows:
11             (1)  That  portion  of  the  taxes  levied upon each
12        taxable lot, block, tract  or  parcel  of  real  property
13        which  is  attributable  to  the  lower  of  the  current
14        equalized  assessed  value or "current equalized assessed
15        value as adjusted"  or  the  initial  equalized  assessed
16        value  of  each such taxable lot, block, tract, or parcel
17        of real property  existing  at  the  time  tax  increment
18        financing was adopted, minus:
19                  (i)  the  housing authority exemptions provided
20             by Section 15-95 of the Property  Tax  Code  in  the
21             redevelopment project area, and
22                  (ii)  the  total  current  homestead exemptions
23             provided  by  Sections  15-170  and  15-175  of  the
24             Property Tax Code in the redevelopment project area,
25        shall be allocated to and when collected shall be paid by
26        the county collector to the  respective  affected  taxing
27        districts in the manner required by law in the absence of
28        the adoption of tax increment allocation financing.
29             (2)  That  portion,  if  any, of such taxes which is
30        attributable to the increase  in  the  current  equalized
31        assessed  valuation of each taxable lot, block, tract, or
32        parcel of real  property  in  the  redevelopment  project
33        area, over and above the initial equalized assessed value
34        of  each  property  existing  at  the  time tax increment
 
                            -7-      LRB093 04111 SJM 12847 a
 1        financing was adopted, minus:
 2                  (i)  the housing authority exemptions  provided
 3             by  Section  15-95  of  the Property Tax Code in the
 4             redevelopment project area, and
 5                  (ii)  the total  current  homestead  exemptions
 6             pertaining  to  each  piece  of property provided by
 7             Sections 15-170 and 15-175 of the Property Tax  Code
 8             in the redevelopment project area,
 9        shall be allocated to and when collected shall be paid to
10        the  municipal  Treasurer,  who  shall deposit said taxes
11        into a special fund called  the  special  tax  allocation
12        fund  of  the  municipality  for  the  purpose  of paying
13        redevelopment project costs and obligations  incurred  in
14        the payment thereof.
15        The municipality may pledge in the ordinance the funds in
16    and  to  be  deposited in the special tax allocation fund for
17    the payment of such costs and obligations.  No  part  of  the
18    current  equalized assessed valuation of each property in the
19    redevelopment project area attributable to any increase above
20    the total initial equalized  assessed  value,  or  the  total
21    initial   equalized  assessed  value  as  adjusted,  of  such
22    properties shall be used in  calculating  the  general  State
23    school  aid  formula,  provided  for  in  Section 18-8 of the
24    School Code, until such time  as  all  redevelopment  project
25    costs have been paid as provided for in this Section.
26        Whenever  a  municipality issues bonds for the purpose of
27    financing redevelopment project costs, such municipality  may
28    provide  by ordinance for the appointment of a trustee, which
29    may be any trust  company  within  the  State,  and  for  the
30    establishment  of  such funds or accounts to be maintained by
31    such trustee as the  municipality  shall  deem  necessary  to
32    provide  for  the security and payment of the bonds.  If such
33    municipality provides for the appointment of a trustee,  such
34    trustee  shall  be  considered  the  assignee of any payments
 
