SB3151 May Negatively Impact the Availability of TIF Funds

The Illinois Legislature is currently considering SB3151, an Amendment to the TIF Act, which proposes an annual increase to the initial equalized assessed value (EAV) of a Redevelopment Project Area by the annual rate of increase of the Consumer Price Index (CPI).

If the proposed Amendment is adopted, it will result in a higher TIF base and a lower property tax rate, all other factors remaining constant, and may reduce the available tax increment for redevelopment projects.  The following example provides a detailed illustration of this impact:

Example of Proposed SB3151′s Impact on TIF Funds

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