Illinois General Assembly Approves New “Transit TIF”
Legislation introduced and approved by the Illinois General Assembly on June 30, 2016 would allow for a new type of TIF district (called a “transit TIF”) to provide a new financial tool intended to help the City of Chicago and the CTA with funding for the planned redevelopments of the CTA Blue, Red and Purple Lines, as well as other municipalities around the state that have mass transit operations that may qualify. Further, as passed by the General Assembly, Senate Bill 2562 would allow the City and CTA to enter into agreements with other impacted municipalities with stops on these lines (if they are included within the current redevelopment plan), and exempts schools from having their property tax growth from being included in the new “transit TIF.” SB 2562 also allows for TIF extensions of up to 35 years for specific TIFs in Illinois -- including some in the City of Chicago.
The legislation authorizes and enables local municipalities to create the new TIF and extensions, meaning any new TIF and extensions would need to be approved by City Council. That action must take place at the local municipal level. Governor Rauner is expected to sign the legislation.
How does this impact BOMA/Chicago Members? While a TIF does not create new taxes, it does siphon off incremental growth of tax revenue, which could expose all taxpayers – especially commercial buildings and tenants – to additional property tax hikes in the future.