Bill Text: IL SB3952 | 2009-2010 | 96th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Municipal Code with respect to the Business District Development and Redevelopment Law. Corrects cross-references. Requires address information to be reported to the Department of Revenue by April 1. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2010-12-14 - Alternate Chief Sponsor Changed to Rep. William D. Burns [SB3952 Detail]
Download: Illinois-2009-SB3952-Introduced.html
Bill Title: Amends the Illinois Municipal Code with respect to the Business District Development and Redevelopment Law. Corrects cross-references. Requires address information to be reported to the Department of Revenue by April 1. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2010-12-14 - Alternate Chief Sponsor Changed to Rep. William D. Burns [SB3952 Detail]
Download: Illinois-2009-SB3952-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | |||||||||||||||||||||||||
5 | changing Sections 11-74.3-2, 11-74.3-3, 11-74.3-5, and | |||||||||||||||||||||||||
6 | 11-74.3-6 as follows:
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7 | (65 ILCS 5/11-74.3-2) (from Ch. 24, par. 11-74.3-2)
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8 | Sec. 11-74.3-2. Procedures to designate business | |||||||||||||||||||||||||
9 | districts; ordinances; notice; hearings. | |||||||||||||||||||||||||
10 | (a) The corporate authorities of a municipality shall by | |||||||||||||||||||||||||
11 | ordinance propose the approval of a business district plan and | |||||||||||||||||||||||||
12 | designation of a business district and shall fix a time and | |||||||||||||||||||||||||
13 | place for a public hearing on the proposals to approve a | |||||||||||||||||||||||||
14 | business district plan and designate a business district. | |||||||||||||||||||||||||
15 | (b) Notice of the public hearing shall be given by | |||||||||||||||||||||||||
16 | publication at least twice, the first publication to be not | |||||||||||||||||||||||||
17 | more than 30 nor less than 10 days prior to the hearing, in a | |||||||||||||||||||||||||
18 | newspaper of general circulation within the municipality. Each | |||||||||||||||||||||||||
19 | notice published pursuant to this Section shall include the | |||||||||||||||||||||||||
20 | following: | |||||||||||||||||||||||||
21 | (1) The time and place of the public hearing; | |||||||||||||||||||||||||
22 | (2) The boundaries of the proposed business district by | |||||||||||||||||||||||||
23 | legal description and, where possible, by street location; |
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1 | (3) A notification that all interested persons will be | ||||||
2 | given an opportunity to be heard at the public hearing; | ||||||
3 | (4) A description of the business district plan if a | ||||||
4 | business district plan is a subject matter of the public | ||||||
5 | hearing; | ||||||
6 | (5) The rate of any tax to be imposed pursuant to | ||||||
7 | subsection (10) (11) or (11) (12) of Section 11-74.3-3; | ||||||
8 | (6) An invitation for any person to submit alternate | ||||||
9 | proposals or bids for any proposed conveyance, lease, | ||||||
10 | mortgage, or other disposition by the municipality of land | ||||||
11 | or rights in land owned by the municipality and located | ||||||
12 | within the proposed business district; and | ||||||
13 | (7) Such other matters as the municipality shall deem | ||||||
14 | appropriate. | ||||||
15 | (c) At the public hearing any interested person may file | ||||||
16 | written objections with the municipal clerk and may be heard | ||||||
17 | orally with respect to any matters embodied in the notice. The | ||||||
18 | municipality shall hear and determine all alternate proposals | ||||||
19 | or bids for any proposed conveyance, lease, mortgage, or other | ||||||
20 | disposition by the municipality of land or rights in land owned | ||||||
21 | by the municipality and located within the proposed business | ||||||
22 | district and all protests and objections at the hearing, | ||||||
23 | provided, however, that the corporate authorities of the | ||||||
24 | municipality may establish reasonable rules regarding the | ||||||
25 | length of time provided to members of the general public. The | ||||||
26 | hearing may be adjourned to another date without further notice |
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1 | other than a motion to be entered upon the minutes fixing the | ||||||
2 | time and place of the adjourned hearing. Public hearings with | ||||||
3 | regard to approval of a business district plan or designation | ||||||
4 | of a business district may be held simultaneously. | ||||||
5 | (d) At the public hearing or at any time prior to the | ||||||
6 | adoption by the municipality of an ordinance approving a | ||||||
7 | business district plan, the municipality may make changes in | ||||||
8 | the business district plan. Changes which do not (i) alter the | ||||||
9 | exterior boundaries of the proposed business district, (ii) | ||||||
10 | substantially affect the general land uses described in the | ||||||
11 | proposed business district plan, (iii) substantially change | ||||||
12 | the nature of any proposed business district project, (iv) | ||||||
13 | change the description of any proposed developer, user, or | ||||||
14 | tenant of any property to be located or improved within the | ||||||
15 | proposed business district, (v) increase the total estimated | ||||||
16 | business district project costs set out in the business | ||||||
17 | district plan by more than 5%, (vi) add additional business | ||||||
18 | district costs to the itemized list of estimated business | ||||||
19 | district costs as proposed in the business district plan, or | ||||||
20 | (vii) impose or increase the rate of any tax to be imposed | ||||||
21 | pursuant to subsection (10) (11) or (11) (12) of Section | ||||||
22 | 11-74.3-3 may be made by the municipality without further | ||||||
23 | public hearing, provided the municipality shall give notice of | ||||||
24 | its changes by publication in a newspaper of general | ||||||
25 | circulation within the municipality. Such notice by | ||||||
26 | publication shall be given not later than 30 days following the |
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1 | adoption of an ordinance approving such changes. Changes which | ||||||
2 | (i) alter the exterior boundaries of the proposed business | ||||||
3 | district, (ii) substantially affect the general land uses | ||||||
4 | described in the proposed business district plan, (iii) | ||||||
5 | substantially change the nature of any proposed business | ||||||
6 | district project, (iv) change the description of any proposed | ||||||
7 | developer, user, or tenant of any property to be located or | ||||||
8 | improved within the proposed business district, (v) increase | ||||||
9 | the total estimated business district project costs set out in | ||||||
10 | the business district plan by more than 5%, (vi) add additional | ||||||
11 | business district costs to the itemized list of estimated | ||||||
12 | business district costs as proposed in the business district | ||||||
13 | plan, or (vii) impose or increase the rate of any tax to be | ||||||
14 | imposed pursuant to subsection (10) (11) or (11) (12) of | ||||||
15 | Section 11-74.3-3 may be made by the municipality only after | ||||||
16 | the municipality by ordinance fixes a time and place for, gives | ||||||
17 | notice by publication of, and conducts a public hearing | ||||||
18 | pursuant to the procedures set forth hereinabove. | ||||||
19 | (e) By ordinance adopted within 90 days of the final | ||||||
20 | adjournment of the public hearing a municipality may approve | ||||||
21 | the business district plan and designate the business district. | ||||||
22 | Any ordinance adopted which approves a business district plan | ||||||
23 | shall contain findings that the business district on the whole | ||||||
24 | has not been subject to growth and development through | ||||||
25 | investment by private enterprises and would not reasonably be | ||||||
26 | anticipated to be developed or redeveloped without the adoption |
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1 | of the business district plan. Any ordinance adopted which | ||||||
2 | designates a business district shall contain the boundaries of | ||||||
3 | such business district by legal description and, where | ||||||
4 | possible, by street location, a finding that the business | ||||||
5 | district plan conforms to the comprehensive plan for the | ||||||
6 | development of the municipality as a whole, or, for | ||||||
7 | municipalities with a population of 100,000 or more, regardless | ||||||
8 | of when the business district plan was approved, the business | ||||||
9 | district plan either (i) conforms to the strategic economic | ||||||
10 | development or redevelopment plan issued by the designated | ||||||
11 | planning authority or the municipality or (ii) includes land | ||||||
12 | uses that have been approved by the planning commission of the | ||||||
13 | municipality, and, for any business district in which the | ||||||
14 | municipality intends to impose taxes as provided in subsection | ||||||
15 | (10) (11) or (11) (12) of Section 11-74.3-3, a specific finding | ||||||
16 | that the business district qualifies as a blighted area as | ||||||
17 | defined in Section 11-74.3-5. | ||||||
18 | (f) After a municipality has by ordinance approved a | ||||||
19 | business district plan and designated a business district, the | ||||||
20 | plan may be amended, the boundaries of the business district | ||||||
