(65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
Sec. 11-74.4-6. (a) Except as provided herein, notice of the public hearing
shall be given by publication and mailing; provided, however, that no notice by mailing shall be required under this subsection (a) with respect to any redevelopment project area located within a transit facility improvement area established pursuant to Section 11-74.4-3.3. Notice by publication
shall be given by publication at least twice, the first publication to be
not more than 30 nor less than 10 days prior to the hearing in a newspaper
of general circulation within the taxing districts having property in the
proposed redevelopment project area. Notice by mailing shall be given by
depositing such notice in the United States mails by certified mail
addressed to the person or persons in whose name the general taxes for the
last preceding year were paid on each lot, block, tract, or parcel of land
lying within the project redevelopment area. Said notice shall be mailed
not less than 10 days prior to the date set for the public hearing. In the
event taxes for the last preceding year were not paid, the notice shall
also be sent to the persons last listed on the tax rolls within the
preceding 3 years as the owners of such property.
For redevelopment project areas with redevelopment plans or proposed
redevelopment plans that would require removal of 10 or more inhabited
residential
units or that contain 75 or more inhabited residential units, the municipality
shall make a good faith effort to notify by mail all
residents of
the redevelopment project area. At a minimum, the municipality shall mail a
notice
to each residential address located within the redevelopment project area. The
municipality shall endeavor to ensure that all such notices are effectively
communicated and shall include (in addition to notice in English) notice in
the predominant language
other than English when appropriate.
(b) The notices issued pursuant to this Section shall include the following:
(1) The time and place of public hearing.
(2) The boundaries of the proposed redevelopment |
| project area by legal description and by street location where possible.
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(3) A notification that all interested persons will
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| be given an opportunity to be heard at the public hearing.
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(4) A description of the redevelopment plan or
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| redevelopment project for the proposed redevelopment project area if a plan or project is the subject matter of the hearing.
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(5) Such other matters as the municipality may deem
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(c) Not less than 45 days prior to the date set for hearing, the
municipality shall give notice by mail as provided in subsection (a) to all
taxing districts of which taxable property is included in the redevelopment
project area, project or plan and to the Department of Commerce and
Economic Opportunity, and in addition to the other requirements under
subsection (b) the notice shall include an invitation to the Department of
Commerce and Economic Opportunity and each taxing district to submit comments
to the municipality concerning the subject matter of the hearing prior to
the date of hearing.
(d) In the event that any municipality has by ordinance adopted tax
increment financing prior to 1987, and has complied with the notice
requirements of this Section, except that the notice has not included the
requirements of subsection (b), paragraphs (2), (3) and (4), and within 90
days of December 16, 1991 (the effective date of Public Act 87-813), that
municipality passes an ordinance which contains findings that: (1) all taxing
districts prior to the time of the hearing required by Section 11-74.4-5
were furnished with copies of a map incorporated into the redevelopment
plan and project substantially showing the legal boundaries of the
redevelopment project area; (2) the redevelopment plan and project, or a
draft thereof, contained a map substantially showing the legal boundaries
of the redevelopment project area and was available to the public at the
time of the hearing; and (3) since the adoption of any form of tax
increment financing authorized by this Act, and prior to June 1, 1991, no
objection or challenge has been made in writing to the municipality in
respect to the notices required by this Section, then the municipality
shall be deemed to have met the notice requirements of this Act and all
actions of the municipality taken in connection with such notices as were
given are hereby validated and hereby declared to be legally sufficient for
all purposes of this Act.
(e) If a municipality desires to propose a redevelopment
plan
for a redevelopment project area that
would result in the displacement of residents from
10 or more inhabited residential units or for a redevelopment project area that
contains 75 or more inhabited residential units, the
municipality
shall hold a public meeting before the mailing of the notices of public hearing
as
provided in subsection (c) of this Section. However, such a meeting shall be required for any redevelopment plan for a redevelopment project area located within a transit facility improvement area established pursuant to Section 11-74.4-3.3 if the applicable project is subject to the process for evaluation of environmental effects under the National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq. The meeting shall be for the
purpose of
enabling the municipality to advise the public, taxing districts having real
property in
the redevelopment project area, taxpayers who own property in the proposed
redevelopment project area, and residents in the area as to the
municipality's possible intent to prepare a redevelopment plan and
designate a
redevelopment project area and to receive public comment.
The time and place for the meeting shall be set by the head of the
municipality's
Department of Planning or other department official designated by the mayor or
city
or village manager without the necessity of a resolution or ordinance of the
municipality and may be held by a member of the staff of the Department of
Planning of the municipality or by any other person, body, or commission
designated by the corporate authorities. The meeting shall be held at
least 14 business
days before the mailing of the notice of public hearing provided for in
subsection (c)
of this Section.
Notice of the public meeting shall be given by mail. Notice by mail shall be
not less than 15 days before the date of the meeting and shall be sent by
certified
mail to all taxing districts having real property in the proposed redevelopment
project area and to all entities requesting that information that have
registered with a person and department designated by the municipality in
accordance with registration guidelines established by the
municipality pursuant to Section 11-74.4-4.2. The
municipality shall make a good faith effort to notify all residents and the
last known persons who paid
property taxes on real estate in a redevelopment project area. This
requirement
shall be deemed to be satisfied if the municipality mails, by regular mail, a
notice to
each residential address and the person or persons in whose name property taxes
were paid on real property for the last preceding year located within the
redevelopment project area. Notice shall be in languages other than English
when
appropriate. The notices issued under this subsection shall include the
following:
(1) The time and place of the meeting.
(2) The boundaries of the area to be studied for
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| possible designation as a redevelopment project area by street and location.
