IL HB5500

Municipalities with existing enterprise zones that subsequently establish Tax Increment Financing (TIF) redevelopment project areas may provide partial property tax abatements for properties located in both zones, with non-abated portions remaining subject to TIF agreements.

Municipalities with existing TIF redevelopment project areas that subsequently adopt overlapping enterprise zones may also provide partial property tax abatements, provided such abatements do not reduce or impair tax increment revenues pledged to secure outstanding bonds or other obligations.

Local hotel taxes imposed under Section 8-3-14 of the Illinois Municipal Code or Section 5-1030 of the Counties Code are added to the definition of "local sales taxes" for purposes of the Statewide Innovation Development and Economy (STAR) bonds program.

The bill excludes from "local sales taxes" any taxes committed to other uses by voter election or pledged to non-STAR bond repayment prior to STAR bond project approval.