21 | may be altered, and the taxes provided for in subsections (10) | ||||||
22 | (11) and (11) (12) of Section 11-74.3-3 may be imposed or | ||||||
23 | altered only as provided in this subsection. Changes which do | ||||||
24 | not (i) alter the exterior boundaries of the proposed business | ||||||
25 | district, (ii) substantially affect the general land uses | ||||||
26 | described in the business district plan, (iii) substantially |
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1 | change the nature of any business district project, (iv) change | ||||||
2 | the description of any developer, user, or tenant of any | ||||||
3 | property to be located or improved within the proposed business | ||||||
4 | district, (v) increase the total estimated business district | ||||||
5 | project costs set out in the business district plan by more | ||||||
6 | than 5% after adjustment for inflation from the date the | ||||||
7 | business district plan was approved, (vi) add additional | ||||||
8 | business district costs to the itemized list of estimated | ||||||
9 | business district costs as approved in the business district | ||||||
10 | plan, or (vii) impose or increase the rate of any tax to be | ||||||
11 | imposed pursuant to subsection (10) (11) or (11) (12) of | ||||||
12 | Section 11-74.3-3 may be made by the municipality without | ||||||
13 | further public hearing, provided the municipality shall give | ||||||
14 | notice of its changes by publication in a newspaper of general | ||||||
15 | circulation within the municipality. Such notice by | ||||||
16 | publication shall be given not later than 30 days following the | ||||||
17 | adoption of an ordinance approving such changes. Changes which | ||||||
18 | (i) alter the exterior boundaries of the business district, | ||||||
19 | (ii) substantially affect the general land uses described in | ||||||
20 | the business district plan, (iii) substantially change the | ||||||
21 | nature of any business district project, (iv) change the | ||||||
22 | description of any developer, user, or tenant of any property | ||||||
23 | to be located or improved within the proposed business | ||||||
24 | district, (v) increase the total estimated business district | ||||||
25 | project costs set out in the business district plan by more | ||||||
26 | than 5% after adjustment for inflation from the date the |
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1 | business district plan was approved, (vi) add additional | ||||||
2 | business district costs to the itemized list of estimated | ||||||
3 | business district costs as approved in the business district | ||||||
4 | plan, or (vii) impose or increase the rate of any tax to be | ||||||
5 | imposed pursuant to subsection (10) (11) or (11) (12) of | ||||||
6 | Section 11-74.3-3 may be made by the municipality only after | ||||||
7 | the municipality by ordinance fixes a time and place for, gives | ||||||
8 | notice by publication of, and conducts a public hearing | ||||||
9 | pursuant to the procedures set forth in this Section.
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10 | (Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
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11 | (65 ILCS 5/11-74.3-3) (from Ch. 24, par. 11-74.3-3)
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12 | Sec. 11-74.3-3. Powers of municipalities. In addition to | ||||||
13 | the powers a municipality may now have, a municipality shall | ||||||
14 | have the following
powers:
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15 | (1) To make and enter into all contracts necessary or | ||||||
16 | incidental to the implementation and furtherance of a | ||||||
17 | business district plan. A contract by and between the | ||||||
18 | municipality and any developer or other nongovernmental | ||||||
19 | person to pay or reimburse said developer or other | ||||||
20 | nongovernmental person for business district project costs | ||||||
21 | incurred or to be incurred by said developer or other | ||||||
22 | nongovernmental person shall not be deemed an economic | ||||||
23 | incentive agreement under Section 8-11-20, notwithstanding | ||||||
24 | the fact that such contract provides for the sharing, | ||||||
25 | rebate, or payment of retailers' occupation taxes or |
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1 | service occupation taxes (including, without limitation, | ||||||
2 | taxes imposed pursuant to subsection (10) (11) ) the | ||||||
3 | municipality receives from the development or | ||||||
4 | redevelopment of properties in the business district. | ||||||
5 | Contracts entered into pursuant to this subsection shall be | ||||||
6 | binding upon successor corporate authorities of the | ||||||
7 | municipality and any party to such contract may seek to | ||||||
8 | enforce and compel performance of the contract by civil | ||||||
9 | action, mandamus, injunction, or other proceeding. | ||||||
10 | (2) Within a business district, to acquire by purchase, | ||||||
11 | donation, or lease, and to own, convey, lease, mortgage, or | ||||||
12 | dispose of land and other real or personal property or | ||||||
13 | rights or interests therein; and to grant or acquire | ||||||
14 | licenses, easements, and options with respect thereto, all | ||||||
15 | in the manner and at such price authorized by law. No | ||||||
16 | conveyance, lease, mortgage, disposition of land or other | ||||||
17 | property acquired by the municipality, or agreement | ||||||
18 | relating to the development of property, shall be made or | ||||||
19 | executed except pursuant to prior official action of the | ||||||
20 | municipality. No conveyance, lease, mortgage, or other | ||||||
21 | disposition of land owned by the municipality, and no | ||||||
22 | agreement relating to the development of property, within a | ||||||
23 | business district shall be made without making public | ||||||
24 | disclosure of the terms and disposition of all bids and | ||||||
25 | proposals submitted to the municipality in connection | ||||||
26 | therewith. |
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1 | (2.5) To acquire property by eminent domain in | ||||||
2 | accordance with the Eminent Domain Act. | ||||||
3 | (3) To clear any area within a business district by | ||||||
4 | demolition or removal of any existing buildings, | ||||||
5 | structures, fixtures, utilities, or improvements, and to | ||||||
6 | clear and grade land. | ||||||
7 | (4) To install, repair, construct, reconstruct, or | ||||||
8 | relocate public streets, public utilities, and other | ||||||
9 | public site improvements within or without a business | ||||||
10 | district which are essential to the preparation of a | ||||||
11 | business district for use in accordance with a business | ||||||
12 | district plan. | ||||||
13 | (5) To renovate, rehabilitate, reconstruct, relocate, | ||||||
14 | repair, or remodel any existing buildings, structures, | ||||||
15 | works, utilities, or fixtures within any business | ||||||
16 | district. | ||||||
17 | (6) To construct public improvements, including but | ||||||
18 | not limited to buildings, structures, works, utilities, or | ||||||
19 | fixtures within any business district. | ||||||
20 | (7) To fix, charge, and collect fees, rents, and | ||||||
21 | charges for the use of any building, facility, or property | ||||||
22 | or any portion thereof owned or leased by the municipality | ||||||
23 | within a business district. | ||||||
24 | (8) To pay or cause to be paid business district | ||||||
25 | project costs. Any payments to be made by the municipality | ||||||
26 | to developers or other nongovernmental persons for |
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1 | business district project costs incurred by such developer | ||||||
2 | or other nongovernmental person shall be made only pursuant | ||||||
3 | to the prior official action of the municipality evidencing | ||||||
4 | an intent to pay or cause to be paid such business district | ||||||
5 | project costs. A municipality is not required to obtain any | ||||||
6 | right, title, or interest in any real or personal property | ||||||
7 | in order to pay business district project costs associated | ||||||
8 | with such property. The municipality shall adopt such | ||||||
9 | accounting procedures as shall be necessary to determine | ||||||
10 | that such business district project costs are properly | ||||||
11 | paid. | ||||||
12 | (9) To apply for and accept grants, guarantees, | ||||||
13 | donations of property or labor or any other thing of value | ||||||
14 | for use in connection with a business district project. | ||||||
15 | (10) If the municipality has by ordinance found and | ||||||
16 | determined that the business district is a blighted area | ||||||
17 | under this Law, to impose a retailers' occupation tax and a | ||||||
18 | service occupation tax in the business district for the | ||||||
19 | planning, execution, and implementation of business | ||||||
20 | district plans and to pay for business district project | ||||||
21 | costs as set forth in the business district plan approved | ||||||
22 | by the municipality. | ||||||
23 | (11) If the municipality has by ordinance found and | ||||||
24 | determined that the business district is a blighted area | ||||||
25 | under this Law, to impose a hotel operators' occupation tax | ||||||
26 | in the business district for the planning, execution, and |
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1 | implementation of business district plans and to pay for | ||||||
2 | the business district project costs as set forth in the | ||||||
3 | business district plan approved by the municipality. .
