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91_SB0052enr
SB52 Enrolled 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. 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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