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Full Text of SB2769

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SB2769 - 104th General Assembly

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Senate Amendment 001

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Senate Amendment 001

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SB2769 Enrolled
LRB104 16654 RTM 30058 b
1

AN ACT concerning local government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Municipal Code is amended by
5
changing Section 11-74.3-6 as follows:

6

(65 ILCS 5/11-74.3-6)
7

Sec. 11-74.3-6.
Business district revenue and obligations;
8
business district tax allocation fund.
9

(a) If the corporate authorities of a municipality have
10
approved a business district plan, have designated a business
11
district, and have elected to impose a tax by ordinance
12
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
13
each year after the date of the approval of the ordinance but
14
terminating upon the date all business district project costs
15
and all obligations paying or reimbursing business district
16
project costs, if any, have been paid, but in no event later
17
than the dissolution date, all amounts generated by the
18
retailers' occupation tax and service occupation tax shall be
19
collected and the tax shall be enforced by the Department of
20
Revenue in the same manner as all retailers' occupation taxes
21
and service occupation taxes imposed in the municipality
22
imposing the tax and all amounts generated by the hotel
23
operators' occupation tax shall be collected and the tax shall

SB2769 Enrolled
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1
be enforced by the municipality in the same manner as all hotel
2
operators' occupation taxes imposed in the municipality
3
imposing the tax. The corporate authorities of the
4
municipality shall deposit the proceeds of the taxes imposed
5
under subsections (10) and (11) of Section 11-74.3-3 into a
6
special fund of the municipality called the "[Name of]
7
Business District Tax Allocation Fund" for the purpose of
8
paying or reimbursing business district project costs and
9
obligations incurred in the payment of those costs.
10
Notwithstanding any other provision of this Act, a
11
municipality may, by a two-thirds vote of its corporate
12
authorities, transfer money among the Business District Tax
13
Allocation Funds of business districts if the business
14
districts are under the control of the municipality and the
15
transferred money is used for the purposes of paying business
16
district project costs as defined in this Act. All such
17
transfers shall be documented and reported annually to the
18
municipal corporate authorities, and that documentation shall
19
be made available to the public.

20

(b) The corporate authorities of a municipality that has
21
designated a business district under this Law may, by
22
ordinance, impose a Business District Retailers' Occupation
23
Tax upon all persons engaged in the business of selling
24
tangible personal property, other than an item of tangible
25
personal property titled or registered with an agency of this
26
State's government, at retail in the business district at a

SB2769 Enrolled
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1
rate not to exceed 1% of the gross receipts from the sales made
2
in the course of such business, to be imposed only in 0.25%
3
increments. The tax may not be imposed on tangible personal
4
property taxed at the rate of 1% under the Retailers'
5
Occupation Tax Act (or at the 0% rate imposed under this
6
amendatory Act of the 102nd General Assembly). Beginning
7
December 1, 2019 and through December 31, 2020, this tax is not
8
imposed on sales of aviation fuel unless the tax revenue is
9
expended for airport-related purposes. If the District does
10
not have an airport-related purpose to which it dedicates
11
aviation fuel tax revenue, then aviation fuel is excluded from
12
the tax. Each municipality must comply with the certification
13
requirements for airport-related purposes under Section 2-22
14
of the Retailers' Occupation Tax Act. For purposes of this
15
Section, "airport-related purposes" has the meaning ascribed
16
in Section 6z-20.2 of the State Finance Act. Beginning January
17
1, 2021, this tax is not imposed on sales of aviation fuel for
18
so long as the revenue use requirements of 49 U.S.C. 47107(b)
19
and 49 U.S.C. 47133 are binding on the District.
20

The tax imposed under this subsection and all civil
21
penalties that may be assessed as an incident thereof shall be
22
collected and enforced by the Department of Revenue. The
23
certificate of registration that is issued by the Department
24
to a retailer under the Retailers' Occupation Tax Act shall
25
permit the retailer to engage in a business that is taxable
26
under any ordinance or resolution enacted pursuant to this