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4 | (Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
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5 | (65 ILCS 5/11-74.3-5) | ||||||
6 | Sec. 11-74.3-5. Definitions. The following terms as used in | ||||||
7 | this Law shall have the following meanings: | ||||||
8 | "Blighted area" means an area that is a blighted area | ||||||
9 | which, by reason of the predominance of defective, | ||||||
10 | non-existent, or inadequate street layout, unsanitary or | ||||||
11 | unsafe conditions, deterioration of site improvements, | ||||||
12 | improper subdivision or obsolete platting, or the existence of | ||||||
13 | conditions which endanger life or property by fire or other | ||||||
14 | causes, or any combination of those factors, retards the | ||||||
15 | provision of housing accommodations or constitutes an economic | ||||||
16 | or social liability, an economic underutilization of the area, | ||||||
17 | or a menace to the public health, safety, morals, or welfare. | ||||||
18 | "Business district" means a contiguous area which includes | ||||||
19 | only parcels of real property directly and substantially | ||||||
20 | benefited by the proposed business district plan. A business | ||||||
21 | district may, but need not be, a blighted area, but no | ||||||
22 | municipality shall be authorized to impose taxes pursuant to | ||||||
23 | subsection (10) (11) or (11) (12) of Section 11-74.3-3 in a | ||||||
24 | business district which has not been determined by ordinance to | ||||||
25 | be a blighted area under this Law. |
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1 | "Business district plan" shall mean the written plan for | ||||||
2 | the development or redevelopment of a business district. Each | ||||||
3 | business district plan shall set forth in writing: (i) a | ||||||
4 | specific description of the boundaries of the proposed business | ||||||
5 | district, including a map illustrating the boundaries; (ii) a | ||||||
6 | general description of each project proposed to be undertaken | ||||||
7 | within the business district, including a description of the | ||||||
8 | approximate location of each project and a description of any | ||||||
9 | developer, user, or tenant of any property to be located or | ||||||
10 | improved within the proposed business district; (iii) the name | ||||||
11 | of the proposed business district; (iv) the estimated business | ||||||
12 | district project costs; (v) the anticipated source of funds to | ||||||
13 | pay business district project costs; (vi) the anticipated type | ||||||
14 | and terms of any obligations to be issued; and (vii) the rate | ||||||
15 | of any tax to be imposed pursuant to subsection (10) (11) or | ||||||
16 | (11) (12) of Section 11-74.3-3 and the period of time for which | ||||||
17 | the tax shall be imposed. | ||||||
18 | "Business district project costs" shall mean and include | ||||||
19 | the sum total of all costs incurred by a municipality, other | ||||||
20 | governmental entity, or nongovernmental person in connection | ||||||
21 | with a business district, in the furtherance of a business | ||||||
22 | district plan, including, without limitation, the following: | ||||||
23 | (1) costs of studies, surveys, development of plans and | ||||||
24 | specifications, implementation and administration of a | ||||||
25 | business district plan, and personnel and professional | ||||||
26 | service costs including architectural, engineering, legal, |
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1 | marketing, financial, planning, or other professional | ||||||
2 | services, provided that no charges for professional | ||||||
3 | services may be based on a percentage of tax revenues | ||||||
4 | received by the municipality; | ||||||
5 | (2) property assembly costs, including but not limited | ||||||
6 | to, acquisition of land and other real or personal property | ||||||
7 | or rights or interests therein, and specifically including | ||||||
8 | payments to developers or other nongovernmental persons as | ||||||
9 | reimbursement for property assembly costs incurred by that | ||||||
10 | developer or other nongovernmental person; | ||||||
11 | (3) site preparation costs, including but not limited | ||||||
12 | to clearance, demolition or removal of any existing | ||||||
13 | buildings, structures, fixtures, utilities, and | ||||||
14 | improvements and clearing and grading of land; | ||||||
15 | (4) costs of installation, repair, construction, | ||||||
16 | reconstruction, extension, or relocation of public | ||||||
17 | streets, public utilities, and other public site | ||||||
18 | improvements within or without the business district which | ||||||
19 | are essential to the preparation of the business district | ||||||
20 | for use in accordance with the business district plan, and | ||||||
21 | specifically including payments to developers or other | ||||||
22 | nongovernmental persons as reimbursement for site | ||||||
23 | preparation costs incurred by the developer or | ||||||
24 | nongovernmental person; | ||||||
25 | (5) costs of renovation, rehabilitation, | ||||||
26 | reconstruction, relocation, repair, or remodeling of any |
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1 | existing buildings, improvements, and fixtures within the | ||||||
2 | business district, and specifically including payments to | ||||||
3 | developers or other nongovernmental persons as | ||||||
4 | reimbursement for costs incurred by those developers or | ||||||
5 | nongovernmental persons; | ||||||
6 | (6) costs of installation or construction within the | ||||||
7 | business district of buildings, structures, works, | ||||||
8 | streets, improvements, equipment, utilities, or fixtures, | ||||||
9 | and specifically including payments to developers or other | ||||||
10 | nongovernmental persons as reimbursements for such costs | ||||||
11 | incurred by such developer or nongovernmental person; | ||||||
12 | (7) financing costs, including but not limited to all | ||||||
13 | necessary and incidental expenses related to the issuance | ||||||
14 | of obligations, payment of any interest on any obligations | ||||||
15 | issued under this Law that accrues during the estimated | ||||||
16 | period of construction of any development or redevelopment | ||||||
17 | project for which those obligations are issued and for not | ||||||
18 | exceeding 36 months thereafter, and any reasonable | ||||||
19 | reserves related to the issuance of those obligations; and | ||||||
20 | (8) relocation costs to the extent that a municipality | ||||||
21 | determines that relocation costs shall be paid or is | ||||||
22 | required to make payment of relocation costs by federal or | ||||||
23 | State law. | ||||||
24 | "Business district tax allocation fund" means the special | ||||||
25 | fund to be established by a municipality for a business | ||||||
26 | district as provided in Section 11-74.3-6. |
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1 | "Dissolution date" means the date on which the business | ||||||
2 | district tax allocation fund shall be dissolved. The | ||||||
3 | dissolution date shall be not later than 270 days following | ||||||
4 | payment to the municipality of the last distribution of taxes | ||||||
5 | as provided in Section 11-74.3-6.
