TIF Bill Package to be Introduced

The Joint Legislative Council recommended that the eight Tax Incremental Financing (TIF) bills submitted by the Legislative Council Study Committee on TIF be introduced to the full legislature with a 19-0 vote, with three members not present. The approval allows the eight TIF bills to advance into the normal legislative process. The recommendations are outlined in the study committee’s report to the Joint Legislative Council and include the following eight bills.

 

  • LRB-1063/1Redetermination of TID Base Value: Allows a local legislative body to request a reassessment of a TID base value if the TID has reach decrement in a year.
  • LRB-1064/1,Sunset for Distressed or Severely Distressed TID Designation: Replaces the October 1 2015 deadline for declaring a TID distressed or severely distressed to October 1, 2020.
  • LRB-1065/115 Percent: Increases TID value increments to total equalized value of taxable property in a city or village from 12 percent to 15 percent.
  • LRB-1066/1Vacant Land and City-Owned Land: Removes the restriction that property standing vacant may not comprise more than 25 percent of the area in a TID and removes tax-exempt city owned property from being assessed as part of base value. 
  • LRB-1067/1, Changes to Statute and DOR Policy Adversely Impacting TIDs:Allows project plan amendments that would extend the life of a TID if the district has been impacted by statute changes.
  • LRB-1068/1Donor TIDs: Allows any TID to be a recipient TID and use tax increments, if the involved taxing jurisdictions lie within the same municipality. In addition, this bill excludes small taxing jurisdictions (such as lake, sanitary, or public inland lake districts) from donating to tax increments. 
  • LRB-1069/1, Joint Review Board and Annual Reporting: Creates a standing Joint Review Board, modifies annual reporting requirements, adds penalties for not reporting annually (based on set of Illinois statutes.), and repeals the DOR process to review industry-specific town TIDs.
  • LRB-1070/1, Technical Changes: Makes several technical changes including:
    •  Modify the industrial zoning requirements to only apply to industrial use tax increment districts;
    • Changes the maximum review period the JRB has to approve a resolution on a TID from 30 days to 45 days;
    • Amends the notice requirement of the planning commission from a class 2 notice to a class 1 notice when it comes to announcing a notice of amendment.

 

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