65 ILCS 5/11-74.6-35
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

Sec. 11-74.6-35. Ordinance for tax increment allocation financing.(a) A municipality, at the time a redevelopment project area  is designated, may adopt tax increment allocation financing by passing an  ordinance providing that the ad valorem taxes, if any, arising from the  levies upon taxable real property within the redevelopment project  area by taxing districts and tax rates determined in the manner provided  in subsection (b) of Section 11-74.6-40 each year after the effective  date of the ordinance until redevelopment project costs and all municipal  obligations financing redevelopment project costs incurred under this Act  have been paid shall be divided as follows:(1) That portion of the taxes levied upon each     taxable lot, block, tract, or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value or the updated initial equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.(2) That portion, if any, of those taxes that is     attributable to the increase in the current equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value or the updated initial equalized assessed value of each property in the project area, shall be allocated to and when collected shall be paid by the county collector to the municipal treasurer who shall deposit that portion of those taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment of those costs and obligations. In any county with a population of 3,000,000 or more that has adopted a procedure for collecting taxes that provides for one or more of the installments of the taxes to be billed and collected on an estimated basis, the municipal treasurer shall be paid for deposit in the special tax allocation fund of the municipality, from the taxes collected from estimated bills issued for property in the redevelopment project area, the difference between the amount actually collected from each taxable lot, block, tract, or parcel of real property within the redevelopment project area and an amount determined by multiplying the rate at which taxes were last extended against the taxable lot, block, tract, or parcel of real property in the manner provided in subsection (b) of Section 11-74.6-40 by the initial equalized assessed value or the updated initial equalized assessed value of the property divided by the number of installments in which real estate taxes are billed and collected within the county, provided that the payments on or before December 31, 1999 to a municipal treasurer shall be made only if each of the following conditions are met:(A) The total equalized assessed value of the         redevelopment project area as last determined was not less than 175% of the total initial equalized assessed value.(B) Not more than 50% of the total equalized         assessed value of the redevelopment project area as last determined is attributable to a piece of property assigned a single real estate index number.(C) The municipal clerk has certified to the         county clerk that the municipality has issued its obligations to which there has been pledged the incremental property taxes of the redevelopment project area or taxes levied and collected on any or all property in the municipality or the full faith and credit of the municipality to pay or secure payment for all or a portion of the redevelopment project costs. The certification shall be filed annually no later than September 1 for the estimated taxes to be distributed in the following year.The conditions of paragraphs (A) through (C) do not apply after December  31, 1999 to payments to a municipal treasurer  made by a county with 3,000,000 or more inhabitants that has adopted an  estimated billing procedure for collecting taxes.  If a county that has adopted the estimated billing  procedure makes an erroneous overpayment of tax revenue to the municipal  treasurer, then the county may seek a refund of that overpayment.  The county shall send the municipal treasurer a notice of liability for the  overpayment on or before the mailing date of the next real estate tax bill  within the county.  The refund shall be limited to the amount of the  overpayment.(b) It is the intent of this Act that a municipality's own ad valorem  tax arising from levies on taxable real property be included in the  determination of incremental revenue in the manner provided in paragraph  (b) of Section 11-74.6-40.(c) If a municipality has adopted tax increment allocation financing for a  redevelopment project area by  ordinance and the county clerk thereafter certifies the total initial  equalized assessed value or the total updated initial equalized  assessed value of the taxable real property within such redevelopment  project area in the manner provided in paragraph (a) or (b) of Section  11-74.6-40, each year after the date of the certification of the total  initial equalized assessed value or the total updated initial  equalized assessed value until redevelopment project costs and all  municipal obligations financing redevelopment project costs have been paid,  the ad valorem taxes, if any, arising from the levies upon the taxable real  property in the redevelopment project area by taxing districts and tax  rates determined in the manner provided in paragraph (b) of Section  11-74.6-40 shall be divided as follows:(1) That portion of the taxes levied upon each     taxable lot, block, tract or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value, or the updated initial equalized assessed value of each parcel if the updated initial equalized assessed value of that parcel has been certified in accordance with Section 11-74.6-40, whichever has been most recently certified, of each taxable lot, block, tract, or parcel of real property existing at the time tax increment allocation financing was adopted in the redevelopment project area, shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.(2) That portion, if any, of those taxes that is     attributable to the increase in the current equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value of each property existing at the time tax increment allocation financing was adopted in the redevelopment project area, or the updated initial equalized assessed value of each parcel if the updated initial equalized assessed value of that parcel has been certified in accordance with Section 11-74.6-40, shall be allocated to and when collected shall be paid to the municipal treasurer, who shall deposit those taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof.(d) The municipality may pledge in the ordinance the funds in and to be  deposited in the special tax allocation fund for the payment of  redevelopment project costs and obligations.  No part of the current  equalized assessed value of each property in the redevelopment project  area attributable to any increase above the total initial equalized  assessed value  or the total initial updated equalized assessed value of the property,  shall be used in calculating the general State aid formula, provided  for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code, until all redevelopment project  costs have been paid as provided for in this Section.Whenever a municipality issues bonds for the purpose of financing  redevelopment project costs, that municipality may provide by ordinance for the  appointment of a trustee, which may be any trust company within the State,  and for the establishment of any funds or accounts to be maintained by  that trustee, as the municipality deems necessary to provide for the  security and payment of the bonds.  If the municipality provides for  the appointment of a trustee, the trustee shall be considered the assignee  of any payments assigned by the municipality under that ordinance  and this Section.  Any amounts paid to the trustee as  assignee shall be deposited into the funds or accounts established  under the trust agreement, and shall be held by the trustee in trust for the  benefit of the holders of the bonds.  The holders of those bonds shall have a  lien on and a security interest in those funds or accounts while the  bonds remain outstanding and unpaid. Upon retirement of the bonds,  the trustee shall pay over any excess amounts held to the municipality for  deposit in the special tax allocation fund.When the redevelopment projects costs, including without limitation all  municipal obligations financing redevelopment project costs incurred under  this Law, have been paid, all surplus funds then remaining in the  special tax allocation fund shall be distributed by being paid by the  municipal treasurer to the municipality and the county collector; first to  the municipality in direct proportion to the tax incremental revenue  received from the municipality, but not to exceed the total incremental  revenue received from the municipality, minus any annual surplus  distribution of incremental revenue previously made.  Any remaining funds  shall be paid to the county collector who shall immediately distribute that  payment to the taxing districts in the redevelopment project area 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 situated in the redevelopment project area.Upon the payment of all redevelopment project costs, retirement of  obligations and the distribution of any excess moneys under this  Section, the municipality shall adopt an ordinance dissolving the special  tax allocation fund for the redevelopment project area and terminating the  designation of the redevelopment project area as a redevelopment project  area.  Thereafter the tax levies of taxing districts shall be extended,  collected and distributed in the same manner applicable  before the adoption of tax increment allocation financing.  Municipality shall notify affected taxing districts prior to November if the  redevelopment project area is to be terminated by December 31 of that same  year.Nothing in this Section shall be construed as relieving property in a  redevelopment project area from being assessed as provided in the Property  Tax Code or as relieving owners of that property  from paying a uniform rate of taxes, as required by Section 4 of Article IX  of the Illinois Constitution.  (Source: P.A. 102-558, eff. 8-20-21.)