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6 | (Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
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7 | (65 ILCS 5/11-74.3-6) | ||||||
8 | Sec. 11-74.3-6. Business district revenue and obligations; | ||||||
9 | business district tax allocation fund. | ||||||
10 | (a) If the corporate authorities of a municipality have | ||||||
11 | approved a business district plan, have designated a business | ||||||
12 | district, and have elected to impose a tax by ordinance | ||||||
13 | pursuant to subsection (10) (11) or (11) (12) of Section | ||||||
14 | 11-74.3-3, then each year after the date of the approval of the | ||||||
15 | ordinance but terminating upon the date all business district | ||||||
16 | project costs and all obligations paying or reimbursing | ||||||
17 | business district project costs, if any, have been paid, but in | ||||||
18 | no event later than the dissolution date, all amounts generated | ||||||
19 | by the retailers' occupation tax and service occupation tax | ||||||
20 | shall be collected and the tax shall be enforced by the | ||||||
21 | Department of Revenue in the same manner as all retailers' | ||||||
22 | occupation taxes and service occupation taxes imposed in the | ||||||
23 | municipality imposing the tax and all amounts generated by the | ||||||
24 | hotel operators' occupation tax shall be collected and the tax | ||||||
25 | shall be enforced by the municipality in the same manner as all |
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1 | hotel operators' occupation taxes imposed in the municipality | ||||||
2 | imposing the tax. The corporate authorities of the municipality | ||||||
3 | shall deposit the proceeds of the taxes imposed under | ||||||
4 | subsections (10) (11) and (11) (12) of Section 11-74.3-3 into a | ||||||
5 | special fund of the municipality called the "[Name of] Business | ||||||
6 | District Tax Allocation Fund" for the purpose of paying or | ||||||
7 | reimbursing business district project costs and obligations | ||||||
8 | incurred in the payment of those costs. | ||||||
9 | (b) The corporate authorities of a municipality that has | ||||||
10 | designated a business district under this Law may, by | ||||||
11 | ordinance, impose a Business District Retailers' Occupation | ||||||
12 | Tax upon all persons engaged in the business of selling | ||||||
13 | tangible personal property, other than an item of tangible | ||||||
14 | personal property titled or registered with an agency of this | ||||||
15 | State's government, at retail in the business district at a | ||||||
16 | rate not to exceed 1% of the gross receipts from the sales made | ||||||
17 | in the course of such business, to be imposed only in 0.25% | ||||||
18 | increments. The tax may not be imposed on food for human | ||||||
19 | consumption that is to be consumed off the premises where it is | ||||||
20 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
21 | that has been prepared for immediate consumption),
| ||||||
22 | prescription and nonprescription medicines, drugs, medical | ||||||
23 | appliances, modifications to a motor vehicle for the purpose of | ||||||
24 | rendering it usable by a disabled person, and insulin, urine | ||||||
25 | testing materials, syringes, and needles used by diabetics, for | ||||||
26 | human use. |
| |||||||
| |||||||
1 | The tax imposed under this subsection and all civil | ||||||
2 | penalties that may be assessed as an incident thereof shall be | ||||||
3 | collected and enforced by the Department of Revenue. The | ||||||
4 | certificate of registration that is issued by the Department to | ||||||
5 | a retailer under the Retailers' Occupation Tax Act shall permit | ||||||
6 | the retailer to engage in a business that is taxable under any | ||||||
7 | ordinance or resolution enacted pursuant to this subsection | ||||||
8 | without registering separately with the Department under such | ||||||
9 | ordinance or resolution or under this subsection. The | ||||||
10 | Department of Revenue shall have full power to administer and | ||||||
11 | enforce this subsection; to collect all taxes and penalties due | ||||||
12 | under this subsection in the manner hereinafter provided; and | ||||||
13 | to determine all rights to credit memoranda arising on account | ||||||
14 | of the erroneous payment of tax or penalty under this | ||||||
15 | subsection. In the administration of, and compliance with, this | ||||||
16 | subsection, the Department and persons who are subject to this | ||||||
17 | subsection shall have the same rights, remedies, privileges, | ||||||
18 | immunities, powers and duties, and be subject to the same | ||||||
19 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
20 | exemptions, and definitions of terms and employ the same modes | ||||||
21 | of procedure, as are prescribed in Sections 1, 1a through 1o, 2 | ||||||
22 | through 2-65 (in respect to all provisions therein other than | ||||||
23 | the State rate of tax), 2c through 2h, 3 (except as to the | ||||||
24 | disposition of taxes and penalties collected), 4, 5, 5a, 5c, | ||||||
25 | 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, | ||||||
26 | 12, 13, and 14 of the Retailers' Occupation Tax Act and all |
| |||||||
| |||||||
1 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
2 | if those provisions were set forth herein. | ||||||
3 | Persons subject to any tax imposed under this subsection | ||||||
4 | may reimburse themselves for their seller's tax liability under | ||||||
5 | this subsection by separately stating the tax as an additional | ||||||
6 | charge, which charge may be stated in combination, in a single | ||||||
7 | amount, with State taxes that sellers are required to collect | ||||||
8 | under the Use Tax Act, in accordance with such bracket | ||||||
9 | schedules as the Department may prescribe. | ||||||
10 | Whenever the Department determines that a refund should be | ||||||
11 | made under this subsection to a claimant instead of issuing a | ||||||
12 | credit memorandum, the Department shall notify the State | ||||||
13 | Comptroller, who shall cause the order to be drawn for the | ||||||
14 | amount specified and to the person named in the notification | ||||||
15 | from the Department. The refund shall be paid by the State | ||||||
16 | Treasurer out of the business district retailers' occupation | ||||||
17 | tax fund. | ||||||
18 | The Department shall immediately pay over to the State | ||||||
19 | Treasurer, ex officio, as trustee, all taxes, penalties, and | ||||||
20 | interest collected under this subsection for deposit into the | ||||||
21 | business district retailers' occupation tax fund. | ||||||
22 | As soon as possible after the first day of each month, | ||||||
23 | beginning January 1, 2011, upon certification of the Department | ||||||
24 | of Revenue, the Comptroller shall order transferred, and the | ||||||
25 | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | ||||||
26 | local sales tax increment, as defined in the Innovation |
| |||||||
| |||||||
1 | Development and Economy Act, collected under this subsection | ||||||
2 | during the second preceding calendar month for sales within a | ||||||
3 | STAR bond district. | ||||||
4 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
5 | on or before the 25th day of each calendar month, the | ||||||
6 | Department shall prepare and certify to the Comptroller the | ||||||
7 | disbursement of stated sums of money to named municipalities | ||||||
8 | from the business district retailers' occupation tax fund, the | ||||||
9 | municipalities to be those from which retailers have paid taxes | ||||||
10 | or penalties under this subsection to the Department during the | ||||||
11 | second preceding calendar month. The amount to be paid to each | ||||||
12 | municipality shall be the amount (not including credit | ||||||
13 | memoranda) collected under this subsection during the second | ||||||
14 | preceding calendar month by the Department plus an amount the | ||||||
15 | Department determines is necessary to offset any amounts that | ||||||
16 | were erroneously paid to a different taxing body, and not | ||||||
17 | including an amount equal to the amount of refunds made during | ||||||
18 | the second preceding calendar month by the Department, less 2% | ||||||
19 | of that amount, which shall be deposited into the Tax | ||||||
20 | Compliance and Administration Fund and shall be used by the | ||||||
21 | Department, subject to appropriation, to cover the costs of the | ||||||
22 | Department in administering and enforcing the provisions of | ||||||
23 | this subsection, on behalf of such municipality, and not | ||||||
24 | including any amount that the Department determines is | ||||||
25 | necessary to offset any amounts that were payable to a | ||||||
26 | different taxing body but were erroneously paid to the |
| |||||||
| |||||||
1 | municipality, and not including any amounts that are | ||||||
2 | transferred to the STAR Bonds Revenue Fund. Within 10 days | ||||||
3 | after receipt by the Comptroller of the disbursement | ||||||
4 | certification to the municipalities provided for in this | ||||||
5 | subsection to be given to the Comptroller by the Department, | ||||||
6 | the Comptroller shall cause the orders to be drawn for the | ||||||
7 | respective amounts in accordance with the directions contained | ||||||
8 | in the certification. The proceeds of the tax paid to | ||||||
9 | municipalities under this subsection shall be deposited into | ||||||
10 | the Business District Tax Allocation Fund by the municipality.
