Bill Text: IL SB1681 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB1681 Detail]

Download: Illinois-2023-SB1681-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1681 Introduced 2/8/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-74.4-9 from Ch. 24, par. 11-74.4-9
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.
LRB103 27804 AWJ 54182 b
A BILL FOR
SB1681 LRB103 27804 AWJ 54182 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 11-74.4-9 as follows:
(65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
Sec. 11-74.4-9. Equalized assessed value of property.
(a) Except as provided in subsection (a-5), if If a
municipality by ordinance provides for tax increment
allocation financing pursuant to Section 11-74.4-8, the county
clerk immediately thereafter shall determine (1) the most
recently ascertained equalized assessed value of each lot,
block, tract or parcel of real property within such
redevelopment project area from which shall be deducted the
homestead exemptions under Article 15 of the Property Tax
Code, which value shall be the "initial equalized assessed
value" of each such piece of property, and (2) the total
equalized assessed value of all taxable real property within
such redevelopment project area by adding together the most
recently ascertained equalized assessed value of each taxable
lot, block, tract, or parcel of real property within such
project area, from which shall be deducted the homestead
exemptions provided by Sections 15-170, 15-175, and 15-176 of

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the Property Tax Code, and shall certify such amount as the
"total initial equalized assessed value" of the taxable real
property within such project area.
(a-5) If the county clerk determines that any lot, block,
tract, or parcel of real property within a redevelopment
project area is not taxable or has an initial equalized
assessed value of $0 as determined in subsection (a), then the
fair market value of the lot, block, tract, or parcel shall be
instead determined by a written MAI-certified appraisal or by
a written certified appraisal of a State-certified or
State-licensed real estate appraiser. The appraisal shall be
available for public inspection no later than 90 days after
the date that the ordinance for tax increment allocation
financing under Section 11-74.4-8 was adopted by the
municipality. The appraiser's conclusion of fair market value
shall be converted by the county clerk to an assessed value
using the appropriate level of assessment and then equalized
by using the most recent equalization factor. The county clerk
shall use the resulting figure as the initial equalized
assessed value of the lot, block, tract, or parcel and shall
add this initial equalized assessed value to the total initial
equalized assessed value of the taxable real property within
the redevelopment project area. For purposes of paragraphs (b)
and (c), the lot, block, tract, or parcel of real property
shall be considered taxable real property. This subsection
applies only to ordinances adopted on or after the effective

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date of this amendatory Act of the 103rd General Assembly.
(b) In reference to any municipality which has adopted tax
increment financing after January 1, 1978, and in respect to
which the county clerk has certified the "total initial
equalized assessed value" of the property in the redevelopment
area, the municipality may thereafter request the clerk in
writing to adjust the initial equalized value of all taxable
real property within the redevelopment project area by
deducting therefrom the exemptions under Article 15 of the
Property Tax Code applicable to each lot, block, tract or
parcel of real property within such redevelopment project
area. The county clerk shall immediately after the written
request to adjust the total initial equalized value is
received determine the total homestead exemptions in the
redevelopment project area provided by Sections 15-170,
15-175, and 15-176 of the Property Tax Code by adding together
the homestead exemptions provided by said Sections on each
lot, block, tract or parcel of real property within such
redevelopment project area and then shall deduct the total of
said exemptions from the total initial equalized assessed
value. The county clerk shall then promptly certify such
amount as the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area.
(c) After the county clerk has certified the "total
initial equalized assessed value" of the taxable real property

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in such area, then in respect to every taxing district
containing a redevelopment project area, the county clerk or
any other official required by law to ascertain the amount of
the equalized assessed value of all taxable property within
such district for the purpose of computing the rate per cent of
tax to be extended upon taxable property within such district,
shall in every year that tax increment allocation financing is
in effect ascertain the amount of value of taxable property in
a redevelopment project area by including in such amount the
lower of the current equalized assessed value or the certified
"total initial equalized assessed value" of all taxable real
property in such area, except that after he has certified the
"total initial equalized assessed value as adjusted" he shall
in the year of said certification if tax rates have not been
extended and in every year thereafter that tax increment
allocation financing is in effect ascertain the amount of
value of taxable property in a redevelopment project area by
including in such amount the lower of the current equalized
assessed value or the certified "total initial equalized
assessed value as adjusted" of all taxable real property in
such area. The rate per cent of tax determined shall be
extended to the current equalized assessed value of all
property in the redevelopment project area in the same manner
as the rate per cent of tax is extended to all other taxable
property in the taxing district. The method of extending taxes
established under this Section shall terminate when the

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municipality adopts an ordinance dissolving the special tax
allocation fund for the redevelopment project area. This
Division shall not be construed as relieving property owners
within a redevelopment project area from paying a uniform rate
of taxes upon the current equalized assessed value of their
taxable property as provided in the Property Tax Code.
(Source: P.A. 95-644, eff. 10-12-07.)