SB2769 Enrolled
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1
subsection without registering separately with the Department
2
under such ordinance or resolution or under this subsection.
3
The Department of Revenue shall have full power to administer
4
and enforce this subsection; to collect all taxes and
5
penalties due under this subsection in the manner hereinafter
6
provided; and to determine all rights to credit memoranda
7
arising on account of the erroneous payment of tax or penalty
8
under this subsection. In the administration of, and
9
compliance with, this subsection, the Department and persons
10
who are subject to this subsection shall have the same rights,
11
remedies, privileges, immunities, powers and duties, and be
12
subject to the same conditions, restrictions, limitations,
13
penalties, exclusions, exemptions, and definitions of terms
14
and employ the same modes of procedure, as are prescribed in
15
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
16
provisions therein other than the State rate of tax), 2c
17
through 2h, 3 (except as to the disposition of taxes and
18
penalties collected, and except that the retailer's discount
19
is not allowed for taxes paid on aviation fuel that are subject
20
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
21
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
22
6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
23
Occupation Tax Act and all provisions of the Uniform Penalty
24
and Interest Act, as fully as if those provisions were set
25
forth herein.
26

Persons subject to any tax imposed under this subsection

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1
may reimburse themselves for their seller's tax liability
2
under this subsection by separately stating the tax as an
3
additional charge, which charge may be stated in combination,
4
in a single amount, with State taxes that sellers are required
5
to collect under the Use Tax Act, in accordance with such
6
bracket schedules as the Department may prescribe.
7

Whenever the Department determines that a refund should be
8
made under this subsection to a claimant instead of issuing a
9
credit memorandum, the Department shall notify the State
10
Comptroller, who shall cause the order to be drawn for the
11
amount specified and to the person named in the notification
12
from the Department. The refund shall be paid by the State
13
Treasurer out of the business district retailers' occupation
14
tax fund or the Local Government Aviation Trust Fund, as
15
appropriate.
16

Except as otherwise provided in this paragraph, the
17
Department shall immediately pay over to the State Treasurer,
18
ex officio, as trustee, all taxes, penalties, and interest
19
collected under this subsection for deposit into the business
20
district retailers' occupation tax fund. Taxes and penalties
21
collected on aviation fuel sold on or after December 1, 2019,
22
shall be immediately paid over by the Department to the State
23
Treasurer, ex officio, as trustee, for deposit into the Local
24
Government Aviation Trust Fund. The Department shall only pay
25
moneys into the Local Government Aviation Trust Fund under
26
this Section for so long as the revenue use requirements of 49

SB2769 Enrolled
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1
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2
District.
3

As soon as possible after the first day of each month,
4
beginning January 1, 2011, upon certification of the
5
Department of Revenue, the Comptroller shall order
6
transferred, and the Treasurer shall transfer, to the STAR
7
Bonds Revenue Fund the local sales tax increment, as defined
8
in the Innovation Development and Economy Act, collected under
9
this subsection during the second preceding calendar month for
10
sales within a STAR bond district.
11

After the monthly transfer to the STAR Bonds Revenue Fund,
12
on or before the 25th day of each calendar month, the
13
Department shall prepare and certify to the Comptroller the
14
disbursement of stated sums of money to named municipalities
15
from the business district retailers' occupation tax fund, the
16
municipalities to be those from which retailers have paid
17
taxes or penalties under this subsection to the Department
18
during the second preceding calendar month. The amount to be
19
paid to each municipality shall be the amount (not including
20
credit memoranda and not including taxes and penalties
21
collected on aviation fuel sold on or after December 1, 2019)
22
collected under this subsection during the second preceding
23
calendar month by the Department plus an amount the Department
24
determines is necessary to offset any amounts that were
25
erroneously paid to a different taxing body, and not including
26
an amount equal to the amount of refunds made during the second

SB2769 Enrolled
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1
preceding calendar month by the Department, less 2% of that
2
amount (except the amount collected on aviation fuel sold on
3
or after December 1, 2019), which shall be deposited into the
4
Tax Compliance and Administration Fund and shall be used by
5
the Department, subject to appropriation, to cover the costs
6
of the Department in administering and enforcing the
7
provisions of this subsection, on behalf of such municipality,
8
and not including any amount that the Department determines is
9
necessary to offset any amounts that were payable to a
10
different taxing body but were erroneously paid to the
11
municipality, and not including any amounts that are
12
transferred to the STAR Bonds Revenue Fund. Within 10 days
13
after receipt by the Comptroller of the disbursement
14
certification to the municipalities provided for in this
15
subsection to be given to the Comptroller by the Department,
16
the Comptroller shall cause the orders to be drawn for the
17
respective amounts in accordance with the directions contained
18
in the certification. The proceeds of the tax paid to
19
municipalities under this subsection shall be deposited into
20
the Business District Tax Allocation Fund by the municipality.
21