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(3) The purpose or purposes of establishing a
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| redevelopment project area.
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(4) A brief description of tax increment financing.
(5) The name, telephone number, and address of the
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| person who can be contacted for additional information about the proposed redevelopment project area and who should receive all comments and suggestions regarding the development of the area to be studied.
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(6) Notification that all interested persons will be
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| given an opportunity to be heard at the public meeting.
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(7) Such other matters as the municipality deems
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At the public meeting, any interested person or representative of an affected
taxing district
may be heard orally and may file, with the person conducting the
meeting, statements that pertain to the subject matter of the meeting.
(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17.)
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(65 ILCS 5/11-74.4-8)
(from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. Tax increment allocation financing. A municipality may
not adopt tax increment financing in a
redevelopment
project area after July 30, 1997 (the effective date of Public Act 90-258) that will
encompass an area that is currently included in an enterprise zone created
under the Illinois Enterprise Zone Act unless that municipality, pursuant to
Section 5.4 of the Illinois Enterprise Zone Act, amends the enterprise zone
designating ordinance to limit the eligibility for tax abatements as provided
in Section 5.4.1 of the Illinois Enterprise Zone Act.
A municipality, at the time a redevelopment project area
is designated, may adopt tax increment allocation financing by passing an
ordinance providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property in such redevelopment project
area by taxing districts and tax rates determined in the manner provided
in paragraph (c) of Section 11-74.4-9 each year after the effective
date of the ordinance until redevelopment project costs and all municipal
obligations financing redevelopment project costs incurred under this Division
have been paid shall be divided as follows, provided, however, that with respect to any redevelopment project area located within a transit facility improvement area established pursuant to Section 11-74.4-3.3 in a municipality with a population of 1,000,000 or more, ad valorem taxes, if any, arising from the levies upon taxable real property in such redevelopment project area shall be allocated as specifically provided in this Section:
(a) That portion of taxes levied upon each taxable |
| lot, block, tract, or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
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(b) Except from a tax levied by a township to retire
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| bonds issued to satisfy court-ordered damages, that portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the redevelopment project area over and above the initial equalized assessed value of each property in the project area shall be allocated to and when collected shall be paid to the municipal treasurer who shall deposit said taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof. In any county with a population of 3,000,000 or more that has adopted a procedure for collecting taxes that provides for one or more of the installments of the taxes to be billed and collected on an estimated basis, the municipal treasurer shall be paid for deposit in the special tax allocation fund of the municipality, from the taxes collected from estimated bills issued for property in the redevelopment project area, the difference between the amount actually collected from each taxable lot, block, tract, or parcel of real property within the redevelopment project area and an amount determined by multiplying the rate at which taxes were last extended against the taxable lot, block, tract, or parcel of real property in the manner provided in subsection (c) of Section 11-74.4-9 by the initial equalized assessed value of the property divided by the number of installments in which real estate taxes are billed and collected within the county; provided that the payments on or before December 31, 1999 to a municipal treasurer shall be made only if each of the following conditions are met:
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(1) The total equalized assessed value of the
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| redevelopment project area as last determined was not less than 175% of the total initial equalized assessed value.
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(2) Not more than 50% of the total equalized
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| assessed value of the redevelopment project area as last determined is attributable to a piece of property assigned a single real estate index number.
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(3) The municipal clerk has certified to the
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| county clerk that the municipality has issued its obligations to which there has been pledged the incremental property taxes of the redevelopment project area or taxes levied and collected on any or all property in the municipality or the full faith and credit of the municipality to pay or secure payment for all or a portion of the redevelopment project costs. The certification shall be filed annually no later than September 1 for the estimated taxes to be distributed in the following year; however, for the year 1992 the certification shall be made at any time on or before March 31, 1992.
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(4) The municipality has not requested that the
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| total initial equalized assessed value of real property be adjusted as provided in subsection (b) of Section 11-74.4-9.
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The conditions of paragraphs (1) through (4) do not
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| apply after December 31, 1999 to payments to a municipal treasurer made by a county with 3,000,000 or more inhabitants that has adopted an estimated billing procedure for collecting taxes. If a county that has adopted the estimated billing procedure makes an erroneous overpayment of tax revenue to the municipal treasurer, then the county may seek a refund of that overpayment. The county shall send the municipal treasurer a notice of liability for the overpayment on or before the mailing date of the next real estate tax bill within the county. The refund shall be limited to the amount of the overpayment.
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It is the intent of this Division that after July 29,
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| 1988 (the effective date of Public Act 85-1142) a municipality's own ad valorem tax arising from levies on taxable real property be included in the determination of incremental revenue in the manner provided in paragraph (c) of Section 11-74.4-9. If the municipality does not extend such a tax, it shall annually deposit in the municipality's Special Tax Increment Fund an amount equal to 10% of the total contributions to the fund from all other taxing districts in that year. The annual 10% deposit required by this paragraph shall be limited to the actual amount of municipally produced incremental tax revenues available to the municipality from taxpayers located in the redevelopment project area in that year if: (a) the plan for the area restricts the use of the property primarily to industrial purposes, (b) the municipality establishing the redevelopment project area is a home rule community with a 1990 population of between 25,000 and 50,000, (c) the municipality is wholly located within a county with a 1990 population of over 750,000 and (d) the redevelopment project area was established by the municipality prior to June 1, 1990. This payment shall be in lieu of a contribution of ad valorem taxes on real property. If no such payment is made, any redevelopment project area of the municipality shall be dissolved.
