ENTERPRISE ZONE-STAR BONDS

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB4018

Introduced 2/6/2026, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

20 ILCS 655/5.4.1
50 ILCS 475/5-10
50 ILCS 475/5-30
50 ILCS 475/5-45
50 ILCS 475/5-50
50 ILCS 475/5-75

Amends the Illinois Enterprise Zone Act. Provides that, if a
municipality has adopted an enterprise zone pursuant to the Act and
subsequently establishes a redevelopment project area pursuant to the Tax
Increment Allocation Redevelopment Act, the municipality may provide for a
partial abatement of taxes for property located within both the enterprise
zone and the redevelopment project area. Provides that, if a municipality
has established a redevelopment project area pursuant to Tax Increment
Allocation Redevelopment Act and subsequently adopts an enterprise zone
that includes property within the redevelopment project area, the
municipality may provide for a partial abatement of taxes for property
located within both the enterprise zone and the redevelopment project
area. Amends the Statewide Innovation Development and Economy Act.
Provides that certain local hotel taxes are considered local taxes for
purposes of the Act.
LRB104 20752 HLH 34256 b

A BILL FOR

SB4018
LRB104 20752 HLH 34256 b
1

AN ACT concerning State government.

2

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

4

Section 5.
The Illinois Enterprise Zone Act is amended by
5
changing Section 5.4.1 as follows:

6

(20 ILCS 655/5.4.1)
7

Sec. 5.4.1.
Adoption of Tax Increment Financing.
8

(a) If (i) a redevelopment project area is, will be, or has
9
been created by a municipality under Division 74.4 of the
10
Illinois Municipal Code, (ii) the redevelopment project area
11
contains property that is located in an enterprise zone, (iii)
12
the municipality adopts an amendment to the enterprise zone
13
designating ordinance pursuant to Section 5.4 of this Act
14
specifically concerning the abatement of taxes on property
15
located within a redevelopment project area created pursuant
16
to Division 74.4 of the Illinois Municipal Code, and (iv) the
17
Department certifies the ordinance amendment, then the
18
property that is located in both the enterprise zone and the
19
redevelopment project area shall not be eligible for the
20
abatement of taxes under Section 18-170 of the Property Tax
21
Code.
22

No business enterprise or expansion or individual,
23
however, that has constructed a new improvement or renovated

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LRB104 20752 HLH 34256 b
1
or rehabilitated an existing improvement and has received an
2
abatement on the improvement under Section 18-170 of the
3
Property Tax Code shall be denied any benefit previously
4
extended within the zone pursuant to this Act or pursuant to
5
any other Illinois law providing benefits specifically to or
6
within enterprise zones. Moreover, if the business enterprise
7
or individual presents evidence to the municipality within 30
8
days after the adoption by the municipality of an amendment to
9
the designating ordinance the sufficiency of which shall be
10
determined by findings of the corporate authorities made
11
within 30 days of the receipt of such evidence by the
12
municipality, that before the date of the notice of the public
13
hearing provided by the municipality regarding the amendment
14
to the designating ordinance (i) the business enterprise or
15
expansion or individual was committed to locate within the
16
enterprise zone, (ii) substantial and binding financial
17
obligations were made towards the development of the
18
enterprise, and (iii) those commitments were made in
19
reasonable reliance on the benefits and programs that were
20
applicable to the enterprise or individual by reason of the
21
enterprise zone, then the enterprise or expansion or
22
individual shall not be denied any benefit previously extended
23
within the zone pursuant to this Act or pursuant to any other
24
Illinois law providing benefits specifically to or within
25
enterprise zones.
26

(b) This Section applies to all property located within

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1
both a redevelopment project area adopted under Division 74.4
2
of the Illinois Municipal Code and an enterprise zone even if
3
the redevelopment project area or the enterprise zone was
4
adopted before the effective date of this amendatory Act of
5
1997.
6

(c) After July 1, 1997, if (i) a redevelopment project
7
area is created by a municipality under Division 74.4 of the
8
Illinois Municipal Code and (ii) the redevelopment project
9
area contains property that is located in an enterprise zone,
10
the municipality must adopt an amendment to the certified
11
enterprise zone designating ordinance under Section 5.4 that
12
property that is located in both the enterprise zone and the
13
redevelopment project area shall not be eligible for any
14
abatement of taxes under Section 18-170 of the Property Tax
15
Code for new improvements or the renovation or rehabilitation
16
of existing improvements
, except as provided in subsection (e)
17
and (f)
.
18

(d) In declaratory judgment actions under this Section,
19
the Department and the designating municipality shall be
20
necessary parties defendant.
21

(e) Notwithstanding any other provision of law, if a
22
municipality has adopted an enterprise zone pursuant to this
23
Act and subsequently establishes a redevelopment project area
24
pursuant to the Tax Increment Allocation Redevelopment Act in
25
the Illinois Municipal Code, the municipality may, by
26
amendment to the certified enterprise zone designating

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LRB104 20752 HLH 34256 b
1
ordinance, provide for a partial abatement of taxes under
2
Section 18-170 of the Property Tax Code for property located
3
within both the enterprise zone and the redevelopment project
4
area. Any portion of property taxes not abated shall be
5
subject to tax increment financing, and the terms of the
6
applicable redevelopment project area agreement adopted
7
pursuant to the Tax Increment Allocation Redevelopment Act.

8

(f) Notwithstanding any other provision of law, if a
9
municipality has established a redevelopment project area
10
pursuant to Tax Increment Allocation Redevelopment Act in the
11
Illinois Municipal Code and subsequently adopts an enterprise
12
zone that includes property within the redevelopment project
13
area, the municipality may, subject to the redevelopment
14
project area plan and agreement, provide for a partial
15
abatement of taxes under Section 18-170 of the Property Tax
16
Code for property located within both the enterprise zone and
17
the redevelopment project area. No such abatement shall reduce
18
or impair any tax increment revenues pledged to secure
19
outstanding bonds, notes, or other obligations of the
20
redevelopment project area. Any portion of property taxes not
21
abated shall remain subject to tax increment financing and the
22
terms of the applicable redevelopment project area agreement
23
adopted pursuant to Division 74.4 of the Illinois Municipal
24
Code.

25
(Source: P.A. 90-258, eff. 7-30-97.)

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LRB104 20752 HLH 34256 b
1

Section 10.
The Statewide Innovation Development and
2
Economy Act is amended by changing Sections 5-10, 5-30, 5-45,
3
and 5-50, and 5-75 as follows:

4

(50 ILCS 475/5-10)
5

Sec. 5-10.
Definitions.
In this Act:
6

"Base year" means the calendar year immediately before the
7
calendar year in which the Office of the Governor approves the
8
first STAR bond project within the STAR bond district.
9

"Commence work" means the manifest commencement of actual
10
operations on the development site, such as erecting a
11
building, general on-site and off-site grading and utility
12
installations, commencing design and construction
13
documentation, ordering lead-time materials, excavating the
14
ground to lay a foundation or a basement, or work of like
15
description that a reasonable person would recognize as being
16
done with the intention and purpose to continue work until the
17
project is completed.
18

"Corporate authority" or "corporate authorities" means the
19
county board of a county; the mayor and alderpersons or
20
similar body when the reference is to cities; the president
21
and trustees or similar body when the reference is to villages
22
or incorporated towns; and the council when the reference is
23
to municipalities under the commission form of government.
24

"De minimis amount" means an amount less than 15% of the
25
land area within a STAR bond district.

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LRB104 20752 HLH 34256 b
1

"Department" means the Department of Commerce and Economic
2
Opportunity.
3

"Developer" means any individual, corporation, trust,
4
estate, partnership, limited liability partnership, limited
5
liability company, or other entity. "Developer" does not
6
include a not-for-profit entity, political subdivision, or
7
other agency or instrumentality of the State.
8

"Development user" means an owner, operator, licensee,
9
codeveloper, subdeveloper, or tenant that: (i) operates a
10
business within a STAR bond district that is a retail store,
11
hotel, or entertainment venue; (ii) does not have another
12
Illinois location within a 30-mile radius at the time of
13
opening; and (iii) makes an initial capital investment,
14
including project costs and other direct costs, of not less
15
than $30,000,000 for the business.
16

"Director" means the Director of Commerce and Economic
17
Opportunity.
18

"Economic development region" means the counties
19
encompassed within any one of the 10 economic development
20
regions recognized by the Department on the effective date of
21
this Act.
22

"Eligible area" means contiguous parcels of real property
23
that meet all of the following: (i) the property is directly
24
and substantially benefited by the proposed STAR bond district
25
plan; (ii) at least 50% of the total land area of the real
26
property is located within an underserved area, as defined by

SB4018
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LRB104 20752 HLH 34256 b
1
the Department at the time the STAR bond district plan is
2
submitted; (iii) the property is located in an area with not
3
less than 10,000 residents within a 5-mile radius of the
4
proposed district; (iv) the property is located 15 miles or
5
less from either a State highway or federal interstate
6
highway; and (v) the area is found by the governing body of the
7
political subdivision to meet the following requirements:
8

