Public Act 099-0930
 
SB3337 EnrolledLRB099 18639 HLH 43021 b


  
    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 
Sections 27-5 and 27-25 and  by adding Sections 27-100, 27-105, 
27-110, 27-115, 27-120, and 27-125 as follows:
 



    (35 ILCS 200/27-5)



    Sec. 27-5. Short title; definitions. This Article may be 
cited as the
Special Service Area Tax Law.

    When used in this Article: 

    "Services contract" means an agreement between a service 
provider agency and a municipality or county for the purpose of 
providing special services in and for a special service area. 
    "Service provider agency" means an entity that enters into 
a services contract with a municipality or county for the 
purpose of providing special services in and for a special 
service area. 
    "Special Service Area" means a contiguous area within a 
municipality
or county in which special governmental services 
are provided in
addition to those services provided generally 
throughout the
municipality or county, the cost of the special 
services to be paid
from revenues collected from taxes levied 
or imposed upon property
within that area.  Territory shall be 
considered contiguous for purposes
of this Article even though 
certain completely surrounded portions of the
territory are 
excluded from the special service area.  A county may create
a 
special service area within a municipality or municipalities 
when the
municipality or municipalities consent to the creation 
of the special
service area. A municipality may create a 
special service area within a
municipality and the 
unincorporated area of a county or within another
municipality 
when the county or other municipality consents to the creation

of the special service area.

    "Special service area commission" means a local board 
established by the corporate authorities of a municipality or 
county for the purpose of managing a particular special service 
area. 
    "Special Services" means all forms of services pertaining 
to the
government and affairs of the municipality or county, 
including
but not limited to weather modification and 
improvements permissible under
Article 9 of the Illinois 
Municipal Code, and contracts for the supply of
water as 
described in Section 11-124-1 of the Illinois Municipal Code 
which
may be entered into by the municipality or by the county 
on behalf of a
county service area.

(Source: P.A. 86-1324; 88-445.)

 



    (35 ILCS 200/27-25)



    Sec. 27-25. Form of hearing notice. Taxes may be levied or 
imposed by the
municipality or county in the special service 
area at a rate or amount of tax
sufficient to produce revenues 
required to provide the special services. Prior
to the first 
levy of taxes in the special service area, notice shall be 
given
and a hearing shall be held under the provisions of 
Sections 27-30 and 27-35.
For purposes of this Section the 
notice shall include:


        (a) The time and place of hearing;


        (b) The boundaries of the area by legal description 
    and, where possible, by street
location;
        (c) The permanent tax index number of each parcel 
    located within the area;

        (d) The nature of the proposed special services to be 
    provided within the special service area and a statement as 
    to whether the proposed special services are for new 
    construction, maintenance, or other purposes;


        (d-5)  The proposed amount of the tax levy for special 
    services for the initial year for which taxes will be 
    levied within the special service area; 

        (e) A notification that all interested persons, 
    including all persons
owning
taxable real property located 
    within the special service area, will be given an

    opportunity to be heard at the hearing regarding the tax 
    levy and an
opportunity to file objections to the amount of 
    the tax levy if the tax is a
tax upon property; and


        (f) The maximum rate of taxes to be extended within the 
    special service area
in any year and the

maximum number of 
    years taxes will be levied if a maximum number of years is 
    to be established; and .

        (g) If funds received through the special service area 
    are going to be used by a person or entity other than the 
    municipality or county, then a statement to that effect. 
    
After the first levy of taxes within the special service 
area, taxes may continue to be levied in subsequent years 
without the requirement of an additional public hearing if the 
tax rate does not exceed the rate specified in the notice for 
the original public hearing

and
the taxes are not extended for 
a longer
period than the number of years specified in the 
notice if a number of years is specified. Tax rates may be 
increased and the period specified may be extended, if
notice 
is given and new public hearings are held in accordance with 
Sections
27-30 and 27-35.

(Source: P.A. 97-1053, eff. 1-1-13.)

 
    (35 ILCS 200/27-100 new)
    Sec. 27-100. Special service area commissions. 
    (a) Notwithstanding any other provision of law, no member 
of a special service area commission may be an executive 
officer, owner, or member of the board of directors of the 
service provider agency selected for a services contract for 
that special service area. 
    (b) Notwithstanding any other provision of law, no business 
owned by a member of a special service area commission may, for 
valuable consideration, provide goods or services as a 
subcontractor of a service provider agency pursuant to a 
services contract for the special service area that is the 
subject of that special service area commission.   No business 
owned by an employee or elected official of a municipality may, 
for valuable consideration, provide goods or services as a 
subcontractor of a service provider agency pursuant to a 
services contract for any special service area located within 
that municipality. 
    (c) At least one membership position for a special service 
area commission in a special service area which contains one or 
more homestead properties, as defined in Section 15-175, shall 
be reserved as a first priority membership position for any 
owner of homestead property located within such special service 
area. 
 
    (35 ILCS 200/27-105 new)
    Sec. 27-105. Lines of credit.  Special service area 
commissions may not establish a loan or line of credit in 
connection with the special service area. Service provider 
agencies in those municipalities may establish a loan or line 
of credit in connection with the special service area; however, 
financing under this Section may not be secured by future tax 
revenue generated by the special service area.
 
    (35 ILCS 200/27-110 new)
    Sec. 27-110. Special service area moneys  used in the next 
fiscal year.  Notwithstanding any other provision of law, if 
there is excess money remaining in a special service area fund 
at the end of a fiscal year, then the corporate authorities may 
authorize the use of that excess money to provide special 
services within the special service area in the next fiscal 
year, provided that the total amount used for purposes other 
than capital expenditures may not exceed 25% of the previous 
fiscal year's budget for the special service area.
 
    (35 ILCS 200/27-115 new)
    Sec. 27-115. Special service area audits.  Each special 
service area commission shall cause an audit of the funds and 
accounts of the special service area to be submitted to the 
corporate authorities of the municipality at least annually. 
The audit shall be made in accordance with generally accepted 
auditing standards.
 
    (35 ILCS 200/27-120 new)
    Sec. 27-120. Exclusion of erroneously included property.  
If a property is determined by the corporate authorities of the 
municipality to be erroneously included in a special service 
area, the corporate authorities of the municipality may 
disconnect that property from the special service area solely 
by municipal action without regard to Section 27-60 or Section 
27-65 of this Act.
 
    (35 ILCS 200/27-125 new)
    Sec. 27-125. Administrative fees.  Notwithstanding any 
other provision of law, an annual administrative fee may be 
charged for the administration of a special service area.  Such 
annual administrative fee may be derived from the annual tax 
levy for each special service area.  Any amount recommended by a 
special service area commission and approved as an 
administrative expense which may be paid to the service 
provider agency pursuant to the budget included in a services 
contract shall not exceed 30% of the annual tax levy for the 
special service area that is the subject of such services 
contract and is separate from any municipal administrative fee.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.