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SB 2769

Illinois Senate•Passed

Summary

SB 2769, “MUNI CD-PARKWAYS/BUSINESS DIST”, was introduced in the Senate on Jan 13, 2026 by Sen. Patrick Joyce (D) with 3 co-sponsors. It last saw action on Jul 24, 2026: Public Act . . . . . . . . . 104-0629.

Record

Text

SB 2769 has 3 co-sponsors and 4 roll calls.

sb2769/enrolled.txt
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Full Text of SB2769
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	SB2769 - 104th General Assembly
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			Senate Amendment 001
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		SB2769 Enrolled		LRB104 16654 RTM 30058 b
    AN ACT concerning local government.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Municipal Code is amended by
changing Section 11-74.3-6 as follows:
    (65 ILCS 5/11-74.3-6)
    Sec. 11-74.3-6. Business district revenue and obligations;
business district tax allocation fund.
    (a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, all amounts generated by the
retailers' occupation tax and service occupation tax shall be
collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
		SB2769 Enrolled	- 2 -	LRB104 16654 RTM 30058 b
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the
municipality shall deposit the proceeds of the taxes imposed
under subsections (10) and (11) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of]
Business District Tax Allocation Fund" for the purpose of
paying or reimbursing business district project costs and
obligations incurred in the payment of those costs.
Notwithstanding any other provision of this Act, a 
municipality may, by a two-thirds vote of its corporate 
authorities, transfer money among the Business District Tax 
Allocation Funds of business districts if the business 
districts are under the control of the municipality and the 
transferred money is used for the purposes of paying business 
district project costs as defined in this Act. All such 
transfers shall be documented and reported annually to the 
municipal corporate authorities, and that documentation shall 
be made available to the public.
    (b) The corporate authorities of a municipality that has
designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
		SB2769 Enrolled	- 3 -	LRB104 16654 RTM 30058 b
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Beginning January
1, 2021, this tax is not imposed on sales of aviation fuel for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the District.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted pursuant to this
		SB2769 Enrolled	- 4 -	LRB104 16654 RTM 30058 b
subsection without registering separately with the Department
under such ordinance or resolution or under this subsection.
The Department of Revenue shall have full power to administer
and enforce this subsection; to collect all taxes and
penalties due under this subsection in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c
through 2h, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
    Persons subject to any tax imposed under this subsection
		SB2769 Enrolled	- 5 -	LRB104 16654 RTM 30058 b
may reimburse themselves for their seller's tax liability
under this subsection by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
    Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
		SB2769 Enrolled	- 6 -	LRB104 16654 RTM 30058 b
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid
taxes or penalties under this subsection to the Department
during the second preceding calendar month. The amount to be
paid to each municipality shall be the amount (not including
credit memoranda and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019)
collected under this subsection during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
		SB2769 Enrolled	- 7 -	LRB104 16654 RTM 30058 b
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), which shall be deposited into the
Tax Compliance and Administration Fund and shall be used by
the Department, subject to appropriation, to cover the costs
of the Department in administering and enforcing the
provisions of this subsection, on behalf of such municipality,
and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
		SB2769 Enrolled	- 8 -	LRB104 16654 RTM 30058 b
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning
on the following January 1. The Department of Revenue shall
not administer or enforce any change made to the boundaries of
a business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
		SB2769 Enrolled	- 9 -	LRB104 16654 RTM 30058 b
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
		SB2769 Enrolled	- 10 -	LRB104 16654 RTM 30058 b
United States may not be made the subject of taxation by this
State.
    If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not
exceed 1% of the selling price of tangible personal property
so transferred within the business district, to be imposed
only in 0.25% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
		SB2769 Enrolled	- 11 -	LRB104 16654 RTM 30058 b
Act. For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner hereinafter provided; and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of, and compliance with this subsection,
the Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
		SB2769 Enrolled	- 12 -	LRB104 16654 RTM 30058 b
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of
procedure as are prescribed in Sections 2, 2a through 2d, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the business district), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the municipality), 9
(except as to the disposition of taxes and penalties
collected, and except that the returned merchandise credit for
this tax may not be taken against any State tax, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
the reference therein to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the
State shall mean the municipality), the first paragraph of
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
		SB2769 Enrolled	- 13 -	LRB104 16654 RTM 30058 b
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the business district retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
    Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer,
ex-officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
    As soon as possible after the first day of each month,
		SB2769 Enrolled	- 14 -	LRB104 16654 RTM 30058 b
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which suppliers and servicemen
have paid taxes or penalties under this subsection to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected under this subsection during the second
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), which shall be deposited into the
Tax Compliance and Administration Fund and shall be used by
the Department, subject to appropriation, to cover the costs
of the Department in administering and enforcing the
provisions of this subsection, and not including an amount
		SB2769 Enrolled	- 15 -	LRB104 16654 RTM 30058 b
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities, provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other conditions of this subsection
are met, the Department shall proceed to administer and
enforce this subsection as of the first day of January next
following the adoption and filing.
    The Department of Revenue shall not administer or enforce
		SB2769 Enrolled	- 16 -	LRB104 16654 RTM 30058 b
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must
provide this boundary and address information to the
Department on or before April 1 for administration and
enforcement of the tax under this subsection by the Department
beginning on the following July 1 and on or before October 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following
January 1. The Department of Revenue shall not administer or
enforce any change made to the boundaries of a business
district or address change, addition, or deletion until the
municipality reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
		SB2769 Enrolled	- 17 -	LRB104 16654 RTM 30058 b
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
    If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
    (c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
    (d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
		SB2769 Enrolled	- 18 -	LRB104 16654 RTM 30058 b
upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
    The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
		SB2769 Enrolled	- 19 -	LRB104 16654 RTM 30058 b
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
    Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
    The proceeds of the tax imposed under this subsection
shall be deposited into the Business District Tax Allocation
Fund.
    (e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
		SB2769 Enrolled	- 20 -	LRB104 16654 RTM 30058 b
Tax Allocation Fund to the payment of business district
project costs and obligations. Whenever a municipality pledges
all of the funds to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality may specifically provide that funds remaining to
the credit of such business district tax allocation fund after
the payment of such obligations shall be accounted for
annually and shall be deemed to be "surplus" funds, and such
"surplus" funds shall be expended by the municipality for any
business district project cost as approved in the business
district plan. Whenever a municipality pledges less than all
of the monies to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality shall provide that monies to the credit of the
business district tax allocation fund and not subject to such
pledge or otherwise encumbered or required for payment of
contractual obligations for specific business district project
costs shall be calculated annually and shall be deemed to be
"surplus" funds, and such "surplus" funds shall be expended by
the municipality for any business district project cost as
approved in the business district plan.
    No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
		SB2769 Enrolled	- 21 -	LRB104 16654 RTM 30058 b
pursuant to subsection (10) of Section 11-74.3-3, shall be
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
    Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the
municipality, including, specifically, taxes levied or imposed
by the municipality in a special service area pursuant to the
Special Service Area Tax Law; (iii) the full faith and credit
of the municipality; (iv) a mortgage on part or all of the
business district project; or (v) any other taxes or
anticipated receipts that the municipality may lawfully
pledge.
    Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
		SB2769 Enrolled	- 22 -	LRB104 16654 RTM 30058 b
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
    In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
		SB2769 Enrolled	- 23 -	LRB104 16654 RTM 30058 b
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the
ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
    If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
		SB2769 Enrolled	- 24 -	LRB104 16654 RTM 30058 b
mayor or president at the last general municipal election,
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost
of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a
majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify
the proposition to the proper election authorities for
submission in accordance with the general election law.
    The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
    In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
		SB2769 Enrolled	- 25 -	LRB104 16654 RTM 30058 b
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
    A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
    A municipality may also issue its obligations to refund,
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
    In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
		SB2769 Enrolled	- 26 -	LRB104 16654 RTM 30058 b
    No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of
any limitation imposed by law.
    Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
    (f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)

