Pritzker Signs Bill Requiring Increased TIF District Reporting for Municipalities
Aug 2, 2021
On July 23, 2021, Governor Pritzker signed House Bill 571, now Public Act 102-0127, which amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. The new law places additional disclosure requirements on municipalities regarding the performance of Tax Increment Financing (TIF) Districts.
In addition to the current financial reporting requirements associated with TIF Districts, the new amendments require municipalities to provide additional information to the Comptroller annually regarding job creation and new revenue. Each fiscal year municipalities must now report the number of jobs and amount of new revenue which was projected to be created at the time the TIF District was established; the number of jobs and amount of new revenue created to date as a result of the TIF District redevelopment efforts; and the stated rate of return on the redevelopment, which must be independently verified by a third-party selected by the municipality.
With more than 1,200 active TIF Districts across Illinois, these amendments are intended to inform taxpayers and other taxing districts (in particular, the joint review board members) about the overall effects of local redevelopment efforts each year. The information required in the financial reporting requirements, including the new information required by Public Act 102-0127, must be submitted and available at least before the annual meeting of the joint review board.
This law is effective immediately, but the new reporting requirements only apply to redevelopment projects beginning in and after the fiscal year 2022. The Comptroller will establish the format and procedures for annual reporting.
Please direct any questions regarding this Law Alert to your Robbins Schwartz attorney.