Updates on cases, laws, and other topics of interest to local governments

Subscribe by Email

Enter your Email:
Preview | Powered by FeedBlitz

Subscribe in a Reader

Follow Municipal Minute on Twitter


Blog comments do not reflect the views or opinions of the Author or Ancel Glink. Some of the content may be considered attorney advertising material under the applicable rules of certain states. Prior results do not guarantee a similar outcome. Please read our full disclaimer

Tuesday, February 15, 2022

TIF Bill Would Drastically Change Local Economic Development Authority

The Illinois General Assembly is currently considering legislation that would dramatically change how municipalities create and administer tax increment financing (TIF) districts. If approved, Senate Bill 2298 would (among other things):

  • Cut the length of most new TIF districts from 23 years to 10 years.
  • Revise statutory definitions to prohibit municipalities that are considering creating a new TIF district from relying on, among other things, whether (1) the district contains dilapidated or deteriorating structures; (2) whether the district’s buildings lack proper ventilation, light, and sanitary facilities; (3) whether the district has a high number of vacancies; (4) whether the area embraces modern city-planning practices; and (5) whether the value of the land in the district is appreciating at a slower rate than the community as a whole.
  • Prohibit communities from establishing a new TIF district in an area currently occupied by a TIF district (i.e., “re-TIF-ing” an area).
  • Prohibit municipalities from using funds remaining in the TIF district account at year end to pay for redevelopment project costs without the taxing districts’ (e.g., school districts, park districts, townships) prior consent.  
  • Prohibit municipalities from annually declaring and distributing money remaining in the TIF district account to the taxing districts without the prior consent of the other taxing districts.

In practice, SB 2298 seems designed to make it more challenging for municipalities to both create new TIF districts and to realize the community benefits that TIF districts can provide. As many of our readers know, TIF districts provide perhaps the most effective local economic development tool communities can use to try to resolve the real problems resulting from underperforming neighborhoods. SB 2298 would undoubtedly alter how, when, and if municipalities use TIF districts to try to address local problems.  

More information about SB 2298, including when the bill will next be debated, is available on the Illinois General Assembly’s website.

Post Authored by Greg Jones, Ancel Glink


Post a Comment