(35 ILCS 200/15-100)
Public transportation systems.
(a) All property belonging to any
municipal corporation created for the sole purpose of owning and operating a
transportation system for public service is exempt.
(b) Property owned by
(i) a municipal corporation of 500,000 or more
inhabitants, used for public transportation purposes, and
operated by the Chicago Transit Authority;
(ii) the Regional Transportation Authority;
service board or division of the Regional Transportation Authority; (iv) the
Northeast Illinois Regional Commuter Railroad Corporation; or
(v) the Chicago Transit Authority
shall be exempt.
For purposes of this Section alone,
the Regional Transportation Authority, any service board or division of the
Regional Transportation Authority, the Northeast Illinois Regional Commuter
Railroad Corporation, the Chicago Transit Authority, or a
municipal corporation, as defined in item (i),
shall be deemed an "eligible transportation authority". The
exemption provided in this subsection shall not be affected by any transaction
in which, for
the purpose of obtaining financing, the eligible transportation authority,
indirectly, leases or otherwise transfers such property to another whose
property is not exempt and immediately thereafter enters into a leaseback or
other agreement that directly or indirectly gives the eligible transportation
a right to use, control, and possess the property. In the case of a conveyance
of such property, the eligible transportation authority must retain an option
purchase the property at a future date or, within the limitations period for
reverters, the property must revert back to the eligible transportation
(c) If such property has been conveyed as described in subsection (b), the
property will no longer be exempt pursuant to this Section as of the date when:
(1) the right of the eligible transportation
authority to use, control, and possess the property has been terminated;
(2) the eligible transportation authority no longer
has an option to purchase or otherwise acquire the property; and
(3) there is no provision for a reverter of the
property to the eligible transportation authority within the limitations period for reverters.
(d) Pursuant to Sections 15-15 and 15-20 of this Code, the eligible
transportation authority shall notify the chief county assessment officer of
any transaction under subsection (b) of this Section. The chief county
assessment officer shall
determine initial and continuing compliance with the requirements of this
Section for tax exemption. Failure to notify the chief county assessment
officer of a transaction under this Section or to otherwise comply with the
requirements of Sections
15-15 and 15-20 of this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the exemption,
notwithstanding any other provision of this Code.
(e) No provision of this Section shall be construed to affect the obligation
of the eligible transportation authority to which an exemption certificate has
under this Section from its obligation under Section 15-10 of this Code to file
an annual certificate of status or to notify the chief county assessment
officer of transfers of interest or other changes in the status of the property
as required by this Code.
(f) The changes made by this amendatory Act of 1997 are declarative of
existing law and shall not be construed as a new enactment.
(Source: P.A. 90-562, eff. 12-16-97.)