SB2911 103RD GENERAL ASSEMBLY

LRB103 36214 HLH 66307 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2911

Introduced 1/26/2024, by Sen. Rachel Ventura

SYNOPSIS AS INTRODUCED:

35 ILCS 200/30-25

Amends the Property Tax Code. Provides that owners of commercial or industrial property who receive a tax incentive as a result of a tax incentivized development are not eligible to receive distributions from a tax reimbursement account. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Property Tax Code is amended by changing Section 30-25 as follows:

(35 ILCS 200/30-25)

Sec. 30-25. Distributions from account.

(a) At the direction of the corporate authorities of a taxing district, the treasurer of the taxing district shall disburse the amounts held in the tax reimbursement account. Unless the taxing district has divided the moneys as provided in subsection (b), disbursements shall be made to all of the owners of taxable homestead property within the taxing district. Each owner of taxable homestead property shall receive a proportionate share of the total disbursement based on the amount of ad valorem taxes on taxable homestead property paid by the owner to the taxing district under the most recent tax bill.

(b) The corporate authorities of a taxing district may direct the treasurer to divide the moneys deposited into the account into 2 separate pools to be designated the homestead property pool and the commercial or industrial property pool. The amount to be deposited into each pool shall be determined by the corporate authorities of the taxing district, except that at least 50% of the moneys in the account shall be deposited into the homestead property pool. The treasurer shall disburse the amounts held in each pool in the tax reimbursement account at the direction of the corporate authorities. Disbursements from the homestead property pool shall be made to all of the owners of taxable homestead property within the taxing district. Each owner of taxable homestead property shall receive a proportionate share of the total disbursement from the pool based on the amount of ad valorem taxes on taxable homestead property paid by the owner to the taxing district under the most recent tax bill. Disbursements from the commercial or industrial property pool shall be made to all of the owners of taxable commercial or industrial property, except (i) those owners whose property is located within a tax increment financing district, (ii) those owners who received a tax incentive as a result of a tax incentivized development, or (iii) those owners whose property is classified as an apartment building. Each eligible owner of taxable commercial or industrial property shall receive a proportionate share of the total disbursement from the pool based on the amount of ad valorem taxes on taxable commercial or industrial property paid by the owner to the taxing district under the most recent tax bill.

(c) In determining the proportionate share of each owner of homestead property, the numerator shall be the amount of taxes on homestead property paid by that owner to the taxing district under the most recent tax bill, and the denominator shall be the aggregate total of all taxes on homestead property paid by all owners to the taxing district under the most recent tax bills.

(d) In determining the proportionate share of each owner of commercial or industrial property, the numerator shall be the amount of taxes on commercial or industrial property paid by that owner to the taxing district under the most recent tax bill, and the denominator shall be the aggregate total of all taxes on commercial or industrial property paid by all owners to the taxing district under the most recent tax bills less taxes paid on commercial or industrial property located in a tax increment financing district, taxes paid on commercial or industrial property for which the owner received a tax incentive as a result of a tax incentivized development, and taxes paid on an apartment building.

(e) As used in this Section:

"Qualified redevelopment costs" means costs advanced by a taxing district to a commercial or industrial property owner to promote economic development when, but for the advancement of the funds, the development would not be financially feasible.

"Tax incentivized development" means an economic development project established by intergovernmental agreement whereby the taxing district advances qualified redevelopment costs to a commercial or industrial property owner.

(Source: P.A. 90-471, eff. 8-17-97.)

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