TIF Reimbursement to Tax-Capped Public Library Districts

TIF Reimbursement to Tax-Capped Public Library Districts

Q: Under what circumstances are public library districts eligible to receive reimbursement for tax caps imposed under tax increment financing (TIF) districts?

A: Public Library Districts are entitled to reimbursement for residents in a TIF district created after January 1, 2005, and any TIF district created before January 1, 2005 altered to add residents after January 1, 2005.  The reimbursement must be based on the number of residents eligible for library cards, and not the number of actually issued library cards. The best practice by a municipality would be to adopt the established impact fee formula for determining residents.  The statute requires that the per patron cost be based on the total per capita cost of the library district from the previous year, but is capped at a maximum of $120 per patron.

[To date, at least one public library district in Illinois has applied for and received such reimbursement.]

See full report from ILA General Counsel, Kiplund R. Kolkmeier (available to ILA members only). 

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