Bill > SB1694

This bill amends the Tax Increment Allocation Redevelopment Act to modify how the initial equalized assessed value (EAV) is determined for certain properties in a redevelopment project area. Specifically, if a developer or its parent company/subsidiary purchases three or more improved lots within a single redevelopment project area in the three years before the tax increment allocation ordinance was adopted, and subsequently demolishes or renders an improvement on those properties uninhabitable, the initial EAV for those properties will be set at the EAV on the date of purchase by the developer. This means that the property's initial value for tax increment financing (TIF) purposes will be based on its value when the developer acquired it, rather than its value at the time the TIF district was established. The bill limits these provisions to ordinances adopted after the effective date of the amendatory Act. EAV is a key term in property taxation that represents the property's value after applying state equalization factors, and TIF is a tool used by municipalities to finance redevelopment projects by capturing the increase in property tax revenues within a designated area.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1694&GAID=18&DocTypeID=SB&SessionID=114&GA=104