Public Act 90-0379 of the 90th General Assembly
Public Act 90-0379
HB2060 Enrolled LRB9004707KDks
AN ACT to amend the Illinois Municipal Code by changing
Sections 11-74.4-3 and 11-74.4-7.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3 and 11-74.4-7 as follows:
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms,
wherever used or referred to in this Division 74.4 shall have
the following respective meanings, unless in any case a
different meaning clearly appears from the context.
(a) "Blighted area" means any improved or vacant area
within the boundaries of a redevelopment project area located
within the territorial limits of the municipality where, if
improved, industrial, commercial and residential buildings or
improvements, because of a combination of 5 or more of the
following factors: age; dilapidation; obsolescence;
deterioration; illegal use of individual structures; presence
of structures below minimum code standards; excessive
vacancies; overcrowding of structures and community
facilities; lack of ventilation, light or sanitary
facilities; inadequate utilities; excessive land coverage;
deleterious land use or layout; depreciation of physical
maintenance; lack of community planning, is detrimental to
the public safety, health, morals or welfare, or if vacant,
the sound growth of the taxing districts is impaired by, (1)
a combination of 2 or more of the following factors: obsolete
platting of the vacant land; diversity of ownership of such
land; tax and special assessment delinquencies on such land;
flooding on all or part of such vacant land; deterioration of
structures or site improvements in neighboring areas adjacent
to the vacant land, or (2) the area immediately prior to
becoming vacant qualified as a blighted improved area, or (3)
the area consists of an unused quarry or unused quarries, or
(4) the area consists of unused railyards, rail tracks or
railroad rights-of-way, or (5) the area, prior to its
designation, is subject to chronic flooding which adversely
impacts on real property in the area and such flooding is
substantially caused by one or more improvements in or in
proximity to the area which improvements have been in
existence for at least 5 years, or (6) the area consists of
an unused disposal site, containing earth, stone, building
debris or similar material, which were removed from
construction, demolition, excavation or dredge sites, or (7)
the area is not less than 50 nor more than 100 acres and 75%
of which is vacant, notwithstanding the fact that such area
has been used for commercial agricultural purposes within 5
years prior to the designation of the redevelopment project
area, and which area meets at least one of the factors
itemized in provision (1) of this subsection (a), and the
area has been designated as a town or village center by
ordinance or comprehensive plan adopted prior to January 1,
1982, and the area has not been developed for that designated
purpose.
(b) "Conservation area" means any improved area within
the boundaries of a redevelopment project area located within
the territorial limits of the municipality in which 50% or
more of the structures in the area have an age of 35 years or
more. Such an area is not yet a blighted area but because
of a combination of 3 or more of the following factors:
dilapidation; obsolescence; deterioration; illegal use of
individual structures; presence of structures below minimum
code standards; abandonment; excessive vacancies;
overcrowding of structures and community facilities; lack of
ventilation, light or sanitary facilities; inadequate
utilities; excessive land coverage; deleterious land use or
layout; depreciation of physical maintenance; lack of
community planning, is detrimental to the public safety,
health, morals or welfare and such an area may become a
blighted area.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality;
which area is zoned as industrial no later than at the time
the municipality by ordinance designates the redevelopment
project area, and which area includes both vacant land
suitable for use as an industrial park and a blighted area or
conservation area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the
municipality by ordinance designates an industrial park
conservation area, the unemployment rate was over 6% and was
also 100% or more of the national average unemployment rate
for that same time as published in the United States
Department of Labor Bureau of Labor Statistics publication
entitled "The Employment Situation" or its successor
publication. For the purpose of this subsection, if
unemployment rate statistics for the municipality are not
available, the unemployment rate in the municipality shall be
deemed to be the same as the unemployment rate in the
principal county in which the municipality is located.
(f) "Municipality" shall mean a city, village or
incorporated town.
(g) "Initial Sales Tax Amounts" means the amount of
taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the
amount of taxes paid under the Retailers' Occupation Tax Act,
Use Tax Act, Service Use Tax Act, the Service Occupation Tax
Act, the Municipal Retailers' Occupation Tax Act, and the
Municipal Service Occupation Tax Act by retailers and
servicemen on transactions at places located within the State
Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
of this Act.