(1) the use, condition, and character of the buildings
9

in the area, if any, are not consistent with the purposes
10

set forth in Section 5-5;
11

(2) a STAR bond district within the area is expected
12

to create or retain job opportunities within the political
13

subdivision;
14

(3) a STAR bond district within the area will serve to
15

further the development of adjacent areas;
16

(4) without the availability of STAR bonds, the
17

projects described in the STAR bond district plan would
18

not be feasible in the area;
19

(5) a STAR bond district will strengthen the
20

commercial sector of the political subdivision;
21

(6) a STAR bond district will enhance the tax base of
22

the political subdivision; and
23

(7) the formation of a STAR bond district is in the
24

best interest of the political subdivision.
25

The findings described in paragraphs (1) through (7) are
26
subject to the review process provided in subsections (e) and

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LRB104 20752 HLH 34256 b
1
(f) of Section 5-20.
2

For the purposes of this definition, the area may be
3
bisected by streets, highways, roads, alleys, railways, bike
4
paths, streams, rivers, and other waterways and still be
5
deemed contiguous.
6

"Entertainment venue" means a business that has a primary
7
use of providing a venue for entertainment attractions, rides,
8
or other activities oriented toward the entertainment and
9
amusement of its patrons.
10

"Feasibility study" means the feasibility study described
11
in subsection (b) of Section 5-30.
12

"Hotel" has the same meaning given to that term in Section
13
2 of the Hotel Operators' Occupation Tax Act.
14

"Infrastructure" means the public improvements and private
15
improvements that serve the public purposes set forth in
16
Section 5-5 of this Act and that benefit the STAR bond district
17
or any STAR bond projects, including, but not limited to,
18
streets, drives and driveways, traffic and directional signs
19
and signals, parking lots and parking facilities,
20
interchanges, highways, sidewalks, bridges, underpasses and
21
overpasses, bike and walking trails, sanitary storm sewers and
22
lift stations, drainage conduits, channels, levees, canals,
23
storm water detention and retention facilities, utilities and
24
utility connections, water mains and extensions, and street
25
and parking lot lighting and connections.
26

"Local hotel tax" means any taxes received by a

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LRB104 20752 HLH 34256 b
1
municipality, county, or other local government entity arising
2
from transactions by all persons engaged in the business of
3
renting, leasing, or letting rooms in a hotel, as defined in
4
the Hotel Operators' Occupation Tax Act, within a STAR bond
5
district, imposed pursuant to Section 8-3-14 of the Illinois
6
Municipal Code or Section 5-1030 of the Counties Code.

7

"Local sales taxes" means any locally imposed taxes
8
received by a municipality, county, or other local
9
governmental entity arising from sales by retailers and
10
servicemen within a STAR bond district. "Local sales taxes"
11
includes business district sales taxes, taxes imposed under
12
Section 5-50, and that portion of the net revenue allocated
13
from the Local Government Tax Fund and the County and Mass
14
Transit District Fund to the municipality, county, or other
15
governmental entity under the Retailers' Occupation Tax Act,
16
the Use Tax Act, the Service Use Tax Act, and the Service
17
Occupation Tax Act from transactions at places of business
18
located in a STAR bond district.
"Local sales taxes" includes
19
all the net revenue realized under any local hotel tax.
"Local
20
sales taxes" does not include (i) any taxes authorized under
21
the Local Mass Transit District Act or the Metro-East Park and
22
Recreation District Act for so long as the applicable taxing
23
district does not impose a tax on real property, (ii) any
24
county school facility and resources occupation taxes imposed
25
under Section 5-1006.7 of the Counties Code, (iii) any taxes
26
authorized under the Flood Prevention District Act, (iv) any

SB4018
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LRB104 20752 HLH 34256 b
1
taxes authorized under the Special County Occupation Tax For
2
Public Safety, Public Facilities, Mental Health, Substance
3
Abuse, or Transportation Law, (v) any taxes authorized under
4
the Regional Transportation Authority Act, (vi) any taxes
5
authorized under the County Motor Fuel Tax Law,
or
(vii) any
6
taxes authorized under the Municipal Motor Fuel Tax Law
, or
7
(viii) any taxes committed to other uses by election of voters
8
or pledged to any bond repayment, other than STAR bonds, prior
9
to the approval of the STAR bond project
.
10

"Local sales tax increment" means:
11

(1) with respect to local sales taxes administered by
12

a municipality, county, or other unit of local government,
13

that portion of the local sales tax that is in excess of
14

the aggregate local sales tax in the district for the same
15

month in the base year, as determined by the respective
16

municipality, county, or other unit of local government;
17

the Department of Revenue shall allocate the local sales
18

tax increment only if the local sales tax is administered
19

by the Department; and
20

(2) with respect to local sales taxes administered by
21

the Department of Revenue:
22

(A) except with respect to the 0.25% county
23

portion of the 6.25% State rate, all the local sales
24

tax paid by taxpayers in the district that is in excess
25

of the aggregate local sales tax paid by taxpayers in
26

the district for the same month in the base year, as

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1

determined by the Department of Revenue; and
2

(B) with respect to the 0.25% county portion of
3

the 6.25% State rate, in the case of a STAR bond
4

district that is partially or wholly within a
5

municipality, that portion of the 0.25% county portion
6

of the 6.25% rate paid by taxpayers in the district for
7

sales made within the corporate limits of the
8

municipality that is in excess of the aggregate local
9

sales tax paid by taxpayers in the district for sales
10

made within the corporate limits of the municipality
11

for the same month in the base year, as determined by
12

the Department of Revenue, but only if the corporate
13

authorities of the county adopt an ordinance, and file
14

a copy of the ordinance with the Department of Revenue
15

within the same time frames as required for STAR bond
16

occupation taxes under Section 5-50, that designates
17

the taxes as part of the local sales tax increment
18

under this Act.
19

(3) with respect to any local hotel tax that is
20

administered and collected directly by a municipality,
21

that portion of the local hotel tax revenues that is in
22

excess of the amount of such tax revenues generated within
23

the STAR bond district that are in excess of the aggregate
24

hotel tax revenues generated within the district for the
25

same month in the base year, as determined by the
26

political subdivision.

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LRB104 20752 HLH 34256 b
1

"Market study" means a study to determine the ability of
2
the proposed STAR bond project to gain market share locally
3
and regionally and to remain profitable after the term of
4
repayment of STAR bonds.
5

"Master developer" means a developer cooperating with a
6
political subdivision to plan, develop, and implement a STAR
7
bond project plan for a STAR bond district. Subject to the
8
limitations of Section 5-40, the master developer may work
9
with and transfer certain development rights to other
10
developers for the purpose of implementing STAR bond project
11
plans and achieving the purposes of this Act. A master
12
developer for a STAR bond district shall be appointed by a
13
political subdivision in the resolution establishing the STAR
14
bond district, and the master developer or its affiliate must,
15
at the time of appointment, own or have control of, through
16
purchase agreements, option contracts, or other means, not
17
less than 50% of the acreage within the STAR bond district.
18
"Master developer" also means any successor developer who has
19
assumed the role and responsibilities of the original master
20
developer through the execution of an amended master
21
development agreement and has been approved as the master
22
developer through resolution by the applicable political
23
subdivision.
24

"Master development agreement" means an agreement between
25
the master developer (or any approved successor developers)
26
and the political subdivision to govern a STAR bond district

SB4018
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1
and any STAR bond projects.
2

"Municipality" means the city, village, or incorporated
3
town in which a proposed STAR bond district is located.
4

"New Opportunities for Vacation and Adventure District" or
5
"NOVA district" means a STAR bond district that encompasses a
6
minimum of 500 contiguous acres and, during the STAR bond
7
district plan approval process, demonstrates a reasonable
8
expectation of (1) producing a capital investment of at least
9
$500,000,000, (2) generating not less than $300,000,000 in
10
annual gross sales, (3) attracting at least 1,000,000 visitors
11
annually, and (4) creating a minimum of 1,500 jobs.
12

"Pledged STAR revenues" means those sales tax revenues and
13
other sources of funds that are pledged to pay debt service on
14
STAR bonds or to pay project costs under Section 5-45.
15
Notwithstanding any provision of law to the contrary, any
16
State sales tax increment or local sales tax increment from a
17
retail entity initiating operations in a STAR bond district
18
while terminating operations at another Illinois location
19
within 25 miles of the STAR bond district shall not constitute
20
pledged STAR revenues or be available to pay principal and
21
interest on STAR bonds. For purposes of this definition,
22
"terminating operations" means a closing of a retail operation
23
that is directly related to the opening of the same operation
24
or like retail entity owned or operated by more than 50% of the
25
original ownership in a STAR bond district within one year
26
before or after initiating operations in the STAR bond

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LRB104 20752 HLH 34256 b
1
district, but it does not mean closing an operation for
2
reasons beyond the control of the retail entity, as documented
3
by the retail entity, subject to a reasonable finding by the
4
municipality (or county if such retail operation is not
5
located within a municipality) in which the terminated
6
operations were located that the closed location contained
7
inadequate space, had become economically obsolete, or was no
8
longer a viable location for the retailer or serviceperson.
9

"Political subdivision" means a municipality or county
10
that undertakes to establish a STAR bond district under the
11
provisions of this Act.
12

"Professional sports" means any of the following sports at
13
the major league level: baseball, basketball, football, or ice
14
hockey.
15

"Project costs" means the total of all costs incurred or
16
estimated to be incurred on or after the date of establishment
17
of a STAR bond district that are reasonable or necessary to
18
implement a STAR bond district plan or any STAR bond project
19
plans, or both, including costs incurred for public
20
improvements and private improvements that serve the public
21
purposes set forth in Section 5-5 of this Act. "Project costs"
22
includes, without limitation:
23