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If a municipality has adopted tax increment
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| allocation financing by ordinance and the County Clerk thereafter certifies the "total initial equalized assessed value as adjusted" of the taxable real property within such redevelopment project area in the manner provided in paragraph (b) of Section 11-74.4-9, each year after the date of the certification of the total initial equalized assessed value as adjusted until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid the ad valorem taxes, if any, arising from the levies upon the taxable real property in such redevelopment project area by taxing districts and tax rates determined in the manner provided in paragraph (c) of Section 11-74.4-9 shall be divided as follows, provided, however, that with respect to any redevelopment project area located within a transit facility improvement area established pursuant to Section 11-74.4-3.3 in a municipality with a population of 1,000,000 or more, ad valorem taxes, if any, arising from the levies upon the taxable real property in such redevelopment project area shall be allocated as specifically provided in this Section:
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(1) That portion of the taxes levied upon each
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| taxable lot, block, tract, or parcel of real property which is attributable to the lower of the current equalized assessed value or "current equalized assessed value as adjusted" or the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property existing at the time tax increment financing was adopted, minus the total current homestead exemptions under Article 15 of the Property Tax Code in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
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(2) That portion, if any, of such taxes which is
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| attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value of each property existing at the time tax increment financing was adopted, minus the total current homestead exemptions pertaining to each piece of property provided by Article 15 of the Property Tax Code in the redevelopment project area, shall be allocated to and when collected shall be paid to the municipal Treasurer, who shall deposit said taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof.
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The municipality may pledge in the ordinance the
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| funds in and to be deposited in the special tax allocation fund for the payment of such costs and obligations. No part of the current equalized assessed valuation of each property in the redevelopment project area attributable to any increase above the total initial equalized assessed value, or the total initial equalized assessed value as adjusted, of such properties shall be used in calculating the general State aid formula, provided for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code, until such time as all redevelopment project costs have been paid as provided for in this Section.
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Whenever a municipality issues bonds for the purpose
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| of financing redevelopment project costs, such municipality may provide by ordinance for the appointment of a trustee, which may be any trust company within the State, and for the establishment of such funds or accounts to be maintained by such trustee as the municipality shall deem necessary to provide for the security and payment of the bonds. If such municipality provides for the appointment of a trustee, such trustee shall be considered the assignee of any payments assigned by the municipality pursuant to such ordinance and this Section. Any amounts paid to such trustee as assignee shall be deposited in the funds or accounts established pursuant to such trust agreement, and shall be held by such trustee in trust for the benefit of the holders of the bonds, and such holders shall have a lien on and a security interest in such funds or accounts so long as the bonds remain outstanding and unpaid. Upon retirement of the bonds, the trustee shall pay over any excess amounts held to the municipality for deposit in the special tax allocation fund.
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When such redevelopment projects costs, including,
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| without limitation, all municipal obligations financing redevelopment project costs incurred under this Division, have been paid, all surplus funds then remaining in the special tax allocation fund shall be distributed by being paid by the municipal treasurer to the Department of Revenue, the municipality and the county collector; first to the Department of Revenue and the municipality in direct proportion to the tax incremental revenue received from the State and the municipality, but not to exceed the total incremental revenue received from the State or the municipality less any annual surplus distribution of incremental revenue previously made; with any remaining funds to be paid to the County Collector who shall immediately thereafter pay said funds to the taxing districts in the redevelopment project area in the same manner and proportion as the most recent distribution by the county collector to the affected districts of real property taxes from real property in the redevelopment project area.
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Upon the payment of all redevelopment project costs,
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| the retirement of obligations, the distribution of any excess monies pursuant to this Section, and final closing of the books and records of the redevelopment project area, the municipality shall adopt an ordinance dissolving the special tax allocation fund for the redevelopment project area and terminating the designation of the redevelopment project area as a redevelopment project area. Title to real or personal property and public improvements acquired by or for the municipality as a result of the redevelopment project and plan shall vest in the municipality when acquired and shall continue to be held by the municipality after the redevelopment project area has been terminated. Municipalities shall notify affected taxing districts prior to November 1 if the redevelopment project area is to be terminated by December 31 of that same year. If a municipality extends estimated dates of completion of a redevelopment project and retirement of obligations to finance a redevelopment project, as allowed by Public Act 87-1272, that extension shall not extend the property tax increment allocation financing authorized by this Section. Thereafter the rates of the taxing districts shall be extended and taxes levied, collected and distributed in the manner applicable in the absence of the adoption of tax increment allocation financing.
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If a municipality with a population of 1,000,000 or
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| more has adopted by ordinance tax increment allocation financing for a redevelopment project area located in a transit facility improvement area established pursuant to Section 11-74.4-3.3, for each year after the effective date of the ordinance until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid, the ad valorem taxes, if any, arising from the levies upon the taxable real property in that redevelopment project area by taxing districts and tax rates determined in the manner provided in paragraph (c) of Section 11-74.4-9 shall be divided as follows:
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(1) That portion of the taxes levied upon each
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| taxable lot, block, tract, or parcel of real property which is attributable to the lower of (i) the current equalized assessed value or "current equalized assessed value as adjusted" or (ii) the initial equalized assessed value of each such taxable lot, block, tract, or parcel of real property existing at the time tax increment financing was adopted, minus the total current homestead exemptions under Article 15 of the Property Tax Code in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
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(2) That portion, if any, of such taxes which is
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| attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value of each property existing at the time tax increment financing was adopted, minus the total current homestead exemptions pertaining to each piece of property provided by Article 15 of the Property Tax Code in the redevelopment project area, shall be allocated to and when collected shall be paid by the county collector as follows:
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(A) First, that portion which would be
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| payable to a school district whose boundaries are coterminous with such municipality in the absence of the adoption of tax increment allocation financing, shall be paid to such school district in the manner required by law in the absence of the adoption of tax increment allocation financing; then
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(B) 80% of the remaining portion shall be
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| paid to the municipal Treasurer, who shall deposit said taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof; and then
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(C) 20% of the remaining portion shall be
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| paid to the respective affected taxing districts, other than the school district described in clause (a) above, in the manner required by law in the absence of the adoption of tax increment allocation financing.
