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91_SB0052
LRB9101534PTpk
1 AN ACT concerning property taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-150 as follows:
6 (35 ILCS 200/18-150)
7 Sec. 18-150. Extension in one total; designated escrow
8 account. In counties with 3,000,000 or more inhabitants, the
9 county clerk shall, and in all other counties the county
10 clerk may, extend on each valuation of property the sum of
11 the taxes to be extended upon the property in one total.
12 When collected, the taxes shall be divided among the taxing
13 bodies levying the same in proportion to the rates as
14 determined by the clerk, after deducting from any tax the
15 amount or amounts, if any, ruled invalid by the final
16 judgment of a court of competent jurisdiction, and in the
17 event a municipality has adopted tax increment financing
18 under Division 74.4 of Article 11 of the Illinois Municipal
19 Code, after deducting from any tax the amount to be placed in
20 the special tax allocation fund except as provided under
21 Section 20-90, and distributing the amount to be placed in
22 the special fund to the municipal treasurer under Section
23 11-74.4-8 of that Act. The clerk shall certify in the
24 collector's books the rates as determined for extension in
25 such manner as to indicate the different taxes entering into
26 each total. All officers dealing with such extensions, shall
27 record them by totals. The clerk shall show in the
28 collector's books the total tax due each taxing body as
29 extended.
30 If (i) a county clerk does not extend in one total on
31 each valuation of property the sum of the taxes to be
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1 extended upon the property and (ii) a municipality has
2 adopted tax increment financing under Division 74.4 of
3 Article 11 of the Illinois Municipal Code, then, except as
4 provided under Section 20-90, the clerk must deduct from any
5 tax the amount to be placed in the special tax allocation
6 fund and distribute the amount to be placed in the special
7 fund to the municipal treasurer under Section 11-74.4-8 of
8 the Illinois Municipal Code. The amount of the tax proceeds
9 deposited into a designated escrow account under Section
10 20-90 are subject to deductions from the tax in the amounts
11 ruled invalid by the final judgment of a court of competent
12 jurisdiction.
13 (Source: P.A. 79-1525; 88-455.)
14 Section 10. The Illinois Municipal Code is amended by
15 changing Section 11-74.4-8 as follows:
16 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
17 Sec. 11-74.4-8. A municipality may not adopt tax
18 increment financing in a redevelopment project area after the
19 effective date of this amendatory Act of 1997 that will
20 encompass an area that is currently included in an enterprise
21 zone created under the Illinois Enterprise Zone Act unless
22 that municipality, pursuant to Section 5.4 of the Illinois
23 Enterprise Zone Act, amends the enterprise zone designating
24 ordinance to limit the eligibility for tax abatements as
25 provided in Section 5.4.1 of the Illinois Enterprise Zone
26 Act. A municipality, at the time a redevelopment project
27 area is designated, may adopt tax increment allocation
28 financing by passing an ordinance providing that the ad
29 valorem taxes, if any, arising from the levies upon taxable
30 real property in such redevelopment project area by taxing
31 districts and tax rates determined in the manner provided in
32 paragraph (c) of Section 11-74.4-9 each year after the
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1 effective date of the ordinance until redevelopment project
2 costs and all municipal obligations financing redevelopment
3 project costs incurred under this Division have been paid
4 shall be divided as follows:
5 (a) That portion of taxes levied upon each taxable lot,
6 block, tract or parcel of real property which is attributable
7 to the lower of the current equalized assessed value or the
8 initial equalized assessed value of each such taxable lot,
9 block, tract or parcel of real property in the redevelopment
10 project area shall be allocated to and when collected shall
11 be paid by the county collector to the respective affected
12 taxing districts in the manner required by law in the absence
13 of the adoption of tax increment allocation financing.