An ordinance imposing or discontinuing the tax under this
22
subsection or effecting a change in the rate thereof shall
23
either (i) be adopted and a certified copy thereof filed with
24
the Department on or before the first day of April, whereupon
25
the Department, if all other requirements of this subsection
26
are met, shall proceed to administer and enforce this

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
subsection as of the first day of July next following the
2
adoption and filing; or (ii) be adopted and a certified copy
3
thereof filed with the Department on or before the first day of
4
October, whereupon, if all other requirements of this
5
subsection are met, the Department shall proceed to administer
6
and enforce this subsection as of the first day of January next
7
following the adoption and filing.
8

The Department of Revenue shall not administer or enforce
9
an ordinance imposing, discontinuing, or changing the rate of
10
the tax under this subsection, until the municipality also
11
provides, in the manner prescribed by the Department, the
12
boundaries of the business district and each address in the
13
business district in such a way that the Department can
14
determine by its address whether a business is located in the
15
business district. The municipality must provide this boundary
16
and address information to the Department on or before April 1
17
for administration and enforcement of the tax under this
18
subsection by the Department beginning on the following July 1
19
and on or before October 1 for administration and enforcement
20
of the tax under this subsection by the Department beginning
21
on the following January 1. The Department of Revenue shall
22
not administer or enforce any change made to the boundaries of
23
a business district or address change, addition, or deletion
24
until the municipality reports the boundary change or address
25
change, addition, or deletion to the Department in the manner
26
prescribed by the Department. The municipality must provide

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
this boundary change information or address change, addition,
2
or deletion to the Department on or before April 1 for
3
administration and enforcement by the Department of the change
4
beginning on the following July 1 and on or before October 1
5
for administration and enforcement by the Department of the
6
change beginning on the following January 1. The retailers in
7
the business district shall be responsible for charging the
8
tax imposed under this subsection. If a retailer is
9
incorrectly included or excluded from the list of those
10
required to collect the tax under this subsection, both the
11
Department of Revenue and the retailer shall be held harmless
12
if they reasonably relied on information provided by the
13
municipality.
14

A municipality that imposes the tax under this subsection
15
must submit to the Department of Revenue any other information
16
as the Department may require for the administration and
17
enforcement of the tax.
18

When certifying the amount of a monthly disbursement to a
19
municipality under this subsection, the Department shall
20
increase or decrease the amount by an amount necessary to
21
offset any misallocation of previous disbursements. The offset
22
amount shall be the amount erroneously disbursed within the
23
previous 6 months from the time a misallocation is discovered.
24

Nothing in this subsection shall be construed to authorize
25
the municipality to impose a tax upon the privilege of
26
engaging in any business which under the Constitution of the

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
United States may not be made the subject of taxation by this
2
State.
3

If a tax is imposed under this subsection (b), a tax shall
4
also be imposed under subsection (c) of this Section.
5

(c) If a tax has been imposed under subsection (b), a
6
Business District Service Occupation Tax shall also be imposed
7
upon all persons engaged, in the business district, in the
8
business of making sales of service, who, as an incident to
9
making those sales of service, transfer tangible personal
10
property within the business district, either in the form of
11
tangible personal property or in the form of real estate as an
12
incident to a sale of service. The tax shall be imposed at the
13
same rate as the tax imposed in subsection (b) and shall not
14
exceed 1% of the selling price of tangible personal property
15
so transferred within the business district, to be imposed
16
only in 0.25% increments. The tax may not be imposed on
17
tangible personal property taxed at the 1% rate under the
18
Service Occupation Tax Act (or at the 0% rate imposed under
19
this amendatory Act of the 102nd General Assembly). Beginning
20
December 1, 2019, this tax is not imposed on sales of aviation
21
fuel unless the tax revenue is expended for airport-related
22
purposes. If the District does not have an airport-related
23
purpose to which it dedicates aviation fuel tax revenue, then
24
aviation fuel is excluded from the tax. Each municipality must
25
comply with the certification requirements for airport-related
26
purposes under Section 2-22 of the Retailers' Occupation Tax

