As you already know, Tax Increment Financing (TIF) is an important tool used by many Illinois municipalities just like yours. For some communities, TIF is THE ONLY TOOL AVAILABLE to attract economic development, encourage business start-ups and stimulate new investment. We want to alert you to several new legislative proposals, particularly HB1575, that would significantly diminish your town's authority and the effective use of tax increment financing in Illinois. Please contact your legislators to express concerns about these actions as they will, as drafted, seriously affect your development efforts and the economic future of your community.
A short list and a brief description of the specific bills that we believe warrant your immediate attention include those listed below. For more detailed information about these bills and to locate your legislators' addresses, please see the attached PDF document and visit the Illinois General Assembly's home page at http://www.ilga.gov/ .
HB0294: Amends the TIF Act to provide that a member of the Joint Review Board shall preside over certain Public Hearings.
HB1099: Amends the TIF Act to provide that the designated joint review board shall include a representative selected by the rescue squad district that will have the authority to directly levy taxes on the property within the proposed redevelopment project area at the time it is approved.
HB1208: Amends the TIF Act to provide that all accumulated tax incremental revenues not specifically appropriated for defined costs for projects within a redevelopment project area by the end of a municipality's fiscal year shall be deemed "surplus" funds.
HB1234: Amends the TIF Act to provide that three (3) years after a TIF District is established, the portion of taxes levied by a school district located in the redevelopment project area shall be paid to the school district in the same manner required by law in the absence of TIF.
HB1575: Amends the TIF Act to prohibit new TIF Districts from being designated if the equalized assessed value (EAV) of all property in the redevelopment project area PLUS the total current EAV of all property located in other TIF Districts in the municipality exceed 10% of the total EAV of all property located in the municipality. This bill also provides essentially same provision as HB1208 and it changes the definition of "blighted area" to include a specific requirement that redevelopment is unlikely to happen in area in the absence of TIF. This bill also contains provisions allowing taxing districts to opt-out of redevelopment projects and requires all TIF Districts to be approved by a majority vote of each county board and the governing authorities of affected taxing districts that have not elected to opt out. Other provisions in this bill include: provisions authorizing intergovernmental agreements related to taxes and fees collected from within a redevelopment project area; amends the Economic Development Area Tax Increment Allocation Act, the County Economic Development Project Area Property Tax Allocation Act, and the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code to provide that the initial equalized assessed value of property shall be indexed for inflation.
SB1620: this bill mirrors HB1208.
Other proposed bills such as SB1625 and SB1626 also amend the TIF Act on items relating to TIF Districts located within the City of Chicago and should also be monitored.
Please do feel free to contact us with your questions and concerns regarding these matters.