(h) "Municipal Sales Tax Increment" means an amount
equal to the increase in the aggregate amount of taxes paid
to a municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen within the
redevelopment project area or State Sales Tax Boundary, as
the case may be, for as long as the redevelopment project
area or State Sales Tax Boundary, as the case may be, exist
over and above the aggregate amount of taxes as certified by
the Illinois Department of Revenue and paid under the
Municipal Retailers' Occupation Tax Act and the Municipal
Service Occupation Tax Act by retailers and servicemen, on
transactions at places of business located in the
redevelopment project area or State Sales Tax Boundary, as
the case may be, during the base year which shall be the
calendar year immediately prior to the year in which the
municipality adopted tax increment allocation financing. For
purposes of computing the aggregate amount of such taxes for
base years occurring prior to 1985, the Department of Revenue
shall determine the Initial Sales Tax Amounts for such taxes
and deduct therefrom an amount equal to 4% of the aggregate
amount of taxes per year for each year the base year is prior
to 1985, but not to exceed a total deduction of 12%. The
amount so determined shall be known as the "Adjusted Initial
Sales Tax Amounts". For purposes of determining the
Municipal Sales Tax Increment, the Department of Revenue
shall for each period subtract from the amount paid to the
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen on transactions located in
the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts for the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act. For the State Fiscal Year 1989, this
calculation shall be made by utilizing the calendar year 1987
to determine the tax amounts received. For the State Fiscal
Year 1990, this calculation shall be made by utilizing the
period from January 1, 1988, until September 30, 1988, to
determine the tax amounts received from retailers and
servicemen pursuant to the Municipal Retailers' Occupation
Tax and the Municipal Service Occupation Tax Act, which shall
have deducted therefrom nine-twelfths of the certified
Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For the State Fiscal Year 1991, this calculation
shall be made by utilizing the period from October 1, 1988,
to June 30, 1989, to determine the tax amounts received from
retailers and servicemen pursuant to the Municipal Retailers'
Occupation Tax and the Municipal Service Occupation Tax Act
which shall have deducted therefrom nine-twelfths of the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending June 30 to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts, as the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of
all amounts in excess of $500,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary. If, however, a municipality established a tax
increment financing district in a county with a population in
excess of 3,000,000 before January 1, 1986, and the
municipality entered into a contract or issued bonds after
January 1, 1986, but before December 31, 1986, to finance
redevelopment project costs within a State Sales Tax
Boundary, then the Net State Sales Tax Increment means, for
the fiscal years beginning July 1, 1990, and July 1, 1991,
100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those
municipalities 100% of their Net State Sales Tax Increment
before any distribution to any other municipality and
regardless of whether or not those other municipalities will
receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
60% in the State Fiscal Year 2002; 50% in the State Fiscal
Year 2003; 40% in the State Fiscal Year 2004; 30% in the
State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
and 10% in the State Fiscal Year 2007. No payment shall be
made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, shall
continue to receive their proportional share of the Illinois
Tax Increment Fund distribution until the date on which the
redevelopment project is completed or terminated, or the date
on which the bonds are retired, whichever date occurs first.
Refunding of any bonds issued prior to July 29, 1991, shall
not alter the Net State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment
allocation financing.
(k) "Net State Utility Tax Increment" means the sum of
the following: (a) 80% of the first $100,000 of State Utility
Tax Increment annually generated by a redevelopment project
area; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of the State Utility Tax Increment
annually generated by a redevelopment project area; and (c)
40% of all amounts in excess of $500,000 of State Utility Tax
Increment annually generated by a redevelopment project area.
For the State Fiscal Year 1999, and every year thereafter
until the year 2007, for any municipality that has not
entered into a contract or has not issued bonds prior to June
1, 1988 to finance redevelopment project costs within a
redevelopment project area, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in the State Fiscal
Year 1999; 80% in the State Fiscal Year 2000; 70% in the
State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal
Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year
2007. No payment shall be made for the State Fiscal Year 2008
and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in
year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
50% in year 20. Refunding of any bonds issued prior to June
1, 1988, shall not alter the revised Net State Utility Tax
Increment payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or
to refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
acquired by a municipality which according to the
redevelopment project or plan is to be used for a private use
which taxing districts would have received had a municipality
not adopted tax increment allocation financing and which
would result from levies made after the time of the adoption
of tax increment allocation financing to the time the current
equalized value of real property in the redevelopment project
area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial
park conservation area," and thereby to enhance the tax bases
of the taxing districts which extend into the redevelopment
project area. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
(A) estimated redevelopment project costs;
(B) evidence indicating that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan
and any program to address such financial impact or
increased demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed
valuation after redevelopment and the general land uses
to apply in the redevelopment project area;
(H) a commitment to fair employment practices and
an affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description
of any proposed developer, user and tenant of any
property, a description of the type, structure and
general character of the facilities to be developed, a
description of the type, class and number of new
employees to be employed in the operation of the
facilities to be developed; and
(J) if property is to be annexed to the
municipality, the plan shall include the terms of the
annexation agreement.