(1) costs of studies, surveys, development of plans
24

and specifications, formation, implementation, and
25

administration of a STAR bond district, STAR bond district
26

plan, any STAR bond projects, or any STAR bond project

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1

plans, including, but not limited to, staff and
2

professional service costs for architectural, engineering,
3

legal, financial, planning, or other services; however, no
4

charges for professional services may be based on a
5

percentage of the tax increment collected, and no
6

contracts for professional services, excluding
7

architectural and engineering services, may be entered
8

into if the terms of the contract extend beyond a period of
9

3 years;
10

(2) property assembly costs, including, but not
11

limited to, costs related to:
12

(A) the acquisition of land and other real
13

property or rights or interests in the land or other
14

real property located within the boundaries of a STAR
15

bond district;
16

(B) the demolition of buildings, site preparation,
17

and site improvements that serve as an engineered
18

barrier addressing ground level or below ground
19

environmental contamination, including, but not
20

limited to, parking lots and other concrete or asphalt
21

barriers; and
22

(C) the clearing and grading of land and the
23

importing of additional soil and fill materials or the
24

removal of soil and fill materials from the site;
25

(3) subject to paragraph (6), the costs of buildings
26

and other vertical improvements that are located within

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LRB104 20752 HLH 34256 b
1

the boundaries of a STAR bond district and are owned by a
2

political subdivision or other public entity, including
3

without limitation police and fire stations, educational
4

facilities, and public restrooms and rest areas;
5

(4) costs of buildings and other vertical improvements
6

that are located within: (i) the boundaries of a STAR bond
7

district and are owned by a development user, except that
8

only 4 development users, other than a hotel or
9

entertainment venue, in a STAR bond district and one hotel
10

are eligible to include the cost of those vertical
11

improvements as project costs, or (ii) the boundaries of a
12

NOVA district;
13

(5) costs of the following vertical improvements that
14

are located within (i) the boundaries of a STAR bond
15

district and owned by an entertainment venue, except that
16

only one entertainment venue in a STAR bond district is
17

eligible to include the cost of those vertical
18

improvements as project costs, or (ii) a NOVA district:
19

(A) buildings;
20

(B) rides and attractions, including, but not
21

limited to, carousels, slides, roller coasters,
22

displays, models, towers, works of art, and similar
23

theme and amusement park improvements; and
24

(C) other vertical improvements;
25

(6) costs of the design and construction of
26

infrastructure and public works located within the

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boundaries of a STAR bond district that are reasonable or
2

necessary to implement a STAR bond district plan or any
3

STAR bond project plans, or both, except that "project
4

costs" does not include the cost of constructing a new
5

municipal public building principally used to provide
6

offices, storage space, or conference facilities or
7

vehicle storage, maintenance, or repair for
8

administrative, public safety, or public works personnel
9

and that is not intended to replace an existing public
10

building unless the political subdivision makes a
11

reasonable determination in a STAR bond district plan or
12

any STAR bond project plans, supported by information that
13

provides the basis for that determination, that the new
14

municipal building is required to meet an increase in the
15

need for public safety purposes anticipated to result from
16

the implementation of the STAR bond district plan or any
17

STAR bond project plans;
18

(7) costs of the design and construction of the
19

following improvements located outside the boundaries of a
20

STAR bond district if the costs are essential to further
21

the purpose and development of a STAR bond district plan
22

and either (i) part of and connected to sewer, water, or
23

utility service lines that physically connect to the STAR
24

bond district or (ii) significant improvements for
25

adjacent off-site highways, streets, roadways, and
26

interchanges that are approved by the Department of

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Transportation. No other cost of infrastructure and public
2

works improvements located outside the boundaries of a
3

STAR bond district may be deemed project costs;
4

(8) costs of job training and retraining projects for
5

current and future employees of development users,
6

including programs implemented by businesses located
7

within a STAR bond district;
8

(9) financing costs, including, but not limited to,
9

all necessary and incidental expenses related to the
10

issuance of obligations and the payment of interest on any
11

obligations issued under this Act, including interest
12

accruing during the estimated period of construction of
13

any improvements in a STAR bond district or any STAR bond
14

projects for which such obligations are issued and for not
15

exceeding 36 months thereafter and including reasonable
16

reserves related thereto;
17

(10) interest costs incurred by a developer for
18

project costs related to the acquisition, formation,
19

implementation, development, construction, and
20

administration of a STAR bond district, STAR bond district
21

plan, STAR bond projects, or any STAR bond project plans
22

if:
23

(A) payment of the costs in any one year may not
24

exceed 30% of the annual interest costs incurred by
25

the developer with regard to the STAR bond district or
26

any STAR bond projects during that year; and

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(B) the total of the interest payments paid under
2

this Act may not exceed 30% of the total cost paid or
3

incurred by the developer for a STAR bond district or
4

STAR bond projects, plus project costs, excluding any
5

property assembly costs incurred by a political
6

subdivision under this Act;
7

(11) to the extent the political subdivision by
8

written agreement accepts and approves the same, all or a
9

portion of a taxing district's capital costs resulting
10

from a STAR bond district or STAR bond projects
11

necessarily incurred or to be incurred within a taxing
12

district in furtherance of the objectives of a STAR bond
13

district plan or STAR bond project plans;
14

(12) costs of common areas located within the
15

boundaries of a STAR bond district;
16

(13) costs of landscaping and plantings, retaining
17

walls and fences, artificial lakes and ponds, shelters,
18

benches, lighting, and similar amenities located within
19

the boundaries of a STAR bond district;
20

(14) costs of mounted building signs, site monuments,
21

and pylon signs located within the boundaries of a STAR
22

bond district; or
23

(15) if included in the STAR bond district plan and
24

approved in writing by the Director, salaries or a portion
25

of salaries for local government employees to the extent
26

the same are directly attributable to the work of those

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employees on the establishment and management of a STAR
2

bond district or any STAR bond project.
3

Except as specified in items (1) through (15) of this
4
definition, "project costs" does not include:
5

(A) the cost of construction of buildings that are
6

owned by a municipality or county and leased to a
7

development user for uses other than as a retail store,
8

hotel, or entertainment venue;
9

(B) moving expenses for employees of the businesses
10

locating within the STAR bond district;
11

(C) property taxes for property located in the STAR
12

bond district;
13

(D) lobbying costs; and
14

(E) general overhead or administrative costs of the
15

political subdivision that would still have been incurred
16

by the political subdivision if the political subdivision
17

had not established a STAR bond district.
18

"Project development agreement" means any one or more
19
agreements, including any amendments to that agreement or
20
those agreements, between a master developer and any
21
codeveloper or subdeveloper in connection with a STAR bond
22
project, which project development agreement may include the
23
political subdivision as a party.
24

"Project labor agreement" means a prehire collective
25
bargaining agreement that covers all terms and conditions of
26
employment between the general contractor and all

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subcontractors hired by the master developer, developer,
2
codeveloper, or subdeveloper, as applicable, of a STAR bond
3
project. A "project labor agreement" must include the
4
following provisions: (1) a provision establishing the minimum
5
hourly wage for each class of labor organization employee; (2)
6
a provision establishing the benefits and other compensation
7
for each class of labor organization employee; (3) a provision
8
requiring that no strike or dispute will be engaged in by the
9
labor organization employees; (4) a provision requiring that
10
no lockout or dispute will be engaged in by the general
11
contractor and all subcontractors building the project; and
12
(5) a provision establishing goals for apprenticeship hours to
13
be performed by minority persons and women and goals for total
14
hours to be performed by minority persons and women, as those
15
terms are defined in the Business Enterprise for Minorities,
16
Women, and Persons with Disabilities Act. A "project labor
17
agreement" may include other terms and conditions as
18
necessary.
19

"Projected market area" means any area within the State in
20
which a STAR bond district or STAR bond project is projected to
21
have a significant fiscal or market impact as determined by
22
the Director.
23

"Resolution" means a resolution, order, ordinance, or
24
other appropriate form of legislative action of a political
25
subdivision or other applicable public entity approved by a
26
vote of a majority of a quorum at a meeting of the governing

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body of the political subdivision or applicable public entity.
2

"STAR bond" means a sales tax and revenue bond, note, or
3
other obligation payable from pledged STAR revenues and issued
4
by a political subdivision, the proceeds of which shall be
5
used only to pay project costs as defined in this Act.
6

"STAR bond district" means the specific area that is
7
declared to be an eligible area by the political subdivision,
8
that has received approval by the State, and in which the
9
political subdivision may develop one or more STAR bond
10
projects.
11

"STAR bond district plan" means the preliminary or
12
conceptual plan that generally identifies the proposed STAR
13
bond project areas and identifies in a general manner the
14
buildings, facilities, and improvements to be constructed or
15
improved in each STAR bond project area.
16

"STAR bond project" means a project that is located within
17
a STAR bond district and that is approved under Section 5-30.
18

"STAR bond project area" means the geographic area within
19
a STAR bond district in which there may be one or more STAR
20
bond projects.
21

"STAR bond project plan" means the written plan adopted by
22
a political subdivision for the development of a STAR bond
23
project in a STAR bond district; the plan may include, but is
24
not limited to, (i) project costs incurred prior to the date of
25
the STAR bond project plan and estimated future STAR bond
26
project costs, (ii) proposed sources of funds to pay those

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costs, (iii) the nature and estimated term of any obligations
2
to be issued by the political subdivision to pay those costs,
3
(iv) the most recent equalized assessed valuation of the STAR
4
bond project area, (v) an estimate of the equalized assessed
5
valuation of the STAR bond district or applicable project area
6
after completion of a STAR bond project, (vi) a general
7
description of the types of any known or proposed developers,
8
users, or tenants of the STAR bond project or projects
9
included in the plan, (vii) a general description of the type,
10
structure, and character of the property or facilities to be
11
developed or improved, (viii) a description of the general
12
land uses to apply to the STAR bond project, and (ix) a general
13
description or an estimate of the type, class, and number of
14
employees to be employed in the operation of the STAR bond
15
project.
16

"State sales tax" means all the net revenue realized under
17
the Retailers' Occupation Tax Act, the Use Tax Act, the
18
Service Use Tax Act,
the Hotel Operators' Occupation Tax Act,

19
and the Service Occupation Tax Act from transactions at places
20
of business located within a STAR bond district, excluding
21
that portion of the net revenue realized under the Retailers'
22
Occupation Tax Act, the Use Tax Act, the Service Use Tax Act,
23
and the Service Occupation Tax Act from transactions at places
24
of business located within a STAR bond district that is
25
deposited into the Local Government Tax Fund and the County
26
and Mass Transit District Fund.

