Legislative Proposals

Illinois state legislators - Senators and House members alike -  introduced several bills related to the Bears’ Arlington Heights stadium proposal during the General Assembly’s 2023 regular session, which convened in January and adjourned at the end of May.

While none of the proposals  advanced to floor or committee votes, sponsors may request action during the General Assembly’s Veto Session, which covers two weeks in October and November. A brief summary of the bills that drew most attention and interest:

Senate Bill 1350 (Revenue Mega-Projects)

Filed by State Sen. Ann Gillespie, D-Arlington Heights, on February 6, 2023

​​Official summary: “Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.”

House Bill 3565 (Revenue Mega-Projects)  

Filed by State Rep. Feb 17 - Mark Walker, D-Arlington Heights, on February 17, 2023

HB3565 is essentially the House version of Senate Bill 1350.

Both SB1350 and SB3565 are intended to provide the Bears with the tax certainty they seek by freezing the stadium property’s assessment for a specified period of time. Both would also require the Bears to agree to special payments during this time period that would help offset for local units of government - including school districts - tax revenue that otherwise would be lost because of the assessment freeze.

Senate Bill 1391 (TIF redevelopment project area) 

Filed by State Sen. Ann Gillespie, D-Arlington Heights, on February 6, 2023

Official summary: “Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Modifies factors used by a municipality to determine if an area is a blighted area or a conservation area to be included in the area of a redevelopment project area when establishing the area. Provides that a new redevelopment project area shall have a completion date no later than December 31st of the 20th year after the ordinance was adopted (rather than the 23rd year), and provides that the redevelopment project area may be extended, with the approval of each member of the joint review board, only 2 additional years (rather than extended to the 35th year and extended again to the 47th year). Provides that a municipality may not approve redevelopment project areas or expansions of redevelopment project areas that overlap with an existing redevelopment project area. Provides that 10% of moneys deposited into the special tax allocation fund shall be transferred to the local chamber of commerce or chambers of commerce representing the redevelopment project area for the chamber or chambers of commerce to use for grants to businesses that employee fewer than 50 full-time employees if the business moves within the redevelopment project area. Provides that moneys transferred to a chamber of commerce not used or pledged within one year of transfer of the moneys shall be returned to the municipality and are designated surplus funds of the redevelopment project area. Adds nonvoting members to joint review boards. Provides that, if a school district or community college district does not approve of the creation of a redevelopment project area, then the portion of the taxes attributable to the increase in the current equalized assessed valuation which would be payable to the nonconsenting district shall be paid to that district. Effective immediately.”

Notes: SB1391 would address statewide school district concerns regarding TIF’s, or Tax Increment Finance Districts. Among these concerns are that 1) TIF districts be formed only if they meet the criteria for a blighted area 2) TIF districts be authorized for 20  years, instead of the current 23 years 3) any extension of an existent TIF district be limited to 2 years, instead of the currently allowed 12 years 4) school districts be represented on TIF review boards and that 5) oversight be strengthened so that special tax allocation funds be channeled to small businesses within a TIF District.

HB4040 (Revenue Megaprojects)

Sponsored by Rep. Marty Moylan, D-Des Plaines

Official Synopsis: “Creates the Megaproject Sports and Entertainment Facility Admission Tax Act. Imposes a tax of $3 for each individual admitted to a sports and entertainment facility located on megaproject property. Contains provisions concerning the distribution of the proceeds of the tax. Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a megaproject. Provides that a "megaproject" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the Department of Revenue may issue a megaproject certificate only for a megaproject in the Village of Arlington Heights. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located to make certain special payments. Creates the Arlington Megaproject Oversight Board. Provides that the incentive agreement must be approved by resolution of the Arlington Megaproject Oversight Board. Amends the State Finance Act making conforming changes. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a megaproject is exempt from the taxes imposed under those Acts. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Hotel Operators' Occupation Tax Act, and the Liquor Control Act of 1934. Provides that certain tax proceeds from megaproject property shall be deposited into the Arlington Megaproject Infrastructure Fund. Makes other changes. Effective June 1, 2023.”

Notes: HB4040 includes elements of SB1350 and HB3565, most notably a freeze on the site’s property tax assessment. HB4040 also would create a $3 admission tax for stadium events and a surcharge on sports betting revenue, with revenue earmarked to help Chicago pay off debt incurred to fund renovations of Soldier Field two decades ago and also to help suburban municipalities near the stadium site pay for infrastructure improvements. Beneficiaries would include Arlington Heights, Palatine, Rolling Meadows, Cook County, Buffalo Grove, Elk Grove Village, Mount Prospect, Prospect Heights, Schaumburg and Wheeling.