The provisions of items (B) and (C) of this subsection
(n) shall not apply to a municipality that before March 14,
1994 (the effective date of Public Act 88-537) had fixed,
either by its corporate authorities or by a commission
designated under subsection (k) of Section 11-74.4-4, a time
and place for a public hearing as required by subsection (a)
of Section 11-74.4-5. No redevelopment plan shall be adopted
unless a municipality complies with all of the following
requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment
plan and project conform to the comprehensive plan for
the development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the
estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs. Those dates shall not be
more than 23 years from the adoption of the ordinance
approving the redevelopment project area if the ordinance
was adopted on or after January 15, 1981, and not more
than 35 years if the ordinance was adopted before January
15, 1981, or if the ordinance was adopted in April 1984
or July 1985, or if the ordinance was adopted in December
1987 and the redevelopment project is located within one
mile of Midway Airport, or if the municipality is subject
to the Local Government Financial Planning and
Supervision Act. However, for redevelopment project
areas for which bonds were issued before July 29, 1991,
in connection with a redevelopment project in the area
within the State Sales Tax Boundary, the estimated dates
of completion of the redevelopment project and retirement
of obligations to finance redevelopment project costs may
be extended by municipal ordinance to December 31, 2013.
The extension allowed by this amendatory Act of 1993
shall not apply to real property tax increment allocation
financing under Section 11-74.4-8.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were adopted on or after
December 16, 1986 and for which at least $8 million worth
of municipal bonds were authorized on or after December
19, 1989 but before January 1, 1990; provided that the
municipality elects to extend the life of the
redevelopment project area to 35 years by the adoption of
an ordinance after at least 14 but not more than 30 days'
written notice to the taxing bodies, that would otherwise
constitute the joint review board for the redevelopment
project area, before the adoption of the ordinance.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were established on or
after December 1, 1981 but before January 1, 1982 and for
which at least $1,500,000 worth of tax increment revenue
bonds were authorized on or after September 30, 1990 but
before July 1, 1991; provided that the municipality
elects to extend the life of the redevelopment project
area to 35 years by the adoption of an ordinance after at
least 14 but not more than 30 days' written notice to the
taxing bodies, that would otherwise constitute the joint
review board for the redevelopment project area, before
the adoption of the ordinance.
(4) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(5) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be
exclusively utilized for the development of the
redevelopment project area.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan.
(p) "Redevelopment project area" means an area
designated by the municipality, which is not less in the
aggregate than 1 1/2 acres and in respect to which the
municipality has made a finding that there exist conditions
which cause the area to be classified as an industrial park
conservation area or a blighted area or a conservation area,
or a combination of both blighted areas and conservation
areas.
(q) "Redevelopment project costs" mean and include the
sum total of all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to a
redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
(1) Costs of studies, surveys, development of
plans, and specifications, implementation and
administration of the redevelopment plan including but
not limited to staff and professional service costs for
architectural, engineering, legal, marketing, financial,
planning or other services, provided however that no
charges for professional services may be based on a
percentage of the tax increment collected;
(2) Property assembly costs, including but not
limited to acquisition of land and other property, real
or personal, or rights or interests therein, demolition
of buildings, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or
repair or remodeling of existing public or private
buildings and fixtures;
(4) Costs of the construction of public works or
improvements;
(5) Costs of job training and retraining projects;
(6) Financing costs, including but not limited to
all necessary and incidental expenses related to the
issuance of obligations and which may include payment of
interest on any obligations issued hereunder accruing
during the estimated period of construction of any
redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) All or a portion of a taxing district's capital
costs resulting from the redevelopment project
necessarily incurred or to be incurred in furtherance of
the objectives of the redevelopment plan and project, to
the extent the municipality by written agreement accepts
and approves such costs;
(8) Relocation costs to the extent that a
municipality determines that relocation costs shall be
paid or is required to make payment of relocation costs
by federal or State law;
(9) Payment in lieu of taxes;
(10) Costs of job training, advanced vocational
education or career education, including but not limited
to courses in occupational, semi-technical or technical
fields leading directly to employment, incurred by one or
more taxing districts, provided that such costs (i) are
related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to
be trained, a description of the training and services to
be provided, the number and type of positions available
or to be available, itemized costs of the program and
sources of funds to pay for the same, and the term of the
agreement. Such costs include, specifically, the payment
by community college districts of costs pursuant to
Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
Community College Act and by school districts of costs
pursuant to Sections 10-22.20a and 10-23.3a of The School
Code;
(11) Interest cost incurred by a redeveloper
related to the construction, renovation or rehabilitation
of a redevelopment project provided that:
(A) such costs are to be paid directly from
the special tax allocation fund established pursuant
to this Act; and
(B) such payments in any one year may not
exceed 30% of the annual interest costs incurred by
the redeveloper with regard to the redevelopment
project during that year;
(C) if there are not sufficient funds
available in the special tax allocation fund to make
the payment pursuant to this paragraph (11) then the
amounts so due shall accrue and be payable when
sufficient funds are available in the special tax
allocation fund; and
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment
project costs excluding any property assembly costs
and any relocation costs incurred by a municipality
pursuant to this Act.