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"State sales tax increment" means:
2

(1) with respect to all STAR bond districts that do
3

not qualify as NOVA districts:
4

(A) 100% of that portion of the aggregate State
5

sales tax that is in excess of the aggregate State
6

sales tax for the same month in the base year, as
7

determined by the Department of Revenue, from
8

transactions at up to 4 development users located
9

within a STAR bond district, which development users
10

shall be designated by the master developer and
11

approved by the political subdivision and the Director
12

of Revenue in conjunction with the applicable STAR
13

bond project approval; and
14

(B) 25% of that portion of the aggregate State
15

sales tax that is in excess of the aggregate State
16

sales tax for the same month in the base year, as
17

determined by the Department of Revenue from all other
18

transactions within a STAR bond district; and
19

(2) with respect to all NOVA districts:
20

(A) 100% of that portion of the State sales tax
21

that is in excess of the State sales tax for the same
22

month in the base year, as determined by the
23

Department of Revenue, from transactions at up to 4
24

development users located, which development users
25

shall be designated by the master developer and
26

approved by the political subdivision and the Director

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of Revenue in conjunction with the applicable STAR
2

bond project approval; and
3

(B) 50% of that portion of the State sales tax that
4

is in excess of the State sales tax for the same month
5

in the base year from all other transactions within
6

the NOVA district.
7

"Substantial change" means a change in which the proposed
8
STAR bond project plan differs substantially in size, scope,
9
or use from the approved STAR bond district plan or STAR bond
10
project plan.
11

"Taxpayer" means an individual, partnership, corporation,
12
limited liability company, trust, estate, or other entity that
13
is subject to the Illinois Income Tax Act.
14

"Total development costs" means the aggregate public and
15
private investment in a STAR bond district, including project
16
costs and other direct and indirect costs related to the
17
development of the STAR bond district.
18

"Underserved area" has the meaning given to that term in
19
Section 5-5 of the Economic Development for a Growing Economy
20
Tax Credit Act.
21

"Vacant" means that portion of the land in a proposed STAR
22
bond district that is not occupied by a building, facility, or
23
other vertical improvement.
24
(Source: P.A. 104-453, eff. 12-12-25.)

25

(50 ILCS 475/5-30)

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Sec. 5-30.
Approval of STAR bond projects.
2

(a) The corporate authorities of a political subdivision
3
seeking to establish a STAR bond project in an approved STAR
4
bond district must submit a proposed STAR bond project plan to
5
the Department, the Department of Revenue, and the Governor's
6
Office of Management and Budget on or before June 1, 2028. A
7
STAR bond project which is partially outside the boundaries of
8
a municipality must also be approved by the corporate
9
authorities of the county by resolution.
10

After the establishment of a STAR bond district, the
11
master developer may propose a STAR bond project to a
12
political subdivision, and the master developer shall, in
13
cooperation with the political subdivision, prepare a STAR
14
bond project plan in consultation with the planning commission
15
of the political subdivision, if any. The STAR bond project
16
plan may be implemented in separate development stages.
17

(b) Any political subdivision considering a STAR bond
18
project within a STAR bond district shall cause to be prepared
19
an independent feasibility study. The feasibility study shall
20
be prepared by a feasibility consultant approved by the
21
Department. The feasibility consultant shall provide certified
22
copies of the feasibility study to the political subdivision,
23
the Department, the Department of Revenue, and the Governor's
24
Office of Management and Budget. The feasibility study shall
25
include the following:
26

(1) the estimated amount of pledged STAR revenues

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expected to be collected in each year through the maturity
2

date of the proposed STAR bonds;
3

(2) a statement of how the jobs and taxes obtained
4

from the STAR bond project will contribute significantly
5

to the economic development of the State and region;
6

(3) visitation expectations;
7

(4) the unique quality of the project;
8

(5) an economic impact study;
9

(6) a market study;
10

(7) current and anticipated infrastructure analysis;
11

(8) integration and collaboration with other resources
12

or businesses;
13

(9) the quality of service and experience provided, as
14

measured against national consumer standards for the
15

specific target market;
16

(10) project accountability, measured according to
17

best industry practices;
18

(11) the expected return on State and local investment
19

that the STAR bond project is anticipated to produce; and
20

(12) an anticipated principal and interest payment
21

schedule on the STAR bonds.
22

The feasibility consultant, along with any other
23
consultants commissioned to perform the studies and other
24
analysis required by the feasibility study, shall be selected
25
by the political subdivision but approved by the Department.
26
The consultants shall be retained by the political

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subdivision. The political subdivision may seek reimbursement
2
from the master developer.
3

The failure to include all information enumerated in this
4
subsection in the feasibility study for a STAR bond project
5
shall not affect the validity of STAR bonds issued under this
6
Act.
7

(c) If the political subdivision determines the STAR bond
8
project is feasible, the STAR bond project plan shall include:
9

(1) a summary of the feasibility study;
10

(2) a reference to the STAR bond district plan that
11

identifies the STAR bond project area that is set forth in
12

the STAR bond project plan that is being considered;
13

(3) a legal description and map of the STAR bond
14

project area to be developed or redeveloped;
15

(4) a description of the buildings and facilities
16

proposed to be constructed or improved in the STAR bond
17

project area, including development users, as applicable;
18

(5) a copy of letters of intent to locate within the
19

STAR bond district signed by both the master developer and
20

the appropriate corporate officer of at least one
21

development user for the STAR bond project proposed within
22

the district;
23

(6) a copy of a project labor agreement entered into
24

by the master developer and a commitment by the master
25

developer, other developers, contractors, and
26

subcontractors to comply with the requirements of Section

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30-22 of the Illinois Procurement Code as they apply to
2

responsible bidders; and
3

(7) any other information the corporate authorities of
4

the political subdivision deems reasonable and necessary
5

to advise the public of the intent of the STAR bond project
6

plan.
7

(d) Before a political subdivision may hold a public
8
hearing to consider a STAR bond project plan, the political
9
subdivision must apply to the Department, the Department of
10
Revenue, and the Governor's Office of Management and Budget
11
for joint review and recommendation and ultimate approval or
12
denial by the Office of the Governor of the STAR bond project
13
plan. The corporate authorities of a political subdivision
14
seeking to establish a STAR bond project in an approved STAR
15
bond district must submit a proposed STAR bond project plan to
16
the Department, the Department of Revenue, and the Governor's
17
Office of Management and Budget by June 1, 2028 for
18
consideration.
19

An application for approval of a STAR bond project plan
20
must not be approved by the State unless all the components of
21
the feasibility study set forth in paragraphs (1) through (12)
22
of subsection (b) have been completed and submitted for review
23
and recommendation for approval or denial. In addition to
24
reviewing all the other elements of the STAR bond project plan
25
required under subsection (c), which must be included in the
26
application and include a letter of intent as required under

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paragraph (5) of subsection (c) in order to receive State
2
approval, the Department, the Department of Revenue, and the
3
Governor's Office of Management and Budget must review the
4
feasibility study and consider all the components of the
5
feasibility study set forth in paragraphs (1) through (12) of
6
subsection (b), including, without limitation, the economic
7
impact study and the financial benefit of the proposed STAR
8
bond project to the local, regional, and State economies, the
9
proposed adverse impacts on similar businesses and projects as
10
well as municipalities within the market area, and the net
11
effect of the proposed STAR bond project on the local,
12
regional, and State economies. In addition to the economic
13
impact study, the political subdivision must also submit to
14
the agencies, as part of its application, the financial and
15
other information that substantiates the basis for the
16
conclusion of the economic impact study, in the form and
17
manner as required by the agencies, so that the agencies can
18
verify the results of the study. In addition to any other
19
criteria in this subsection, the State may not approve the
20
STAR bond project plan unless the agencies are satisfied that
21
the proposed development users are, in fact, true development
22
users and find that the STAR bond project plan is in accordance
23
with the purpose of this Act and the public interest. As part
24
of the review, the agencies shall evaluate the conclusions of
25
the feasibility study as it relates to the projected State and
26
local sales tax increments expected to be generated in the

