Bill Text: IL HB0810 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the State Property Control Act. Provides that the Director of Central Management Services as Administrator may convey any surplus real property covered by the State Property Control Act, by sale or lease, to a duly incorporated, charitable, non-profit organization or association for the cultivation and sale of fresh fruits and vegetables on a tract of land of less than 5 acres within any local governmental unit, provided that the non-profit organization or association is not controlled, directly or indirectly, by any agricultural, commercial, or other business. Provides that the non-profit organization or association shall be authorized to sell fresh fruits and vegetables either on the land that was conveyed, off that land, or both, provided, that the sales are related or incidental to the non-profit purposes of the organization or association, and the net proceeds received by the non-profit organization or association are used to further the non-profit purposes of the organization or association. Provides that the lease of any real property to any duly incorporated non-profit organization or association shall be in accordance with the Illinois Procurement Code. Amends the Property Tax Code to provide a property tax exemption for non-profit organizations using land for the cultivation and sale of fresh fruits and vegetables.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB0810 Detail]
Download: Illinois-2019-HB0810-Introduced.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Property Control Act is amended by | |||||||||||||||||||||
5 | changing Section 7.1 as follows:
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6 | (30 ILCS 605/7.1) (from Ch. 127, par. 133b10.1)
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7 | Sec. 7.1.
(a) Except as otherwise provided by law, all | |||||||||||||||||||||
8 | surplus real
property held by the State of Illinois shall be | |||||||||||||||||||||
9 | disposed of by the
administrator as provided in this Section. | |||||||||||||||||||||
10 | "Surplus real property," as
used in this Section, means any | |||||||||||||||||||||
11 | real property to which the State holds fee
simple title or
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12 | lesser interest, and is vacant, unoccupied or unused and which | |||||||||||||||||||||
13 | has no
foreseeable use by the owning agency.
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14 | (b) All responsible officers shall submit an Annual Real | |||||||||||||||||||||
15 | Property
Utilization Report to the Administrator, or annual | |||||||||||||||||||||
16 | update of such
report, on forms required by the Administrator, | |||||||||||||||||||||
17 | by July 31 of each year.
The Administrator may require such | |||||||||||||||||||||
18 | documentation as he deems reasonably
necessary in connection | |||||||||||||||||||||
19 | with this Report, and shall require that such
Report include | |||||||||||||||||||||
20 | the following information:
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21 | (1) A legal description of all real property owned by the | |||||||||||||||||||||
22 | State
under the control of the responsible officer.
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23 | (2) A description of the use of the real property listed |
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1 | under (1).
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2 | (3) A list of any improvements made to such real property | ||||||
3 | during the
previous year.
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4 | (4) The dates on which the State first acquired its | ||||||
5 | interest in such
real property, and the purchase price and | ||||||
6 | source of the funds used to
acquire the property.
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7 | (5) Plans for the future use of currently unused real | ||||||
8 | property.
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9 | (6) A declaration of any surplus real property.
On or | ||||||
10 | before October 31 of each year the Administrator shall furnish
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11 | copies of each responsible officer's report along with a list | ||||||
12 | of surplus
property indexed by legislative district to the | ||||||
13 | General Assembly.
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14 | This report shall be filed with the Speaker, the Minority | ||||||
15 | Leader and the
Clerk of the House of Representatives and the | ||||||
16 | President, the Minority
Leader and the Secretary of the Senate | ||||||
17 | and shall be duplicated and made
available to the members of | ||||||
18 | the General Assembly for evaluation by such
members for | ||||||
19 | possible liquidation of unused public property at public sale.
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20 | (c) Following receipt of the Annual Real Property | ||||||
21 | Utilization Report
required under paragraph (b), the | ||||||
22 | Administrator shall notify all State
agencies by October 31 of | ||||||
23 | all declared surplus real
property. Any State
agency may submit | ||||||
24 | a written request to the Administrator, within 60 days
of the | ||||||
25 | date of such notification, to have control of surplus real
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26 | property transferred to that agency. Such request must indicate |
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1 | the
reason for the transfer and the intended use to be made of | ||||||
2 | such surplus
real property. The Administrator may deny any or | ||||||
3 | all such requests by a
State agency or agencies if the | ||||||
4 | Administrator determines that it is more
advantageous to the | ||||||
5 | State to dispose of the surplus real property under
paragraph | ||||||
6 | (d). In case requests for the same surplus real property are
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7 | received from more than one State agency, the Administrator | ||||||
8 | shall weigh
the benefits to the State and determine to which | ||||||
9 | agency, if any, to
transfer control of such property. The | ||||||
10 | Administrator shall coordinate
the use and disposal of State | ||||||
11 | surplus real property with any State space
utilization program.