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Nothing in this Section shall be construed as relieving property in such
redevelopment project areas from being assessed as provided in the Property
Tax Code or as relieving owners of such property from paying a uniform rate of
taxes, as required by Section 4 of Article IX of the Illinois Constitution.
(Source: P.A. 102-558, eff. 8-20-21.)
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(65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality which has
adopted tax increment allocation financing prior to January 1, 1987, may by
ordinance (1) authorize the Department of Revenue, subject to
appropriation, to annually certify and cause to be paid from the Illinois
Tax Increment Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State Sales Tax
Increment and (2) authorize the Department of Revenue to annually notify
the municipality of the amount of the Municipal Sales Tax Increment which
shall be deposited by the municipality in the municipality's special tax
allocation fund. Provided that for purposes of this Section no amendments
adding additional area to the redevelopment project area which has been
certified as the State Sales Tax Boundary shall be taken into account if
such amendments are adopted by the municipality after January 1, 1987. If
an amendment is adopted which decreases the area of a State Sales Tax
Boundary, the municipality shall update the list required by subsection
(3)(a) of this Section. The Retailers' Occupation Tax liability, Use Tax
liability, Service Occupation Tax liability and Service Use Tax liability
for retailers and servicemen located within the disconnected area shall be
excluded from the base from which tax increments are calculated and the
revenue from any such retailer or serviceman shall not be included in
calculating incremental revenue payable to the municipality. A municipality
adopting an ordinance under this subsection (1) of this Section for a
redevelopment project area which is certified as a State Sales Tax Boundary
shall not be entitled to payments of State taxes authorized under
subsection (2) of this Section for the same redevelopment project area.
Nothing herein shall be construed to prevent a municipality from receiving
payment of State taxes authorized under subsection (2) of this Section for
a separate redevelopment project area that does not overlap in any way with
the State Sales Tax Boundary receiving payments of State taxes pursuant to
subsection (1) of this Section.
A certified copy of such ordinance shall be submitted by the municipality
to the Department of Commerce and Economic Opportunity and the Department of
Revenue not later than 30 days after the effective date of the ordinance.
Upon submission of the ordinances, and the information required pursuant to
subsection 3 of this Section, the Department of Revenue shall promptly
determine the amount of such taxes paid under the Retailers' Occupation Tax
Act, Use Tax Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act by retailers and servicemen on transactions at places
located in the redevelopment project area during the base year, and shall
certify all the foregoing "initial sales tax amounts" to the municipality
within 60 days of submission of the list required of subsection (3)(a) of
this Section.
If a retailer or serviceman with a place of business located within a
redevelopment project area also has one or more other places of business
within the municipality but outside the redevelopment project area, the
retailer or serviceman shall, upon request of the Department of Revenue,
certify to the Department of Revenue the amount of taxes paid pursuant to
the Retailers' Occupation Tax Act, the Municipal Retailers' Occupation Tax
Act, the Service Occupation Tax Act and the Municipal Service Occupation
Tax Act at each place of business which is located within the redevelopment
project area in the manner and for the periods of time requested by the
Department of Revenue.
When the municipality determines that a portion of an increase in
the aggregate amount of taxes paid by retailers and servicemen under the
Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax Act, or the
Service Occupation Tax Act is the result of a retailer or serviceman
initiating retail or service operations in the redevelopment project area
by such retailer or serviceman with a resulting termination of retail or
service operations by such retailer or serviceman at another
location in Illinois in the standard metropolitan statistical area of such
municipality, the Department of Revenue shall be notified that the
retailers occupation tax liability, use tax liability, service occupation tax
liability, or service use tax liability from such retailer's or serviceman's
terminated operation shall be included in the base Initial Sales Tax
Amounts from which the State Sales Tax Increment is calculated for purposes
of State payments to the affected municipality; provided, however, for
purposes of this paragraph "termination" shall mean a closing of a retail
or service operation which is directly related to the opening of the same
retail or service operation in a redevelopment project area which is
included within a State Sales Tax Boundary, but it shall not include retail
or service operations closed for reasons beyond the control of the retailer
or serviceman, as determined by the Department.
If the municipality makes the determination referred to in the prior
paragraph and notifies the Department and if the relocation is from a
location within the municipality, the Department, at the request of the
municipality, shall adjust the certified aggregate amount of taxes that
constitute the Municipal Sales Tax Increment paid by retailers and servicemen
on transactions at places of business located within the State Sales Tax
Boundary during the base year using the same procedures as are employed to
make the adjustment referred to in the prior paragraph. The adjusted
Municipal Sales Tax Increment calculated by the Department shall be
sufficient to satisfy the requirements of subsection (1) of this Section.
When a municipality which has adopted tax increment allocation financing
in 1986 determines that a portion of the aggregate amount of taxes paid by
retailers and servicemen under the Retailers Occupation Tax Act, Use Tax
Act, Service Use Tax Act, or Service Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act and the Municipal Service Occupation Tax Act,
includes revenue of a retailer or serviceman which terminated retailer or
service operations in 1986, prior to the adoption of tax increment
allocation financing, the Department of Revenue shall be notified by such
municipality that the retailers' occupation tax liability, use tax
liability, service occupation tax liability or service use tax liability,
from such retailer's or serviceman's terminated operations shall be
excluded from the Initial Sales Tax Amounts for such taxes. The revenue
from any such retailer or serviceman which is excluded from the base year
under this paragraph, shall not be included in calculating incremental
revenues if such retailer or serviceman reestablishes such business in the
redevelopment project area.
