Best Tax Increment Financing Lawyers in Aurora

About Tax Increment Financing Law in Aurora, United States

Tax Increment Financing (TIF) is a local public financing tool used by municipalities like Aurora to promote redevelopment in targeted districts. In Illinois, TIF districts capture future increases in property tax revenue above a base year and allocate those increments to fund approved redevelopment projects within the district. This allows a community to finance public improvements, infrastructure, and incentives for private investment without immediately raising taxes across the broader tax base.

In Aurora, a redevelopment plan and a designated project area must be adopted by the city’s governing body before TIF funds can be used. The base year tax value is set at the time the district is created, and only the incremental growth in property value-above that base-is allocated to the TIF fund. Once the district expires or is terminated, incremental taxes typically revert to the regular tax base for distribution to local taxing districts.

Because TIF is created and governed by state law and local ordinances, the exact mechanics-such as how increments are shared, how long a district lasts, and what types of projects qualify-depend on the jurisdiction. In Illinois, the Tax Increment Allocation Redevelopment Act is the primary statute that authorizes and regulates TIF districts, with additional requirements from related statutes and city rules. Public transparency laws also apply to TIF processes, requiring notice and opportunities for public comment.

Tax Increment Financing is a local public finance tool that captures increases in property tax revenue in a designated district to fund redevelopment projects.

Source: Government Finance Officers Association (GFOA)

Source: National Conference of State Legislatures (NCSL)

Why You May Need a Lawyer

Working with a Tax Increment Financing matter in Aurora requires precise knowledge of procedures, timelines, and potential tax impacts. Below are real-world scenarios where you should consider hiring an attorney or solicitor who specializes in TIF and redevelopment law.

• You own property in a proposed TIF district and need to understand base year and increment impacts. A solicitor can explain how the base year is set, what taxes will be captured, and how that affects your property tax bill and potential assessments during development.
• You are negotiating a Redevelopment Agreement or intergovernmental agreement with the City. An attorney can review terms, performance milestones, schedules, and remedies if the project delays or costs overrun occur.
• Your business may benefit from TIF assistance for planned improvements. A legal counsel can assess eligibility, prepare required applications, and ensure compliance with statutory and local requirements.
• You oppose the creation or expansion of a TIF district that could affect your property taxes. A lawyer can help you evaluate the district’s plan, file timely objections, and participate in hearings with proper advocacy.
• You are involved in a TIF bond issue or financing tied to Increment revenue. Bond counsel and a TIF attorney ensure the transaction complies with state law and protects your investment.
• You need to address disputes on base years, increments, or documentation. A solicitor can prepare and file petitions, respond to city inquiries, and pursue remedies in the appropriate forum.

Local Laws Overview

In Aurora, Illinois, TIF is governed by several statutes and regulatory provisions. The primary framework is the Tax Increment Allocation Redevelopment Act, which authorizes the creation and operation of TIF districts and redevelopment projects. This act is complemented by other laws that govern public hearings, recordkeeping, and tax administration.

• Tax Increment Allocation Redevelopment Act - 65 ILCS 5/11-74.4 et seq. This is the main statute that authorizes and regulates TIF districts and redevelopment plans in Illinois.
• Open Meetings Act - 5 ILCS 120. This law requires public notice and opportunities for public comment during the process of creating or modifying TIF districts and related agreements.
• Property Tax Code - 35 ILCS 200. This code governs how property taxes are assessed and collected, including how increments are calculated and allocated within a TIF district.

Recent trends in Illinois emphasize transparency and oversight of TIF districts. Statewide reforms have focused on public access to redevelopment plans, annual reporting, and accountability in how incremental funds are used. See the sources below for more detail on these developments and their practical implications for Aurora projects.

Recent Illinois reforms emphasize greater transparency and annual reporting for Tax Increment Financing districts, increasing public access to information on redevelopment plans and expenditures.

Source: GFOA

Source: NCSL

Frequently Asked Questions

What is a Tax Increment Financing district and how does it work in Aurora?

A TIF district is a designated area where future tax growth is captured to fund redevelopment. Increment revenue funds approved improvements and incentives within the district.

How do I determine if my property lies within a TIF district in Aurora?

Check the City of Aurora’s official redevelopment or planning pages and the County assessor maps. The city often publishes TIF maps and base year data.

What is the base year in a TIF district and how is it set in Illinois?

The base year is the year when the district is established. Property tax values in that year serve as a baseline for calculating increments.

How much TIF funding can be allocated to a project in Aurora?

The amount depends on the redevelopment plan, approved projects, and available funds in the TIF district. Financing limits are defined by the statute and local approvals.

Do I need a lawyer to navigate a TIF redevelopment process?

Yes. An attorney with redevelopment experience can review plans, attend hearings, and safeguard your rights and financial interests.

How long does the TIF process take from plan to funding in Aurora?

Timelines vary with complexity and public participation. Typical cycles span several months from initiation to final approvals and bond issuances if used.

Do I need to attend public hearings for TIF decisions in Aurora?

Yes. Public hearings and notices are required under the Open Meetings Act and local procedures before approving redevelopment plans or incentives.

Is TIF tax revenue shared with other taxing districts?

Incremental revenue is earmarked for the TIF district, with regular taxes continuing to flow to other districts unless directed otherwise by law or special agreements.

What is a Redevelopment Agreement and what does it cover?

A Redevelopment Agreement is a contract between the city and a developer or property owner. It outlines scope, timetables, incentives, and performance milestones.

What is the difference between TIF and conventional public funding?

TIF uses future tax increments from a district for redevelopment. Conventional funding relies on general tax revenues or explicit appropriations unrelated to incremental gains.

Can property owners challenge a TIF district in Aurora?

Yes. Owners can seek administrative remedies, file public comment, or pursue legal action if the process or terms violate statutes or due process.

How much does a TIF attorney typically charge in Aurora?

Attorney fees vary by complexity and firm. Expect consultation fees plus hourly rates that reflect experience in redevelopment and municipal practice.

What is the role of the City Council in TIF decisions?

The City Council approves redevelopment plans, project areas, and related agreements, and oversees compliance with statutory requirements.

Do landlords or property owners receive any compensation under TIF?

Compensation comes through redevelopment incentives, improvements, and negotiated agreements. Direct compensation is not automatic and depends on the plan.

Additional Resources

• - State-level information on TIF programs, eligibility, and reporting requirements. Link: https://www.illinois.gov/dceo/
• - Official statute governing TIF districts in Illinois. Link: https://www.ilga.gov/legislation/ilcs/ilcs4.asp?path=065-005-074-004-0001
• - Practical guidance and best practices for TIF administration. Link: https://www.gfoa.org/materials/tax-increment-financing-tif