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12 | (d) Any surplus real property which is not transferred to | ||||||
13 | the
control of another State agency under paragraph (c) shall | ||||||
14 | be disposed of
by the Administrator. No appraisal is required | ||||||
15 | if during his initial
survey of surplus real property the | ||||||
16 | Administrator determines such
property has a fair market value | ||||||
17 | of less than $5,000. If the value of
such property is | ||||||
18 | determined by the Administrator in his initial survey
to be | ||||||
19 | $5,000 or more, then the Administrator shall obtain 3 | ||||||
20 | appraisals
of such real property, one of which shall be | ||||||
21 | performed by an appraiser
residing in the county in which said | ||||||
22 | surplus real property is located.
The average of these 3 | ||||||
23 | appraisals, plus the costs of obtaining the
appraisals, shall | ||||||
24 | represent the fair market value of the surplus real
property. | ||||||
25 | No surplus real property may be conveyed by the Administrator
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26 | for less than the fair market value. Prior to offering the |
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1 | surplus real
property for sale to the public the Administrator | ||||||
2 | shall give notice in
writing of the existence and fair market | ||||||
3 | value of the surplus real
property to the governing bodies of | ||||||
4 | the county and of all cities,
villages and incorporated towns | ||||||
5 | in the county in which such real
property is located. Any such | ||||||
6 | governing body may exercise its option to
acquire the surplus | ||||||
7 | real property for the fair market value within 60
days of the | ||||||
8 | notice. After the 60 day period has passed, the
Administrator | ||||||
9 | may sell the surplus real property by public auction
following | ||||||
10 | notice of such sale by publication on 3 separate days not less
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11 | than 15 nor more than 30 days prior to the sale in the State | ||||||
12 | newspaper
and in a newspaper having general circulation in the | ||||||
13 | county in which the
surplus real property is located. The | ||||||
14 | Administrator shall post "For
Sale" signs of a conspicuous | ||||||
15 | nature on such surplus real property
offered for sale to the | ||||||
16 | public. If no acceptable offers for the surplus
real property | ||||||
17 | are received, the Administrator may have new appraisals of
such | ||||||
18 | property made. The Administrator shall have all power necessary | ||||||
19 | to
convey surplus real property under this Section. All moneys | ||||||
20 | received
for the sale of surplus real property shall be | ||||||
21 | deposited in the General
Revenue Fund, except that: | ||||||
22 | (1) Where moneys expended for the acquisition of such
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23 | real property were from a special fund which is still a | ||||||
24 | special fund in
the State treasury, this special fund shall | ||||||
25 | be reimbursed in the amount
of the original expenditure and | ||||||
26 | any amount in excess thereof shall be
deposited in the |
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1 | General Revenue Fund. | ||||||
2 | (2) Whenever a State mental health facility operated by | ||||||
3 | the Department of Human Services is closed and the real | ||||||
4 | estate on which the facility is located is sold by the | ||||||
5 | State, the net proceeds of the sale of the real estate | ||||||
6 | shall be deposited into the Community Mental Health | ||||||
7 | Medicaid Trust Fund. | ||||||
8 | (3) Whenever a State developmental disabilities | ||||||
9 | facility operated by the Department of Human Services is | ||||||
10 | closed and the real estate on which the facility is located | ||||||
11 | is sold by the State, the net proceeds of the sale of the | ||||||
12 | real estate shall be deposited into the Community | ||||||
13 | Developmental Disability Services Medicaid Trust Fund.
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14 | The Administrator shall have authority to order such | ||||||
15 | surveys, abstracts
of title, or commitments for title insurance | ||||||
16 | as may, in his reasonable
discretion, be deemed necessary to | ||||||
17 | demonstrate to prospective purchasers or
bidders good and | ||||||
18 | marketable title in any property offered for sale pursuant
to | ||||||
19 | this Section. Unless otherwise specifically authorized by the | ||||||
20 | General
Assembly, all conveyances of property made by the | ||||||
21 | Administrator shall be by
quit claim deed.