| ||||||
11 | An ordinance imposing or discontinuing the tax under this | ||||||
12 | subsection or effecting a change in the rate thereof shall | ||||||
13 | either (i) be adopted and a certified copy thereof filed with | ||||||
14 | the Department on or before the first day of April, whereupon | ||||||
15 | the Department, if all other requirements of this subsection | ||||||
16 | are met, shall proceed to administer and enforce this | ||||||
17 | subsection as of the first day of July next following the | ||||||
18 | adoption and filing; or (ii) be adopted and a certified copy | ||||||
19 | thereof filed with the Department on or before the first day of | ||||||
20 | October, whereupon, if all other requirements of this | ||||||
21 | subsection are met, the Department shall proceed to administer | ||||||
22 | and enforce this subsection as of the first day of January next | ||||||
23 | following the adoption and filing. | ||||||
24 | The Department of Revenue shall not administer or enforce | ||||||
25 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
26 | the tax under this subsection, until the municipality also |
| |||||||
| |||||||
1 | provides, in the manner prescribed by the Department, the | ||||||
2 | boundaries of the business district and each address in the | ||||||
3 | business district in such a way that the Department can | ||||||
4 | determine by its address whether a business is located in the | ||||||
5 | business district. The municipality must provide this boundary | ||||||
6 | and address information to the Department on or before April 1 | ||||||
7 | for administration and enforcement of the tax under this | ||||||
8 | subsection by the Department beginning on the following July 1 | ||||||
9 | and on or before October 1 for administration and enforcement | ||||||
10 | of the tax under this subsection by the Department beginning on | ||||||
11 | the following January 1. The Department of Revenue shall not | ||||||
12 | administer or enforce any change made to the boundaries of a | ||||||
13 | business district or address change, addition, or deletion | ||||||
14 | until the municipality reports the boundary change or address | ||||||
15 | change, addition, or deletion to the Department in the manner | ||||||
16 | prescribed by the Department. The municipality must provide | ||||||
17 | this boundary change information or address change, addition, | ||||||
18 | or deletion to the Department on or before April 1 for | ||||||
19 | administration and enforcement by the Department of the change | ||||||
20 | beginning on the following July 1 and on or before October 1 | ||||||
21 | for administration and enforcement by the Department of the | ||||||
22 | change beginning on the following January 1. The retailers in | ||||||
23 | the business district shall be responsible for charging the tax | ||||||
24 | imposed under this subsection. If a retailer is incorrectly | ||||||
25 | included or excluded from the list of those required to collect | ||||||
26 | the tax under this subsection, both the Department of Revenue |
| |||||||
| |||||||
1 | and the retailer shall be held harmless if they reasonably | ||||||
2 | relied on information provided by the municipality. | ||||||
3 | A municipality that imposes the tax under this subsection | ||||||
4 | must submit to the Department of Revenue any other information | ||||||
5 | as the Department may require for the administration and | ||||||
6 | enforcement of the tax.
| ||||||
7 | When certifying the amount of a monthly disbursement to a | ||||||
8 | municipality under this subsection, the Department shall | ||||||
9 | increase or decrease the amount by an amount necessary to | ||||||
10 | offset any misallocation of previous disbursements. The offset | ||||||
11 | amount shall be the amount erroneously disbursed within the | ||||||
12 | previous 6 months from the time a misallocation is discovered. | ||||||
13 | Nothing in this subsection shall be construed to authorize | ||||||
14 | the municipality to impose a tax upon the privilege of engaging | ||||||
15 | in any business which under the Constitution of the United | ||||||
16 | States may not be made the subject of taxation by this State. | ||||||
17 | If a tax is imposed under this subsection (b), a tax shall | ||||||
18 | also be imposed under subsection (c) of this Section. | ||||||
19 | (c) If a tax has been imposed under subsection (b), a | ||||||
20 | Business District Service Occupation Tax shall also be imposed | ||||||
21 | upon all persons engaged, in the business district, in the | ||||||
22 | business of making sales of service, who, as an incident to | ||||||
23 | making those sales of service, transfer tangible personal | ||||||
24 | property within the business district, either in the form of | ||||||
25 | tangible personal property or in the form of real estate as an | ||||||
26 | incident to a sale of service. The tax shall be imposed at the |
| |||||||
| |||||||
1 | same rate as the tax imposed in subsection (b) and shall not | ||||||
2 | exceed 1% of the selling price of tangible personal property so | ||||||
3 | transferred within the business district, to be imposed only in | ||||||
4 | 0.25% increments. The tax may not be imposed on food for human | ||||||
5 | consumption that is to be consumed off the premises where it is | ||||||
6 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
7 | that has been prepared for immediate consumption),
| ||||||
8 | prescription and nonprescription medicines, drugs, medical | ||||||
9 | appliances, modifications to a motor vehicle for the purpose of | ||||||
10 | rendering it usable by a disabled person, and insulin, urine | ||||||
11 | testing materials, syringes, and needles used by diabetics, for | ||||||
12 | human use. | ||||||
13 | The tax imposed under this subsection and all civil | ||||||
14 | penalties that may be assessed as an incident thereof shall be | ||||||
15 | collected and enforced by the Department of Revenue. The | ||||||
16 | certificate of registration which is issued by the Department | ||||||
17 | to a retailer under the Retailers' Occupation Tax Act or under | ||||||
18 | the Service Occupation Tax Act shall permit such registrant to | ||||||
19 | engage in a business which is taxable under any ordinance or | ||||||
20 | resolution enacted pursuant to this subsection without | ||||||
21 | registering separately with the Department under such | ||||||
22 | ordinance or resolution or under this subsection. The | ||||||
23 | Department of Revenue shall have full power to administer and | ||||||
24 | enforce this subsection; to collect all taxes and penalties due | ||||||
25 | under this subsection; to dispose of taxes and penalties so | ||||||
26 | collected in the manner hereinafter provided; and to determine |
| |||||||
| |||||||
1 | all rights to credit memoranda arising on account of the | ||||||
2 | erroneous payment of tax or penalty under this subsection. In | ||||||
3 | the administration of, and compliance with this subsection, the | ||||||
4 | Department and persons who are subject to this subsection shall | ||||||
5 | have the same rights, remedies, privileges, immunities, powers | ||||||
6 | and duties, and be subject to the same conditions, | ||||||
7 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
8 | and definitions of terms and employ the same modes of procedure | ||||||
9 | as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 | ||||||
10 | (in respect to all provisions therein other than the State rate | ||||||
11 | of tax), 4 (except that the reference to the State shall be to | ||||||
12 | the business district), 5, 7, 8 (except that the jurisdiction | ||||||
13 | to which the tax shall be a debt to the extent indicated in | ||||||
14 | that Section 8 shall be the municipality), 9 (except as to the | ||||||
15 | disposition of taxes and penalties collected, and except that | ||||||
