HB3556 Summary

• Amends the Illinois Municipal Code to allow municipalities to utilize up to 1% of business district tax revenues (from retailers' occupation tax, service occupation tax, and hotel operators' occupation tax) for eligible costs in adjacent or nearby business districts that are contiguous, separated only by public rights of way, or separated only by forest preserve property if less than one mile apart.

• Clarifies that contracts between municipalities and developers for business district project costs are not considered economic incentive agreements, even when they involve sharing, rebates, or payments of retailers' or service occupation taxes.

• Permits municipalities to make payments to developers or nongovernmental persons for business district project costs without requiring the municipality to obtain property rights or interests in the property being developed.

• Establishes that business district contracts are binding on successor municipal governments and may be enforced through civil action, mandamus, injunction, or other legal proceedings.