SB1695 amends the Illinois Municipal Code’s Tax Increment Allocation Redevelopment Act to change how the initial equalized assessed value (IEAV) is calculated for property in a redevelopment project area when a parcel is not taxable or has an IEAV of $0. In those cases, the county clerk would no longer leave the parcel at zero for TIF baseline purposes; instead, the parcel’s fair market value would be established through a written appraisal by an MAI-certified appraiser or by a State-certified or State-licensed real estate appraiser. That appraised value would then be converted to assessed value, equalized, and counted as the parcel’s IEAV.
Impact
The bill would affect the way TIF base values are set for redevelopment areas created after the effective date of the amendatory Act. By requiring an appraisal for zero-value or non-taxable parcels, it would likely increase the total initial equalized assessed value in some redevelopment project areas, which can reduce the amount of incremental property tax revenue available for TIF capture over time. The measure would directly affect county clerks, municipalities using TIF, appraisers, and taxing districts that share property tax revenues within redevelopment areas.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears procedural and technical rather than overtly partisan. The proposal is framed as a refinement to TIF valuation rules and appears aimed at standardizing treatment of parcels that otherwise would contribute nothing to the TIF base. Because there is no recorded discussion or voting history provided, there is no evidence of public support or opposition in the available materials.
Contention
The main point of contention is likely to be the fiscal effect on TIF districts and local governments. Supporters would likely view the bill as closing a loophole or correcting an undervaluation problem by ensuring that non-taxable or zero-assessed parcels are included in the TIF base at a realistic market value. Opponents may argue that the change could shrink future TIF increment, alter redevelopment financing assumptions, or add appraisal costs and administrative burden for county clerks and municipalities. The bill also limits the change to ordinances adopted after the effective date, which may raise questions about fairness between existing and future TIF districts.