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
Act. For purposes of this Act, "airport-related purposes" has
2
the meaning ascribed in Section 6z-20.2 of the State Finance
3
Act. Beginning January 1, 2021, this tax is not imposed on
4
sales of aviation fuel for so long as the revenue use
5
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
6
binding on the District.
7

The tax imposed under this subsection and all civil
8
penalties that may be assessed as an incident thereof shall be
9
collected and enforced by the Department of Revenue. The
10
certificate of registration which is issued by the Department
11
to a retailer under the Retailers' Occupation Tax Act or under
12
the Service Occupation Tax Act shall permit such registrant to
13
engage in a business which is taxable under any ordinance or
14
resolution enacted pursuant to this subsection without
15
registering separately with the Department under such
16
ordinance or resolution or under this subsection. The
17
Department of Revenue shall have full power to administer and
18
enforce this subsection; to collect all taxes and penalties
19
due under this subsection; to dispose of taxes and penalties
20
so collected in the manner hereinafter provided; and to
21
determine all rights to credit memoranda arising on account of
22
the erroneous payment of tax or penalty under this subsection.
23
In the administration of, and compliance with this subsection,
24
the Department and persons who are subject to this subsection
25
shall have the same rights, remedies, privileges, immunities,
26
powers and duties, and be subject to the same conditions,

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
restrictions, limitations, penalties, exclusions, exemptions,
2
and definitions of terms and employ the same modes of
3
procedure as are prescribed in Sections 2, 2a through 2d, 3
4
through 3-50 (in respect to all provisions therein other than
5
the State rate of tax), 4 (except that the reference to the
6
State shall be to the business district), 5, 7, 8 (except that
7
the jurisdiction to which the tax shall be a debt to the extent
8
indicated in that Section 8 shall be the municipality), 9
9
(except as to the disposition of taxes and penalties
10
collected, and except that the returned merchandise credit for
11
this tax may not be taken against any State tax, and except
12
that the retailer's discount is not allowed for taxes paid on
13
aviation fuel that are subject to the revenue use requirements
14
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
15
the reference therein to Section 2b of the Retailers'
16
Occupation Tax Act), 13 (except that any reference to the
17
State shall mean the municipality), the first paragraph of
18
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
19
Occupation Tax Act and all provisions of the Uniform Penalty
20
and Interest Act, as fully as if those provisions were set
21
forth herein.
22

Persons subject to any tax imposed under the authority
23
granted in this subsection may reimburse themselves for their
24
serviceman's tax liability hereunder by separately stating the
25
tax as an additional charge, which charge may be stated in
26
combination, in a single amount, with State tax that

SB2769 Enrolled
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LRB104 16654 RTM 30058 b
1
servicemen are authorized to collect under the Service Use Tax
2
Act, in accordance with such bracket schedules as the
3
Department may prescribe.
4

Whenever the Department determines that a refund should be
5
made under this subsection to a claimant instead of issuing
6
credit memorandum, the Department shall notify the State
7
Comptroller, who shall cause the order to be drawn for the
8
amount specified, and to the person named, in such
9
notification from the Department. Such refund shall be paid by
10
the State Treasurer out of the business district retailers'
11
occupation tax fund or the Local Government Aviation Trust
12
Fund, as appropriate.
13

Except as otherwise provided in this paragraph, the
14
Department shall forthwith pay over to the State Treasurer,
15
ex-officio, as trustee, all taxes, penalties, and interest
16
collected under this subsection for deposit into the business
17
district retailers' occupation tax fund. Taxes and penalties
18
collected on aviation fuel sold on or after December 1, 2019,
19
shall be immediately paid over by the Department to the State
20
Treasurer, ex officio, as trustee, for deposit into the Local
21
Government Aviation Trust Fund. The Department shall only pay
22
moneys into the Local Government Aviation Trust Fund under
23
this Section for so long as the revenue use requirements of 49
24
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
25
District.
26

