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1		AN ACT concerning revenue.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Property Tax Code is amended by changing
5		Sections 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
8		Developments. Unless otherwise agreed to pursuant to a separate
9		settlement agreement, PPV Leases must be classified and valued
10		as set forth in Sections 10-370 through 10-380 during the
11		period beginning January 1, 2006 and ending December 31, 2055
12		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
16		14:
17		(a) "PPV Lease" means a leasehold interest in property that
18		is exempt from taxation under Section 15-50 of this Code and
19		that is leased, pursuant to authority set forth in Chapter 10
20		of the United States Code, to another whose property is not
21		exempt for the purpose of, after January 1, 2006, the design,
22		finance, construction, renovation, management, operation, and

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1		maintenance of rental housing units and associated
2		improvements at military training facilities, military bases,
3		and related military support facilities in the State of
4		Illinois. All interests enjoyed pursuant to the authority set
5		forth in Chapter 159 or Chapter 169 of Title 10 of the United
6		States Code are considered leaseholds for the purposes of this
7		Division. The changes to this Section made by this amendatory
8		Act of the 97th General Assembly apply beginning on January 1,
9		2006.
10		(b) For tax years prior to 2017, for For naval training
11		facilities, naval bases, and naval support facilities, "net
12		operating income" means all revenues received minus the lesser
13		of (i) 62% of all revenues or (ii) actual expenses before
14		interest, taxes, depreciation, and amortization. For all other
15		military training facilities, military bases, and related
16		military support facilities, "net operating income" means all
17		revenues received minus the lesser of (i) 42% of all revenues
18		or (ii) actual expenses before interest, taxes, depreciation,
19		and amortization.
20		(b-5) For tax year 2017 and thereafter, for naval training
21		facilities, naval bases, and naval support facilities, "net
22		operating income" means all revenues received minus the actual
23		expenses before interest, taxes, depreciation, and
24		amortization.
25		(c) "Tax load factor" means the level of assessment, as set
26		forth under item (b) of Section 9-145 or under Section 9-150,

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1		multiplied by the cumulative tax rate for the current taxable
2		year.
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
7		provided under item (b) of Section 9-145 or under Section
8		9-150.
9		(b) The fair cash value of a PPV Lease must be determined
10		by using an income capitalization approach.
11		(c) To determine the fair cash value of a PPV Lease, the
12		net operating income is divided by (i) a rate of 12% 7.75% plus
13		(ii) the actual or most recently ascertainable tax load factor
14		for the subject year.
15		(d) By April 15 of each year, the holder of a PPV Lease
16		must report to the chief county assessment officer in each
17		county in which the leasehold property is located the annual
18		gross income and expenses derived and incurred from the PPV
19		Lease, including the rental of leased property for each
20		military 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,
24		the chief county assessment officer in the county in which

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1		property subject to a PPV Lease is located shall apply the
2		provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this
3		Division 14 in assessing and determining the value of any PPV
4		Lease 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;
6		99-738, eff. 8-5-16.)
7		Section 99. Effective date. This Act takes effect upon
8		becoming law.