                            -8-      LRB093 04111 SJM 12847 a
 1    assigned by the municipality pursuant to such  ordinance  and
 2    this  Section.   Any amounts paid to such trustee as assignee
 3    shall be deposited  in  the  funds  or  accounts  established
 4    pursuant  to  such trust agreement, and shall be held by such
 5    trustee in trust for the benefit of the holders of the bonds,
 6    and such holders shall have a lien on and a security interest
 7    in such funds  or  accounts  so  long  as  the  bonds  remain
 8    outstanding  and  unpaid.  Upon  retirement of the bonds, the
 9    trustee shall  pay  over  any  excess  amounts  held  to  the
10    municipality for deposit in the special tax allocation fund.
11        When such redevelopment projects costs, including without
12    limitation  all municipal obligations financing redevelopment
13    project costs incurred under this Division, have  been  paid,
14    all   surplus   funds  then  remaining  in  the  special  tax
15    allocation fund shall be distributed by  being  paid  by  the
16    municipal   treasurer  to  the  Department  of  Revenue,  the
17    municipality  and  the  county  collector;   first   to   the
18    Department   of   Revenue  and  the  municipality  in  direct
19    proportion to the tax incremental revenue received  from  the
20    State  and  the  municipality,  but  not  to exceed the total
21    incremental  revenue  received  from   the   State   or   the
22    municipality   less   any   annual  surplus  distribution  of
23    incremental revenue previously made; with any remaining funds
24    to be paid to the  County  Collector  who  shall  immediately
25    thereafter  pay  said  funds  to  the taxing districts in the
26    redevelopment project area in the same manner and  proportion
27    as  the  most  recent distribution by the county collector to
28    the affected districts  of  real  property  taxes  from  real
29    property in the redevelopment project area.
30        Upon  the  payment  of  all  redevelopment project costs,
31    retirement of obligations and the distribution of any  excess
32    monies pursuant to this Section, the municipality shall adopt
33    an  ordinance  dissolving the special tax allocation fund for
34    the  redevelopment   project   area   and   terminating   the
 
                            -9-      LRB093 04111 SJM 12847 a
 1    designation   of   the   redevelopment   project  area  as  a
 2    redevelopment  project  area.   Municipalities  shall  notify
 3    affected  taxing  districts  prior  to  November  1  if   the
 4    redevelopment project area is to be terminated by December 31
 5    of that same year.  If a municipality extends estimated dates
 6    of  completion  of  a redevelopment project and retirement of
 7    obligations to finance a redevelopment project, as allowed by
 8    this amendatory Act of 1993, that extension shall not  extend
 9    the property tax increment allocation financing authorized by
10    this  Section.   Thereafter the rates of the taxing districts
11    shall be extended and taxes levied, collected and distributed
12    in the manner applicable in the absence of  the  adoption  of
13    tax increment allocation financing.
14        Nothing  in  this Section shall be construed as relieving
15    property in  such  redevelopment  project  areas  from  being
16    assessed as provided in the Property Tax Code or as relieving
17    owners  of such property from paying a uniform rate of taxes,
18    as required by  Section  4  of  Article  9  of  the  Illinois
19    Constitution.
20    (Source: P.A.  91-190,  eff.  7-20-99;  91-478, eff. 11-1-99;
21    92-16, eff. 6-28-01.)

22        (65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
23        Sec.  11-74.4-9.  (a)  If  a  municipality  by  ordinance
24    provides for tax increment allocation financing  pursuant  to
25    Section  11-74.4-8,  the  county clerk immediately thereafter
26    shall determine (1) the most recently  ascertained  equalized
27    assessed  value  of  each lot, block, tract or parcel of real
28    property within such redevelopment project  area  from  which
29    shall be deducted:
30             (i)  the  housing  authority  exemptions provided by
31        Section 15-95 of the Property Tax Code, and
32             (ii)  the homestead exemptions provided by  Sections
33        15-170 and 15-175 of the Property Tax Code,
 
