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Legislative Report June 13, 2024
Prepared by: Bridget Peach
Bill Information
TIF-REDEVELOPMENT PROJECT COST
(REP. LANCE YEDNOCK)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. For redevelopment project areas designated after November 1, 1999, in municipalities with less than 1,000,000 population, modifies the formula for elementary, secondary, or unit school district's increased costs attributable to assisted housing units located within the redevelopment project area for which the developer or redeveloper receives financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the assisted housing sites necessary for the completion of that housing. Removes differences in formulation for alternate method districts, flat grant districts, and foundation districts. For school districts in a municipality with a population in excess of 1,000,000, changes the last date upon which a school district may submit a claim for reimbursement to the municipality to October 31 of each year (currently, September 30) and provides that municipalities shall reimburse school districts that have met specified criteria no later than January 31 of the school year in which the claim is made.

  CURRENT STATUS

4/5/2024 - Rule 19(a) / Re-referred to Rules Committee

MUNI CD-TIF REVENUE
(REP. BLAINE WILHOUR)

Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that moneys in the special tax allocation fund may be used to make distributions to certain taxing districts. Provides that moneys received from the additional distributions may be used by the affected taxing district to pay debt service on obligations incurred by the taxing district and to provide property tax relief. Effective immediately.

  CURRENT STATUS

4/5/2024 - Rule 19(a) / Re-referred to Rules Committee

TIF REEXTENSION LIMITATION
(REP. JEFF KEICHER)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, after the effective date of the amendatory Act, the General Assembly shall not approve the extension of a redevelopment project and the retirement of its obligations to a date that is beyond the 35th calendar year after the year in which the ordinance approving the redevelopment project areas was adopted. Effective immediately.

  CURRENT STATUS

3/10/2023 - Rule 19(a) / Re-referred to Rules Committee

REVENUE-MEGA PROJECTS
(REP. MARK WALKER)

Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.

  CURRENT STATUS

3/10/2023 - Rule 19(a) / Re-referred to Rules Committee

MUNI-TIF DISTRICTS-START DATE
(REP. JACKIE HAAS)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, if an ordinance is adopted after the effective date of the amendatory Act creating a redevelopment project area, the redevelopment project area will expire the 23rd year after the year in which the first project started using the moneys from the special tax allocation fund (rather than expire the 23rd year after the year in which the ordinance approving the redevelopment project area was adopted if the ordinance). Provides that the start of the 23 years for ordinances adopted after the effective date of the amendatory Act commences no later than 10 years after the year in which the ordinance approving the redevelopment project area was adopted even if no projects have been started using the moneys from the special tax allocation fund. Makes a conforming change in provisions extending the expiration of a redevelopment project area to the 35th calendar year. Provides that no more extensions of redevelopment project areas to the 47th calendar year may occur after January 8, 2025 unless added by a Public Act of the 103rd General Assembly. Effective immediately.

  CURRENT STATUS

4/5/2024 - Rule 19(a) / Re-referred to Rules Committee

TIF DISTRICTS-REFERENDUM
(REP. JEFF KEICHER)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, before an ordinance may be adopted approving a redevelopment project area, the redevelopment project area must be approved by referendum of the voters of the affected taxing districts. Includes requirements for the ordinance or resolution proposing the redevelopment project area, for submission of and language for the referendum, and approval of the referendum when a majority of the voters in each of the affected taxing districts approve the referendum. Modifies notice requirements for the public meeting, and requires the notification of all voters of the affected taxing districts. Requires notice by publication, mailing, and on the website of the municipality (rather than by publication and mailing), and modifies the timing in which notices must be sent. Requires that a notice also must contain a copy of the proposed ordinance designating the redevelopment project area, a list of all taxes levied by each of the taxing districts that constitute the joint review board, a statement of the projected impact that the redevelopment project area will have on those taxing district, and the proposed referendum language. Makes other changes. Effective immediately.

  CURRENT STATUS

2/8/2024 - Referred to House Rules

MUNI CD-TIF SURPLUS FUNDS
(SEN. LAURA MURPHY)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that all surplus funds in the special tax allocation fund shall be distributed as soon as possible after they are calculated (rather than distributed annually within 180 days after the close of the municipality's fiscal year).

  CURRENT STATUS

3/15/2024 - Rule 3-9(a) / Re-referred to Assignments

REVENUE-MEGA PROJECTS
(SEN. DON HARMON)

Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.

  CURRENT STATUS

4/15/2024 - Chief Sponsor Changed to Sen. Don Harmon

TIF/REDEVELOPMENT PROJECT AREA
(SEN. MARY EDLY-ALLEN)

Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Modifies factors used by a municipality to determine if an area is a blighted area or a conservation area to be included in the area of a redevelopment project area when establishing the area. Provides that a new redevelopment project area shall have a completion date no later than December 31st of the 20th year after the ordinance was adopted (rather than the 23rd year), and provides that the redevelopment project area may be extended, with the approval of each member of the joint review board, only 2 additional years (rather than extended to the 35th year and extended again to the 47th year). Provides that a municipality may not approve redevelopment project areas or expansions of redevelopment project areas that overlap with an existing redevelopment project area. Provides that 10% of moneys deposited into the special tax allocation fund shall be transferred to the local chamber of commerce or chambers of commerce representing the redevelopment project area for the chamber or chambers of commerce to use for grants to businesses that employee fewer than 50 full-time employees if the business moves within the redevelopment project area. Provides that moneys transferred to a chamber of commerce not used or pledged within one year of transfer of the moneys shall be returned to the municipality and are designated surplus funds of the redevelopment project area. Adds nonvoting members to joint review boards. Provides that, if a school district or community college district does not approve of the creation of a redevelopment project area, then the portion of the taxes attributable to the increase in the current equalized assessed valuation which would be payable to the nonconsenting district shall be paid to that district. Effective immediately.

