Bill > SB1432

This bill amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code to change how surplus funds in a special tax allocation fund are distributed. Currently, surplus funds are distributed annually within 180 days after the close of the municipality's fiscal year. The bill modifies this requirement, mandating that surplus funds be distributed as soon as possible after they are calculated. The special tax allocation fund is a financial mechanism used in tax increment financing (TIF) districts, where the increased property tax revenue generated by development in a specific area is used to fund public improvements or redevelopment projects. Under the proposed change, municipalities would be required to more quickly redistribute any excess funds from the special tax allocation fund to the County Collector, the Department of Revenue, and the municipality itself, with the distribution proportional to the tax incremental revenue received from each source. This change aims to enhance the efficiency and timeliness of surplus fund distribution in TIF districts.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1432&GAID=18&DocTypeID=SB&SessionID=114&GA=104