Public Act 096-0779
 		





HB4046 Enrolled
LRB096 11803 HLH 22634 b






    AN ACT concerning revenue.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Property Tax Code is amended  by changing 
Section 15-185 as follows:
 



    (35 ILCS 200/15-185)



    Sec. 15-185. Exemption for leaseback property and 
qualified leased property. 

    (a) Notwithstanding anything in this Code to
the
contrary, 
all property owned by a municipality with a population of over

500,000
inhabitants, or a unit of local government whose 
jurisdiction includes
territory located in
whole or in part 
within a municipality with a population of over 500,000

inhabitants, or a municipality with home rule powers that is 
contiguous to a municipality with a population of over 500,000 
inhabitants,
shall remain exempt from taxation and any 
leasehold interest in that property
shall not be
subject to 
taxation under Section 9-195 if

the
property is directly or 
indirectly leased, sold, or otherwise transferred to
another 
entity
whose property is not exempt and immediately thereafter 
is the subject of a
leaseback or
other agreement that directly 
or indirectly gives the municipality or unit of
local

government (i) a right to use, control, and possess the 
property or (ii) a
right to require
the other entity, or the 
other entity's designee or assignee, to use the
property in the

performance of services for the municipality or unit of local 
government. Property

shall no longer be exempt under this 
subsection as of the date when the right of
the
municipality or 
unit of local government to use, control, and possess the

property or to
require the performance of services is 
terminated and the municipality or unit
of local
government no 
longer has any option to purchase or otherwise reacquire the

interest in
the property which was transferred by the 
municipality or unit of local
government.

    (b) Notwithstanding anything in this Code to
the
contrary, 
all property owned by a municipality with a population of over

500,000
inhabitants, or a unit of local government whose 
jurisdiction includes
territory located in
whole or in part 
within a municipality with a population of over 500,000

inhabitants, or a municipality with home rule powers that is 
contiguous to a municipality with a population of over 500,000 
inhabitants,
shall remain exempt from taxation and any 
leasehold interest in that property
is not
subject to taxation 
under Section 9-195 if the property, including dedicated public 
property, is used by a municipality or other unit of local 
government for the purpose of an airport or parking or for 
waste disposal or processing and is leased for continued use 
for the same purpose to another entity whose property is not 
exempt.
    For the purposes of this subsection (b), "airport" does not 
include any airport property, as defined under Section 10 of 
the O'Hare Modernization Act.
    Any transaction described under this subsection must be 
undertaken in accordance with all appropriate federal laws and 
regulations.
    (c) For purposes of this Section, "municipality" means a 
municipality as defined
in
Section 1-1-2 of the Illinois 
Municipal Code, and "unit of local government"
means a unit
of 
local government as defined in Article VII, Section 1 of the 
Constitution of
the State of
Illinois. The provisions of this 
Section supersede and control over any
conflicting
provisions 
of this Code.

(Source: P.A. 93-19, eff. 6-20-03; 94-750, eff. 5-9-06.)

 
    Section 99. Effective date. This Act takes effect upon 
becoming law.