As soon as possible after the first day of each month,

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LRB104 16654 RTM 30058 b
1
beginning January 1, 2011, upon certification of the
2
Department of Revenue, the Comptroller shall order
3
transferred, and the Treasurer shall transfer, to the STAR
4
Bonds Revenue Fund the local sales tax increment, as defined
5
in the Innovation Development and Economy Act, collected under
6
this subsection during the second preceding calendar month for
7
sales within a STAR bond district.
8

After the monthly transfer to the STAR Bonds Revenue Fund,
9
on or before the 25th day of each calendar month, the
10
Department shall prepare and certify to the Comptroller the
11
disbursement of stated sums of money to named municipalities
12
from the business district retailers' occupation tax fund, the
13
municipalities to be those from which suppliers and servicemen
14
have paid taxes or penalties under this subsection to the
15
Department during the second preceding calendar month. The
16
amount to be paid to each municipality shall be the amount (not
17
including credit memoranda and not including taxes and
18
penalties collected on aviation fuel sold on or after December
19
1, 2019) collected under this subsection during the second
20
preceding calendar month by the Department, less 2% of that
21
amount (except the amount collected on aviation fuel sold on
22
or after December 1, 2019), which shall be deposited into the
23
Tax Compliance and Administration Fund and shall be used by
24
the Department, subject to appropriation, to cover the costs
25
of the Department in administering and enforcing the
26
provisions of this subsection, and not including an amount

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LRB104 16654 RTM 30058 b
1
equal to the amount of refunds made during the second
2
preceding calendar month by the Department on behalf of such
3
municipality, and not including any amounts that are
4
transferred to the STAR Bonds Revenue Fund. Within 10 days
5
after receipt, by the Comptroller, of the disbursement
6
certification to the municipalities, provided for in this
7
subsection to be given to the Comptroller by the Department,
8
the Comptroller shall cause the orders to be drawn for the
9
respective amounts in accordance with the directions contained
10
in such certification. The proceeds of the tax paid to
11
municipalities under this subsection shall be deposited into
12
the Business District Tax Allocation Fund by the municipality.
13

An ordinance imposing or discontinuing the tax under this
14
subsection or effecting a change in the rate thereof shall
15
either (i) be adopted and a certified copy thereof filed with
16
the Department on or before the first day of April, whereupon
17
the Department, if all other requirements of this subsection
18
are met, shall proceed to administer and enforce this
19
subsection as of the first day of July next following the
20
adoption and filing; or (ii) be adopted and a certified copy
21
thereof filed with the Department on or before the first day of
22
October, whereupon, if all other conditions of this subsection
23
are met, the Department shall proceed to administer and
24
enforce this subsection as of the first day of January next
25
following the adoption and filing.
26

The Department of Revenue shall not administer or enforce

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LRB104 16654 RTM 30058 b
1
an ordinance imposing, discontinuing, or changing the rate of
2
the tax under this subsection, until the municipality also
3
provides, in the manner prescribed by the Department, the
4
boundaries of the business district in such a way that the
5
Department can determine by its address whether a business is
6
located in the business district. The municipality must
7
provide this boundary and address information to the
8
Department on or before April 1 for administration and
9
enforcement of the tax under this subsection by the Department
10
beginning on the following July 1 and on or before October 1
11
for administration and enforcement of the tax under this
12
subsection by the Department beginning on the following
13
January 1. The Department of Revenue shall not administer or
14
enforce any change made to the boundaries of a business
15
district or address change, addition, or deletion until the
16
municipality reports the boundary change or address change,
17
addition, or deletion to the Department in the manner
18
prescribed by the Department. The municipality must provide
19
this boundary change information or address change, addition,
20
or deletion to the Department on or before April 1 for
21
administration and enforcement by the Department of the change
22
beginning on the following July 1 and on or before October 1
23
for administration and enforcement by the Department of the
24
change beginning on the following January 1. The retailers in
25
the business district shall be responsible for charging the
26
tax imposed under this subsection. If a retailer is