For State fiscal year 1992, the Department of Revenue shall
budget, and the Illinois General Assembly shall appropriate
from the Illinois Tax Increment Fund in the State treasury, an amount not
to exceed $18,000,000 to pay to each eligible municipality the Net
State Sales Tax Increment to which such municipality is entitled.
Beginning on January 1, 1993, each municipality's proportional share of
the Illinois Tax Increment Fund shall be determined by adding the annual Net
State Sales Tax Increment and the annual Net Utility Tax Increment to determine
the Annual Total Increment. The ratio of the Annual Total Increment of each
municipality to the Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the proportional shares
of the Illinois Tax Increment Fund to be distributed to each municipality.
Beginning in October, 1993, and each January, April, July and October
thereafter, the Department of Revenue shall certify to the Treasurer and
the Comptroller the amounts payable quarter annually during the fiscal year
to each municipality under this Section. The Comptroller shall promptly
then draw warrants, ordering the State Treasurer to pay such amounts from
the Illinois Tax Increment Fund in the State treasury.
The Department of Revenue shall utilize the same periods established
for determining State Sales Tax Increment to determine the Municipal
Sales Tax Increment for the area within a State Sales Tax
Boundary and certify such amounts to such municipal treasurer who shall
transfer such amounts to the special tax allocation fund.
The provisions of this subsection (1) do not apply to additional
municipal retailers' occupation or service occupation taxes imposed by
municipalities using their home rule powers or imposed pursuant to
Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
receive from the State any share of the Illinois Tax Increment Fund unless such
municipality deposits all its Municipal Sales Tax Increment and
the local incremental real property tax revenues, as provided herein, into
the appropriate special tax allocation fund.
If, however, a municipality has extended the estimated dates of completion of
the redevelopment project and retirement of obligations to finance
redevelopment project costs by municipal ordinance to December 31, 2013 under
subsection (n) of Section 11-74.4-3, then that municipality shall continue to
receive from the State a share of the Illinois Tax Increment Fund
so long as the municipality deposits, from any funds available, excluding funds
in the special tax allocation fund, an amount equal
to the municipal share of the real property tax increment revenues
into the special tax allocation fund during the extension period.
The amount to be deposited by the municipality in each of the tax years
affected by the extension to December 31, 2013 shall be equal to the municipal
share of the property tax increment deposited into the special tax allocation
fund by the municipality for the most recent year that the property tax
increment was distributed.
A municipality located within
an economic development project area created under the County Economic
Development Project Area Property Tax Allocation Act which has abated any
portion of its property taxes which otherwise would have been deposited in
its special tax allocation fund shall not receive from the State the Net
Sales Tax Increment.
(2) A municipality which has adopted tax increment allocation
financing with regard to an industrial park or industrial park
conservation area, prior to January 1, 1988, may by ordinance authorize the
Department of Revenue to annually certify and pay from the Illinois Tax
Increment Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State Utility Tax
Increment. Provided that for purposes of this Section no amendments adding
additional area to the redevelopment project area shall be taken into
account if such amendments are adopted by the municipality after January 1,
1988. Municipalities adopting an ordinance under this subsection (2) of
this Section for a redevelopment project area shall not be entitled to
payment of State taxes authorized under subsection (1) of this Section for
the same redevelopment project area which is within a State Sales Tax
Boundary. Nothing herein shall be construed to prevent a municipality from
receiving payment of State taxes authorized under subsection (1) of this
Section for a separate redevelopment project area within a State Sales Tax
Boundary that does not overlap in any way with the redevelopment project
area receiving payments of State taxes pursuant to subsection (2) of this
Section.
A certified copy of such ordinance shall be submitted to the Department
of Commerce and Economic Opportunity and the Department of Revenue not later
than 30 days after the effective date of the ordinance.
When a municipality determines that a portion of an increase in the
aggregate amount of taxes paid by industrial or commercial facilities under
the Public Utilities Act, is the result of an industrial or commercial
facility initiating operations in the redevelopment project area with a
resulting termination of such operations by such industrial or commercial
facility at another location in Illinois, the Department of Revenue shall be
notified by such municipality that such industrial or commercial facility's
liability under the Public Utility Tax Act shall be included in the base
from which tax increments are calculated for purposes of State payments to
the affected municipality.
After receipt of the calculations by the public utility as required by
subsection (4) of this Section, the Department of Revenue shall annually
budget and the Illinois General Assembly shall annually appropriate from
the General Revenue Fund through State Fiscal Year 1989, and thereafter from
the Illinois Tax Increment Fund, an amount sufficient to pay to each eligible
municipality the amount of incremental revenue attributable to State
electric and gas taxes as reflected by the charges imposed on persons in
the project area to which such municipality is entitled by comparing the
preceding calendar year with the base year as determined by this Section.
Beginning on January 1, 1993, each municipality's proportional share of
the Illinois Tax Increment Fund shall be determined by adding the annual Net
State Utility Tax Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual Total Increment
of each municipality to the Annual Total Increment for all municipalities, as
most recently calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to each
municipality.
A municipality shall not receive any share of the Illinois Tax
Increment Fund from the State unless such municipality imposes the maximum
municipal charges authorized pursuant to Section 9-221 of the
Public Utilities Act and deposits all municipal utility tax incremental
revenues as certified by the public utilities, and all local real estate
tax increments into such municipality's special tax allocation fund.
