100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4914

 

Introduced , by Rep. Robert W. Pritchard

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-35

    Amends the Property Tax Code. Provides that school-approved nonprofit dormitory or residence halls occupied in whole or in part by students who belong to fraternities, sororities, or other campus organizations are exempt. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 15-35 as follows:
 
6    (35 ILCS 200/15-35)
7    Sec. 15-35. Schools. All property donated by the United
8States for school purposes, and all property of schools, not
9sold or leased or otherwise used with a view to profit, is
10exempt, whether owned by a resident or non-resident of this
11State or by a corporation incorporated in any state of the
12United States. Also exempt is:
13        (a) property of schools which is leased to a
14    municipality to be used for municipal purposes on a
15    not-for-profit basis;
16        (b) property of schools on which the schools are
17    located and any other property of schools used by the
18    schools exclusively for school purposes, including, but
19    not limited to, student residence halls, dormitories and
20    other housing facilities for students and their spouses and
21    children, staff housing facilities, and school-owned and
22    operated dormitory or residence halls occupied in whole or
23    in part by students who belong to fraternities, sororities,

 

 

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1    or other campus organizations, and school-approved
2    nonprofit dormitory or residence halls occupied in whole or
3    in part by students who belong to fraternities, sororities,
4    or other campus organizations;
5        (c) property donated, granted, received or used for
6    public school, college, theological seminary, university,
7    or other educational purposes, whether held in trust or
8    absolutely;
9        (d) in counties with more than 200,000 inhabitants
10    which classify property, property (including interests in
11    land and other facilities) on or adjacent to (even if
12    separated by a public street, alley, sidewalk, parkway or
13    other public way) the grounds of a school, if that property
14    is used by an academic, research or professional society,
15    institute, association or organization which serves the
16    advancement of learning in a field or fields of study
17    taught by the school and which property is not used with a
18    view to profit;
19        (e) property owned by a school district. The exemption
20    under this subsection is not affected by any transaction in
21    which, for the purpose of obtaining financing, the school
22    district, directly or indirectly, leases or otherwise
23    transfers the property to another for which or whom
24    property is not exempt and immediately after the lease or
25    transfer enters into a leaseback or other agreement that
26    directly or indirectly gives the school district a right to

 

 

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1    use, control, and possess the property. In the case of a
2    conveyance of the property, the school district must retain
3    an option to purchase the property at a future date or,
4    within the limitations period for reverters, the property
5    must revert back to the school district.
6            (1) If the property has been conveyed as described
7        in this subsection, the property is no longer exempt
8        under this Section as of the date when:
9                (A) the right of the school district to use,
10            control, and possess the property is terminated;
11                (B) the school district no longer has an option
12            to purchase or otherwise acquire the property; and
13                (C) there is no provision for a reverter of the
14            property to the school district within the
15            limitations period for reverters.
16            (2) Pursuant to Sections 15-15 and 15-20 of this
17        Code, the school district shall notify the chief county
18        assessment officer of any transaction under this
19        subsection. The chief county assessment officer shall
20        determine initial and continuing compliance with the
21        requirements of this subsection for tax exemption.
22        Failure to notify the chief county assessment officer
23        of a transaction under this subsection or to otherwise
24        comply with the requirements of Sections 15-15 and
25        15-20 of this Code shall, in the discretion of the
26        chief county assessment officer, constitute cause to

 

 

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1        terminate the exemption, notwithstanding any other
2        provision of this Code.
3            (3) No provision of this subsection shall be
4        construed to affect the obligation of the school
5        district to which an exemption certificate has been
6        issued under this Section from its obligation under
7        Section 15-10 of this Code to file an annual
8        certificate of status or to notify the chief county
9        assessment officer of transfers of interest or other
10        changes in the status of the property as required by
11        this Code.
12            (4) The changes made by this amendatory Act of the
13        91st General Assembly are declarative of existing law
14        and shall not be construed as a new enactment; and
15        (f) in counties with more than 200,000 inhabitants
16    which classify property, property of a corporation, which
17    is an exempt entity under paragraph (3) of Section 501(c)
18    of the Internal Revenue Code or its successor law, used by
19    the corporation for the following purposes: (1) conducting
20    continuing education for professional development of
21    personnel in energy-related industries; (2) maintaining a
22    library of energy technology information available to
23    students and the public free of charge; and (3) conducting
24    research in energy and environment, which research results
25    could be ultimately accessible to persons involved in
26    education.

 

 

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1(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
292-16, eff. 6-28-01.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.