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IL SB3236

IL SB3236
MUNI CD-TIF SURPLUS FUNDS


summary

Introduced
02/02/2026
In Committee
02/17/2026
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that not more than 5% of all surplus funds in the special tax allocation fund may be distributed. Provides that surplus funds in the special tax allocation fund may be distributed not more than once every 10 years (rather than annually). Provides that, if the termination date for a redevelopment project area is extended beyond the 23rd calendar year after the year in which the ordinance approving the redevelopment project area was adopted, then following the 23rd calendar year, no surplus funds may be distributed until the redevelopment project area is terminated. Effective immediately.

AI Summary

This bill amends the Tax Increment Allocation Redevelopment Act to change how surplus funds from a special tax allocation fund are distributed. Previously, all surplus funds could be distributed annually, but now, no more than 5% of these surplus funds can be distributed, and this distribution can only happen once every 10 years. Furthermore, if a redevelopment project area's termination date is extended beyond 23 years from when it was approved, no surplus funds can be distributed until the project area is officially terminated. Tax Increment Financing (TIF) is a tool used by municipalities to redevelop blighted areas by capturing the increase in property taxes generated by new development to fund the redevelopment.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Assigned to Revenue (on 02/17/2026)

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