(3) Within 30 days after the adoption of the ordinance required by either
subsection (1) or subsection (2) of this Section, the municipality shall
transmit to the Department of Commerce and Economic Opportunity and the
Department of Revenue the following:
(a) if applicable, a certified copy of the ordinance |
| required by subsection (1) accompanied by a complete list of street names and the range of street numbers of each street located within the redevelopment project area for which payments are to be made under this Section in both the base year and in the year preceding the payment year; and the addresses of persons registered with the Department of Revenue; and, the name under which each such retailer or serviceman conducts business at that address, if different from the corporate name; and the Illinois Business Tax Number of each such person (The municipality shall update this list in the event of a revision of the redevelopment project area, or the opening or closing or name change of any street or part thereof in the redevelopment project area, or if the Department of Revenue informs the municipality of an addition or deletion pursuant to the monthly updates given by the Department.);
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(b) if applicable, a certified copy of the ordinance
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| required by subsection (2) accompanied by a complete list of street names and range of street numbers of each street located within the redevelopment project area, the utility customers in the project area, and the utilities serving the redevelopment project areas;
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(c) certified copies of the ordinances approving the
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| redevelopment plan and designating the redevelopment project area;
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(d) a copy of the redevelopment plan as approved by
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(e) an opinion of legal counsel that the municipality
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| had complied with the requirements of this Act; and
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(f) a certification by the chief executive officer of
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| the municipality that with regard to a redevelopment project area: (1) the municipality has committed all of the municipal tax increment created pursuant to this Act for deposit in the special tax allocation fund, (2) the redevelopment projects described in the redevelopment plan would not be completed without the use of State incremental revenues pursuant to this Act, (3) the municipality will pursue the implementation of the redevelopment plan in an expeditious manner, (4) the incremental revenues created pursuant to this Section will be exclusively utilized for the development of the redevelopment project area, and (5) the increased revenue created pursuant to this Section shall be used exclusively to pay redevelopment project costs as defined in this Act.
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(4) The Department of Revenue upon receipt of the information set forth
in paragraph (b) of subsection (3) shall immediately forward such
information to each public utility furnishing natural gas or electricity to
buildings within the redevelopment project area. Upon receipt of such
information, each public utility shall promptly:
(a) provide to the Department of Revenue and the
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| municipality separate lists of the names and addresses of persons within the redevelopment project area receiving natural gas or electricity from such public utility. Such list shall be updated as necessary by the public utility. Each month thereafter the public utility shall furnish the Department of Revenue and the municipality with an itemized listing of charges imposed pursuant to Sections 9-221 and 9-222 of the Public Utilities Act on persons within the redevelopment project area.
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(b) determine the amount of charges imposed pursuant
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| to Sections 9-221 and 9-222 of the Public Utilities Act on persons in the redevelopment project area during the base year, both as a result of municipal taxes on electricity and gas and as a result of State taxes on electricity and gas and certify such amounts both to the municipality and the Department of Revenue; and
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(c) determine the amount of charges imposed pursuant
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| to Sections 9-221 and 9-222 of the Public Utilities Act on persons in the redevelopment project area on a monthly basis during the base year, both as a result of State and municipal taxes on electricity and gas and certify such separate amounts both to the municipality and the Department of Revenue.
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After the determinations are made in paragraphs (b) and (c), the public
utility shall monthly during the existence of the redevelopment project
area notify the Department of Revenue and the municipality of any increase
in charges over the base year determinations made pursuant to paragraphs
(b) and (c).
(5) The payments authorized under this Section shall be deposited by the
municipal treasurer in the special tax allocation fund of the municipality,
which for accounting purposes shall identify the sources of each payment
as: municipal receipts from the State retailers occupation, service
occupation, use and service use taxes; and municipal public utility taxes
charged to customers under the Public Utilities Act and State public
utility taxes charged to customers under the Public Utilities Act.
(6) Before the effective date of this amendatory Act of the 91st General
Assembly, any
municipality receiving payments authorized under this Section
for any redevelopment project area or area within a State Sales Tax
Boundary within the municipality shall submit to the Department of Revenue
and to the taxing districts which are sent the notice required by Section
6 of this Act annually within 180 days after the close of each municipal
fiscal year the following information for the immediately preceding fiscal
year:
(a) Any amendments to the redevelopment plan, the
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| redevelopment project area, or the State Sales Tax Boundary.
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(b) Audited financial statements of the special tax
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(c) Certification of the Chief Executive Officer of
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| the municipality that the municipality has complied with all of the requirements of this Act during the preceding fiscal year.
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(d) An opinion of legal counsel that the municipality
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| is in compliance with this Act.
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(e) An analysis of the special tax allocation fund
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(1) the balance in the special tax allocation
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| fund at the beginning of the fiscal year;
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(2) all amounts deposited in the special tax
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| allocation fund by source;
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(3) all expenditures from the special tax
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| allocation fund by category of permissible redevelopment project cost; and
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(4) the balance in the special tax allocation
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| fund at the end of the fiscal year including a breakdown of that balance by source. Such ending balance shall be designated as surplus if it is not required for anticipated redevelopment project costs or to pay debt service on bonds issued to finance redevelopment project costs, as set forth in Section 11-74.4-7 hereof.
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(f) A description of all property purchased by the
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| municipality within the redevelopment project area including:
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1. Street address
2. Approximate size or description of property
3. Purchase price
4. Seller of property.
(g) A statement setting forth all activities
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| undertaken in furtherance of the objectives of the redevelopment plan, including:
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1. Any project implemented in the preceding
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2. A description of the redevelopment activities
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3. A description of any agreements entered into
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| by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary.