14 (b) Except as provided under Section 20-90 of the
15 Property Tax Code, that portion, if any, of such taxes which
16 is attributable to the increase in the current equalized
17 assessed valuation of each taxable lot, block, tract or
18 parcel of real property in the redevelopment project area
19 over and above the initial equalized assessed value of each
20 property in the project area shall be allocated to and when
21 collected shall be paid to the municipal treasurer who shall
22 deposit said taxes into a special fund called the special tax
23 allocation fund of the municipality for the purpose of paying
24 redevelopment project costs and obligations incurred in the
25 payment thereof. In any county with a population of 3,000,000
26 or more that has adopted a procedure for collecting taxes
27 that provides for one or more of the installments of the
28 taxes to be billed and collected on an estimated basis, the
29 municipal treasurer shall be paid for deposit in the special
30 tax allocation fund of the municipality, from the taxes
31 collected from estimated bills issued for property in the
32 redevelopment project area, the difference between the amount
33 actually collected from each taxable lot, block, tract, or
34 parcel of real property within the redevelopment project area
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1 and an amount determined by multiplying the rate at which
2 taxes were last extended against the taxable lot, block,
3 track, or parcel of real property in the manner provided in
4 subsection (c) of Section 11-74.4-9 by the initial equalized
5 assessed value of the property divided by the number of
6 installments in which real estate taxes are billed and
7 collected within the county, provided each of the following
8 conditions are met:
9 (1) The total equalized assessed value of the
10 redevelopment project area as last determined was not
11 less than 175% of the total initial equalized assessed
12 value.
13 (2) Not more than 50% of the total equalized
14 assessed value of the redevelopment project area as last
15 determined is attributable to a piece of property
16 assigned a single real estate index number.
17 (3) The municipal clerk has certified to the county
18 clerk that the municipality has issued its obligations to
19 which there has been pledged the incremental property
20 taxes of the redevelopment project area or taxes levied
21 and collected on any or all property in the municipality
22 or the full faith and credit of the municipality to pay
23 or secure payment for all or a portion of the
24 redevelopment project costs. The certification shall be
25 filed annually no later than September 1 for the
26 estimated taxes to be distributed in the following year;
27 however, for the year 1992 the certification shall be
28 made at any time on or before March 31, 1992.
29 (4) The municipality has not requested that the
30 total initial equalized assessed value of real property
31 be adjusted as provided in subsection (b) of Section
32 11-74.4-9.
33 It is the intent of this Division that after the
34 effective date of this amendatory Act of 1988 a
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1 municipality's own ad valorem tax arising from levies on
2 taxable real property be included in the determination of
3 incremental revenue in the manner provided in paragraph (c)
4 of Section 11-74.4-9. If the municipality does not extend
5 such a tax, it shall annually deposit in the municipality's
6 Special Tax Increment Fund an amount equal to 10% of the
7 total contributions to the fund from all other taxing
8 districts in that year. The annual 10% deposit required by
9 this paragraph shall be limited to the actual amount of
10 municipally produced incremental tax revenues available to
11 the municipality from taxpayers located in the redevelopment
12 project area in that year if: (a) the plan for the area
13 restricts the use of the property primarily to industrial
14 purposes, (b) the municipality establishing the redevelopment
15 project area is a home-rule community with a 1990 population
16 of between 25,000 and 50,000, (c) the municipality is wholly
17 located within a county with a 1990 population of over
18 750,000 and (d) the redevelopment project area was
19 established by the municipality prior to June 1, 1990. This
20 payment shall be in lieu of a contribution of ad valorem
21 taxes on real property. If no such payment is made, any
22 redevelopment project area of the municipality shall be
23 dissolved.
24 If a municipality has adopted tax increment allocation
25 financing by ordinance and the County Clerk thereafter
26 certifies the "total initial equalized assessed value as
27 adjusted" of the taxable real property within such
28 redevelopment project area in the manner provided in
29 paragraph (b) of Section 11-74.4-9, each year after the date
30 of the certification of the total initial equalized assessed
31 value as adjusted until redevelopment project costs and all
32 municipal obligations financing redevelopment project costs
33 have been paid the ad valorem taxes, if any, arising from the
34 levies upon the taxable real property in such redevelopment
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1 project area by taxing districts and tax rates determined in
2 the manner provided in paragraph (c) of Section 11-74.4-9
3 shall be divided as follows:
4 (1) That portion of the taxes levied upon each
5 taxable lot, block, tract or parcel of real property
6 which is attributable to the lower of the current
7 equalized assessed value or "current equalized assessed
8 value as adjusted" or the initial equalized assessed
9 value of each such taxable lot, block, tract, or parcel
10 of real property existing at the time tax increment
11 financing was adopted, minus the total current homestead
12 exemptions provided by Sections 15-170 and 15-175 of the
13 Property Tax Code in the redevelopment project area shall
14 be allocated to and when collected shall be paid by the
15 county collector to the respective affected taxing
16 districts in the manner required by law in the absence of
17 the adoption of tax increment allocation financing.