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STAR bond district. The Department, the Department of Revenue,
2
and the Governor's Office of Management and Budget shall
3
jointly recommend the approval of a STAR bond project plan. In
4
making the recommendation, the agencies shall consider the
5
proximity of a proposed STAR bond project to another proposed
6
or existing STAR bond project. Notwithstanding any other
7
provision of this Act, the Department, the Department of
8
Revenue, and the Governor's Office of Management and Budget
9
shall not approve any STAR bond project plan that includes as
10
part of the plan the development of any facility, stadium,
11
arena, or other structure if: (1) the purpose of the facility,
12
stadium, arena, or other structure is the holding of
13
professional sports contests; or (2) the facility, stadium,
14
arena, or other structure is within a one-mile radius of any
15
structure that is developed on or after the effective date of
16
this Act and has as one of its purposes the holding of
17
professional sports contests. The agencies shall send a copy
18
of their written findings and recommended approval or denial
19
of the STAR bond project plan to the Office of the Governor for
20
final action. Upon receipt of the Director's written findings
21
and recommendation, the Office of the Governor shall issue a
22
final approval or denial of the STAR bond project plan based on
23
the criteria in this subsection and Section 5-15 and send a
24
written approval or denial to the requesting political
25
subdivision. Notwithstanding any other provision of law, for
26
STAR bond districts designated as NOVA districts, the Office

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of the Governor shall issue a final approval or denial of the
2
STAR bond project plan based on the criteria in this
3
subsection and Section 5-15 and send written approval or
4
denial to the requesting political subdivision within 180 days
5
after the political subdivision applies for approval, as set
6
out in this subsection (d). In granting its approval, the
7
Office of the Governor may require the political subdivision
8
to execute a binding agreement or memorandum of understanding
9
with the State. The terms of the agreement or memorandum may
10
include, among other things, the political subdivision's
11
repayment of the State sales tax increment distributed to it
12
if any violation of the agreement or memorandum or this Act
13
occurs.
14

(e) Upon a finding by the planning and zoning commission
15
of the political subdivision, if any, that the STAR bond
16
project plan is consistent with the intent of the
17
comprehensive plan for the development of the political
18
subdivision and upon issuance of written approval of the STAR
19
bond project plan from the Office of the Governor under
20
subsection (d) of this Section, the corporate authorities of
21
the political subdivision shall adopt a resolution stating
22
that the political subdivision is considering the adoption of
23
the STAR bond project plan. The resolution shall:
24

(1) give notice that a public hearing will be held to
25

consider the adoption of the STAR bond project plan and
26

fix the date, hour, and place of the public hearing;

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(2) describe the general boundaries of the STAR bond
2

district within which the STAR bond project will be
3

located and the date of establishment of the STAR bond
4

district;
5

(3) describe the general boundaries of the area
6

proposed to be included within the STAR bond project area;
7

(4) provide that the STAR bond project plan and map of
8

the area to be redeveloped or developed are available for
9

inspection during regular office hours in the offices of
10

the political subdivision; and
11

(5) contain a summary of the terms and conditions of
12

any proposed project development agreement with the
13

political subdivision.
14

(f) A public hearing shall be conducted to consider the
15
adoption of any STAR bond project plan.
16

(1) The date fixed for the public hearing to consider
17

the adoption of the STAR bond project plan shall be not
18

less than 20 nor more than 90 days following the date of
19

the adoption of the resolution fixing the date of the
20

hearing.
21

(2) A copy of the political subdivision's resolution
22

providing for the public hearing shall be sent by
23

certified mail, return receipt requested, to the corporate
24

authorities of the county. A copy of the political
25

subdivision's resolution providing for the public hearing
26

shall be sent by certified mail, return receipt requested,

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to each person or persons in whose name the general taxes
2

for the last preceding year were paid on each parcel of
3

land lying within the proposed STAR bond project area
4

within 10 days following the date of the adoption of the
5

resolution. The resolution shall be published once in a
6

newspaper of general circulation in the political
7

subdivision not less than one week nor more than 3 weeks
8

before the date fixed for the public hearing. A map or
9

aerial photo clearly delineating the area of land proposed
10

to be included within the STAR bond project area shall be
11

published with the resolution.
12

(3) The hearing shall be held at a location that is
13

within 20 miles of the STAR bond district in a facility
14

that can accommodate a large crowd is accessible to
15

persons with disabilities.
16

(4) At the public hearing, a representative of the
17

political subdivision or master developer shall present
18

the STAR bond project plan. Following the presentation of
19

the STAR bond project plan, all interested persons shall
20

be given an opportunity to be heard. The corporate
21

authorities may continue the date and time of the public
22

hearing.
23

(g) Upon conclusion of the public hearing, the governing
24
body of the political subdivision may adopt the STAR bond
25
project plan by a resolution approving the STAR bond project
26
plan.

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(h) After the adoption by the corporate authorities of the
2
political subdivision of a STAR bond project plan, the
3
political subdivision may enter into a project development
4
agreement if the master developer has requested the political
5
subdivision to be a party to the project development agreement
6
under subsection (b) of Section 5-40.
7

(i) Within 30 days after the adoption by the political
8
subdivision of a STAR bond project plan, the clerk of the
9
political subdivision shall transmit a copy of the legal
10
description of the land and a list of all new and existing
11
mailing addresses within the STAR bond district, a copy of the
12
resolution adopting the STAR bond project plan, and a map or
13
plat indicating the boundaries of the STAR bond project area
14
and STAR bond district to the clerk, treasurer, and governing
15
body of the county and to the Department and Department of
16
Revenue. Within 30 days of creation of any new mailing address
17
within a STAR bond district, the clerk of the political
18
subdivision shall provide written notice of that new address
19
to the Department and the Department of Revenue.
20

If a certified copy of the resolution adopting the STAR
21
bond project plan is filed with the Department of Revenue on or
22
before the first day of April, the Department of Revenue, if
23
all other requirements of this subsection are met, shall
24
proceed to collect and allocate any local sales tax increment
25
and any State sales tax increment in accordance with the
26
provisions of this Act on the first day of July next following

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the adoption and filing. If a certified copy of the resolution
2
adopting the STAR bond project plan is filed with the
3
Department of Revenue after April 1 but on or before the first
4
day of October, the Department of Revenue, if all other
5
requirements of this subsection are met, shall proceed to
6
collect and allocate any local sales tax increment and any
7
State sales tax increment in accordance with the provisions of
8
this Act as of the first day of January next following the
9
adoption and filing.
Notwithstanding the foregoing, any local
10
sales tax increment derived from local hotel taxes and visitor
11
investment surcharges that are designated as pledged STAR
12
revenues pursuant to this Act shall be calculated, collected,
13
and administered by the political subdivision imposing such
14
tax, and shall not be subject to collection or allocation by
15
the Department of Revenue.

16

Any substantial changes to a STAR bond project plan as
17
adopted shall be subject to a public hearing following
18
publication of notice thereof in a newspaper of general
19
circulation in the political subdivision and approval by
20
resolution of the governing body of the political subdivision.
21

The Department of Revenue shall not collect or allocate
22
any local sales tax increment or State sales tax increment
23
until the political subdivision also provides, in the manner
24
prescribed by the Department of Revenue, the boundaries of the
25
STAR bond district and each address in the STAR bond district
26
in such a way that the Department of Revenue can determine by

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its address whether a business is located in the STAR bond
2
district. The political subdivision must provide this boundary
3
and address information to the Department of Revenue, with a
4
copy to the Department, on or before April 1 for
5
administration and enforcement under this Act by the
6
Department of Revenue beginning on the following July 1 and on
7
or before October 1 for administration and enforcement under
8
this Act by the Department of Revenue beginning on the
9
following January 1. The Department of Revenue shall not
10
administer or enforce any change made to the boundaries of a
11
STAR bond district or any address change, addition, or
12
deletion until the political subdivision reports the boundary
13
change or address change, addition, or deletion to the
14
Department of Revenue, with a copy to the Department, in the
15
manner prescribed by the Department of Revenue. The political
16
subdivision must provide this boundary change or address
17
change, addition, or deletion information to the Department of
18
Revenue, with a copy to the Department, on or before April 1
19
for administration and enforcement by the Department of
20
Revenue of the change, addition, or deletion beginning on the
21
following July 1 and on or before October 1 for administration
22
and enforcement by the Department of Revenue of the change,
23
addition, or deletion beginning on the following January 1. If
24
a retailer is incorrectly included or excluded from the list
25
of those located in the STAR bond district, the Department of
26
Revenue shall be held harmless if the Department reasonably

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relied on information provided by the political subdivision.
2

(j) Any STAR bond project must be approved by the
3
political subdivision within 23 years after the date of the
4
approval of the STAR bond district; however, any amendments to
5
the STAR bond project may occur following that date.
6

(k) Any developer of a STAR bond project shall commence
7
work on the STAR bond project within 3 years from the date of
8
adoption of the STAR bond project plan. If the developer fails
9
to commence work on the STAR bond project within the 3-year
10
period, funding for the project shall cease and the developer
11
of the project or complex shall have one year to appeal to the
12
political subdivision for a one-time reapproval of the project
13
and funding. If the project is reapproved, the 3-year period
14
for commencement shall begin again on the date of the
15
reapproval. If the project is not reapproved or if the
16
developer again fails to commence work on the STAR bond
17
project within the second 3-year period, the project shall be
18
terminated, and the Department may accept applications for a
19
new STAR bond project in the Economic Development Region.
20

(l) After the adoption of a STAR bond project plan by the
21
corporate authorities of the political subdivision and
22
approval by the Office of the Governor under subsection (d),
23
the political subdivision may authorize the issuance of STAR
24
bonds in one or more series to finance the STAR bond project or
25
pay or reimburse any eligible project cost within the STAR
26
bond district in accordance with the provisions of this Act.