Amends the Illinois Municipal Code. Provides that a municipality may, by a two thirds-vote of its corporate authorities, transfer money among Business District Tax Allocation Funds of business districts if the business districts are under the control of the municipality and the transferred money is used for the purposes of paying business district project costs as defined in the Act. Further provides that all such transfers shall be documented and reported annually to the municipal corporate authorities. Requires documentation of the transfers to be made available to the public. Provides that the corporate authorities of a municipality may regulate the use and maintenance of parkways and may require the owner, lessee, and occupant of any property abutting a parkway to be responsible for maintenance of the parkway, including, but not limited to, cleanup and disposal of refuse, waste, and garbage in the parkway; watering and fertilizing plants, trees, and grasses in the parkway; and the routine care of the lawn of the parkway, including, but not limited to, watering, weeding, and mowing of the lawn of the parkway.

Sponsors

Sen. Patrick Joyce (D) sponsors SB 2769, and 3 members have co-sponsored it.

Committees

SB 2769 went before 4 committees: Assignments, Local Government, Rules and Cities & Villages.

Assignments
Assignments
Referred to · Jan 13, 2026
Local Government
Local Government
Referred to · Feb 3, 2026
Rules
Rules
Referred to · Apr 20, 2026 · 5,290 Bills
Cities & Villages
Cities & Villages
Referred to · Apr 27, 2026

History

SB 2769 has taken 31 actions since Jan 13, 2026, the latest on Jul 24, 2026.

ChamberAction
Jul 24, 2026
Senate
Governor Approved
Jul 24, 2026
Senate
Effective Date January 1, 2027
Jul 24, 2026
Senate
Public Act . . . . . . . . . 104-0629
Jun 18, 2026
Senate
Sent to the Governor
May 21, 2026
House
Third Reading - Short Debate - Passed 089-021-000

Votes

SB 2769 went to 4 roll calls across both chambers, the latest on May 21, 2026 at 89–21.

ChamberQuestion
Yea
Nay
May 21, 2026
House
House Third Reading
89
21
May 5, 2026
House
House Cities & Villages Committee
8
0
Feb 25, 2026
Senate
Senate Local Government Committee
10
0
Feb 25, 2026
Senate
Senate Local Government Committee
10
0

Source: ilga.gov · legiscan.com