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(h) With regard to any obligations issued by the
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1. copies of bond ordinances or resolutions
2. copies of any official statements
3. an analysis prepared by financial advisor or
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| underwriter setting forth: (a) nature and term of obligation; and (b) projected debt service including required reserves and debt coverage.
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(i) A certified audit report reviewing compliance
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| with this statute performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs, Activities, and Functions adopted by the Comptroller General of the United States (1981), as amended. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3. If the audit indicates that expenditures are not in compliance with the law, the Department of Revenue shall withhold State sales and utility tax increment payments to the municipality until compliance has been reached, and an amount equal to the ineligible expenditures has been returned to the Special Tax Allocation Fund.
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(6.1) After July 29, 1988 and before the effective date of this amendatory
Act of the 91st General Assembly,
any funds which have not been designated for
use in a specific development project in the annual report shall be
designated as surplus.
No funds may be held in the Special Tax Allocation Fund for more than 36 months
from the date of receipt unless the money is required for payment of
contractual obligations for specific development project costs. If held for
more than 36 months in violation of the preceding sentence, such funds shall be
designated as surplus. Any funds
designated as surplus must first be used for early redemption of any bond
obligations. Any funds designated as surplus which are not disposed of as
otherwise provided in this paragraph, shall be distributed as
surplus as
provided in Section 11-74.4-7.
(7) Any appropriation made pursuant to this Section for the 1987 State
fiscal year shall not exceed the amount of $7 million and for the 1988
State fiscal year the amount of $10 million. The amount which shall be
distributed to each municipality shall be the incremental revenue to which
each municipality is entitled as calculated by the Department of Revenue,
unless the requests of the municipality exceed the appropriation,
then the amount to which each municipality shall be entitled shall be
prorated among the municipalities in the same proportion as the increment to
which the municipality would be entitled bears to the total increment which all
municipalities would receive in the absence of this limitation, provided that
no municipality may receive an amount in excess of 15% of the appropriation.
For the 1987 Net State Sales Tax Increment payable in Fiscal Year 1989, no
municipality shall receive more than 7.5% of the total appropriation; provided,
however, that any of the appropriation remaining after such distribution shall
be prorated among municipalities on the basis of their pro rata share of the
total increment. Beginning on January 1, 1993, each municipality's proportional
share of the Illinois Tax Increment Fund shall be determined by adding the
annual Net State Sales Tax Increment and the annual Net Utility Tax Increment
to determine the Annual Total Increment. The ratio of the Annual Total
Increment of each municipality to the Annual Total Increment for all
municipalities, as most recently calculated by the Department, shall determine
the proportional shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(7.1) No distribution of Net State Sales Tax Increment
to a municipality for an area within a State Sales Tax Boundary shall
exceed in any State Fiscal Year an amount equal
to 3 times the sum of the Municipal Sales Tax Increment, the real
property tax increment and deposits of funds from other sources, excluding
state and federal funds, as certified by the city treasurer to the
Department of Revenue for an area within a State Sales Tax Boundary. After
July 29, 1988, for those municipalities which issue bonds between June 1,
1988 and 3 years from July 29, 1988 to finance redevelopment projects
within the area in a State Sales Tax Boundary, the distribution of Net
State Sales Tax Increment during the 16th through 20th years from the date
of issuance of the bonds shall not exceed in any State Fiscal Year an
amount equal to 2 times the sum of the Municipal Sales Tax Increment, the
real property tax increment and deposits of funds from other sources,
excluding State and federal funds.
(8) Any person who knowingly files or causes to be filed false
information for the purpose of increasing the amount of any State tax
incremental revenue commits a Class A misdemeanor.
(9) The following procedures shall be followed to determine whether
municipalities have complied with the Act for the purpose of receiving
distributions after July 1, 1989 pursuant to subsection (1) of this
Section 11-74.4-8a.
(a) The Department of Revenue shall conduct a
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| preliminary review of the redevelopment project areas and redevelopment plans pertaining to those municipalities receiving payments from the State pursuant to subsection (1) of Section 8a of this Act for the purpose of determining compliance with the following standards:
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(1) For any municipality with a population of
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| more than 12,000 as determined by the 1980 U.S. Census: (a) the redevelopment project area, or in the case of a municipality which has more than one redevelopment project area, each such area, must be contiguous and the total of all such areas shall not comprise more than 25% of the area within the municipal boundaries nor more than 20% of the equalized assessed value of the municipality; (b) the aggregate amount of 1985 taxes in the redevelopment project area, or in the case of a municipality which has more than one redevelopment project area, the total of all such areas, shall be not more than 25% of the total base year taxes paid by retailers and servicemen on transactions at places of business located within the municipality under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act. Redevelopment project areas created prior to 1986 are not subject to the above standards if their boundaries were not amended in 1986.
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(2) For any municipality with a population of
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| 12,000 or less as determined by the 1980 U.S. Census: (a) the redevelopment project area, or in the case of a municipality which has more than one redevelopment project area, each such area, must be contiguous and the total of all such areas shall not comprise more than 35% of the area within the municipal boundaries nor more than 30% of the equalized assessed value of the municipality; (b) the aggregate amount of 1985 taxes in the redevelopment project area, or in the case of a municipality which has more than one redevelopment project area, the total of all such areas, shall not be more than 35% of the total base year taxes paid by retailers and servicemen on transactions at places of business located within the municipality under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act. Redevelopment project areas created prior to 1986 are not subject to the above standards if their boundaries were not amended in 1986.
