Bill Text: IL HB5761 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. Provides that all property owned by the Executive Board of the Mutual Aid Box Alarm System that is used for the public purpose of disaster preparedness and response is exempt from the taxes imposed by the Code.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2013-01-08 - Session Sine Die [HB5761 Detail]

Download: Illinois-2011-HB5761-Engrossed.html

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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, 15-35, 15-55, 15-60, 15-100, and 15-103 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 200/15-55)
Sec. 15-55. State property.
(a) All property belonging to the State of Illinois is
exempt. However, the State agency holding title shall file the
certificate of ownership and use required by Section 15-10,
together with a copy of any written lease or agreement, in
effect on March 30 of the assessment year, concerning parcels
of 1 acre or more, or an explanation of the terms of any oral
agreement under which the property is leased, subleased or
rented.
The leased property shall be assessed to the lessee and the
taxes thereon extended and billed to the lessee, and collected
in the same manner as for property which is not exempt. The
lessee shall be liable for the taxes and no lien shall attach
to the property of the State.
For the purposes of this Section, the word "leases"
includes licenses, franchises, operating agreements and other
arrangements under which private individuals, associations or
corporations are granted the right to use property of the
Illinois State Toll Highway Authority and includes all property
of the Authority used by others without regard to the size of

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the leased parcel.
(b) However, all property of every kind belonging to the
State of Illinois, which is or may hereafter be leased to the
Illinois Prairie Path Corporation, shall be exempt from all
assessments, taxation or collection, despite the making of any
such lease, if it is used for:
(1) conservation, nature trail or any other
charitable, scientific, educational or recreational
purposes with public benefit, including the preserving and
aiding in the preservation of natural areas, objects,
flora, fauna or biotic communities;
(2) the establishment of footpaths, trails and other
protected areas;
(3) the conservation of the proper use of natural
resources or the promotion of the study of plant and animal
communities and of other phases of ecology, natural history
and conservation;
(4) the promotion of education in the fields of nature,
preservation and conservation; or
(5) similar public recreational activities conducted
by the Illinois Prairie Path Corporation.
No lien shall attach to the property of the State. No tax
liability shall become the obligation of or be enforceable
against Illinois Prairie Path Corporation.
(c) If the State sells the James R. Thompson Center or the
Elgin Mental Health Center and surrounding land located at 750

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S. State Street, Elgin, Illinois, as provided in subdivision
(a)(2) of Section 7.4 of the State Property Control Act, to
another entity whose property is not exempt and immediately
thereafter enters into a leaseback or other agreement that
directly or indirectly gives the State a right to use, control,
and possess the property, that portion of the property leased
and occupied exclusively by the State shall remain exempt under
this Section. For the property to remain exempt under this
subsection (c), the State 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 State.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
(1) the right of the State to use, control, and possess
the property has been terminated; or
(2) the State no longer has an option to purchase or
otherwise acquire the property and there is no provision
for a reverter of the property to the State within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
State shall notify the chief county assessment officer of any
transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment

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officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
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.
(c-1) If the Illinois State Toll Highway Authority sells
the Illinois State Toll Highway Authority headquarters
building and surrounding land, located at 2700 Ogden Avenue,
Downers Grove, Illinois as provided in subdivision (a)(2) of
Section 7.5 of the State Property Control Act, to another
entity whose property is not exempt and immediately thereafter
enters into a leaseback or other agreement that directly or
indirectly gives the State or the Illinois State Toll Highway
Authority a right to use, control, and possess the property,
that portion of the property leased and occupied exclusively by
the State or the Authority shall remain exempt under this
Section. For the property to remain exempt under this
subsection (c), the Authority 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 Authority.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
(1) the right of the State or the Authority to use,
control, and possess the property has been terminated; or
(2) the Authority no longer has an option to purchase

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or otherwise acquire the property and there is no provision
for a reverter of the property to the Authority within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
Authority shall notify the chief county assessment officer of
any transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
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.
(d) The fair market rent of each parcel of real property in
Will County owned by the State of Illinois for the purpose of
developing an airport by the Department of Transportation shall
include the assessed value of leasehold tax. The lessee of each
parcel of real property in Will County owned by the State of
Illinois for the purpose of developing an airport by the
Department of Transportation shall not be liable for the taxes
thereon. In order for the State to compensate taxing districts
for the leasehold tax under this paragraph the Will County
Supervisor of Assessments shall certify, in writing, to the
Department of Transportation, the amount of leasehold taxes
extended for the 2002 property tax year for each such exempt