16 | the returned merchandise credit for this tax may not be taken | ||||||
17 | against any State tax), 10, 11, 12 (except the reference | ||||||
18 | therein to Section 2b of the Retailers' Occupation Tax Act), 13 | ||||||
19 | (except that any reference to the State shall mean the | ||||||
20 | municipality), the first paragraph of Section 15, and Sections | ||||||
21 | 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all | ||||||
22 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
23 | if those provisions were set forth herein. | ||||||
24 | Persons subject to any tax imposed under the authority | ||||||
25 | granted in this subsection may reimburse themselves for their | ||||||
26 | serviceman's tax liability hereunder by separately stating the |
| |||||||
| |||||||
1 | tax as an additional charge, which charge may be stated in | ||||||
2 | combination, in a single amount, with State tax that servicemen | ||||||
3 | are authorized to collect under the Service Use Tax Act, in | ||||||
4 | accordance with such bracket schedules as the Department may | ||||||
5 | prescribe. | ||||||
6 | Whenever the Department determines that a refund should be | ||||||
7 | made under this subsection to a claimant instead of issuing | ||||||
8 | credit memorandum, the Department shall notify the State | ||||||
9 | Comptroller, who shall cause the order to be drawn for the | ||||||
10 | amount specified, and to the person named, in such notification | ||||||
11 | from the Department. Such refund shall be paid by the State | ||||||
12 | Treasurer out of the business district retailers' occupation | ||||||
13 | tax fund. | ||||||
14 | The Department shall forthwith pay over to the State | ||||||
15 | Treasurer, ex-officio, as trustee, all taxes, penalties, and | ||||||
16 | interest collected under this subsection for deposit into the | ||||||
17 | business district retailers' occupation tax fund. | ||||||
18 | As soon as possible after the first day of each month, | ||||||
19 | beginning January 1, 2011, upon certification of the Department | ||||||
20 | of Revenue, the Comptroller shall order transferred, and the | ||||||
21 | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | ||||||
22 | local sales tax increment, as defined in the Innovation | ||||||
23 | Development and Economy Act, collected under this subsection | ||||||
24 | during the second preceding calendar month for sales within a | ||||||
25 | STAR bond district. | ||||||
26 | After the monthly transfer to the STAR Bonds Revenue Fund, |
| |||||||
| |||||||
1 | on or before the 25th day of each calendar month, the | ||||||
2 | Department shall prepare and certify to the Comptroller the | ||||||
3 | disbursement of stated sums of money to named municipalities | ||||||
4 | from the business district retailers' occupation tax fund, the | ||||||
5 | municipalities to be those from which suppliers and servicemen | ||||||
6 | have paid taxes or penalties under this subsection to the | ||||||
7 | Department during the second preceding calendar month. The | ||||||
8 | amount to be paid to each municipality shall be the amount (not | ||||||
9 | including credit memoranda) collected under this subsection | ||||||
10 | during the second preceding calendar month by the Department, | ||||||
11 | less 2% of that amount, which shall be deposited into the Tax | ||||||
12 | Compliance and Administration Fund and shall be used by the | ||||||
13 | Department, subject to appropriation, to cover the costs of the | ||||||
14 | Department in administering and enforcing the provisions of | ||||||
15 | this subsection, and not including an amount equal to the | ||||||
16 | amount of refunds made during the second preceding calendar | ||||||
17 | month by the Department on behalf of such municipality, and not | ||||||
18 | including any amounts that are transferred to the STAR Bonds | ||||||
19 | Revenue Fund. Within 10 days after receipt, by the Comptroller, | ||||||
20 | of the disbursement certification to the municipalities, | ||||||
21 | provided for in this subsection to be given to the Comptroller | ||||||
22 | by the Department, the Comptroller shall cause the orders to be | ||||||
23 | drawn for the respective amounts in accordance with the | ||||||
24 | directions contained in such certification. The proceeds of the | ||||||
25 | tax paid to municipalities under this subsection shall be | ||||||
26 | deposited into the Business District Tax Allocation Fund by the |
| |||||||
| |||||||
1 | municipality. | ||||||
2 | An ordinance imposing or discontinuing the tax under this | ||||||
3 | subsection or effecting a change in the rate thereof shall | ||||||
4 | either (i) be adopted and a certified copy thereof filed with | ||||||
5 | the Department on or before the first day of April, whereupon | ||||||
6 | the Department, if all other requirements of this subsection | ||||||
7 | are met, shall proceed to administer and enforce this | ||||||
8 | subsection as of the first day of July next following the | ||||||
9 | adoption and filing; or (ii) be adopted and a certified copy | ||||||
10 | thereof filed with the Department on or before the first day of | ||||||
11 | October, whereupon, if all other conditions of this subsection | ||||||
12 | are met, the Department shall proceed to administer and enforce | ||||||
13 | this subsection as of the first day of January next following | ||||||
14 | the adoption and filing. | ||||||
15 | The Department of Revenue shall not administer or enforce | ||||||
16 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
17 | the tax under this subsection, until the municipality also | ||||||
18 | provides, in the manner prescribed by the Department, the | ||||||
19 | boundaries of the business district in such a way that the | ||||||
20 | Department can determine by its address whether a business is | ||||||
21 | located in the business district. The municipality must provide | ||||||
22 | this boundary and address information to the Department on or | ||||||
23 | before April 1 for administration and enforcement of the tax | ||||||
24 | under this subsection by the Department beginning on the | ||||||
25 | following July 1 and on or before October 1 for administration | ||||||
26 | and enforcement of the tax under this subsection by the |
| |||||||
| |||||||
1 | Department beginning on the following January 1. The Department | ||||||
2 | of Revenue shall not administer or enforce any change made to | ||||||
3 | the boundaries of a business district or address change, | ||||||
4 | addition, or deletion until the municipality reports the | ||||||
5 | boundary change or address change, addition, or deletion to the | ||||||
6 | Department in the manner prescribed by the Department. The | ||||||
7 | municipality must provide this boundary change information or | ||||||
8 | address change, addition, or deletion to the Department on or | ||||||
9 | before April 1 for administration and enforcement by the | ||||||
10 | Department of the change beginning on the following July 1 and | ||||||
11 | on or before October 1 for administration and enforcement by | ||||||
12 | the Department of the change beginning on the following January | ||||||
13 | 1. The retailers in the business district shall be responsible | ||||||
14 | for charging the tax imposed under this subsection. If a | ||||||
15 | retailer is incorrectly included or excluded from the list of | ||||||
16 | those required to collect the tax under this subsection, both | ||||||
17 | the Department of Revenue and the retailer shall be held | ||||||
18 | harmless if they reasonably relied on information provided by | ||||||
19 | the municipality. | ||||||
20 | A municipality that imposes the tax under this subsection | ||||||
21 | must submit to the Department of Revenue any other information | ||||||
22 | as the Department may require for the administration and | ||||||
23 | enforcement of the tax.
