Beginning July 1, taxpayers will be able to use a searchable database on the IDOR web site to learn about revenue sharing between their local governments and other entities, helping to shine a bright light of transparency on these agreements.
So, what exactly is a “rebate sharing agreement?” It is an agreement in writing between a local government – such as a city or county – and a business or other entity, such as a store, a developer or a consultant. It may also be with another local government or taxing jurisdiction. The local government agrees to pay a sum or percentage of sales tax dollars generated from retail sales back to these entities.
Local governments in greater frequency are using these tax incentive agreements as a tool to attract businesses
State law requires local governments to report these rebate sharing agreements to the Department of Revenue. The agreement reports are searchable by the name of the local government, but also by business name. If you review the available reports, you will see they require the name of the business, the business address, the terms of the agreement between the business and the local government, the length of the agreement and a list of other businesses or local government who may benefit from the agreement.
The local governments filing the reports are solely responsible for their content. The Department cannot verify the accuracy or completeness of the reports that are submitted. Any questions about the information contained in the reports should be directed to the local government filing the report.
For more information see Public Act 97-976.