Bill Text: IL SB3210 | 2011-2012 | 97th General Assembly | Engrossed


Bill Title: Amends the Property Tax Code. In a Section concerning exemptions for leaseback property, provides that the Section applies to all property that is exempt under Article 15 of the Property Tax Code. Provides that, for exemption purposes, the property shall be treated as though the lessee were the owner of the property as long as the property on which the leased improvements is located is used for school, religious, or charitable purposes pursuant to that lease or any renewal of that lease. Contains provisions requiring that the funds received from the conveyance of the property must be used for certain purposes. Provides that projects using funds from the sale of certain property that is subject to a leaseback are subject to the provisions of the Illinois Prevailing Wage Act for the initial construction of the improvements and all bidders for those projects shall comply with the Illinois Procurement Code. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3210 Detail]

Download: Illinois-2011-SB3210-Engrossed.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
5Section 15-185 as follows:
6 (35 ILCS 200/15-185)
7 Sec. 15-185. Exemption for leaseback property and
8qualified leased property.
9 (a) Notwithstanding anything in this Code to the contrary,
10all property owned by a municipality with a population of over
11500,000 inhabitants, a unit of local government whose
12jurisdiction includes territory located in whole or in part
13within a municipality with a population of over 500,000
14inhabitants, or a municipality with home rule powers that is
15contiguous to a municipality with a population of over 500,000
16inhabitants, shall remain exempt from taxation and any
17leasehold interest in that property shall not be subject to
18taxation under Section 9-195 if the property is directly or
19indirectly leased, sold, or otherwise transferred to another
20entity whose property is not exempt and immediately thereafter
21is the subject of a leaseback or other agreement that directly
22or indirectly gives the municipality or unit of local
23government (i) a right to use, control, and possess the

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1property or (ii) a right to require the other entity, or the
2other entity's designee or assignee, to use the property in the
3performance of services for the municipality or unit of local
4government. Property shall no longer be exempt under this
5subsection as of the date when the right of the municipality or
6unit of local government to use, control, and possess the
7property or to require the performance of services is
8terminated and the municipality or unit of local government no
9longer has any option to purchase or otherwise reacquire the
10interest in the property which was transferred by the
11municipality or unit of local government.
12 (b) Notwithstanding anything in this Code to the contrary,
13all property owned by a municipality with a population of over
14500,000 inhabitants, a unit of local government whose
15jurisdiction includes territory located in whole or in part
16within a municipality with a population of over 500,000
17inhabitants, or a municipality with home rule powers that is
18contiguous to a municipality with a population of over 500,000
19inhabitants, shall remain exempt from taxation and any
20leasehold interest in that property is not subject to taxation
21under Section 9-195 if the property, including dedicated public
22property, is used by a municipality or other unit of local
23government for the purpose of an airport or parking or for
24waste disposal or processing and is leased for continued use
25for the same purpose to another entity whose property is not
26exempt.

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1 For the purposes of this subsection (b), "airport" does not
2include any airport property, as defined under Section 10 of
3the O'Hare Modernization Act.
4 Any transaction described under this subsection must be
5undertaken in accordance with all appropriate federal laws and
6regulations.
7 (c) For purposes of this Section, "municipality" means a
8municipality as defined in Section 1-1-2 of the Illinois
9Municipal Code, and "unit of local government" means a unit of
10local government as defined in Article VII, Section 1 of the
11Constitution of the State of Illinois. The provisions of this
12Section supersede and control over any conflicting provisions
13of this Code.
14 (d) Notwithstanding any provision of this Code to the
15contrary, in the case of a healthcare facility that is located
16within the cities of Rockford, Pontiac, Bloomington,
17Galesburg, Monmouth, or Peoria, or located within 20 miles of
18the municipal boundaries of any of those cities:
19 (1) if the property is owned by an entity that uses the
20 property as a healthcare facility and in such a manner that
21 the property is exempt from taxation under this Article 15,
22 then that property is exempt from real estate taxes, and
23 that exemption is not affected by any transaction in which
24 the entity, directly or indirectly, on or after the
25 effective date of this amendatory Act of the 97th General
26 Assembly, leases, sells, or otherwise transfers the

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1 property to another entity for which or for whom property
2 is not exempt, with or without a right to repurchase that
3 property, and immediately after the lease or transfer
4 enters into a leaseback or other agreement that directly or
5 indirectly gives the initial entity a right to use,
6 control, and possess the property as a healthcare facility
7 in a manner that would qualify the property for a
8 non-homestead real estate tax exemption pursuant to this
9 Article 15 by virtue of its use; or
10 (2) if, on or after the effective date of this
11 amendatory Act of the 97th General Assembly, an entity
12 leases such new or existing healthcare facility property
13 from another for purposes that would be exempt under this
14 Article 15, that property is exempt from real estate taxes
15 for the term of the lease, or any extension thereof,
16 without regard to the nature or character of ownership and
17 shall be treated for purposes of this Article 15 as if the
18 lessee were the owner of the property, as long as the
19 property on which the leased improvements are or will be
20 located is used as a healthcare facility pursuant to that
21 lease or any renewal thereof.
22 For the purposes of this subsection (d), "healthcare
23facility" has the same meaning as provided in Section 10 of the
24Smoke Free Illinois Act.
25 (e) Substantially all of the funds received from the
26conveyance of property subject to a leaseback agreement as

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1described in subsection (d) of this Section must be used for
2capital improvement projects and related capital expenditures
3and all funds raised shall be used within the State of
4Illinois.
5 (f) To the extent allowable by law, all construction
6projects using the provisions of subsection (d) above shall be
7subject to the provisions of the Illinois Prevailing Wage Act
8for the initial construction of the improvements and all
9bidders for those projects shall comply with the provisions of
10Section 30-22 of the Illinois Procurement Code.
11 (g) Project labor agreements for the construction projects
12referenced in subsection (f) above shall be required.
13(Source: P.A. 96-779, eff. 8-28-09.)
14 Section 97. Savings clause. If any provision of this Act or
15its application to any person or circumstance is held invalid
16by any Court of competent jurisdiction or any federal or State
17government agency having jurisdiction over the subject matter
18of this Act, the invalidity of that provision or application
19does not affect any other provisions or applications of this
20Act that can be given effect without the invalid provision or
21application which are severable under Section 1.31 of the
22Statute on Statutes.
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