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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB0052eng SB52 Engrossed 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 SB52 Engrossed -2- LRB9101534PTpk 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 SB52 Engrossed -3- LRB9101534PTpk 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 SB52 Engrossed -4- LRB9101534PTpk 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 SB52 Engrossed -5- LRB9101534PTpk 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 SB52 Engrossed -6- LRB9101534PTpk 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 SB52 Engrossed -7- LRB9101534PTpk 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 SB52 Engrossed -8- LRB9101534PTpk 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.