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incorrectly included or excluded from the list of those
2
required to collect the tax under this subsection, both the
3
Department of Revenue and the retailer shall be held harmless
4
if they reasonably relied on information provided by the
5
municipality.
6

A municipality that imposes the tax under this subsection
7
must submit to the Department of Revenue any other information
8
as the Department may require for the administration and
9
enforcement of the tax.
10

Nothing in this subsection shall be construed to authorize
11
the municipality to impose a tax upon the privilege of
12
engaging in any business which under the Constitution of the
13
United States may not be made the subject of taxation by the
14
State.
15

If a tax is imposed under this subsection (c), a tax shall
16
also be imposed under subsection (b) of this Section.
17

(c-5) If, on January 1, 2025, a unit of local government
18
has in effect a tax under this Section, or if, after January 1,
19
2025, a unit of local government imposes a tax under this
20
Section, then that tax applies to leases of tangible personal
21
property in effect, entered into, or renewed on or after that
22
date in the same manner as the tax under this Section and in
23
accordance with the changes made by this amendatory Act of the
24
103rd General Assembly.
25

(d) By ordinance, a municipality that has designated a
26
business district under this Law may impose an occupation tax

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upon all persons engaged in the business district in the
2
business of renting, leasing, or letting rooms in a hotel, as
3
defined in the Hotel Operators' Occupation Tax Act, at a rate
4
not to exceed 1% of the gross rental receipts from the renting,
5
leasing, or letting of hotel rooms within the business
6
district, to be imposed only in 0.25% increments, excluding,
7
however, from gross rental receipts the proceeds of renting,
8
leasing, or letting to permanent residents of a hotel, as
9
defined in the Hotel Operators' Occupation Tax Act, and
10
proceeds from the tax imposed under subsection (c) of Section
11
13 of the Metropolitan Pier and Exposition Authority Act.
12

The tax imposed by the municipality under this subsection
13
and all civil penalties that may be assessed as an incident to
14
that tax shall be collected and enforced by the municipality
15
imposing the tax. The municipality shall have full power to
16
administer and enforce this subsection, to collect all taxes
17
and penalties due under this subsection, to dispose of taxes
18
and penalties so collected in the manner provided in this
19
subsection, and to determine all rights to credit memoranda
20
arising on account of the erroneous payment of tax or penalty
21
under this subsection. In the administration of and compliance
22
with this subsection, the municipality and persons who are
23
subject to this subsection shall have the same rights,
24
remedies, privileges, immunities, powers, and duties, shall be
25
subject to the same conditions, restrictions, limitations,
26
penalties, and definitions of terms, and shall employ the same

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modes of procedure as are employed with respect to a tax
2
adopted by the municipality under Section 8-3-14 of this Code.
3

Persons subject to any tax imposed under the authority
4
granted in this subsection may reimburse themselves for their
5
tax liability for that tax by separately stating that tax as an
6
additional charge, which charge may be stated in combination,
7
in a single amount, with State taxes imposed under the Hotel
8
Operators' Occupation Tax Act, and with any other tax.
9

Nothing in this subsection shall be construed to authorize
10
a municipality to impose a tax upon the privilege of engaging
11
in any business which under the Constitution of the United
12
States may not be made the subject of taxation by this State.
13

The proceeds of the tax imposed under this subsection
14
shall be deposited into the Business District Tax Allocation
15
Fund.
16

(e) Obligations secured by the Business District Tax
17
Allocation Fund may be issued to provide for the payment or
18
reimbursement of business district project costs. Those
19
obligations, when so issued, shall be retired in the manner
20
provided in the ordinance authorizing the issuance of those
21
obligations by the receipts of taxes imposed pursuant to
22
subsections (10) and (11) of Section 11-74.3-3 and by other
23
revenue designated or pledged by the municipality. A
24
municipality may in the ordinance pledge, for any period of
25
time up to and including the dissolution date, all or any part
26
of the funds in and to be deposited in the Business District