  CURRENT STATUS

2/20/2024 - Chief Sponsor Changed to Sen. Mary Edly-Allen

TIF-DEVELOPER LOT INITIAL EAV
(SEN. ROBERT MARTWICK)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if (1) 3 or more improved lots, blocks, tracts, or parcels of real property within a single redevelopment project area are purchased by a developer or a developer's parent company or wholly-owned subsidiary, or any combination thereof, within the 3 years prior to the date that the ordinance providing for the tax increment allocation was adopted by the municipality, and (2) an improvement on any of the lots, blocks, tracts, or parcels of real property is demolished or otherwise rendered uninhabitable, then the initial equalized assessed value for the lot, block, tract or parcel of real property shall be the equalized assessed value of the lot, block, tract, or parcel of real property on the date it was purchased by the developer, the developer's parent company, or the developer's wholly-owned subsidiary or purchased by any combination thereof. Limits the provisions to ordinances adopted after the effective date of the amendatory Act.

  CURRENT STATUS

3/10/2023 - Rule 3-9(a) / Re-referred to Assignments

TIF-INITIAL & TOTAL EAV
(SEN. ROBERT MARTWICK)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.

  CURRENT STATUS

3/10/2023 - Rule 3-9(a) / Re-referred to Assignments

MUNI-TIF-BLIGHTED HOMES
(SEN. CHAPIN ROSE)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include the costs of demolishing buildings, site preparation, or site improvements of a dilapidated or vacant parcel zoned for residential use or costs of reconstruction, repair, remodeling, or new construction of a single-family residence on a dilapidated or vacant parcel zoned for residential use. Amends the Property Tax Code. Provides that a municipality, upon adoption of an ordinance or resolution by majority vote of its corporate authorities, may order the county clerk to abate, for 20 years, the portion of the taxes levied upon an improved parcel of real property that is attributable to the increase in the current equalized assessed valuation of the parcel over and above the equalized assessed valuation of the parcel immediately before the demolition of the dilapidated structure on the parcel. Provides that "improved parcel of real property" means a parcel where redevelopment project costs have been used by the municipality for the construction of a new single-family residence on a parcel zoned for residential use after demolition or removal of a dilapidated structure from that parcel. Provides that an abatement approved under the provisions shall be extended to all subsequent owners of the improved parcel of real property during the abatement period.

  CURRENT STATUS

2/9/2023 - Referred to Senate Assignments

PROP TX-TIF INFO ON BILL
(SEN. SUE REZIN)

Amends the Property Tax Code. Provides that each tax bill shall contain a statement for each tax increment financing (TIF) district in which the property is located setting forth the amount that each taxing district that contains all or part of the TIF district would have received for the taxable year in the absence of the TIF district. Effective immediately.

  CURRENT STATUS

3/15/2024 - Rule 3-9(a) / Re-referred to Assignments

REVENUE-MEGAPROJECTS
(SEN. DON HARMON)

Amends the Property Tax Code. Provides that certain property may be certified by the Department of Commerce and Economic Opportunity as containing a megaproject. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or development of a megaproject is exempt from the taxes imposed under those Acts. Effective June 1, 2024.

  CURRENT STATUS

5/25/2024 - Rule 2-10 Committee/3rd Reading Deadline Established As May 26, 2024

PROP TX-TIF INCENTIVES
(SEN. RACHEL VENTURA; REP. LAWRENCE WALSH, JR.)

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.

Senate Committee Amendment No. 1 - Replaces everything after the enacting clause. Amends the Property Tax Code. Reinserts the provisions of the introduced bill. Provides that the tax incentivized development must be established by an intergovernmental agreement to which the taxing district is a party. Effective immediately.

  CURRENT STATUS

5/31/2024 - Rule 19(a) / Re-referred to Rules Committee

TIF EXTENSION RESTRICTIONS
(SEN. MARY EDLY-ALLEN)

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, on and after the effective date of the amendatory Act, before the estimated dates of completion of a redevelopment project and retirement of obligations issued to finance development project costs (including refunding bonds) are extended to the 35th or 47th years, the municipality must submit to the Governor, President of the Senate, and Speaker of the House of Representatives written support for the extension of the life of the redevelopment project area from each school district, community college district, and park district that has authority to directly levy taxes on property within the redevelopment project area. Provides that a may only submit written support to extend a redevelopment project area to the 35th year within the 5 years prior to the estimated date of completion of the redevelopment project and may only submit written support to extend a redevelopment project area to the 47th year within one year prior to the estimated date of completion of the redevelopment project area. Effective immediately.

  CURRENT STATUS

5/25/2024 - Rule 2-10 Committee/3rd Reading Deadline Established As May 26, 2024