SB0665sam002 102ND GENERAL ASSEMBLY

Sen. Bill Cunningham

Filed: 4/1/2021

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 665

2    AMENDMENT NO. ______. Amend Senate Bill 665 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by adding
5Section 15-62 as follows:
 
6    (35 ILCS 200/15-62 new)
7    Sec. 15-62. Exemption for lease or sale of property for
8cultivation and sale of fresh fruits and vegetables or
9recreation. Property that is leased or conveyed to a nonprofit
10corporation or association for cultivation and sale of fresh
11fruits and vegetables or recreation under Section 11-11-4 of
12the Illinois Municipal Code is exempt when actually and
13exclusively used such purposes and not leased or otherwise
14used with a view to profit.
15    The Department of Revenue shall, by rule, develop an
16application process for a nonprofit corporation or association

 

 

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1to prove it will be eligible for the property tax exemption
2under this Section once the property is leased or sold to it by
3the municipality. Once eligibility has been established, the
4Department shall issue an exemption certificate, contingent on
5the lease or conveyance, to the nonprofit corporation or
6association and, thereafter, an annual certificate of status
7upon proof of continued eligibility.
 
8    Section 10. The Illinois Municipal Code is amended by
9adding Section 11-11-4 as follows:
 
10    (65 ILCS 5/11-11-4 new)
11    Sec. 11-11-4. Lease or sale of property for cultivation
12and sale of fresh fruits and vegetables or recreation.
13    (a) The General Assembly finds:
14        (1) There exists in certain older, urban
15    municipalities an excess of vacant property that is not
16    needed for public use.
17        (2) Vacant properties present numerous problems for
18    these municipalities, such as: presenting the opportunity
19    for criminal activity; deterring neighboring property
20    owners from improving their properties and prospective
21    purchasers and renters from locating into these areas; and
22    serving as a location to dispose of unwanted items.
23        (3) These municipalities are often centers of high and
24    increasing populations and population densities comprised,

 

 

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1    in part, of lower-income families.
2        (4) Due, in part, to increasing population densities,
3    the deterioration of infrastructure, such as parks, and
4    fiscal constraints, these municipalities have been
5    challenged to offer residents opportunities to enhance the
6    quality of their lives.
7        (5) Due to the scarcity of full service supermarkets
8    and farmer's markets within these municipalities,
9    municipal residents often suffer from a shortage of fresh
10    fruits and vegetables.
11        (6) The shortages of recreational opportunities and
12    sources of fresh fruits and vegetables have contributed to
13    alarming increases in childhood obesity and other adverse
14    health consequences for municipal residents.
15        (7) It would be beneficial to enlist nonprofit
16    corporation or associations to develop these properties
17    for a range of public purposes that could enhance the
18    recreational, educational, and nutritional needs of local
19    residents.
20        (8) Authorization for municipalities to lease and sell
21    vacant land to nonprofit entities to cultivate these lands
22    can provide both recreational opportunities and a source
23    of fresh, locally-grown fruits and vegetables for local
24    residents.
25        (9) The nonprofit cultivation of previously vacant
26    land by nonprofit entities is a public purpose for which

 

 

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1    the long term lease and sale of these properties, and
2    exemption from property taxation, is warranted, even in
3    those instances when produce is sold to further the
4    mission of these nonprofit corporations or associations.
5    (b) A leasehold for a term not in excess of 25 years may be
6made with a nonprofit corporation or association, and extended
7in increments of no more than 25 years, by ordinance or
8resolution thereafter for any purpose described under
9subsection (a), including, but not limited to:
10        (1) The cultivation or use of vacant lots for
11    gardening or recreational purposes.
12        (2) The lease of a tract of land to sell fresh fruits
13    and vegetables. Any lease entered into pursuant to this
14    paragraph may permit the nonprofit corporation or
15    association to sell fresh fruits and vegetables on the
16    leased land, off the leased land, or both, provided, that
17    the sales are related and incidental to the nonprofit
18    purposes of the corporation or association and the net
19    proceeds received by the nonprofit corporation or
20    association are used to further the nonprofit purposes of
21    the corporation or association.
22    (c) When the city council of a municipality determines
23that all or any part of a municipal-owned tract of land, with
24or without improvements, is not then needed for municipal
25purposes, the city council may, by resolution or ordinance,
26authorize a private sale and conveyance of the same, or any

 

 

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1part thereof, for nominal consideration, without compliance
2with any other law governing disposal of lands by
3municipalities requiring adequate consideration, to a
4nonprofit corporation or association for use for any purpose
5described under subsection (a). Such conveyance shall contain
6a limitation that the lands or buildings shall be used only for
7the purposes of such organization or association, and to
8render such services or to provide such facilities as may be
9agreed upon and, if said lands or buildings are not used in
10accordance with the limitation, title shall revert back to the
11municipality without any entry or reentry made on the property
12on behalf of the municipality.
13    Whenever a sale of property is proposed pursuant to this
14subsection, the municipality shall give at least 10 days'
15notice of such sale prior to a public hearing where an
16ordinance or resolution approving the sale is adopted.
17    Property subject to an unexpired lease under subsection
18(b) is not eligible to be sold under this subsection, unless
19the lease would allow such a sale.
20    (d) If the nonprofit organization or association uses the
21property leased or purchased under this Section for the
22cultivation and sale of fresh fruits and vegetables on a tract
23of land, the nonprofit organization or association may not be
24controlled, directly or indirectly, by any agricultural,
25commercial, or other business. The nonprofit organization or
26association is authorized to sell fresh fruits and vegetables

 

 

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1either on the land that was leased or conveyed, off that land,
2or both, and the sales must be related and incidental to the
3nonprofit purposes of the organization or association and the
4net proceeds received by the nonprofit organization or
5association must be used to further the nonprofit purposes of
6the organization or association.
7    (e) Property leased or conveyed under this Section is
8exempt from property taxation under under the Property Tax
9Code if the property is actually used for the cultivation and
10sale of fresh fruits and vegetables and owned by a nonprofit
11organization or association that includes among its principal
12purposes the cultivation and sale of fresh fruits and
13vegetables. Before property may be leased or conveyed under
14this Section, the nonprofit organization or association shall
15provide to the municipality an exemption certificate issued
16under Section 15-62 of the Property Tax Code.".