We have long been critical of the lack of transparency over the expenditures and economic development results of tax increment financing districts here in Illinois. Although there have been efforts in the past to strengthen the reporting requirements and use of funds, more has been needed. A major reform effort (House Bill 5457) has been introduced and is pending legislative approval. The provisions were worked out through negotiations over the past two years with municipalities using this economic development tool and other parties interested in more accountability, including my organization, the Taxpayers’ Federation of Illinois.
New TIF reports will include the job creation or retention that has occurred within the district. There will be more controls over transferability of funds between TIF districts, and when funds no longer needed for development purposes must be declared surplus and returned to other taxing districts. Surplus funds will be properly reflected in the State School Aid formula. Limitations on the amount of residential property value and total property tax value of a municipality that can be in a district are included in the bill. There will be more current financial information available through the state comptroller’s website from districts statewide and penalties for failure to submit the information timely. Property tax bills will reflect when a property is included in a TIF district.
We believe this bill will accomplish much more accountability under the TIF program and we urge the General Assembly to enact this reform. It is needed and has been for some time.
— J. Thomas Johnson, president, Taxpayers’ Federation of Illinois, Springfield