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(m) Except as otherwise provided in subsection (n), the
2
maximum maturity of STAR bonds issued to finance a STAR bond
3
project shall not exceed 23 years from the first date of
4
distribution of State sales tax increment from the STAR bond
5
project to the political subdivision unless the political
6
subdivision extends that maturity by resolution up to a
7
maximum of 35 years from such first distribution date. Any
8
such extension shall require the approval of the Office of the
9
Governor, upon the recommendation of the Directors. In no
10
event shall the maximum maturity date for any STAR bonds
11
exceed that date which is 35 years from the first distribution
12
date of the first STAR bonds issued in a STAR bond district.
13

(n) The maximum maturity of STAR bonds issued to finance a
14
STAR bond project located within a NOVA district shall not
15
exceed 35 years from the first date of distribution of State
16
sales tax increment from the STAR bond project to the
17
political subdivision.
18
(Source: P.A. 104-453, eff. 12-12-25.)

19

(50 ILCS 475/5-45)
20

Sec. 5-45.
STAR bonds; source of payment.
21

(a) Any political subdivision shall have the power to
22
issue STAR bonds in one or more series to finance the
23
undertaking of any STAR bond project in accordance with the
24
provisions of this Act and the Omnibus Bond Acts. Any STAR bond
25
project approved under this Act may be completed in one or more

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phases, and STAR bonds may be issued, in one or more series, to
2
finance any STAR bond project or phase thereof. STAR bonds may
3
be issued as revenue bonds, alternate bonds, or general
4
obligation bonds as defined in and subject to the procedures
5
provided in the Local Government Debt Reform Act.
6

STAR bonds may be made payable, both as to principal and
7
interest, from the following revenues, which, to the extent
8
pledged by each respective political subdivision or other
9
public entity for that purpose, shall constitute pledged STAR
10
revenues:
11

(1) revenues of the political subdivision derived from
12

or held in connection with the undertaking and carrying
13

out of any STAR bond project or projects under this Act;
14

(2) available private funds and contributions, grants,
15

tax credits, or other financial assistance from the State
16

or federal government;
17

(3) any taxes created under Section 5-50 and
18

designated as pledged STAR revenues by the political
19

subdivision;
20

(4) all the local sales tax increment of a
21

municipality, county, or other unit of local government;
22

(5) any special service area taxes collected within
23

the STAR bond district under the Special Service Area Tax
24

Act, which may be used for the purposes of funding project
25

costs or paying debt service on STAR bonds in addition to
26

the purposes contained in the special service area plan;

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(6) all the State sales tax increment;
2

(7) any other revenues appropriated by the political
3

subdivision; and
4

(8) any combination of these methods.
5

(b) The political subdivision may pledge the pledged STAR
6
revenues to the repayment of STAR bonds before, simultaneously
7
with, or after the issuance of the STAR bonds.
8

(c) Bonds issued as revenue bonds shall not be general
9
obligations of the political subdivision, nor, in any event,
10
shall they give rise to a charge against the political
11
subdivision's general credit or taxing powers or be payable
12
out of any funds or properties other than those set forth in
13
subsection (a). The bonds shall so state on their face.
14

(d) For each STAR bond project financed with STAR bonds
15
payable from the pledged STAR revenues, the political
16
subdivision shall prepare and submit to the Department, the
17
Department of Revenue, the Office of the Governor, and the
18
Governor's Office of Management and Budget by June 1 of each
19
year a report describing the status of the STAR bond project,
20
any expenditures of the proceeds of STAR bonds that have
21
occurred for the preceding calendar year, and any expenditures
22
of the proceeds of the bonds expected to occur in the future,
23
including the amount of pledged STAR revenue, the amount of
24
revenue that has been spent, the projected amount of the
25
revenue, and the anticipated use of the revenue. Each annual
26
report shall be accompanied by an affidavit of the master

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developer certifying the contents of the report as true to the
2
best of the master developer's knowledge. The Department shall
3
have the right, but not the obligation, to request the Auditor
4
General to review the annual report and the political
5
subdivision's records containing the source information for
6
the report for the purpose of verifying the report's contents.
7
If the Auditor General declines the request for review, the
8
Department shall have the right to select an independent
9
third-party auditor to conduct an audit of the annual report
10
and the political subdivision's records containing the source
11
information for the report. The reasonable cost of the audit
12
shall be paid by the master developer. The master development
13
agreement shall grant the Department and the Auditor General
14
the right to review the records of the political subdivision
15
containing the source information for the report.
16

(e) As soon as possible after the first day of each month,
17
upon certification of the Department of Revenue, the
18
Comptroller shall order transferred and the Treasurer shall
19
transfer, from the General Revenue Fund to the STAR Bonds
20
Revenue Fund, the State sales tax increment for the second
21
preceding month, less 3% of that amount, which shall be
22
transferred into the Tax Compliance and Administration Fund
23
and shall be used by the Department of Revenue, subject to
24
appropriation, to cover the costs of the Department of Revenue
25
in administering this Act. As soon as possible after the first
26
day of each month, upon certification of the Department of

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Revenue, the Comptroller shall order transferred and the
2
Treasurer shall transfer, from the Local Government Tax Fund
3
to the STAR Bonds Revenue Fund, the local sales tax increment
4
for the second preceding month, as provided in Section 6z-18
5
of the State Finance Act and from the County and Mass Transit
6
District Fund to the STAR Bonds Revenue Fund the local sales
7
tax increment for the second preceding month, as provided in
8
Section 6z-20 of the State Finance Act. On or before the 25th
9
day of each calendar month, the Department of Revenue shall
10
prepare and certify to the Comptroller the disbursement of
11
stated sums of money out of the STAR Bonds Revenue Fund to
12
named municipalities and counties, the municipalities and
13
counties to be those entitled to distribution of taxes or
14
penalties paid to the Department of Revenue during the second
15
preceding calendar month. The amount to be paid to each
16
municipality or county shall be the amount of the State sales
17
tax increment and the local sales tax increment (not including
18
credit memoranda or the amount transferred into the Tax
19
Compliance and Administration Fund) collected during the
20
second preceding calendar month by the Department of Revenue
21
from retailers and servicepersons on transactions at places of
22
business located within a STAR bond district in that
23
municipality or county, plus an amount the Department of
24
Revenue determines is necessary to offset any amounts which
25
were erroneously paid to a different taxing body, and not
26
including an amount equal to the amount of refunds made during

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the second preceding calendar month by the Department of
2
Revenue, and not including any amount which the Department of
3
Revenue determines is necessary to offset any amounts which
4
are payable to a different taxing body but were erroneously
5
paid to the municipality or county. Within 10 days after
6
receipt by the Comptroller of the disbursement certification
7
to the municipalities and counties, which shall be given to
8
the Comptroller by the Department of Revenue, the Comptroller
9
shall cause the orders to be drawn for the respective amounts
10
in accordance with the directions contained in the
11
certification. When certifying the amount of monthly
12
disbursement to a municipality or county under this
13
subsection, the Department of Revenue shall increase or
14
decrease that amount by an amount necessary to offset any
15
misallocation of previous disbursements. The offset amount
16
shall be the amount erroneously disbursed within the 6 months
17
preceding the time a misallocation is discovered.
18
Notwithstanding the foregoing, any local sales tax increment
19
derived from local hotel taxes and visitor investment
20
surcharges that are designated as pledged STAR revenues
21
pursuant to this Act shall not be subject to certification,
22
collection, transfer, or allocation by the Department of
23
Revenue, Comptroller, or Treasurer, and shall instead be
24
deposited directly by the political subdivision into the STAR
25
Bond Revenues Fund in accordance with the applicable STAR bond
26
project plan, ordinance, and bond documents.

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(f) The corporate authorities of the political subdivision
2
shall deposit the proceeds for the STAR Bonds Revenue Fund
3
into a special fund of the political subdivision called the
4
"[Name of political subdivision] STAR Bond District Revenue
5
Fund" for the purpose of paying or reimbursing STAR bond
6
project costs and obligations incurred in the payment of those
7
costs. If the political subdivision fails to issue STAR bonds
8
within 180 days after the first distribution to the political
9
subdivision from the STAR Bonds Revenue Fund, the Department
10
of Revenue shall cease distribution of the State sales tax
11
increment to the political subdivision, shall transfer any
12
State sales tax increment in the STAR Bonds Revenue Fund to the
13
General Revenue Fund, and shall cease deposits of State sales
14
tax increment amounts into the STAR Bonds Revenue Fund. The
15
political subdivision shall repay all the State sales tax
16
increment distributed to the political subdivision to date,
17
which amounts shall be deposited into the General Revenue
18
Fund. If not repaid within 90 days after notice from the State,
19
the Department of Revenue shall withhold distributions to the
20
political subdivision from the Local Government Tax Fund until
21
the excess amount is repaid, which withheld amounts shall be
22
transferred to the General Revenue Fund. At such time as the
23
political subdivision notifies the Department of Revenue in
24
writing that it has issued STAR Bonds in accordance with this
25
Act and provides the Department with a copy of the political
26
subdivision's official statement, bond purchase agreements,

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indenture, or other evidence of bond sale, the Department of
2
Revenue shall resume deposits of the State sales tax increment
3
into the STAR Bonds Revenue Fund and distribution of the State
4
sales tax increment to the political subdivision in accordance
5
with this Section.
6

(g) If at any time after the seventh anniversary of the
7
date of distribution of State sales tax increment from a STAR
8
bond project the Auditor General determines that the
9
percentage of the aggregate proceeds of STAR bonds issued to
10
date that is derived from the State sales tax increment has
11
exceeded 50% of the total development costs of that STAR Bonds
12
project, no additional STAR bonds may be issued for that STAR
13
Bonds project until that percentage is reduced to 50% or
14
below. When the percentage has been reduced to 50% or below,
15
the master developer shall have the right, at its own cost, to
16
obtain a new audit prepared by an independent third-party
17
auditor verifying compliance and shall provide such audit to
18
the Auditor General for review and approval. Upon the Auditor
19
General's determination from the audit that the percentage has
20
been reduced to 50% or below, STAR bonds may again be issued
21
for the STAR bond project.
22
(Source: P.A. 104-453, eff. 12-12-25.)