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22 | (d-5) Notwithstanding any other provision of this Act, the | ||||||
23 | Administrator may convey any surplus real property covered by | ||||||
24 | this Act, by sale or lease, to a duly incorporated, charitable, | ||||||
25 | non-profit organization or association for the cultivation and | ||||||
26 | sale of fresh fruits and vegetables on a tract of land of less |
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1 | than 5 acres within any local governmental unit, provided that | ||||||
2 | the non-profit organization or association is not controlled, | ||||||
3 | directly or indirectly, by any agricultural, commercial, or | ||||||
4 | other business. The non-profit organization or association | ||||||
5 | under this subsection (d-5) shall be authorized to sell fresh | ||||||
6 | fruits and vegetables either on the land that was conveyed, off | ||||||
7 | that land, or both, provided, that the sales are related or | ||||||
8 | incidental to the non-profit purposes of the organization or | ||||||
9 | association, and the net proceeds received by the non-profit | ||||||
10 | organization or association are used to further the non-profit | ||||||
11 | purposes of the organization or association. The lease of any | ||||||
12 | real property to any duly incorporated non-profit organization | ||||||
13 | or association shall be in accordance with the Illinois | ||||||
14 | Procurement Code. | ||||||
15 | (e) The Administrator shall submit an annual report on or | ||||||
16 | before
February 1 to the Governor and the General Assembly | ||||||
17 | containing a
detailed statement of surplus real property either | ||||||
18 | transferred or
conveyed under this Section.
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19 | (Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09; | ||||||
20 | 96-1000, eff. 7-2-10.)
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21 | Section 10. The Property Tax Code is amended by changing | ||||||
22 | Section 15-55 as follows:
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23 | (35 ILCS 200/15-55)
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24 | Sec. 15-55. State property.
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1 | (a) All property belonging to the State of Illinois
is | ||||||
2 | exempt. However, the State agency holding title shall file the | ||||||
3 | certificate
of ownership and use required by Section 15-10, | ||||||
4 | together with a copy of any
written lease or agreement, in | ||||||
5 | effect on March 30 of the assessment year,
concerning parcels | ||||||
6 | of 1 acre or more, or an explanation of the terms of any
oral | ||||||
7 | agreement under which the property is leased, subleased or | ||||||
8 | rented.
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9 | The leased property shall be assessed to the lessee and the | ||||||
10 | taxes thereon
extended and billed to the lessee, and collected | ||||||
11 | in the same manner as
for property which is not exempt. The | ||||||
12 | lessee shall be liable
for the taxes and no lien shall attach | ||||||
13 | to the property of the State.
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14 | For the purposes of this Section, the word "leases" | ||||||
15 | includes
licenses, franchises, operating agreements and other | ||||||
16 | arrangements under which
private individuals, associations or | ||||||
17 | corporations are granted the right to use
property of the | ||||||
18 | Illinois State Toll Highway Authority and includes all property
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19 | of the Authority used by others without regard to the size of | ||||||
20 | the leased
parcel.
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21 | (b) However, all property of every kind belonging to the | ||||||
22 | State of
Illinois, which
is or may hereafter be leased to the | ||||||
23 | Illinois Prairie Path Corporation, shall
be exempt from all | ||||||
24 | assessments, taxation or collection, despite the making of
any | ||||||
25 | such lease, if it is used for:
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26 | (1) conservation, nature trail or any other |
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1 | charitable,
scientific,
educational or recreational | ||||||
2 | purposes with public benefit, including the
preserving and | ||||||
3 | aiding in the preservation of natural areas, objects, | ||||||
4 | flora,
fauna or biotic communities;
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5 | (2) the establishment of footpaths, trails and other | ||||||
6 | protected
areas;
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7 | (3) the conservation of the proper use of natural
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8 | resources or the promotion of the study of plant and animal | ||||||
9 | communities and
of other phases of ecology, natural history | ||||||
10 | and conservation;
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11 | (4) the promotion of education in the fields of nature,
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12 | preservation and
conservation; or
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13 | (5) similar public recreational activities conducted | ||||||
14 | by the
Illinois
Prairie
Path Corporation.
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15 | No lien shall attach to the property of the State. No tax | ||||||
16 | liability shall
become the obligation of or be enforceable | ||||||
17 | against Illinois Prairie Path
Corporation.
