State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_SB0052eng

 
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 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.  In  counties  with
 8    3,000,000 or more inhabitants, the county clerk shall, and in
 9    all  other  counties  the  county  clerk  may, extend on each
10    valuation of property the sum of the  taxes  to  be  extended
11    upon  the  property  in one total.  When collected, the taxes
12    shall be divided among the taxing bodies levying the same  in
13    proportion  to  the  rates  as determined by the clerk, after
14    deducting from any tax the amount or amounts, if  any,  ruled
15    invalid  by  the  final  judgment  of  a  court  of competent
16    jurisdiction, and in the event a municipality has adopted tax
17    increment financing under Division 74.4 of Article 11 of  the
18    Illinois Municipal Code, after deducting from any tax, except
19    from  a  tax  levied  by a township to retire bonds issued to
20    satisfy court-ordered damages, the amount to be placed in the
21    special tax allocation fund, and distributing the  amount  to
22    be  placed  in  the  special  fund to the municipal treasurer
23    under Section 11-74.4-8 of that Act. The clerk shall  certify
24    in   the  collector's  books  the  rates  as  determined  for
25    extension in such manner as to indicate the  different  taxes
26    entering  into  each  total.   All officers dealing with such
27    extensions, shall record them by  totals.   The  clerk  shall
28    show  in  the collector's books the total tax due each taxing
29    body as 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 the clerk may
 4    not  deduct  the  amount  to  be  placed  in  the special tax
 5    allocation fund from a tax levied by  a  township  to  retire
 6    bonds issued to satisfy court-ordered damages.
 7    (Source: P.A. 79-1525; 88-455.)

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

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

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

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