IllinoisSB2769104th General Assembly (2025–2026)SenateWALLET

MUNI CD-PARKWAYS/BUSINESS DIST

Sponsored By: Patrick J. Joyce (Democratic)

Signed by Governor

Summary

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.

assignmentslocal governmentcities & villages

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

Business district taxes must end

A municipality must end the business district taxes after all project costs are paid and related obligations are retired. It must rescind the taxes no later than 23 years after adopting the ordinance that imposed them.

Property taxes can repay district bonds

An ordinance for bonds backed by a municipality’s credit can authorize an annual tax on all taxable property to pay bond principal and interest. This tax can be added to the municipality’s otherwise allowed maximum taxes. The municipality must reduce the levy when other available money can pay the debt and is certified to the county clerk.

Local taxes apply to equipment leases

Since January 1, 2025, local business district taxes can apply to leases of tangible personal property. This covers leases in effect, started, or renewed on or after that date when the local government had the tax in place then or imposes it later. Businesses that lease this property may face added costs and may pass some costs to customers.

How towns use business district funds

A municipality can pledge some or all business district fund money for project costs and related obligations, but a pledge cannot last past the district’s dissolution. Unpledged and uncommitted money must be counted each year as surplus and spent only on project costs approved in the business district plan. A municipality can also move money between funds for project costs with a two-thirds vote; it must document transfers, report them each year, and make records public. After all project costs and related obligations are paid, remaining money goes to the municipality’s general fund.

Local project bonds get new safeguards

Municipalities can back business district bonds with project income, taxes, their credit, a project mortgage, or other lawful receipts. They can also refinance these bonds, but repayment cannot extend past 20 years after issuance or the district’s dissolution, whichever comes first. These bonds do not count toward local debt limits and are not covered by the Bond Authorization Act. For covered bonds backed by a municipality’s credit or property taxes, the authorizing ordinance must be published within 10 days. Electors have 21 days to petition; if at least 15% of those who voted for mayor or president at the last general municipal election sign, voters must approve the bonds at a regular election. This voter rule applies outside specified home-rule powers and special service area authority.

Sponsors & Cosponsors

Sponsor

  • Patrick J. Joyce

    Democratic • Senate

Cosponsors

  • Anthony DeLuca

    Democratic • House

  • Jackie Haas

    Republican • House

  • Paul Faraci

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 160 • No: 24

House vote • 5/21/2026

Third Reading - Short Debate - Passed

Yes: 89 • No: 21

House vote • 5/5/2026

Do Pass / Short Debate Cities & Villages Committee;

Yes: 8 • No: 0

Senate vote • 4/16/2026

Third Reading - Passed;

Yes: 53 • No: 3

Senate vote • 2/26/2026

Do Pass as Amended Local Government;

Yes: 10 • No: 0

Bill Text

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