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Tax Allocation Fund to the payment of business district
2
project costs and obligations. Whenever a municipality pledges
3
all of the funds to the credit of a business district tax
4
allocation fund to secure obligations issued or to be issued
5
to pay or reimburse business district project costs, the
6
municipality may specifically provide that funds remaining to
7
the credit of such business district tax allocation fund after
8
the payment of such obligations shall be accounted for
9
annually and shall be deemed to be "surplus" funds, and such
10
"surplus" funds shall be expended by the municipality for any
11
business district project cost as approved in the business
12
district plan. Whenever a municipality pledges less than all
13
of the monies to the credit of a business district tax
14
allocation fund to secure obligations issued or to be issued
15
to pay or reimburse business district project costs, the
16
municipality shall provide that monies to the credit of the
17
business district tax allocation fund and not subject to such
18
pledge or otherwise encumbered or required for payment of
19
contractual obligations for specific business district project
20
costs shall be calculated annually and shall be deemed to be
21
"surplus" funds, and such "surplus" funds shall be expended by
22
the municipality for any business district project cost as
23
approved in the business district plan.
24

No obligation issued pursuant to this Law and secured by a
25
pledge of all or any portion of any revenues received or to be
26
received by the municipality from the imposition of taxes

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pursuant to subsection (10) of Section 11-74.3-3, shall be
2
deemed to constitute an economic incentive agreement under
3
Section 8-11-20, notwithstanding the fact that such pledge
4
provides for the sharing, rebate, or payment of retailers'
5
occupation taxes or service occupation taxes imposed pursuant
6
to subsection (10) of Section 11-74.3-3 and received or to be
7
received by the municipality from the development or
8
redevelopment of properties in the business district.
9

Without limiting the foregoing in this Section, the
10
municipality may further secure obligations secured by the
11
business district tax allocation fund with a pledge, for a
12
period not greater than the term of the obligations and in any
13
case not longer than the dissolution date, of any part or any
14
combination of the following: (i) net revenues of all or part
15
of any business district project; (ii) taxes levied or imposed
16
by the municipality on any or all property in the
17
municipality, including, specifically, taxes levied or imposed
18
by the municipality in a special service area pursuant to the
19
Special Service Area Tax Law; (iii) the full faith and credit
20
of the municipality; (iv) a mortgage on part or all of the
21
business district project; or (v) any other taxes or
22
anticipated receipts that the municipality may lawfully
23
pledge.
24

Such obligations may be issued in one or more series, bear
25
such date or dates, become due at such time or times as therein
26
provided, but in any case not later than (i) 20 years after the

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date of issue or (ii) the dissolution date, whichever is
2
earlier, bear interest payable at such intervals and at such
3
rate or rates as set forth therein, except as may be limited by
4
applicable law, which rate or rates may be fixed or variable,
5
be in such denominations, be in such form, either coupon,
6
registered, or book-entry, carry such conversion, registration
7
and exchange privileges, be subject to defeasance upon such
8
terms, have such rank or priority, be executed in such manner,
9
be payable in such medium or payment at such place or places
10
within or without the State, make provision for a corporate
11
trustee within or without the State with respect to such
12
obligations, prescribe the rights, powers, and duties thereof
13
to be exercised for the benefit of the municipality and the
14
benefit of the owners of such obligations, provide for the
15
holding in trust, investment, and use of moneys, funds, and
16
accounts held under an ordinance, provide for assignment of
17
and direct payment of the moneys to pay such obligations or to
18
be deposited into such funds or accounts directly to such
19
trustee, be subject to such terms of redemption with or
20
without premium, and be sold at such price, all as the
21
corporate authorities shall determine. No referendum approval
22
of the electors shall be required as a condition to the
23
issuance of obligations pursuant to this Law except as
24
provided in this Section.
25

In the event the municipality authorizes the issuance of
26
obligations pursuant to the authority of this Law secured by

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the full faith and credit of the municipality, or pledges ad
2
valorem taxes pursuant to this subsection, which obligations
3
are other than obligations which may be issued under home rule
4
powers provided by Section 6 of Article VII of the Illinois
5
Constitution or which ad valorem taxes are other than ad
6
valorem taxes which may be pledged under home rule powers
7
provided by Section 6 of Article VII of the Illinois
8
Constitution or which are levied in a special service area
9
pursuant to the Special Service Area Tax Law, the ordinance
10
authorizing the issuance of those obligations or pledging
11
those taxes shall be published within 10 days after the
12
ordinance has been adopted, in a newspaper having a general
13
circulation within the municipality. The publication of the
14
ordinance shall be accompanied by a notice of (i) the specific
15
number of voters required to sign a petition requesting the
16
question of the issuance of the obligations or pledging such
17
ad valorem taxes to be submitted to the electors; (ii) the time
18
within which the petition must be filed; and (iii) the date of
19
the prospective referendum. The municipal clerk shall provide
20
a petition form to any individual requesting one.
21

