Bill Text: IL SB1598 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Property Tax Code. Provides that the valuation procedures for PPV leases sunsets on January 1, 2056 (currently, January 1, 2016). Provides that the definition of "net operating income" is the same for naval training facilities as it is for other military training facilities. Makes changes concerning the calculation of the fair cash value of a PPV Lease. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Enrolled) 2017-06-29 - Sent to the Governor [SB1598 Detail]

Download: Illinois-2017-SB1598-Enrolled.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Sections 10-365, 10-370, 10-375, and 10-380 as follows:
6 (35 ILCS 200/10-365)
7 Sec. 10-365. U.S. Military Public/Private Residential
8Developments. Unless otherwise agreed to pursuant to a separate
9settlement agreement pursuant to Section 10-385 of this Code,
10PPV Leases must be classified and valued as set forth in
11Sections 10-370 through 10-380 during the period beginning
12January 1, 2006 and ending December 31, 2055 January 1, 2017.
13(Source: P.A. 98-494, eff. 1-1-14; 99-738, eff. 8-5-16.)
14 (35 ILCS 200/10-370)
15 Sec. 10-370. Definitions. For the purposes of this Division
1614:
17 (a) "PPV Lease" means a leasehold interest in property that
18is exempt from taxation under Section 15-50 of this Code and
19that is leased, pursuant to authority set forth in Chapter 10
20of the United States Code, to another whose property is not
21exempt for the purpose of, after January 1, 2006, the design,
22finance, construction, renovation, management, operation, and

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1maintenance of rental housing units and associated
2improvements at military training facilities, military bases,
3and related military support facilities in the State of
4Illinois. All interests enjoyed pursuant to the authority set
5forth in Chapter 159 or Chapter 169 of Title 10 of the United
6States Code are considered leaseholds for the purposes of this
7Division. The changes to this Section made by this amendatory
8Act of the 97th General Assembly apply beginning on January 1,
92006.
10 (b) For tax years prior to 2017, for For naval training
11facilities, naval bases, and naval support facilities, "net
12operating income" means all revenues received minus the lesser
13of (i) 62% of all revenues or (ii) actual expenses before
14interest, taxes, depreciation, and amortization. For all other
15military training facilities, military bases, and related
16military support facilities, "net operating income" means all
17revenues received minus the lesser of (i) 42% of all revenues
18or (ii) actual expenses before interest, taxes, depreciation,
19and amortization.
20 (b-5) For tax year 2017 and thereafter, for naval training
21facilities, naval bases, and naval support facilities, "net
22operating income" means all revenues received minus the actual
23expenses before interest, taxes, depreciation, and
24amortization.
25 (c) "Tax load factor" means the level of assessment, as set
26forth under item (b) of Section 9-145 or under Section 9-150,

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1multiplied by the cumulative tax rate for the current taxable
2year.
3(Source: P.A. 97-942, eff. 8-10-12; 98-494, eff. 1-1-14.)
4 (35 ILCS 200/10-375)
5 Sec. 10-375. Valuation.
6 (a) A PPV Lease must be valued at its fair cash value, as
7provided under item (b) of Section 9-145 or under Section
89-150.
9 (b) The fair cash value of a PPV Lease must be determined
10by using an income capitalization approach.
11 (c) To determine the fair cash value of a PPV Lease, the
12net operating income is divided by (i) a rate of 12% 7.75% plus
13(ii) the actual or most recently ascertainable tax load factor
14for the subject year.
15 (d) By April 15 of each year, the holder of a PPV Lease
16must report to the chief county assessment officer in each
17county in which the leasehold property is located the annual
18gross income and expenses derived and incurred from the PPV
19Lease, including the rental of leased property for each
20military housing facility subject to a PPV Lease.
21(Source: P.A. 94-974, eff. 6-30-06.)
22 (35 ILCS 200/10-380)
23 Sec. 10-380. For the taxable years 2006 through 2055 2016,
24the chief county assessment officer in the county in which

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1property subject to a PPV Lease is located shall apply the
2provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this
3Division 14 in assessing and determining the value of any PPV
4Lease for purposes of the property tax laws of this State.
5(Source: P.A. 98-463, eff. 8-16-13; 98-494, eff. 1-1-14;
699-738, eff. 8-5-16.)
7 Section 99. Effective date. This Act takes effect upon
8becoming law.
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