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18 | (b-5) However, all property of every kind belonging to the | ||||||
19 | State of Illinois, which is or may be sold or leased to a | ||||||
20 | non-profit organization specified under subsection (d-5) of | ||||||
21 | Section 7.1 of the State Property Control Act, shall be exempt | ||||||
22 | from all assessments, taxation, or collection, despite the | ||||||
23 | making of any such sale or lease, if it is used for the | ||||||
24 | cultivation and sale of fresh fruits and vegetables, and the | ||||||
25 | net proceeds received by the non-profit organization or | ||||||
26 | association are used to further the non-profit purposes of the |
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1 | organization or association. | ||||||
2 | (c) If the State sells the
James R.
Thompson Center
or the | ||||||
3 | Elgin Mental Health Center and surrounding land located at 750 | ||||||
4 | S.
State Street,
Elgin, Illinois, as provided in subdivision | ||||||
5 | (a)(2) of Section 7.4 of
the State Property Control Act,
to
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6 | another entity whose property is not exempt and immediately | ||||||
7 | thereafter enters
into a
leaseback or other agreement that | ||||||
8 | directly or indirectly gives the State a
right to use,
control, | ||||||
9 | and possess the property, that portion of the property leased | ||||||
10 | and
occupied exclusively by the State shall remain exempt under | ||||||
11 | this
Section.
For the property to remain exempt under this | ||||||
12 | subsection (c), the State must
retain an
option to purchase the | ||||||
13 | property at a future date or, within the limitations
period for
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14 | reverters, the property must revert back to the State.
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15 | If the property has been conveyed as described in this | ||||||
16 | subsection (c), the
property
is no longer exempt pursuant to | ||||||
17 | this Section as of the date when:
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18 | (1) the right of the State to use, control, and possess | ||||||
19 | the property has
been
terminated; or
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20 | (2) the State no longer has an option to
purchase or | ||||||
21 | otherwise acquire the property and
there is no provision | ||||||
22 | for a reverter of the property to the State
within the | ||||||
23 | limitations period for reverters.
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24 | Pursuant to Sections 15-15 and 15-20 of this Code, the | ||||||
25 | State shall notify the
chief
county assessment officer of any | ||||||
26 | transaction under this subsection (c). The
chief county
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1 | assessment officer shall determine initial and continuing | ||||||
2 | compliance with the
requirements of this Section for tax | ||||||
3 | exemption. Failure to notify the chief
county
assessment | ||||||
4 | officer of a transaction under this subsection (c) or to | ||||||
5 | otherwise
comply with
the requirements of Sections 15-15 and | ||||||
6 | 15-20 of this Code shall, in the
discretion of the
chief county | ||||||
7 | assessment officer, constitute cause to terminate the | ||||||
8 | exemption,
notwithstanding any other provision of this Code.
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9 | (c-1) If the Illinois State Toll Highway Authority sells | ||||||
10 | the
Illinois State Toll Highway Authority headquarters | ||||||
11 | building and surrounding
land,
located at 2700 Ogden Avenue, | ||||||
12 | Downers Grove, Illinois
as provided in subdivision (a)(2) of | ||||||
13 | Section 7.5 of
the State Property Control Act,
to
another | ||||||
14 | entity whose property is not exempt and immediately thereafter | ||||||
15 | enters
into a
leaseback or other agreement that directly or | ||||||
16 | indirectly gives the State or the
Illinois State Toll Highway | ||||||
17 | Authority a
right to use,
control, and possess the property, | ||||||
18 | that portion of the property leased and
occupied exclusively by | ||||||
19 | the State or the Authority shall remain exempt under
this
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20 | Section.
For the property to remain exempt under this | ||||||
21 | subsection (c), the Authority must
retain an
option to purchase | ||||||
22 | the property at a future date or, within the limitations
period | ||||||
23 | for
reverters, the property must revert back to the Authority.
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24 | If the property has been conveyed as described in this | ||||||
25 | subsection (c), the
property
is no longer exempt pursuant to | ||||||
26 | this Section as of the date when:
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1 | (1) the right of the State or the Authority to use, | ||||||
2 | control, and possess
the
property has
been
terminated; or
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3 | (2) the Authority no longer has an option to
purchase | ||||||
4 | or otherwise acquire the property and
there is no provision | ||||||
5 | for a reverter of the property to the Authority
within the | ||||||
6 | limitations period for reverters.
