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Sales Tax and Revenue (STAR) Bond District Information

1. What is the purpose of the STAR Bonds Act?

The Innovation Development and Economy Act (50 ILCS 470/1 et seq.), also known as the STAR Bonds Act, found and declared that the purpose of the Act is to promote, stimulate, and develop the general and economic welfare of the state of Illinois and its communities and to assist in the development and redevelopment of major tourism, entertainment, retail, and related destination projects within eligible areas of the state, thereby creating new jobs, stimulating significant capital investment, and promoting the general welfare of the citizens of this state, by authorizing municipalities and counties to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects, and to otherwise exercise the powers and authorities granted to municipalities.

2. Are there currently any STAR Bond District Projects?

Yes. On September 12, 2023, the city of Marion approved the project plan for Marion STAR Bond District Project Area Number 1.

3. What does this mean for the city of Marion?

Effective for sales that occur in the Marion STAR Bond District beginning on January 1, 2024, the Illinois Department of Revenue (IDOR) will distribute the state sales tax increment and local sales tax increment to Marion out of the STAR Bonds Revenue Fund for deposit by Marion into the Marion STAR Bond District Revenue Fund to be used for the purpose of paying or reimbursing STAR bond project costs and obligations incurred in the payment of those costs.

For more information, see the City of Marion’s webpage at cityofmarionil.gov, and search for “STAR Bonds.”

4. Will the sales tax rate for Marion change beginning on January 1, 2024?

No. While the statute allows for local governments to impose a 1% STAR Bond district sales tax in the District, the city of Marion has not imposed a STAR Bond district sales tax at this time.

5. If Marion chooses to impose a STAR Bond district sales tax, when will it become effective?

If Marion should choose to impose a STAR Bond district sales tax at any time, they must adopt an ordinance and submit a certified copy of the ordinance to IDOR by April 1st for the tax to take effect July 1st of the same year, or October 1st for the tax to take effect January 1st of the following year.

6. Are there any current changes for retailers?

No. The only change for retailers in the district is that their location code will now be 100-0001-1-R20. (It was previously 100-0001-1-R00.)

7. Where do I get help?

Visit LTAD’s website at https://tax.illinois.gov/localgovernments/localtaxallocation.html.

Email: rev.localtax@illinois.gov

Phone: 217 785-6518

Mail:
LOCAL TAX ALLOCATION DIVISION (3-500)
ILLINOIS DEPARTMENT OF REVENUE
101 W JEFFERSON ST
SPRINGFIELD IL 62702