Bill Text: IL SB1456 | 2019-2020 | 101st General Assembly | Chaptered
Bill Title: Amends the Property Tax Code. Provides that certain leasehold property that is used for an airport, for parking, or for waste disposal or processing and is used for a non-exempt purpose is subject to taxation as a leasehold for the period of time during which it is used for that non-exempt purpose. Provides that the use of a portion of that property for a non-exempt purpose shall have no effect on (i) the exemption of the remaining portion of the property that continues to be used for an exempt purpose or (ii) the future exemption of that same portion of the property if it ceases to be used for a non-exempt purpose and returned to use for an exempt purpose.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0551 [SB1456 Detail]
Download: Illinois-2019-SB1456-Chaptered.html
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| Public Act 101-0551 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing | ||||
Section 15-185 as follows:
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(35 ILCS 200/15-185)
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Sec. 15-185. Exemption for leaseback property and | ||||
qualified leased property.
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(a) Notwithstanding anything in this Code to
the
contrary, | ||||
all property owned by a municipality with a population of over
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500,000
inhabitants, a unit of local government whose | ||||
jurisdiction includes
territory located in
whole or in part | ||||
within a municipality with a population of over 500,000
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inhabitants, or a municipality with home rule powers that is | ||||
contiguous to a municipality with a population of over 500,000 | ||||
inhabitants,
shall remain exempt from taxation and any | ||||
leasehold interest in that property
shall not be
subject to | ||||
taxation under Section 9-195 if
the
property is directly or | ||||
indirectly leased, sold, or otherwise transferred to
another | ||||
entity
whose property is not exempt and immediately thereafter | ||||
is the subject of a
leaseback or
other agreement that directly | ||||
or indirectly gives the municipality or unit of
local
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government (i) a right to use, control, and possess the | ||||
property or (ii) a
right to require
the other entity, or the | ||
other entity's designee or assignee, to use the
property in the
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performance of services for the municipality or unit of local | ||
government. Property
shall no longer be exempt under this | ||
subsection as of the date when the right of
the
municipality or | ||
unit of local government to use, control, and possess the
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property or to
require the performance of services is | ||
terminated and the municipality or unit
of local
government no | ||
longer has any option to purchase or otherwise reacquire the
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interest in
the property which was transferred by the | ||
municipality or unit of local
government.
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(b) Notwithstanding anything in this Code to
the
contrary, | ||
all property owned by a municipality with a population of over
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500,000
inhabitants, a unit of local government whose | ||
jurisdiction includes
territory located in
whole or in part | ||
within a municipality with a population of over 500,000
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inhabitants, or a municipality with home rule powers that is | ||
contiguous to a municipality with a population of over 500,000 | ||
inhabitants,
shall remain exempt from taxation and any | ||
leasehold interest in that property
is not
subject to taxation | ||
under Section 9-195 if the property, including dedicated public | ||
property, is used by a municipality or other unit of local | ||
government for the purpose of an airport or parking or for | ||
waste disposal or processing and is leased for continued use | ||
for the same purpose to another entity whose property is not | ||
exempt. If property located in a municipality with a population | ||
of more than 500,000 inhabitants is not subject to taxation due | ||
to its use for the purpose of parking, and any portion of the | ||
property is used for a purpose other than parking, that portion | ||
of the property shall be subject to taxation under Section | ||
9-195 for the period of time during which it is used for that | ||
non-exempt purpose; provided, however, that the use of a | ||
portion of such property for a non-exempt purpose shall have no | ||
effect on (i) the exemption of the remaining portion of the | ||
property that continues to be used for an exempt purpose, as | ||
identified in this subsection, or (ii) the future exemption of | ||
that same portion of the property if it ceases to be used for a | ||
non-exempt purpose and returned to use for an exempt purpose as | ||
identified in this subsection. No taxes shall be assessed on | ||
any portion of the property identified in this subsection prior | ||
to the effective date of this amendatory Act of the 101st | ||
General Assembly. | ||
For the purposes of this subsection (b), "airport" does not | ||
include any airport property, as defined under Section 10 of | ||
the O'Hare Modernization Act. | ||
Any transaction described under this subsection must be | ||
undertaken in accordance with all appropriate federal laws and | ||
regulations. | ||
(c) For purposes of this Section, "municipality" means a | ||
municipality as defined
in
Section 1-1-2 of the Illinois | ||
Municipal Code, and "unit of local government"
means a unit
of | ||
local government as defined in Article VII, Section 1 of the | ||
Constitution of
the State of
Illinois. The provisions of this | ||
Section supersede and control over any
conflicting
provisions | ||
of this Code.
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(Source: P.A. 96-779, eff. 8-28-09.)
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