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(3) Such preliminary review of the redevelopment
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| project areas applying the above standards shall be completed by November 1, 1988, and on or before November 1, 1988, the Department shall notify each municipality by certified mail, return receipt requested that either (1) the Department requires additional time in which to complete its preliminary review; or (2) the Department is issuing either (a) a Certificate of Eligibility or (b) a Notice of Review. If the Department notifies a municipality that it requires additional time to complete its preliminary investigation, it shall complete its preliminary investigation no later than February 1, 1989, and by February 1, 1989 shall issue to each municipality either (a) a Certificate of Eligibility or (b) a Notice of Review. A redevelopment project area for which a Certificate of Eligibility has been issued shall be deemed a "State Sales Tax Boundary."
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(4) The Department of Revenue shall also issue a
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| Notice of Review if the Department has received a request by November 1, 1988 to conduct such a review from taxpayers in the municipality, local taxing districts located in the municipality or the State of Illinois, or if the redevelopment project area has more than 5 retailers and has had growth in State sales tax revenue of more than 15% from calendar year 1985 to 1986.
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(b) For those municipalities receiving a Notice of
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| Review, the Department will conduct a secondary review consisting of: (i) application of the above standards contained in subsection (9)(a)(1)(a) and (b) or (9)(a)(2)(a) and (b), and (ii) the definitions of blighted and conservation area provided for in Section 11-74.4-3. Such secondary review shall be completed by July 1, 1989.
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Upon completion of the secondary review, the
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| Department will issue (a) a Certificate of Eligibility or (b) a Preliminary Notice of Deficiency. Any municipality receiving a Preliminary Notice of Deficiency may amend its redevelopment project area to meet the standards and definitions set forth in this paragraph (b). This amended redevelopment project area shall become the "State Sales Tax Boundary" for purposes of determining the State Sales Tax Increment.
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(c) If the municipality advises the Department of its
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| intent to comply with the requirements of paragraph (b) of this subsection outlined in the Preliminary Notice of Deficiency, within 120 days of receiving such notice from the Department, the municipality shall submit documentation to the Department of the actions it has taken to cure any deficiencies. Thereafter, within 30 days of the receipt of the documentation, the Department shall either issue a Certificate of Eligibility or a Final Notice of Deficiency. If the municipality fails to advise the Department of its intent to comply or fails to submit adequate documentation of such cure of deficiencies the Department shall issue a Final Notice of Deficiency that provides that the municipality is ineligible for payment of the Net State Sales Tax Increment.
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(d) If the Department issues a final determination of
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| ineligibility, the municipality shall have 30 days from the receipt of determination to protest and request a hearing. Such hearing shall be conducted in accordance with Sections 10-25, 10-35, 10-40, and 10-50 of the Illinois Administrative Procedure Act. The decision following the hearing shall be subject to review under the Administrative Review Law.
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(e) Any Certificate of Eligibility issued pursuant to
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| this subsection 9 shall be binding only on the State for the purposes of establishing municipal eligibility to receive revenue pursuant to subsection (1) of this Section 11-74.4-8a.
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(f) It is the intent of this subsection that the
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| periods of time to cure deficiencies shall be in addition to all other periods of time permitted by this Section, regardless of the date by which plans were originally required to be adopted. To cure said deficiencies, however, the municipality shall be required to follow the procedures and requirements pertaining to amendments, as provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
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(10) If a municipality adopts a State Sales Tax Boundary in accordance
with the provisions of subsection (9) of this Section, such boundaries
shall subsequently be utilized to determine Revised Initial Sales Tax
Amounts and the Net State Sales Tax Increment; provided, however, that such
revised State Sales Tax Boundary shall not have any effect upon the boundary of
the redevelopment project area established for the purposes of determining the
ad valorem taxes on real property pursuant to Sections 11-74.4-7 and 11-74.4-8
of this Act nor upon the municipality's authority to implement
the redevelopment plan for that redevelopment project area. For any
redevelopment project area with a smaller State Sales Tax Boundary within
its area, the municipality may annually elect to deposit the Municipal
Sales Tax Increment for the redevelopment project area in the special tax
allocation fund and shall certify the amount to the Department prior to
receipt of the Net State Sales Tax Increment. Any municipality required by
subsection (9) to establish a State Sales Tax Boundary for one or more of
its redevelopment project areas shall submit all necessary information
required by the Department concerning such boundary and the retailers
therein, by October 1, 1989, after complying with the procedures for
amendment set forth in Sections 11-74.4-5 and 11-74.4-6 of this Act. Net
State Sales Tax Increment produced within the State Sales Tax Boundary
shall be spent only within that area. However expenditures of all municipal
property tax increment and municipal sales tax increment in a redevelopment
project area are not required to be spent within the smaller State Sales
Tax Boundary within such redevelopment project area.
(11) The Department of Revenue shall have the authority to issue rules
and regulations for purposes of this Section.
(12) If, under Section 5.4.1 of the Illinois Enterprise Zone Act, a
municipality determines that property that lies within a State Sales Tax
Boundary has an improvement, rehabilitation, or renovation that is entitled to
a property tax abatement, then that property along with any improvements,
rehabilitation, or renovations shall be immediately removed from any State
Sales Tax Boundary. The municipality that made the determination shall notify
the Department of Revenue within 30 days after the determination. Once a
property is removed from the State Sales Tax Boundary because of the existence
of a property tax abatement resulting from an enterprise
zone, then that property shall not be permitted to
be amended into a State Sales Tax Boundary.
(Source: P.A. 100-201, eff. 8-18-17.)
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