| ||||||
24 | Nothing in this subsection shall be construed to authorize | ||||||
25 | the municipality to impose a tax upon the privilege of engaging | ||||||
26 | in any business which under the Constitution of the United |
| |||||||
| |||||||
1 | States may not be made the subject of taxation by the State. | ||||||
2 | If a tax is imposed under this subsection (c), a tax shall | ||||||
3 | also be imposed under subsection (b) of this Section. | ||||||
4 | (d) By ordinance, a municipality that has designated a | ||||||
5 | business district under this Law may impose an occupation tax | ||||||
6 | upon all persons engaged in the business district in the | ||||||
7 | business of renting, leasing, or letting rooms in a hotel, as | ||||||
8 | defined in the Hotel Operators' Occupation Tax Act, at a rate | ||||||
9 | not to exceed 1% of the gross rental receipts from the renting, | ||||||
10 | leasing, or letting of hotel rooms within the business | ||||||
11 | district, to be imposed only in 0.25% increments, excluding, | ||||||
12 | however, from gross rental receipts the proceeds of renting, | ||||||
13 | leasing, or letting to permanent residents of a hotel, as | ||||||
14 | defined in the Hotel Operators' Occupation Tax Act, and | ||||||
15 | proceeds from the tax imposed under subsection (c) of Section | ||||||
16 | 13 of the Metropolitan Pier and Exposition Authority Act. | ||||||
17 | The tax imposed by the municipality under this subsection | ||||||
18 | and all civil penalties that may be assessed as an incident to | ||||||
19 | that tax shall be collected and enforced by the municipality | ||||||
20 | imposing the tax. The municipality shall have full power to | ||||||
21 | administer and enforce this subsection, to collect all taxes | ||||||
22 | and penalties due under this subsection, to dispose of taxes | ||||||
23 | and penalties so collected in the manner provided in this | ||||||
24 | subsection, and to determine all rights to credit memoranda | ||||||
25 | arising on account of the erroneous payment of tax or penalty | ||||||
26 | under this subsection. In the administration of and compliance |
| |||||||
| |||||||
1 | with this subsection, the municipality and persons who are | ||||||
2 | subject to this subsection shall have the same rights, | ||||||
3 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
4 | subject to the same conditions, restrictions, limitations, | ||||||
5 | penalties, and definitions of terms, and shall employ the same | ||||||
6 | modes of procedure as are employed with respect to a tax | ||||||
7 | adopted by the municipality under Section 8-3-14 of this Code. | ||||||
8 | Persons subject to any tax imposed under the authority | ||||||
9 | granted in this subsection may reimburse themselves for their | ||||||
10 | tax liability for that tax by separately stating that tax as an | ||||||
11 | additional charge, which charge may be stated in combination, | ||||||
12 | in a single amount, with State taxes imposed under the Hotel | ||||||
13 | Operators' Occupation Tax Act, and with any other tax. | ||||||
14 | Nothing in this subsection shall be construed to authorize | ||||||
15 | a municipality to impose a tax upon the privilege of engaging | ||||||
16 | in any business which under the Constitution of the United | ||||||
17 | States may not be made the subject of taxation by this State. | ||||||
18 | The proceeds of the tax imposed under this subsection shall | ||||||
19 | be deposited into the Business District Tax Allocation Fund.
| ||||||
20 | (e) Obligations secured by the Business District Tax | ||||||
21 | Allocation Fund may be issued to provide for the payment or | ||||||
22 | reimbursement of business district project costs. Those | ||||||
23 | obligations, when so issued, shall be retired in the manner | ||||||
24 | provided in the ordinance authorizing the issuance of those | ||||||
25 | obligations by the receipts of taxes imposed pursuant to | ||||||
26 | subsections (10) (11) and (11) (12) of Section 11-74.3-3 and by |
| |||||||
| |||||||
1 | other revenue designated or pledged by the municipality. A | ||||||
2 | municipality may in the ordinance pledge, for any period of | ||||||
3 | time up to and including the dissolution date, all or any part | ||||||
4 | of the funds in and to be deposited in the Business District | ||||||
5 | Tax Allocation Fund to the payment of business district project | ||||||
6 | costs and obligations. Whenever a municipality pledges all of | ||||||
7 | the funds to the credit of a business district tax allocation | ||||||
8 | fund to secure obligations issued or to be issued to pay or | ||||||
9 | reimburse business district project costs, the municipality | ||||||
10 | may specifically provide that funds remaining to the credit of | ||||||
11 | such business district tax allocation fund after the payment of | ||||||
12 | such obligations shall be accounted for annually and shall be | ||||||
13 | deemed to be "surplus" funds, and such "surplus" funds shall be | ||||||
14 | expended by the municipality for any business district project | ||||||
15 | cost as approved in the business district plan. Whenever a | ||||||
16 | municipality pledges less than all of the monies to the credit | ||||||
17 | of a business district tax allocation fund to secure | ||||||
18 | obligations issued or to be issued to pay or reimburse business | ||||||
19 | district project costs, the municipality shall provide that | ||||||
20 | monies to the credit of the business district tax allocation | ||||||
21 | fund and not subject to such pledge or otherwise encumbered or | ||||||
22 | required for payment of contractual obligations for specific | ||||||
23 | business district project costs shall be calculated annually | ||||||
24 | and shall be deemed to be "surplus" funds, and such "surplus" | ||||||
25 | funds shall be expended by the municipality for any business | ||||||
26 | district project cost as approved in the business district |
| |||||||
| |||||||
1 | plan. | ||||||
2 | No obligation issued pursuant to this Law and secured by a | ||||||
3 | pledge of all or any portion of any revenues received or to be | ||||||
4 | received by the municipality from the imposition of taxes | ||||||
5 | pursuant to subsection (10) (11) of Section 11-74.3-3, shall be | ||||||
6 | deemed to constitute an economic incentive agreement under | ||||||
7 | Section 8-11-20, notwithstanding the fact that such pledge | ||||||
8 | provides for the sharing, rebate, or payment of retailers' | ||||||
9 | occupation taxes or service occupation taxes imposed pursuant | ||||||
10 | to subsection (10) (11) of Section 11-74.3-3 and received or to | ||||||
11 | be received by the municipality from the development or | ||||||
12 | redevelopment of properties in the business district. | ||||||
13 | Without limiting the foregoing in this Section, the | ||||||
14 | municipality may further secure obligations secured by the | ||||||
15 | business district tax allocation fund with a pledge, for a | ||||||
16 | period not greater than the term of the obligations and in any | ||||||
17 | case not longer than the dissolution date, of any part or any | ||||||
18 | combination of the following: (i) net revenues of all or part | ||||||
19 | of any business district project; (ii) taxes levied or imposed | ||||||
20 | by the municipality on any or all property in the municipality, | ||||||
21 | including, specifically, taxes levied or imposed by the | ||||||
22 | municipality in a special service area pursuant to the Special | ||||||
23 | Service Area Tax Law; (iii) the full faith and credit of the | ||||||
24 | municipality; (iv) a mortgage on part or all of the business | ||||||
25 | district project; or (v) any other taxes or anticipated | ||||||
26 | receipts that the municipality may lawfully pledge. |
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1 | Such obligations may be issued in one or more series, bear | ||||||
2 | such date or dates, become due at such time or times as therein | ||||||
3 | provided, but in any case not later than (i) 20 years after the | ||||||
4 | date of issue or (ii) the dissolution date, whichever is | ||||||
5 | earlier, bear interest payable at such intervals and at such | ||||||
6 | rate or rates as set forth therein, except as may be limited by | ||||||
7 | applicable law, which rate or rates may be fixed or variable, | ||||||
8 | be in such denominations, be in such form, either coupon, | ||||||
9 | registered, or book-entry, carry such conversion, registration | ||||||
10 | and exchange privileges, be subject to defeasance upon such | ||||||
