Bill Text: IL HB1384 | 2015-2016 | 99th General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. Provides that, if there is excess money remaining in a special service area fund at the end of a fiscal year, then the corporate authorities may use that excess money to provide special services within the special service area in the next fiscal year, provided that the total amount used may not exceed 25% of the previous fiscal year's budget for the special service area. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-01-03 - Rule 19(b) / Re-referred to Rules Committee [HB1384 Detail]

Download: Illinois-2015-HB1384-Engrossed.html

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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 27-5 and 27-25 and by adding Sections 27-100, 27-105,
27-110, 27-115, 27-120, and 27-125 as follows:
(35 ILCS 200/27-5)
Sec. 27-5. Short title; definitions. This Article may be
cited as the Special Service Area Tax Law.
When used in this Article:
"Services contract" means an agreement between a service
provider agency and a municipality or county for the purpose of
providing special services in and for a special service area.
"Service provider agency" means an entity that enters into
a services contract with a municipality or county for the
purpose of providing special services in and for a special
service area.
"Special Service Area" means a contiguous area within a
municipality or county in which special governmental services
are provided in addition to those services provided generally
throughout the municipality or county, the cost of the special
services to be paid from revenues collected from taxes levied
or imposed upon property within that area. Territory shall be

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considered contiguous for purposes of this Article even though
certain completely surrounded portions of the territory are
excluded from the special service area. A county may create a
special service area within a municipality or municipalities
when the municipality or municipalities consent to the creation
of the special service area. A municipality may create a
special service area within a municipality and the
unincorporated area of a county or within another municipality
when the county or other municipality consents to the creation
of the special service area.
"Special service area commission" means a local board
established by the corporate authorities of a municipality or
county for the purpose of managing a particular special service
area.
"Special Services" means all forms of services pertaining
to the government and affairs of the municipality or county,
including but not limited to weather modification and
improvements permissible under Article 9 of the Illinois
Municipal Code, and contracts for the supply of water as
described in Section 11-124-1 of the Illinois Municipal Code
which may be entered into by the municipality or by the county
on behalf of a county service area.
(Source: P.A. 86-1324; 88-445.)
(35 ILCS 200/27-25)
Sec. 27-25. Form of hearing notice. Taxes may be levied or

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imposed by the municipality or county in the special service
area at a rate or amount of tax sufficient to produce revenues
required to provide the special services. Prior to the first
levy of taxes in the special service area, notice shall be
given and a hearing shall be held under the provisions of
Sections 27-30 and 27-35. For purposes of this Section the
notice shall include:
(a) The time and place of hearing;
(b) The boundaries of the area by legal description
and, where possible, by street location;
(c) The permanent tax index number of each parcel
located within the area;
(d) The nature of the proposed special services to be
provided within the special service area and a statement as
to whether the proposed special services are for new
construction, maintenance, or other purposes;
(d-5) The proposed amount of the tax levy for special
services for the initial year for which taxes will be
levied within the special service area;
(e) A notification that all interested persons,
including all persons owning taxable real property located
within the special service area, will be given an
opportunity to be heard at the hearing regarding the tax
levy and an opportunity to file objections to the amount of
the tax levy if the tax is a tax upon property; and
(f) The maximum rate of taxes to be extended within the

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special service area in any year and the maximum number of
years taxes will be levied if a maximum number of years is
to be established; and .
(g) If funds received through the special service area
are going to be used by a person or entity other than the
municipality or county, then a statement to that effect.
After the first levy of taxes within the special service
area, taxes may continue to be levied in subsequent years
without the requirement of an additional public hearing if the
tax rate does not exceed the rate specified in the notice for
the original public hearing and the taxes are not extended for
a longer period than the number of years specified in the
notice if a number of years is specified. Tax rates may be
increased and the period specified may be extended, if notice
is given and new public hearings are held in accordance with
Sections 27-30 and 27-35.
(Source: P.A. 97-1053, eff. 1-1-13.)
(35 ILCS 200/27-100 new)
Sec. 27-100. Special service area commissions.
(a) Notwithstanding any other provision of law, no member
of a special service area commission may be an executive
officer, owner, or member of the board of directors of the
service provider agency selected for a services contract for
that special service area.
(b) Notwithstanding any other provision of law, no business

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owned by a member of a special service area commission may, for
valuable consideration, provide goods or services as a
subcontractor of a service provider agency pursuant to a
services contract for the special service area that is the
subject of that special service area commission. No business
owned by an employee or elected official of a municipality may,
for valuable consideration, provide goods or services as a
subcontractor of a service provider agency pursuant to a
services contract for any special service area located within
that municipality.
(c) At least one membership position for a special service
area commission in a special service area which contains one or
more homestead properties, as defined in Section 15-175, shall
be reserved as a first priority membership position for any
owner of homestead property located within such special service
area.
(d) This Section applies only in municipalities with
1,000,000 or more inhabitants.
(35 ILCS 200/27-105 new)
Sec. 27-105. Lines of credit. In municipalities with
1,000,000 or more inhabitants, special service area
commissions may not establish a loan or line of credit in
connection with the special service area. Service provider
agencies in those municipalities may establish a loan or line
of credit in connection with the special service area; however,

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financing under this Section may not be secured by future tax
revenue generated by the special service area.
(35 ILCS 200/27-110 new)
Sec. 27-110. Special service area moneys used in the next
fiscal year. In municipalities with 1,000,000 or more
inhabitants, notwithstanding any other provision of law, if
there is excess money remaining in a special service area fund
at the end of a fiscal year, then the corporate authorities may
authorize the use of that excess money to provide special
services within the special service area in the next fiscal
year, provided that the total amount used for purposes other
than capital expenditures may not exceed 25% of the previous
fiscal year's budget for the special service area.
(35 ILCS 200/27-115 new)
Sec. 27-115. Special service area audits. In
municipalities with 1,000,000 or more inhabitants, each
special service area commission shall cause an audit of the
funds and accounts of the special service area to be submitted
to the corporate authorities of the municipality at least
annually. The audit shall be made in accordance with generally
accepted auditing standards.
(35 ILCS 200/27-120 new)
Sec. 27-120. Exclusion of erroneously included property.

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If a property is determined by the corporate authorities of the
municipality to be erroneously included in a special service
area, the corporate authorities of the municipality may
disconnect that property from the special service area solely
by municipal action without regard to Section 27-60 or Section
27-65 of this Act. This Section applies only to special service
areas that (i) are located in whole or in part within a transit
facility improvement area, as defined in Section 11-74.4-3.3 of
the Illinois Municipal Code, and (ii) have experienced a
decrease in the number of privately-owned businesses within the
special service area since the special service area was
established.
(35 ILCS 200/27-125 new)
Sec. 27-125. Administrative fees. In municipalities with
1,000,000 or more inhabitants, notwithstanding any other
provision of law, an annual administrative fee may be charged
for the administration of a special service area. Such annual
administrative fee may be derived from the annual tax levy for
each special service area. Any amount recommended by a special
service area commission and approved as an administrative
expense which may be paid to the service provider agency
pursuant to the budget included in a services contract shall
not exceed 30% of the annual tax levy for the special service
area that is the subject of such services contract and is
separate from any municipal administrative fee.