Bill
SB 3499
Creates the Capital Area Tourism Authority to finance and manage STAR bond projects in Springfield/Sangamon County, funded by hotel and local taxes.
Title: Capital Area Tourism Authority Act
Date Introduced: February 5, 2026
Sponsor: Sen. Doris Turner (co-sponsor)
Jurisdiction: Illinois, operates in Springfield (City) and Sangamon County
Purpose and intent
- Create the Capital Area Tourism Authority (the Authority) as a political subdivision and unit of local government.
- Aim: promote tourism, along with business and economic development, in the City of Springfield, Sangamon County, and the State of Illinois.
- Establish a framework for leveraging STAR bond financing and related tax revenues to support specific development projects within a defined portion of Springfield.
Key provisions and changes
1) Creation and scope
- Establishes the Capital Area Tourism Authority as a local government entity with jurisdiction over a specified portion of Springfield (bounded by Walnut Street, North Grand Avenue, 11th Street, and South Grand Avenue).
2) Authority powers and conditions
- The Authority may exercise STAR bond-related powers and other corporate powers only if the Sangamon County Board enacts:
- An ordinance imposing a hotel tax (under 5-1030 of the Counties Code) on all hotel operators within any STAR bond district in the Authority’s territory.
- A resolution dedicating all hotel tax revenue, plus all local sales tax revenues from the STAR bond district, to paying project costs for STAR bond projects, and treating those revenues as pledged STAR revenues under the Statewide Innovation Development and Economy Act (SIDEA).
- If these conditions are met, the Authority may:
- Use powers to develop, construct, and acquire industrial or commercial projects and to promote tourism and economic activity.
- Exercise broad local government powers, including borrowing, entering contracts, acquiring and disposing of property, employing staff, regulating via ordinances, seeking grants, and exercising eminent domain as allowed.
3) Board and governance
- Board composition (25 members):
- 3 appointed by the Sangamon County Board
- 1 appointed by the Springfield City Council
- 1 appointed by the Springfield Metropolitan Exposition and Auditorium Authority
- Board qualifications emphasize expertise in economic development, finance, real estate, and related fields.
- Terms, removal, vacancies, and compensation guidelines provided.
- Quorum and voting: majority of appointed members, with a majority vote required for official acts.
- Ethics and disclosure requirements for Board members; annual reporting to relevant authorities.
4) Operations and transparency
- Open meetings and FOIA-compliant; contracts to be posted on the Authority’s website.
- Annual financial reporting to the Auditor General; annual activity reports to the Governor and General Assembly.
- Notification to the General Assembly, the Department of Commerce and Economic Opportunity, and the Governor when the Authority commits to financing a project.
5) STAR bonds and taxation
- Section 40: All property within the Authority’s territory is an eligible area for STAR bond districts/projects; multiple STAR projects may proceed if funded and approved under SIDEA.
- Local and State tax contributions for STAR bonds can be directed to financing projects; excess funds may finance additional STAR bond projects within the same district.
- Section 45: State tax contribution for STAR bonds can cover up to 100% of total project costs (not limited to 50%).
- Section 50: The Authority may own and control STAR bond projects and related land; master developer requirements are superseded for STAR bond projects in the Authority’s district.
- Section 55: Annual reporting to the Governor and General Assembly; notice requirements upon committing to a project.
6) Tax exemptions and other provisions
- Property owned by the Authority is exempt from state and local taxation.
- Investigatory authority granted to the Board, including public hearings, subpoenas, and court-backed enforcement if needed.
- Effective date: immediate upon enactment.
5) Related counties code amendments
- Subsection (b-5) of Section 5-1030 allows Sangamon County to impose a hotel tax up to 3% for purposes including promotion of tourism and related debt service or Capital Area Tourism Authority purposes.
Potential impact and considerations
Note: The bill specifies conditions that must be met for the Authority to exercise major powers, linking local tax policy to the ability to undertake STAR bond projects.
Compiled from official sources — confirm details with the bill’s official record.
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