18 (2) That portion, if any, of such taxes which is
19 attributable to the increase in the current equalized
20 assessed valuation of each taxable lot, block, tract, or
21 parcel of real property in the redevelopment project
22 area, over and above the initial equalized assessed value
23 of each property existing at the time tax increment
24 financing was adopted, minus the total current homestead
25 exemptions pertaining to each piece of property provided
26 by Sections 15-170 and 15-175 of the Property Tax Code in
27 the redevelopment project area, shall be allocated to and
28 when collected shall be paid to the municipal Treasurer,
29 who shall deposit said taxes into a special fund called
30 the special tax allocation fund of the municipality for
31 the purpose of paying redevelopment project costs and
32 obligations incurred in the payment thereof.
33 The municipality may pledge in the ordinance the funds in
34 and to be deposited in the special tax allocation fund for
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1 the payment of such costs and obligations. No part of the
2 current equalized assessed valuation of each property in the
3 redevelopment project area attributable to any increase above
4 the total initial equalized assessed value, or the total
5 initial equalized assessed value as adjusted, of such
6 properties shall be used in calculating the general State
7 school aid formula, provided for in Section 18-8 of the
8 School Code, until such time as all redevelopment project
9 costs have been paid as provided for in this Section.
10 Whenever a municipality issues bonds for the purpose of
11 financing redevelopment project costs, such municipality may
12 provide by ordinance for the appointment of a trustee, which
13 may be any trust company within the State, and for the
14 establishment of such funds or accounts to be maintained by
15 such trustee as the municipality shall deem necessary to
16 provide for the security and payment of the bonds. If such
17 municipality provides for the appointment of a trustee, such
18 trustee shall be considered the assignee of any payments
19 assigned by the municipality pursuant to such ordinance and
20 this Section. Any amounts paid to such trustee as assignee
21 shall be deposited in the funds or accounts established
22 pursuant to such trust agreement, and shall be held by such
23 trustee in trust for the benefit of the holders of the bonds,
24 and such holders shall have a lien on and a security interest
25 in such funds or accounts so long as the bonds remain
26 outstanding and unpaid. Upon retirement of the bonds, the
27 trustee shall pay over any excess amounts held to the
28 municipality for deposit in the special tax allocation fund.
29 When such redevelopment projects costs, including without
30 limitation all municipal obligations financing redevelopment
31 project costs incurred under this Division, have been paid,
32 all surplus funds then remaining in the special tax
33 allocation fund shall be distributed by being paid by the
34 municipal treasurer to the Department of Revenue, the
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1 municipality and the county collector; first to the
2 Department of Revenue and the municipality in direct
3 proportion to the tax incremental revenue received from the
4 State and the municipality, but not to exceed the total
5 incremental revenue received from the State or the
6 municipality less any annual surplus distribution of
7 incremental revenue previously made; with any remaining funds
8 to be paid to the County Collector who shall immediately
9 thereafter pay said funds to the taxing districts in the
10 redevelopment project area in the same manner and proportion
11 as the most recent distribution by the county collector to
12 the affected districts of real property taxes from real
13 property in the redevelopment project area.
14 Upon the payment of all redevelopment project costs,
15 retirement of obligations and the distribution of any excess
16 monies pursuant to this Section, the municipality shall adopt
17 an ordinance dissolving the special tax allocation fund for
18 the redevelopment project area and terminating the
19 designation of the redevelopment project area as a
20 redevelopment project area. If a municipality extends
21 estimated dates of completion of a redevelopment project and
22 retirement of obligations to finance a redevelopment project,
23 as allowed by this amendatory Act of 1993, that extension
24 shall not extend the property tax increment allocation
25 financing authorized by this Section. Thereafter the rates
26 of the taxing districts shall be extended and taxes levied,
27 collected and distributed in the manner applicable in the
28 absence of the adoption of tax increment allocation
29 financing.
30 Nothing in this Section shall be construed as relieving
31 property in such redevelopment project areas from being
32 assessed as provided in the Property Tax Code or as relieving
33 owners of such property from paying a uniform rate of taxes,
34 as required by Section 4 of Article 9 of the Illinois
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1 Constitution.
2 (Source: P.A. 90-258, eff. 7-30-97.)
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.