IL HB2963

Allows municipalities to make additional distributions from special tax allocation funds to affected taxing districts (community colleges, schools, parks, libraries, townships, fire districts, counties) before distributing surplus funds.

Permits affected taxing districts to use distributed moneys to pay debt service on obligations and provide property tax relief, with optional intergovernmental agreements allowing tax levy reductions.

Requires that additional distributions cannot reduce the special tax allocation fund balance below the amount pledged to secure obligations financed by tax increment financing.

Modifies the Tax Increment Allocation Redevelopment Act by amending Sections 11-74.4-7 and 11-74.4-8 of the Illinois Municipal Code.

Takes effect immediately upon becoming law.