                            -10-     LRB093 04111 SJM 12847 a
 1    which  value  shall be the "initial equalized assessed value"
 2    of each such piece of property, and (2) the  total  equalized
 3    assessed  value  of  all  taxable  real  property within such
 4    redevelopment  project  area  by  adding  together  the  most
 5    recently ascertained equalized assessed value of each taxable
 6    lot, block, tract, or parcel of  real  property  within  such
 7    project area, from which shall be deducted:
 8             (i)  the  housing  authority  exemptions provided by
 9        Section 15-95 of the Property Tax Code, and
10             (ii)  the homestead exemptions provided by  Sections
11        15-170 and 15-175 of the Property Tax Code,
12    and shall certify such amount as the "total initial equalized
13    assessed  value"  of  the  taxable  real property within such
14    project area.
15        (b)  In reference to any municipality which  has  adopted
16    tax increment financing after January 1, 1978, and in respect
17    to  which  the  county clerk has certified the "total initial
18    equalized  assessed   value"   of   the   property   in   the
19    redevelopment  area,  the municipality may thereafter request
20    the clerk in writing to adjust the initial equalized value of
21    all taxable real property within  the  redevelopment  project
22    area by deducting therefrom:
23             (i)  the  housing  authority  exemptions provided by
24        Section 15-95 of the Property Tax Code, and
25             (ii)  the  homestead  exemptions  provided  for   by
26        Sections 15-170 and 15-175 of the Property Tax Code
27    applicable  to  each  lot,  block,  tract  or  parcel of real
28    property within such redevelopment project area.  The  county
29    clerk  shall  immediately after the written request to adjust
30    the total initial equalized value is received determine:
31             (i)  the total housing authority exemptions  in  the
32        redevelopment  project  area provided by Section 15-95 of
33        the Property Tax Code, and
34             (ii)  the  total   homestead   exemptions   in   the
 
                            -11-     LRB093 04111 SJM 12847 a
 1        redevelopment  project  area  provided by Sections 15-170
 2        and 15-175 of the Property Tax Code
 3    by adding together the homestead exemptions provided by  said
 4    Sections on each lot, block, tract or parcel of real property
 5    within  such redevelopment project area and then shall deduct
 6    the total of said exemptions from the total initial equalized
 7    assessed value.  The county clerk shall then promptly certify
 8    such amount as the "total initial equalized assessed value as
 9    adjusted"  of  the  taxable   real   property   within   such
10    redevelopment project area.
11        (c)  After  the  county  clerk  has  certified the "total
12    initial  equalized  assessed  value"  of  the  taxable   real
13    property  in  such  area,  then  in  respect  to every taxing
14    district containing a redevelopment project area, the  county
15    clerk  or any other official required by law to ascertain the
16    amount  of  the  equalized  assessed  value  of  all  taxable
17    property within such district for the  purpose  of  computing
18    the rate per cent of tax to be extended upon taxable property
19    within  such district, shall in every year that tax increment
20    allocation financing is in effect  ascertain  the  amount  of
21    value  of taxable property in a redevelopment project area by
22    including in such amount the lower of the  current  equalized
23    assessed  value  or  the  certified  "total initial equalized
24    assessed value" of all taxable real property  in  such  area,
25    except  that  after  he  has  certified  the  "total  initial
26    equalized assessed value as adjusted" he shall in the year of
27    said certification if tax rates have not been extended and in
28    every year thereafter that tax increment allocation financing
29    is  in  effect  ascertain  the  amount  of  value  of taxable
30    property in a redevelopment project area by including in such
31    amount the lower of the current equalized assessed  value  or
32    the  certified  "total  initial  equalized  assessed value as
33    adjusted" of all taxable real property in such area. The rate
34    per cent of tax determined shall be extended to  the  current
 
                            -12-     LRB093 04111 SJM 12847 a
 1    equalized assessed value of all property in the redevelopment
 2    project  area  in the same manner as the rate per cent of tax
 3    is extended to all  other  taxable  property  in  the  taxing
 4    district.   The  method  of extending taxes established under
 5    this Section shall terminate when the municipality adopts  an
 6    ordinance  dissolving the special tax allocation fund for the
 7    redevelopment  project  area.  This  Division  shall  not  be
 8    construed as relieving property owners within a redevelopment
 9    project area from paying a uniform rate  of  taxes  upon  the
10    current equalized assessed value of their taxable property as
11    provided in the Property Tax Code.
12    (Source: P.A. 88-670, eff. 12-2-94.)

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