23

(50 ILCS 475/5-50)
24

Sec. 5-50.
STAR bond occupation taxes.
25

(a) If the corporate authorities of a political

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1
subdivision have established a STAR bond district and have
2
elected to impose a tax by ordinance under subsection (b)
,

or

3
(c)
, or (c-10)
of this Section, each year after the date of the
4
adoption of the ordinance and until all STAR bond project
5
costs and all political subdivision obligations financing the
6
STAR bond project costs, if any, have been paid in accordance
7
with the STAR bond project plans, but in no event longer than
8
the maximum maturity date of the last of the STAR bonds issued
9
for projects in the STAR bond district, all amounts generated
10
by the retailers' occupation tax and service occupation tax
11
shall be collected, and the tax shall be enforced, by the
12
Department of Revenue in the same manner as all retailers'
13
occupation taxes and service occupation taxes imposed in the
14
political subdivision imposing the tax. The corporate
15
authorities of the political subdivision shall deposit the
16
proceeds of the taxes imposed under subsections (b)
,

and
(c)
,
17
or (c-10)
into either (i) a special fund held by the corporate
18
authorities of the political subdivision called the STAR Bonds
19
Tax Allocation Fund for the purpose of paying STAR bond
20
project costs and obligations incurred in the payment of those
21
costs if such taxes are designated as pledged STAR revenues by
22
resolution or ordinance of the political subdivision or (ii)
23
the political subdivision's general corporate fund if such
24
taxes are not designated as pledged STAR revenues by
25
resolution or ordinance.
26

The tax imposed under this Section by a municipality may

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1
be imposed only on the portion of a STAR bond district that is
2
within the boundaries of the municipality. For any part of a
3
STAR bond district that lies outside the boundaries of that
4
municipality, the municipality in which the other part of the
5
STAR bond district lies (or the county, in cases where a
6
portion of the STAR bond district lies in the unincorporated
7
area of a county) is authorized to impose the tax under this
8
Section on that part of the STAR bond district.
9

(b) The corporate authorities of a political subdivision
10
that has established a STAR bond district under this Act may,
11
by ordinance or resolution, impose a STAR Bond Retailers'
12
Occupation Tax upon all persons engaged in the business of
13
selling tangible personal property, other than an item of
14
tangible personal property titled or registered with an agency
15
of this State's government, at retail in the STAR bond
16
district at a rate not to exceed 1% of the gross receipts from
17
the sales made in the course of that business, to be imposed
18
only in 0.25% increments. The tax may not be imposed on
19
tangible personal property taxed at the 1% rate under the
20
Retailers' Occupation Tax Act. The tax may not be imposed on
21
aviation fuel for so long as the revenue use requirements of 49
22
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
23
political subdivision.
24

The tax imposed under this subsection and all civil
25
penalties that may be assessed as an incident thereof shall be
26
collected and enforced by the Department of Revenue. The

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certificate of registration that is issued by the Department
2
of Revenue to a retailer under the Retailers' Occupation Tax
3
Act shall permit the retailer to engage in a business that is
4
taxable under any ordinance or resolution enacted under this
5
subsection without registering separately with the Department
6
of Revenue under such ordinance or resolution or under this
7
subsection. The Department of Revenue shall have full power to
8
administer and enforce this subsection, to collect all taxes
9
and penalties due under this subsection in the manner
10
hereinafter provided, and to determine all rights to credit
11
memoranda arising on account of the erroneous payment of tax
12
or penalty under this subsection. In the administration of,
13
and compliance with, this subsection, the Department of
14
Revenue and persons who are subject to this subsection shall
15
have the same rights, remedies, privileges, immunities,
16
powers, and duties, and be subject to the same conditions,
17
restrictions, limitations, penalties, exclusions, exemptions,
18
and definitions of terms and employ the same modes of
19
procedure, as are prescribed in Sections 1, 1a through 1o, 2
20
through 2-65 (in respect to all provisions therein other than
21
the State rate of tax), 2c through 2h, 3 (except as to the
22
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
23
5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
24
11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all
25
provisions of the Uniform Penalty and Interest Act, as fully
26
as if those provisions were set forth herein.

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1

If a tax is imposed under this subsection (b), a tax shall
2
also be imposed under subsection (c) of this Section.
3

(c) If a tax has been imposed under subsection (b), a STAR
4
Bond Service Occupation Tax shall also be imposed upon all
5
persons engaged, in the STAR bond district, in the business of
6
making sales of service, who, as an incident to making those
7
sales of service, transfer tangible personal property within
8
the STAR bond district, either in the form of tangible
9
personal property or in the form of real estate as an incident
10
to a sale of service. The service occupation tax shall be
11
imposed upon all persons engaged in the business of making
12
sales of service at the same rate as the tax imposed in
13
subsection (b) of the selling price of tangible personal
14
property transferred within the STAR bond district by such
15
servicemen as an incident to a sale of service and shall not
16
exceed 1% and shall be imposed only in 0.25% increments. The
17
tax may not be imposed on tangible personal property taxed at
18
the 1% rate under the Service Occupation Tax Act. The tax may
19
not be imposed on aviation fuel for so long as the revenue use
20
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
21
binding on the political subdivision.
22

The tax imposed under this subsection and all civil
23
penalties that may be assessed as an incident thereof shall be
24
collected and enforced by the Department of Revenue. The
25
certificate of registration that is issued by the Department
26
of Revenue to a retailer under the Retailers' Occupation Tax

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Act or under the Service Occupation Tax Act shall permit the
2
registrant to engage in a business that is taxable under any
3
ordinance or resolution enacted under this subsection without
4
registering separately with the Department of Revenue under
5
that ordinance or resolution or under this subsection. The
6
Department of Revenue shall have full power to administer and
7
enforce this subsection, to collect all taxes and penalties
8
due under this subsection, to dispose of taxes and penalties
9
so collected in the manner provided in this Act, and to
10
determine all rights to credit memoranda arising on account of
11
the erroneous payment of tax or penalty under this subsection.
12
In the administration of, and compliance with this subsection,
13
the Department of Revenue and persons who are subject to this
14
subsection shall have the same rights, remedies, privileges,
15
immunities, powers, and duties, and be subject to the same
16
conditions, restrictions, limitations, penalties, exclusions,
17
exemptions, and definitions of terms and employ the same modes
18
of procedure as are prescribed in Sections 2, 2a through 2d, 3
19
through 3-50 (in respect to all provisions therein other than
20
the State rate of tax), 4 (except that the reference to the
21
State shall be to the STAR bond district), 5, 7, 8 (except that
22
the jurisdiction to which the tax shall be a debt to the extent
23
indicated in that Section 8 shall be the political
24
subdivision), 9 (except as to the disposition of taxes and
25
penalties collected, and except that the returned merchandise
26
credit for this tax may not be taken against any State tax),

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1
10, 11, 12 (except the reference therein to Section 2b of the
2
Retailers' Occupation Tax Act), 13 (except that any reference
3
to the State shall mean the political subdivision), the first
4
paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
5
the Service Occupation Tax Act and all provisions of the
6
Uniform Penalty and Interest Act, as fully as if those
7
provisions were set forth herein.
8

If a tax is imposed under this subsection (c), a tax shall
9
also be imposed under subsection (b) of this Section.
10

(c-10) The corporate authorities of any political
11
subdivision that has established a STAR bond district under
12
this Act may, by ordinance or resolution, impose an visitor
13
investment surcharge upon all admission and charges from
14
transactions at places of business located within such STAR
15
bond district, at a rate not to exceed 9% of the gross receipts
16
derived from any admission and charge within such STAR bond
17
district, to be imposed only in 0.25% increments to pay for
18
eligible project cost. The charge imposed under this
19
subsection and all civil penalties that may be assessed as an
20
incident thereof shall be collected and enforced by the
21
political subdivision. For purposes of this section, "visitor
22
investment surcharges" shall include, but shall not be limited
23
to charges for: (a) admission or rental to any physical space
24
or venue in which attendees gather for entertainment or
25
amusement, including but not limited to facilities owned or
26
operated by users, destination hotels, amusement parks,

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1
hotels, entertainment venues, or traditional retailers,
2
resorts, golf or pickle ball type facilities, simulator type
3
facilities, music venues, water parks, RV parks, surf parks,
4
ice rinks, family entertainment type facilities, zip line
5
courses, wake boarding courses, miniature golf courses,
6
go-cart tracks or facilities, arcades and other venues
7
designed for the playing of video games, pinball machines,
8
air-hockey, billiards tables, or other games operated by coins
9
or other payment methods, theaters, trade shows and convention
10
centers, and athletic stadiums or venues for the hosting of
11
any athletic context; and (b) any separate charge for
12
admission or rental to or use of entertainment attractions,
13
rides, or other activities within the aforementioned venues.
14
The provisions set out in this subsection (c-10) shall not be
15
subject to subsection (d) of this Section.