(12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not
be an eligible redevelopment project cost.
If a special service area has been established pursuant
to the Special Service Area Tax Act, then any tax increment
revenues derived from the tax imposed pursuant to the Special
Service Area Tax Act may be used within the redevelopment
project area for the purposes permitted by that Act as well
as the purposes permitted by this Act.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section
11-74.4-8a the appropriate boundaries eligible for the
determination of State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at
places of business located within a State Sales Tax Boundary
pursuant to the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act, except such portion of such increase that is paid into
the State and Local Sales Tax Reform Fund, the Local
Government Distributive Fund, the Local Government Tax
Fund and the County and Mass Transit District Fund, for as
long as State participation exists, over and above the
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or the Revised Initial Sales Tax Amounts for such taxes as
certified by the Department of Revenue and paid under those
Acts by retailers and servicemen on transactions at places of
business located within the State Sales Tax Boundary during
the base year which shall be the calendar year immediately
prior to the year in which the municipality adopted tax
increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax
Act and Service Use Tax Act and the Service Occupation Tax
Act, which sum shall be appropriated to the Department of
Revenue to cover its costs of administering and enforcing
this Section. For purposes of computing the aggregate amount
of such taxes for base years occurring prior to 1985, the
Department of Revenue shall compute the Initial Sales Tax
Amount for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year
the base year is prior to 1985, but not to exceed a total
deduction of 12%. The amount so determined shall be known as
the "Adjusted Initial Sales Tax Amount". For purposes of
determining the State Sales Tax Increment the Department of
Revenue shall for each period subtract from the tax amounts
received from retailers and servicemen on transactions
located in the State Sales Tax Boundary, the certified
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or Revised Initial Sales Tax Amounts for the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
and the Service Occupation Tax Act. For the State Fiscal
Year 1989 this calculation shall be made by utilizing the
calendar year 1987 to determine the tax amounts received. For
the State Fiscal Year 1990, this calculation shall be made by
utilizing the period from January 1, 1988, until September
30, 1988, to determine the tax amounts received from
retailers and servicemen, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, until June 30, 1989, to determine the
tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received
which shall have deducted therefrom the certified Initial
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts. Municipalities intending
to receive a distribution of State Sales Tax Increment must
report a list of retailers to the Department of Revenue by
October 31, 1988 and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs
of taxing districts for capital improvements that are found
by the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of
this Act, "vacant land" means any parcel or combination of
parcels of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the
parcel has been subdivided; provided that if the parcel was
part of a larger tract that has been divided into 3 or more
smaller tracts that were accepted for recording during the
period from 1950 to 1990, then the parcel shall be deemed to
have been subdivided, and all proceedings and actions of the
municipality taken in that connection with respect to any
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated
and hereby declared to be legally sufficient for all purposes
of this Act.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95;
89-705, eff. 1-31-97.)