11 | terms, have such rank or priority, be executed in such manner, | ||||||
12 | be payable in such medium or payment at such place or places | ||||||
13 | within or without the State, make provision for a corporate | ||||||
14 | trustee within or without the State with respect to such | ||||||
15 | obligations, prescribe the rights, powers, and duties thereof | ||||||
16 | to be exercised for the benefit of the municipality and the | ||||||
17 | benefit of the owners of such obligations, provide for the | ||||||
18 | holding in trust, investment, and use of moneys, funds, and | ||||||
19 | accounts held under an ordinance, provide for assignment of and | ||||||
20 | direct payment of the moneys to pay such obligations or to be | ||||||
21 | deposited into such funds or accounts directly to such trustee, | ||||||
22 | be subject to such terms of redemption with or without premium, | ||||||
23 | and be sold at such price, all as the corporate authorities | ||||||
24 | shall determine. No referendum approval of the electors shall | ||||||
25 | be required as a condition to the issuance of obligations | ||||||
26 | pursuant to this Law except as provided in this Section. |
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1 | In the event the municipality authorizes the issuance of | ||||||
2 | obligations pursuant to the authority of this Law secured by | ||||||
3 | the full faith and credit of the municipality, or pledges ad | ||||||
4 | valorem taxes pursuant to this subsection, which obligations | ||||||
5 | are other than obligations which may be issued under home rule | ||||||
6 | powers provided by Section 6 of Article VII of the Illinois | ||||||
7 | Constitution or which ad valorem taxes are other than ad | ||||||
8 | valorem taxes which may be pledged under home rule powers | ||||||
9 | provided by Section 6 of Article VII of the Illinois | ||||||
10 | Constitution or which are levied in a special service area | ||||||
11 | pursuant to the Special Service Area Tax Law, the ordinance | ||||||
12 | authorizing the issuance of those obligations or pledging those | ||||||
13 | taxes shall be published within 10 days after the ordinance has | ||||||
14 | been adopted, in a newspaper having a general circulation | ||||||
15 | within the municipality. The publication of the ordinance shall | ||||||
16 | be accompanied by a notice of (i) the specific number of voters | ||||||
17 | required to sign a petition requesting the question of the | ||||||
18 | issuance of the obligations or pledging such ad valorem taxes | ||||||
19 | to be submitted to the electors; (ii) the time within which the | ||||||
20 | petition must be filed; and (iii) the date of the prospective | ||||||
21 | referendum. The municipal clerk shall provide a petition form | ||||||
22 | to any individual requesting one. | ||||||
23 | If no petition is filed with the municipal clerk, as | ||||||
24 | hereinafter provided in this Section, within 21 days after the | ||||||
25 | publication of the ordinance, the ordinance shall be in effect. | ||||||
26 | However, if within that 21-day period a petition is filed with |
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1 | the municipal clerk, signed by electors numbering not less than | ||||||
2 | 15% of the number of electors voting for the mayor or president | ||||||
3 | at the last general municipal election, asking that the | ||||||
4 | question of issuing obligations using full faith and credit of | ||||||
5 | the municipality as security for the cost of paying or | ||||||
6 | reimbursing business district project costs, or of pledging | ||||||
7 | such ad valorem taxes for the payment of those obligations, or | ||||||
8 | both, be submitted to the electors of the municipality, the | ||||||
9 | municipality shall not be authorized to issue obligations of | ||||||
10 | the municipality using the full faith and credit of the | ||||||
11 | municipality as security or pledging such ad valorem taxes for | ||||||
12 | the payment of those obligations, or both, until the | ||||||
13 | proposition has been submitted to and approved by a majority of | ||||||
14 | the voters voting on the proposition at a regularly scheduled | ||||||
15 | election. The municipality shall certify the proposition to the | ||||||
16 | proper election authorities for submission in accordance with | ||||||
17 | the general election law. | ||||||
18 | The ordinance authorizing the obligations may provide that | ||||||
19 | the obligations shall contain a recital that they are issued | ||||||
20 | pursuant to this Law, which recital shall be conclusive | ||||||
21 | evidence of their validity and of the regularity of their | ||||||
22 | issuance. | ||||||
23 | In the event the municipality authorizes issuance of | ||||||
24 | obligations pursuant to this Law secured by the full faith and | ||||||
25 | credit of the municipality, the ordinance authorizing the | ||||||
26 | obligations may provide for the levy and collection of a direct |
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1 | annual tax upon all taxable property within the municipality | ||||||
2 | sufficient to pay the principal thereof and interest thereon as | ||||||
3 | it matures, which levy may be in addition to and exclusive of | ||||||
4 | the maximum of all other taxes authorized to be levied by the | ||||||
5 | municipality, which levy, however, shall be abated to the | ||||||
6 | extent that monies from other sources are available for payment | ||||||
7 | of the obligations and the municipality certifies the amount of | ||||||
8 | those monies available to the county clerk. | ||||||
9 | A certified copy of the ordinance shall be filed with the | ||||||
10 | county clerk of each county in which any portion of the | ||||||
11 | municipality is situated, and shall constitute the authority | ||||||
12 | for the extension and collection of the taxes to be deposited | ||||||
13 | in the business district tax allocation fund. | ||||||
14 | A municipality may also issue its obligations to refund, in | ||||||
15 | whole or in part, obligations theretofore issued by the | ||||||
16 | municipality under the authority of this Law, whether at or | ||||||
17 | prior to maturity. However, the last maturity of the refunding | ||||||
18 | obligations shall not be expressed to mature later than the | ||||||
19 | dissolution date. | ||||||
20 | In the event a municipality issues obligations under home | ||||||
21 | rule powers or other legislative authority, the proceeds of | ||||||
22 | which are pledged to pay or reimburse business district project | ||||||
23 | costs, the municipality may, if it has followed the procedures | ||||||
24 | in conformance with this Law, retire those obligations from | ||||||
25 | funds in the business district tax allocation fund in amounts | ||||||
26 | and in such manner as if those obligations had been issued |
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1 | pursuant to the provisions of this Law. | ||||||
2 | No obligations issued pursuant to this Law shall be | ||||||
3 | regarded as indebtedness of the municipality issuing those | ||||||
4 | obligations or any other taxing district for the purpose of any | ||||||
5 | limitation imposed by law. | ||||||
6 | Obligations issued pursuant to this Law shall not be | ||||||
7 | subject to the provisions of the Bond Authorization Act. | ||||||
8 | (f) When business district project costs, including, | ||||||
9 | without limitation, all obligations paying or reimbursing | ||||||
10 | business district project costs have been paid, any surplus | ||||||
11 | funds then remaining in the Business District Tax Allocation | ||||||
12 | Fund shall be distributed to the municipal treasurer for | ||||||
13 | deposit into the general corporate fund of the municipality. | ||||||
14 | Upon payment of all business district project costs and | ||||||
15 | retirement of all obligations paying or reimbursing business | ||||||
16 | district project costs, but in no event more than 23 years | ||||||
17 | after the date of adoption of the ordinance imposing taxes | ||||||
18 | pursuant to subsection (10) subsections (11) or (11) (12) of | ||||||
19 | Section 11-74.3-3, the municipality shall adopt an ordinance | ||||||
20 | immediately rescinding the taxes imposed pursuant to | ||||||
21 | subsection (10) or (11) of Section 11-74.3-3 said subsections .
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22 | (Source: P.A. 96-939, eff. 6-24-10; 96-1394, eff. 7-29-10; | ||||||
23 | revised 9-2-10.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
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