16

(d) Persons subject to any tax imposed under this Section
17
may reimburse themselves for their seller's tax liability
18
under this Section by separately stating the tax as an
19
additional charge, which charge may be stated in combination,
20
in a single amount, with State taxes that sellers are required
21
to collect under the Use Tax Act, in accordance with such
22
bracket schedules as the Department may prescribe.
23

Whenever the Department of Revenue determines that a
24
refund should be made under this Section to a claimant the
25
Department of Revenue shall not issue a credit memorandum. The
26
Department of Revenue shall notify the State Comptroller, who

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1
shall cause the order to be drawn for the amount specified and
2
to the person named in the notification from the Department of
3
Revenue. The refund shall be paid by the State Treasurer out of
4
the STAR Bond Retailers' Occupation Tax Fund.
5

Except as otherwise provided in this subsection, the
6
Department of Revenue shall immediately pay over to the State
7
Treasurer, ex officio, as trustee, all taxes, penalties, and
8
interest collected under this Section for deposit into the
9
STAR Bond Retailers' Occupation Tax Fund. On or before the
10
25th day of each calendar month, the Department of Revenue
11
shall prepare and certify to the Comptroller the disbursement
12
of stated sums of money to named political subdivisions from
13
the STAR Bond Retailers' Occupation Tax Fund, the political
14
subdivisions to be those from which retailers have paid taxes
15
or penalties under this Section to the Department of Revenue
16
during the second preceding calendar month. The amount to be
17
paid to each political subdivision shall be the amount (not
18
including credit memoranda) collected under this Section
19
during the second preceding calendar month by the Department
20
of Revenue plus an amount the Department of Revenue determines
21
is necessary to offset any amounts that were erroneously paid
22
to a different taxing body, and not including an amount equal
23
to the amount of refunds made during the second preceding
24
calendar month by the Department of Revenue, less 3% of that
25
amount, which shall be deposited into the Tax Compliance and
26
Administration Fund and shall be used by the Department of

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Revenue, subject to appropriation, to cover the costs of the
2
Department of Revenue in administering and enforcing the
3
provisions of this Section, on behalf of such political
4
subdivision, and not including any amount that the Department
5
of Revenue determines is necessary to offset any amounts that
6
were payable to a different taxing body but were erroneously
7
paid to the political subdivision. Within 10 days after
8
receipt by the Comptroller of the disbursement certification
9
to the political subdivisions provided for in this Section to
10
be given to the Comptroller by the Department, the Comptroller
11
shall cause the orders to be drawn for the respective amounts
12
in accordance with the directions contained in the
13
certification. The proceeds of the tax paid to political
14
subdivisions under this Section shall be deposited into either
15
(i) the STAR Bonds Tax Allocation Fund by the political
16
subdivision if the political subdivision has designated them
17
as pledged STAR revenues by resolution or ordinance or (ii)
18
the political subdivision's general corporate fund if the
19
political subdivision has not designated them as pledged STAR
20
revenues.
21

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

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to administer and enforce this Section as of the first day of
2
July next following the adoption and filing; or (ii) be
3
adopted and a certified copy thereof filed with the Department
4
of Revenue on or before the first day of October, whereupon, if
5
all other requirements of this Section are met, the Department
6
of Revenue shall proceed to administer and enforce this
7
Section as of the first day of January next following the
8
adoption and filing.
9

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

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the boundary change or address change, addition, or deletion
2
to the Department of Revenue in the manner prescribed by the
3
Department of Revenue. The political subdivision must provide
4
this boundary change or address change, addition, or deletion
5
information to the Department of Revenue on or before April 1
6
for administration and enforcement by the Department of
7
Revenue of the change, addition, or deletion beginning on the
8
following July 1 and on or before October 1 for administration
9
and enforcement by the Department of Revenue of the change,
10
addition, or deletion beginning on the following January 1.
11
The retailers in the STAR bond district shall be responsible
12
for charging the tax imposed under this Section. If a retailer
13
is incorrectly included or excluded from the list of those
14
required to collect the tax under this Section, both the
15
Department of Revenue and the retailer shall be held harmless
16
if they reasonably relied on information provided by the
17
political subdivision.
18

A political subdivision that imposes the tax under this
19
Section must submit to the Department of Revenue any other
20
information as the Department of Revenue may require that is
21
necessary for the administration and enforcement of the tax.
22

When certifying the amount of a monthly disbursement to a
23
political subdivision under this Section, the Department of
24
Revenue shall increase or decrease the amount by an amount
25
necessary to offset any misallocation of previous
26
disbursements. The offset amount shall be the amount

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1
erroneously disbursed within the previous 6 months from the
2
time a misallocation is discovered.
3

Nothing in this Section shall be construed to authorize
4
the political subdivision to impose a tax upon the privilege
5
of engaging in any business which under the Constitution of
6
the United States may not be made the subject of taxation by
7
this State.
8

The provisions of this subsection (d) shall only apply to
9
taxes imposed under subsection (b) and subsection (c)of this
10
Section.

11

(e) When STAR bond project costs, including, without
12
limitation, all political subdivision obligations financing
13
STAR bond project costs, have been paid, any surplus funds
14
then remaining in the STAR Bonds Tax Allocation Fund shall be
15
distributed to the treasurer of the political subdivision for
16
deposit into the political subdivision's general corporate
17
fund. Upon payment of all STAR bond project costs and
18
retirement of obligations, but in no event later than the
19
maximum maturity date of the last of the STAR bonds issued in
20
the STAR bond district, the political subdivision shall adopt
21
an ordinance immediately rescinding the taxes imposed under
22
this Section and file a certified copy of the ordinance with
23
the Department of Revenue in the form and manner as described
24
in this Section.
25
(Source: P.A. 104-453, eff. 12-12-25.)

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1

(50 ILCS 475/5-75)
2

Sec. 5-75.
Reporting taxes.
3

(a) Notwithstanding any other provisions of law to the
4
contrary, the Department of Revenue shall provide a certified
5
report of the State sales tax increment and local sales tax
6
increment from all taxpayers within a STAR bond district to
7
the bond trustee, escrow agent, or paying agent for such bonds
8
upon the written request of the political subdivision on or
9
before the 25th day of each month. Such report shall provide a
10
detailed allocation of State sales tax increment and local
11
sales tax increment from each local sales tax and State sales
12
tax reported to the Department of Revenue.
13

The bond trustee, escrow agent, or paying agent shall keep
14
such sales and use tax reports and the information contained
15
therein confidential, but may use such information for
16
purposes of allocating and depositing the sales and use tax
17
revenues in connection with the bonds used to finance project
18
costs in such STAR bond district. Except as otherwise provided
19
in this Section, the sales and use tax reports received by the
20
bond trustee, escrow agent, or paying agent shall be subject
21
to the confidentiality provisions of Section 11 of the
22
Retailers' Occupation Tax Act.
Notwithstanding the provisions
23
of this Section, any local sales tax increment derived from
24
local hotel taxes and visitor investment surcharges that are
25
designated as pledged STAR revenues pursuant to this Act shall
26
not be included in the Department of Revenue's certified

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1
report and shall instead be reported to the bond trustee,
2
escrow agent, or paying agent by the political subdivision in
3
such form and manner as may be provided in the applicable bond
4
documents.

5

(b) The political subdivision shall determine when the
6
amount of sales tax and other revenues that have been
7
collected and distributed to the bond debt service or reserve
8
fund is sufficient to satisfy all principal and interest costs
9
to the maturity date or dates of any STAR bond issued by a
10
political subdivision to finance a STAR bond project and shall
11
give the Department of Revenue written notice of such
12
determination. The notice shall include a date certain on
13
which deposits into the STAR Bonds Revenue Fund for that STAR
14
bond project shall terminate and shall be provided to the
15
Department of Revenue at least 60 days prior to that date.
16
Thereafter, all sales tax and other revenues shall be
17
collected and distributed in accordance with applicable law.
18

If the political subdivision fails to give timely notice
19
under this subsection (b), the Department of Revenue, upon
20
discovery of this failure, shall cease distribution of the
21
State sales tax increment to the political subdivision, shall
22
transfer any State sales tax increment in the STAR Bonds
23
Revenue Fund to the General Revenue Fund, and shall cease
24
deposits of State sales tax increment amounts into the STAR
25
Bonds Revenue Fund. Any amount of State sales tax increment
26
distributed to the political subdivision from the STAR Bonds

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1
Revenue Fund in excess of the amount sufficient to satisfy all
2
principal and interest costs to the maturity date or dates of
3
any STAR bond issued by the political subdivision to finance a
4
STAR bond project shall be repaid to the Department of Revenue
5
and deposited into the General Revenue Fund. If not repaid
6
within 90 days after notice from the State, the Department of
7
Revenue shall withhold distributions to the political
8
subdivision from the Local Government Tax Fund until the
9
excess amount is repaid, which withheld amounts shall be
10
transferred to the General Revenue Fund.
11
(Source: P.A. 104-453, eff. 12-12-25.)

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