(65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so
issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of such obligations by the
receipts of taxes levied as specified in Section 11-74.4-9
against the taxable property included in the area, by
revenues as specified by Section 11-74.4-8a and other revenue
designated by the municipality. A municipality may in the
ordinance pledge all or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant
to Section 11-74.4-8 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the
special tax allocation fund shall provide for distribution to
the taxing districts and to the Illinois Department of
Revenue of moneys not required for payment and securing of
the obligations and redevelopment project costs and such
excess funds shall be calculated annually and deemed to be
"surplus" funds. In the event a municipality only pledges a
portion of the funds in the special tax allocation fund for
the payment of redevelopment project costs or obligations,
any such funds remaining in the special tax allocation fund
after complying with the requirements of the pledge, shall
also be calculated annually and deemed "surplus" funds. All
surplus funds in the special tax allocation fund, subject to
the provisions of (6.1) of Section 11-74.4-8a, shall be
distributed annually within 180 days after the close of the
municipality's fiscal year by being paid by the municipal
treasurer to the County Collector, to the Department of
Revenue and to the municipality in direct proportion to the
tax incremental revenue received as a result of an increase
in the equalized assessed value of property in the
redevelopment project area, tax incremental revenue received
from the State and tax incremental revenue received from the
municipality, but not to exceed as to each such source the
total incremental revenue received from that source. Except
that any special tax allocation fund subject to provision in
(6.1) of Section 11-74.4-8a shall comply with the provisions
in that Section. The County Collector shall thereafter make
distribution to the respective taxing districts in the same
manner and proportion as the most recent distribution by the
county collector to the affected districts of real property
taxes from real property in the redevelopment project area.
Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at
such time or times not exceeding 20 years from their
respective dates, be in such denomination, carry such
registration privileges, be executed in such manner, be
payable in such medium of payment at such place or places,
contain such covenants, terms and conditions, and be subject
to redemption as such ordinance shall provide. Obligations
issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate
authorities of the municipalities. No referendum approval of
the electors shall be required as a condition to the issuance
of obligations pursuant to this Division except as provided
in this Section.
In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division
secured by the full faith and credit of the municipality,
which obligations are other than obligations which may be
issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution, or pledges taxes
pursuant to (b) or (c) of the second paragraph of this
section, the ordinance authorizing the issuance of such
obligations or pledging such taxes shall be published within
10 days after such ordinance has been passed in one or more
newspapers, with general circulation within such
municipality. The publication of the ordinance shall be
accompanied by a notice of (1) the specific number of voters
required to sign a petition requesting the question of the
issuance of such obligations or pledging taxes to be
submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition
form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after
the publication of the ordinance, the ordinance shall be in
effect. But, if within that 30 day period a petition is
filed with the municipal clerk, signed by electors in the
municipality numbering 10% or more of the number of
registered voters in the municipality, asking that the
question of issuing obligations using full faith and credit
of the municipality as security for the cost of paying for
redevelopment project costs, or of pledging taxes for the
payment of such obligations, or both, be submitted to the
electors of the municipality, the corporate authorities of
the municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period of
not less than 30 or more than 90 days from the date such
petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority
of the electors voting upon the question are not in favor
thereof, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide
that the obligations shall contain a recital that they are
issued pursuant to this Division, which recital shall be
conclusive evidence of their validity and of the regularity
of their issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full
faith and credit of the municipality, the ordinance
authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property
within the municipality sufficient to pay the principal
thereof and interest thereon as it matures, which levy may be
in addition to and exclusive of the maximum of all other
taxes authorized to be levied by the municipality, which
levy, however, shall be abated to the extent that monies from
other sources are available for payment of the obligations
and the municipality certifies the amount of said monies
available to the county clerk.
A certified copy of such ordinance shall be filed with
the county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
A municipality may also issue its obligations to refund
in whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity
of the refunding obligations shall not be expressed to mature
later than 23 years from the date of the ordinance approving
the redevelopment project area if the ordinance was adopted
on or after January 15, 1981, and not more than 35 years if
the ordinance was adopted before January 15, 1981, or if the
ordinance was adopted in April, 1984, or July, 1985, or if
the ordinance was adopted in December, 1987 and the
redevelopment project is located within one mile of Midway
Airport, or if the municipality is subject to the Local
Government Financial Planning and Supervision Act and, for
redevelopment project areas for which bonds were issued
before July 29, 1991, in connection with a redevelopment
project in the area within the State Sales Tax Boundary and
which were extended by municipal ordinance under subsection
(n) of Section 11-74.4-3, the last maturity of the refunding
obligations shall not be expressed to mature later than the
date on which the redevelopment project area is terminated or
December 31, 2013, whichever date occurs first.
In the event a municipality issues obligations under home
rule powers or other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may, if it has followed the procedures in
conformance with this division, retire said obligations from
funds in the special tax allocation fund in amounts and in
such manner as if such obligations had been issued pursuant
to the provisions of this division.
All obligations heretofore or hereafter issued pursuant
to this Act shall not be regarded as indebtedness of the
municipality issuing such obligations or any other taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 89-357; eff. 8-17-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.