If no petition is filed with the municipal clerk, as
22
hereinafter provided in this Section, within 21 days after the
23
publication of the ordinance, the ordinance shall be in
24
effect. However, if within that 21-day period a petition is
25
filed with the municipal clerk, signed by electors numbering
26
not less than 15% of the number of electors voting for the

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mayor or president at the last general municipal election,
2
asking that the question of issuing obligations using full
3
faith and credit of the municipality as security for the cost
4
of paying or reimbursing business district project costs, or
5
of pledging such ad valorem taxes for the payment of those
6
obligations, or both, be submitted to the electors of the
7
municipality, the municipality shall not be authorized to
8
issue obligations of the municipality using the full faith and
9
credit of the municipality as security or pledging such ad
10
valorem taxes for the payment of those obligations, or both,
11
until the proposition has been submitted to and approved by a
12
majority of the voters voting on the proposition at a
13
regularly scheduled election. The municipality shall certify
14
the proposition to the proper election authorities for
15
submission in accordance with the general election law.
16

The ordinance authorizing the obligations may provide that
17
the obligations shall contain a recital that they are issued
18
pursuant to this Law, which recital shall be conclusive
19
evidence of their validity and of the regularity of their
20
issuance.
21

In the event the municipality authorizes issuance of
22
obligations pursuant to this Law secured by the full faith and
23
credit of the municipality, the ordinance authorizing the
24
obligations may provide for the levy and collection of a
25
direct annual tax upon all taxable property within the
26
municipality sufficient to pay the principal thereof and

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interest thereon as it matures, which levy may be in addition
2
to and exclusive of the maximum of all other taxes authorized
3
to be levied by the municipality, which levy, however, shall
4
be abated to the extent that monies from other sources are
5
available for payment of the obligations and the municipality
6
certifies the amount of those monies available to the county
7
clerk.
8

A certified copy of the ordinance shall be filed with the
9
county clerk of each county in which any portion of the
10
municipality is situated, and shall constitute the authority
11
for the extension and collection of the taxes to be deposited
12
in the business district tax allocation fund.
13

A municipality may also issue its obligations to refund,
14
in whole or in part, obligations theretofore issued by the
15
municipality under the authority of this Law, whether at or
16
prior to maturity. However, the last maturity of the refunding
17
obligations shall not be expressed to mature later than the
18
dissolution date.
19

In the event a municipality issues obligations under home
20
rule powers or other legislative authority, the proceeds of
21
which are pledged to pay or reimburse business district
22
project costs, the municipality may, if it has followed the
23
procedures in conformance with this Law, retire those
24
obligations from funds in the business district tax allocation
25
fund in amounts and in such manner as if those obligations had
26
been issued pursuant to the provisions of this Law.

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No obligations issued pursuant to this Law shall be
2
regarded as indebtedness of the municipality issuing those
3
obligations or any other taxing district for the purpose of
4
any limitation imposed by law.
5

Obligations issued pursuant to this Law shall not be
6
subject to the provisions of the Bond Authorization Act.
7

(f) When business district project costs, including,
8
without limitation, all obligations paying or reimbursing
9
business district project costs have been paid, any surplus
10
funds then remaining in the Business District Tax Allocation
11
Fund shall be distributed to the municipal treasurer for
12
deposit into the general corporate fund of the municipality.
13
Upon payment of all business district project costs and
14
retirement of all obligations paying or reimbursing business
15
district project costs, but in no event more than 23 years
16
after the date of adoption of the ordinance imposing taxes
17
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
18
municipality shall adopt an ordinance immediately rescinding
19
the taxes imposed pursuant to subsection (10) or (11) of
20
Section 11-74.3-3.
21
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25
.)

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