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parcel. The Department of Transportation shall pay to the Will
County Treasurer, from the Tax Recovery Fund, on or before July
1 of each year, the amount of leasehold taxes for each such
exempt parcel as certified by the Will County Supervisor of
Assessments. The tax compensation shall terminate on December
31, 2020. It is the duty of the Department of Transportation to
file with the Office of the Will County Supervisor of
Assessments an affidavit stating the termination date for
rental of each such parcel due to airport construction. The
affidavit shall include the property identification number for
each such parcel. In no instance shall tax compensation for
property owned by the State be deemed delinquent or bear
interest. In no instance shall a lien attach to the property of
the State. In no instance shall the State be required to pay
leasehold tax compensation in excess of the Tax Recovery Fund's
balance.
(e) Public Act 81-1026 applies to all leases or agreements
entered into or renewed on or after September 24, 1979.
(f) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the Illiana Expressway,
as defined in the Public Private Agreements for the Illiana
Expressway Act, and that is used for transportation purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.

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(g) Notwithstanding anything to the contrary in this
Section, all property owned by the State or the Illinois State
Toll Highway Authority that is defined as a transportation
project under the Public-Private Partnerships for
Transportation Act and that is used for transportation purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.
(h) Notwithstanding any other provision of law, property
that is owned by the State and leased to a unit of local
government or a school district is exempt, and those leasehold
interests are exempt, from taxation under this Code or any
other provision of law.
(Source: P.A. 96-192, eff. 8-10-09; 96-913, eff. 6-9-10;
97-502, eff. 8-23-11.)
(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.

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(35 ILCS 200/15-60)
Sec. 15-60. Taxing district property. All property
belonging to any county or municipality used exclusively for
the maintenance of the poor is exempt, as is all property owned
by a taxing district that is being held for future expansion or
development, except if leased by the taxing district to lessees
for use for other than public purposes.
Also exempt are:
(a) all swamp or overflowed lands belonging to any
county;
(b) all public buildings belonging to any county,
township, or municipality, with the ground on which the
buildings are erected;
(c) all property owned by any municipality located
within its incorporated limits. Any such property leased by
a municipality shall remain exempt, and the leasehold
interest of the lessee shall be assessed under Section
9-195 of this Act, (i) for a lease entered into on or after
January 1, 1994, unless the lease expressly provides that
this exemption shall not apply; (ii) for a lease entered
into on or after the effective date of Public Act 87-1280
and before January 1, 1994, unless the lease expressly
provides that this exemption shall not apply or unless
evidence other than the lease itself substantiates the
intent of the parties to the lease that this exemption

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shall not apply; and (iii) for a lease entered into before
the effective date of Public Act 87-1280, if the terms of
the lease do not bind the lessee to pay the taxes on the
leased property or if, notwithstanding the terms of the
lease, the municipality has filed or hereafter files a
timely exemption petition or complaint with respect to
property consisting of or including the leased property for
an assessment year which includes part or all of the first
12 months of the lease period. The foregoing clause (iii)
added by Public Act 87-1280 shall not operate to exempt
property for any assessment year as to which no timely
exemption petition or complaint has been filed by the
municipality or as to which an administrative or court
decision denying exemption has become final and
nonappealable. For each assessment year or portion thereof
that property is made exempt by operation of the foregoing
clause (iii), whether such year or portion is before or
after the effective date of Public Act 87-1280, the
leasehold interest of the lessee shall, if necessary, be
considered omitted property for purposes of this Act;
(c-5) Notwithstanding clause (i) of subsection (c),
all property owned by a municipality with a population of
over 500,000 that is used for toll road or toll bridge
purposes and that is leased for those purposes to another
entity whose property is not exempt shall remain exempt,
and any leasehold interest in the property shall not be

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subject to taxation under Section 9-195 of this Act;
(d) all property owned by any municipality located
outside its incorporated limits but within the same county
when used as a tuberculosis sanitarium, farm colony in
connection with a house of correction, or nursery, garden,
or farm, or for the growing of shrubs, trees, flowers,
vegetables, and plants for use in beautifying,
maintaining, and operating playgrounds, parks, parkways,
public grounds, buildings, and institutions owned or
controlled by the municipality; and
(e) all property owned by a township and operated as
senior citizen housing under Sections 35-50 through
35-50.6 of the Township Code; and .
(f) all property owned by the Executive Board of the
Mutual Aid Box Alarm System (MABAS), a unit of
intergovernmental cooperation, that is used for the public
purpose of disaster preparedness and response for units of
local government and the State of Illinois pursuant to
Section 10 of Article VII of the Illinois Constitution and
the Intergovernmental Cooperation Act.
All property owned by any municipality outside of its
corporate limits is exempt if used exclusively for municipal or
public purposes.
Notwithstanding any other provision of law, property that
is owned by a unit of local government and leased to the State,
another unit of local government, or a school district is

