Bill Text: IL HB2849 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, if property is owned by the State, a unit of local government, or a school district and that property is leased to the State, a unit of local government, or a school district, then the property and the leasehold interest are exempt from taxation under the Property Tax Code or under any other law. Further provides that property of schools that is leased to the State, a unit of local government, or a school district (now, only leases to a municipality) for governmental purposes on a not-for-profit basis is exempt and that the leasehold interest is not taxable. Amends the State Mandates Act to require implementation without reimbursement. Provides that the changes made by the amendatory Act apply to taxable years 2010 and thereafter. Provides that the changes also apply to taxable years prior to 2010, but no payments of any such taxes need be refunded. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB2849 Detail]

Download: Illinois-2011-HB2849-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB2849 Introduced , by Rep. Barbara Flynn Currie SYNOPSIS AS INTRODUCED:
35 ILCS 200/9-195
35 ILCS 200/15-35
35 ILCS 200/15-57 new
30 ILCS 805/8.35 new
Amends the Property Tax Code. Provides that, if property is owned by the State, a unit of local government, or a school district and that property is leased to the State, a unit of local government, or a school district, then the property and the leasehold interest are exempt from taxation under the Property Tax Code or under any other law. Further provides that property of schools that is leased to the State, a unit of local government, or a school district (now, only leases to a municipality) for governmental purposes on a not-for-profit basis is exempt and that the leasehold interest is not taxable. Amends the State Mandates Act to require implementation without reimbursement. Provides that the changes made by the amendatory Act apply to taxable years 2010 and thereafter. Provides that the changes also apply to taxable years prior to 2010, but no payments of any such taxes need be refunded. Effective immediately.
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FISCAL NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 9-195 and 15-35 and by adding Section 15-57 as
follows:
(35 ILCS 200/9-195)
Sec. 9-195. Leasing of exempt property.
(a) Except as provided in Sections 15-35, 15-55, 15-57,
15-60, 15-100, 15-103, and 15-185, when property which is
exempt from taxation is leased to another whose property is not
exempt, and the leasing of which does not make the property
taxable, the leasehold estate and the appurtenances shall be
listed as the property of the lessee thereof, or his or her
assignee. Taxes on that property shall be collected in the same
manner as on property that is not exempt, and the lessee shall
be liable for those taxes. However, no tax lien shall attach to
the exempt real estate. The changes made by this amendatory Act
of 1997 and by this amendatory Act of the 91st General Assembly
are declaratory of existing law and shall not be construed as a
new enactment. The changes made by Public Acts 88-221 and
88-420 that are incorporated into this Section by this
amendatory Act of 1993 are declarative of existing law and are

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not a new enactment.
(b) The provisions of this Section regarding taxation of
leasehold interests in exempt property do not apply to any
leasehold interest created pursuant to any transaction
described in subsection (e) of Section 15-35, item (a) of
Section 15-35, Section 15-57, subsection (c-5) of Section
15-60, subsection (b) of Section 15-100, Section 15-103, or
Section 15-185.
(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02;
93-19, eff. 6-20-03.)
(35 ILCS 200/15-35)
Sec. 15-35. Schools. All property donated by the United
States for school purposes, and all property of schools, not
sold or leased or otherwise used with a view to profit, is
exempt, whether owned by a resident or non-resident of this
State or by a corporation incorporated in any state of the
United States. Also exempt is:
(a) property, along with the leasehold interest in that
property, of schools which is leased to the State, a unit
of local government, or school district municipality to be
used for governmental municipal purposes on a
not-for-profit basis;
(b) property of schools on which the schools are
located and any other property of schools used by the
schools exclusively for school purposes, including, but

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not limited to, student residence halls, dormitories and
other housing facilities for students and their spouses and
children, staff housing facilities, and school-owned and
operated dormitory or residence halls occupied in whole or
in part by students who belong to fraternities, sororities,
or other campus organizations;
(c) property donated, granted, received or used for
public school, college, theological seminary, university,
or other educational purposes, whether held in trust or
absolutely;
(d) in counties with more than 200,000 inhabitants
which classify property, property (including interests in
land and other facilities) on or adjacent to (even if
separated by a public street, alley, sidewalk, parkway or
other public way) the grounds of a school, if that property
is used by an academic, research or professional society,
institute, association or organization which serves the
advancement of learning in a field or fields of study
taught by the school and which property is not used with a
view to profit;
(e) property owned by a school district. The exemption
under this subsection is not affected by any transaction in
which, for the purpose of obtaining financing, the school
district, directly or indirectly, leases or otherwise
transfers the property to another for which or whom
property is not exempt and immediately after the lease or

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transfer enters into a leaseback or other agreement that
directly or indirectly gives the school district a right to
use, control, and possess the property. In the case of a
conveyance of the property, the school district must retain
an option to purchase the property at a future date or,
within the limitations period for reverters, the property
must revert back to the school district.
(1) If the property has been conveyed as described
in this subsection, the property is no longer exempt
under this Section as of the date when:
(A) the right of the school district to use,
control, and possess the property is terminated;
(B) the school district no longer has an option
to purchase or otherwise acquire the property; and
(C) there is no provision for a reverter of the
property to the school district within the
limitations period for reverters.
(2) Pursuant to Sections 15-15 and 15-20 of this
Code, the school district shall notify the chief county
assessment officer of any transaction under this
subsection. The chief county assessment officer shall
determine initial and continuing compliance with the
requirements of this subsection for tax exemption.
Failure to notify the chief county assessment officer
of a transaction under this subsection or to otherwise
comply with the requirements of Sections 15-15 and

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15-20 of this Code shall, in the discretion of the
chief county assessment officer, constitute cause to
terminate the exemption, notwithstanding any other
provision of this Code.
(3) No provision of this subsection shall be
construed to affect the obligation of the school
district to which an exemption certificate has been
issued under this Section from its obligation under
Section 15-10 of this Code to file an annual
certificate of status or to notify the chief county
assessment officer of transfers of interest or other
changes in the status of the property as required by
this Code.
(4) The changes made by this amendatory Act of the
91st General Assembly are declarative of existing law
and shall not be construed as a new enactment; and
(f) in counties with more than 200,000 inhabitants
which classify property, property of a corporation, which
is an exempt entity under paragraph (3) of Section 501(c)
of the Internal Revenue Code or its successor law, used by
the corporation for the following purposes: (1) conducting
continuing education for professional development of
personnel in energy-related industries; (2) maintaining a
library of energy technology information available to
students and the public free of charge; and (3) conducting
research in energy and environment, which research results

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could be ultimately accessible to persons involved in
education.
(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
92-16, eff. 6-28-01.)
(35 ILCS 200/15-57 new)
Sec. 15-57. Government property leased to another
government entity. If property is owned by the State, a unit of
local government, or a school district and that property is
leased to the State, a unit of local government, or a school
district, then the property is exempt from taxation under this
Code and the leasehold interest is exempt from taxation under
this Code or under any other law. The provisions of this
Section apply notwithstanding any other provision of law.
Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
(30 ILCS 805/8.35 new)
Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
Section 95. Applicability. The changes made by this
amendatory Act of the 97th General Assembly apply to taxable

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years 2010 and thereafter. In addition, the changes made by
this amendatory Act of the 97th General Assembly also apply to
taxable years prior to 2010, but no such taxes paid for any
taxable year prior to 2010 need be refunded.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.