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7 | Pursuant to Sections 15-15 and 15-20 of this Code, the | ||||||
8 | Authority
shall notify the
chief
county assessment officer of | ||||||
9 | any transaction under this subsection (c). The
chief county
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10 | assessment officer shall determine initial and continuing | ||||||
11 | compliance with the
requirements of this Section for tax | ||||||
12 | exemption. Failure to notify the chief
county
assessment | ||||||
13 | officer of a transaction under this subsection (c) or to | ||||||
14 | otherwise
comply with
the requirements of Sections 15-15 and | ||||||
15 | 15-20 of this Code shall, in the
discretion of the
chief county | ||||||
16 | assessment officer, constitute cause to terminate the | ||||||
17 | exemption,
notwithstanding any other provision of this Code.
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18 | (d) The fair market rent of each parcel of real property in | ||||||
19 | Will
County owned by the State of Illinois for the purpose of | ||||||
20 | developing an airport
by the Department of Transportation shall | ||||||
21 | include the assessed value of
leasehold tax. The lessee of each | ||||||
22 | parcel of real property in Will
County owned by
the
State of | ||||||
23 | Illinois for the purpose of developing an airport by the | ||||||
24 | Department of
Transportation shall not be liable for the taxes | ||||||
25 | thereon. In order for the
State to
compensate taxing districts | ||||||
26 | for
the leasehold tax under this paragraph
the Will County |
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1 | Supervisor of Assessments shall
certify, in
writing, to the
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2 | Department of Transportation, the amount of leasehold taxes
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3 | extended for the 2002 property tax
year for
each such exempt | ||||||
4 | parcel.
The Department of Transportation shall pay to the Will
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5 | County
Treasurer, from the Tax Recovery Fund, on or before July | ||||||
6 | 1 of each
year, the amount of leasehold taxes for each such | ||||||
7 | exempt parcel as certified
by the Will County Supervisor of | ||||||
8 | Assessments. The tax compensation shall
terminate
on
December | ||||||
9 | 31, 2020. It is the duty of the Department of Transportation to | ||||||
10 | file
with the
Office of the Will County Supervisor of | ||||||
11 | Assessments an affidavit stating the
termination
date for | ||||||
12 | rental of each such parcel due to airport construction. The | ||||||
13 | affidavit
shall include
the property identification number for | ||||||
14 | each such parcel. In no instance shall
tax
compensation for | ||||||
15 | property owned by the State be deemed delinquent or bear
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16 | interest. In
no instance shall a lien attach to the property of | ||||||
17 | the State. In no instance
shall the State
be required to pay | ||||||
18 | leasehold tax compensation in excess of the Tax
Recovery Fund's | ||||||
19 | balance.
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20 | (e) Public Act 81-1026 applies to all leases or agreements | ||||||
21 | entered into
or
renewed on or after September 24, 1979.
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22 | (f) Notwithstanding anything to the contrary in this Code, | ||||||
23 | all property owned by the State that is the Illiana Expressway, | ||||||
24 | as defined in the Public Private Agreements for the Illiana | ||||||
25 | Expressway Act, and that is used for transportation purposes | ||||||
26 | and that is leased for those purposes to another entity whose |
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1 | property is not exempt shall remain exempt, and any leasehold | ||||||
2 | interest in the property shall not be subject to taxation under | ||||||
3 | Section 9-195 of this Act. | ||||||
4 | (g) Notwithstanding anything to the contrary in this | ||||||
5 | Section, all property owned by the State or the Illinois State | ||||||
6 | Toll Highway Authority that is defined as a transportation | ||||||
7 | project under the Public-Private Partnerships for | ||||||
8 | Transportation Act and that is used for transportation purposes | ||||||
9 | and that is leased for those purposes to another entity whose | ||||||
10 | property is not exempt shall remain exempt, and any leasehold | ||||||
11 | interest in the property shall not be subject to taxation under | ||||||
12 | Section 9-195 of this Act. | ||||||
13 | (h) Notwithstanding anything to the contrary in this Code, | ||||||
14 | all property owned by the State that is the South Suburban | ||||||
15 | Airport, as defined in the Public-Private Agreements for the | ||||||
16 | South Suburban Airport Act, and that is used for airport | ||||||
17 | purposes and that is leased for those purposes to another | ||||||
18 | entity whose property is not exempt shall remain exempt, and | ||||||
19 | any leasehold interest in the property shall not be subject to | ||||||
20 | taxation under Section 9-195 of this Act. | ||||||
21 | (Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
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