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exempt, and those leasehold interests are exempt, from taxation
under this Code or any other provision of law.
For purposes of this Section, "municipality" means a
municipality, as defined in Section 1-1-2 of the Illinois
Municipal Code.
(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02.)
(35 ILCS 200/15-100)
Sec. 15-100. Public transportation systems.
(a) All property belonging to any municipal corporation
created for the sole purpose of owning and operating a
transportation system for public service is exempt.
(b) Property owned by (i) a municipal corporation of
500,000 or more inhabitants, used for public transportation
purposes, and operated by the Chicago Transit Authority; (ii)
the Regional Transportation Authority; (iii) any service board
or division of the Regional Transportation Authority; (iv) the
Northeast Illinois Regional Commuter Railroad Corporation; or
(v) the Chicago Transit Authority shall be exempt. For purposes
of this Section alone, the Regional Transportation Authority,
any service board or division of the Regional Transportation
Authority, the Northeast Illinois Regional Commuter Railroad
Corporation, the Chicago Transit Authority, or a municipal
corporation, as defined in item (i), shall be deemed an
"eligible transportation authority". The exemption provided in
this subsection shall not be affected by any transaction in

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which, for the purpose of obtaining financing, the eligible
transportation authority, directly or indirectly, leases or
otherwise transfers such property to another whose property is
not exempt and immediately thereafter enters into a leaseback
or other agreement that directly or indirectly gives the
eligible transportation authority a right to use, control, and
possess the property. In the case of a conveyance of such
property, the eligible transportation authority 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 eligible transportation authority.
(c) If such property has been conveyed as described in
subsection (b), the property will no longer be exempt pursuant
to this Section as of the date when:
(1) the right of the eligible transportation authority
to use, control, and possess the property has been
terminated;
(2) the eligible transportation authority no longer
has an option to purchase or otherwise acquire the
property; and
(3) there is no provision for a reverter of the
property to the eligible transportation authority within
the limitations period for reverters.
(d) Pursuant to Sections 15-15 and 15-20 of this Code, the
eligible transportation authority shall notify the chief
county assessment officer of any transaction under subsection

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(b) of this Section. The chief county assessment officer shall
determine initial and continuing compliance with the
requirements of this Section for tax exemption. Failure to
notify the chief county assessment officer of a transaction
under this Section or to otherwise comply with the requirements
of Sections 15-15 and 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.
(d-5) Notwithstanding any other provision of law, if
property that is described in subsection (a) or (b) of this
Section is leased to the State, a unit of local government, or
a school district, then that property is exempt, and those
leasehold interests are exempt, from taxation under this Code
or any other provision of law.
(e) No provision of this Section shall be construed to
affect the obligation of the eligible transportation authority
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.
(f) The changes made by this amendatory Act of 1997 are
declarative of existing law and shall not be construed as a new
enactment.
(Source: P.A. 90-562, eff. 12-16-97.)

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(35 ILCS 200/15-103)
Sec. 15-103. Bi-State Development Agency.
(a) Property owned by the Bi-State Development Agency of
the Missouri-Illinois Metropolitan District is exempt.
(b) The exemption under this Section is not affected by any
transaction in which, for the purpose of obtaining financing,
the Agency, 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 transfer enters
into a leaseback or other agreement that directly or indirectly
gives the Agency a right to use, control, and possess the
property. In the case of a conveyance of the property, the
Agency 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 Agency.
(c) If the property has been conveyed as described in
subsection (b), the property is no longer exempt under this
Section as of the date when:
(1) the right of the Agency to use, control, and
possess the property is terminated;
(2) the Agency no longer has an option to purchase or
otherwise acquire the property; and
(3) there is no provision for a reverter of the
property to the Agency within the limitations period for
reverters.

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(d) Pursuant to Sections 15-15 and 15-20 of this Code, the
Agency shall notify the chief county assessment officer of any
transaction under subsection (b). The chief county assessment
officer shall determine initial and continuing compliance with
the requirements of this Section for tax exemption. Failure to
notify the chief county assessment officer of a transaction
under this Section or to otherwise comply with the requirements
of Sections 15-15 and 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.
(d-5) Notwithstanding any other provision of law, property
that is owned by the Bi-State Development Agency of the
Missouri-Illinois Metropolitan District and leased to the
State, another unit of local government, or a school district
is exempt, and those leasehold interests are exempt, from
taxation under this Code or any other provision of law.
(e) No provision of this Section shall be construed to
affect the obligation of the Agency 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.
(Source: P.A. 91-513, eff. 8-13-99.)
Section 90. The State Mandates Act is amended by adding

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Section 8.36 as follows:
(30 ILCS 805/8.36 new)
Sec. 8.36. 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
years 2010 and thereafter. In addition, those changes and
additions 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.