Bill Text: IL HB2271 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if (1) three 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2271 Detail]

Download: Illinois-2019-HB2271-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2271 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-74.4-9 from Ch. 24, par. 11-74.4-9
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if (1) three 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.
LRB101 08604 AWJ 53683 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB2271 LRB101 08604 AWJ 53683 b
AN ACT concerning local government.
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 Section 11-74.4-9 as follows:
(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
Sec. 11-74.4-9. Equalized assessed value of property.
(a) Except as provided in subsection (a-5), if If a
municipality by ordinance provides for tax increment
allocation financing pursuant to Section 11-74.4-8, the county
clerk immediately thereafter shall determine (1) the most
recently ascertained equalized assessed value of each lot,
block, tract or parcel of real property within such
redevelopment project area from which shall be deducted the
homestead exemptions under Article 15 of the Property Tax Code,
which value shall be the "initial equalized assessed value" of
each such piece of property, and (2) the total equalized
assessed value of all taxable real property within such
redevelopment project area by adding together the most recently
ascertained equalized assessed value of each taxable lot,
block, tract, or parcel of real property within such project
area, from which shall be deducted the homestead exemptions
provided by Sections 15-170, 15-175, and 15-176 of the Property

HB2271 - 2 - LRB101 08604 AWJ 53683 b
Tax Code, and shall certify such amount as the "total initial
equalized assessed value" of the taxable real property within
such project area.
(a-5) If (1) three 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 financing
under Section 11-74.4-8 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. This Section applies only to ordinances adopted on or
after the effective date of this amendatory Act of the 101st
General Assembly.
(b) In reference to any municipality which has adopted tax
increment financing after January 1, 1978, and in respect to
which the county clerk has certified the "total initial
equalized assessed value" of the property in the redevelopment
area, the municipality may thereafter request the clerk in

HB2271 - 3 - LRB101 08604 AWJ 53683 b
writing to adjust the initial equalized value of all taxable
real property within the redevelopment project area by
deducting therefrom the exemptions under Article 15 of the
Property Tax Code applicable to each lot, block, tract or
parcel of real property within such redevelopment project area.
The county clerk shall immediately after the written request to
adjust the total initial equalized value is received determine
the total homestead exemptions in the redevelopment project
area provided by Sections 15-170, 15-175, and 15-176 of the
Property Tax Code by adding together the homestead exemptions
provided by said Sections on each lot, block, tract or parcel
of real property within such redevelopment project area and
then shall deduct the total of said exemptions from the total
initial equalized assessed value. The county clerk shall then
promptly certify such amount as the "total initial equalized
assessed value as adjusted" of the taxable real property within
such redevelopment project area.
(c) After the county clerk has certified the "total initial
equalized assessed value" of the taxable real property in such
area, then in respect to every taxing district containing a
redevelopment project area, the county clerk or any other
official required by law to ascertain the amount of the
equalized assessed value of all taxable property within such
district for the purpose of computing the rate per cent of tax
to be extended upon taxable property within such district,
shall in every year that tax increment allocation financing is

HB2271 - 4 - LRB101 08604 AWJ 53683 b
in effect ascertain the amount of value of taxable property in
a redevelopment project area by including in such amount the
lower of the current equalized assessed value or the certified
"total initial equalized assessed value" of all taxable real
property in such area, except that after he has certified the
"total initial equalized assessed value as adjusted" he shall
in the year of said certification if tax rates have not been
extended and in every year thereafter that tax increment
allocation financing is in effect ascertain the amount of value
of taxable property in a redevelopment project area by
including in such amount the lower of the current equalized
assessed value or the certified "total initial equalized
assessed value as adjusted" of all taxable real property in
such area. The rate per cent of tax determined shall be
extended to the current equalized assessed value of all
property in the redevelopment project area in the same manner
as the rate per cent of tax is extended to all other taxable
property in the taxing district. The method of extending taxes
established under this Section shall terminate when the
municipality adopts an ordinance dissolving the special tax
allocation fund for the redevelopment project area. This
Division shall not be construed as relieving property owners
within a redevelopment project area from paying a uniform rate
of taxes upon the current equalized assessed value of their
taxable property as provided in the Property Tax Code.
(Source: P.A. 95-644, eff. 10-12-07.)