101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3426
 
Introduced , by Rep. Terra Costa Howard
 
SYNOPSIS AS INTRODUCED:
 

 



35 ILCS 200/9-195

     Amends the Property Tax Code. Provides that, if an airport authority enters into a lease with a tenant to occupy space on airport premises, and the tenant is liable for the payment of property taxes on the property, the lease shall contain certain language regarding the liability of the tenant for unpaid taxes. Provides that, if the tenant fails to make timely payment of those taxes, the tenant shall be liable for an additional penalty not to exceed the amount of taxes in arrears. Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB3426LRB101 09016 HLH 54109 b


  
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 9-195 as follows:
 


6    (35 ILCS 200/9-195)




7    (Text of Section WITH the changes made by P.A. 97-1161, 
8which has been held unconstitutional)
9    Sec. 9-195. Leasing of exempt property. 

10    (a) Except as provided in Sections 15-35, 15-55, 15-60, 
1115-100,
15-103, 15-160, and 15-185,
when property which is 
12exempt from taxation is leased to another whose property
is not 
13exempt, and the leasing of which does not make the property 
14taxable,
the leasehold estate and the appurtenances shall be 
15listed as the property of
the lessee thereof, or his or her 
16assignee. Taxes on that property shall be
collected in the same 
17manner as on property that is not exempt, and the lessee
shall 
18be liable for those taxes.  However, no tax lien shall attach to 
19the
exempt real estate. The changes made by Public Act 90-562 
20and by Public Act 91-513 are declaratory of existing law
and 
21shall not be construed as a new enactment.  The changes made by 
22Public Acts
88-221 and 88-420 that are incorporated into this 
23Section by Public Act 88-670 are declarative of existing law 
 
 
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1and are not a new enactment.

2    (b) The provisions of this Section regarding taxation of 
3leasehold interests
in exempt property do not apply to any 
4leasehold interest created pursuant to
any transaction 
5described in subsection (e) of Section 15-35, subsection (c-5)

6of Section 15-60, subsection (b) of Section 15-100, Section 
715-103, Section 15-160, or
Section 15-185 of this Code or 
8Section 6c of the Downstate Forest Preserve District Act.

9    (c) If an airport authority enters into a lease with a 
10tenant to occupy space on airport premises, and the tenant is 
11liable for the payment of property taxes on the property, the 
12lease shall contain the following language: 
13        "Lessee shall be liable for the payment of property 
14    taxes with respect to the leasehold interest in accordance 
15    with the terms and conditions of Section 9-195 of the 
16    Property Tax Code.". 
17    If a tenant described in this subsection (c) is liable for 
18the payment of property taxes, and the tenant fails to make 
19timely payment of those taxes, the tenant shall be liable for 
20an additional penalty not to exceed the amount of taxes in 
21arrears. 
22(Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)

 
23    (Text of Section WITHOUT the changes made by P.A. 97-1161, 
24which has been held unconstitutional)
25    Sec. 9-195. Leasing of exempt property. 

 
 
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1    (a) Except as provided in Sections 15-35, 15-55, 15-60, 
215-100,
15-103,  and 15-185,
when property which is exempt from 
3taxation is leased to another whose property
is not exempt, and 
4the leasing of which does not make the property taxable,
the 
5leasehold estate and the appurtenances shall be listed as the 
6property of
the lessee thereof, or his or her assignee. Taxes 
7on that property shall be
collected in the same manner as on 
8property that is not exempt, and the lessee
shall be liable for 
9those taxes.  However, no tax lien shall attach to the
exempt 
10real estate. The changes made by Public Act 90-562 and by 
11Public Act 91-513 are declaratory of existing law
and shall not 
12be construed as a new enactment.  The changes made by Public 
13Acts
88-221 and 88-420 that are incorporated into this Section 
14by Public Act 88-670 are declarative of existing law and are 
15not a new enactment.

16    (b) The provisions of this Section regarding taxation of 
17leasehold interests
in exempt property do not apply to any 
18leasehold interest created pursuant to
any transaction 
19described in subsection (e) of Section 15-35, subsection (c-5)

20of Section 15-60, subsection (b) of Section 15-100, Section 
2115-103, or
Section 15-185 of this Code or Section 6c of the 
22Downstate Forest Preserve District Act.

23    (c) If an airport authority enters into a lease with a 
24tenant to occupy space on airport premises, and the tenant is 
25liable for the payment of property taxes on the property, the 
26lease shall contain the following language: 
 
 
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1        "Lessee shall be liable for the payment of property 
2    taxes with respect to the leasehold interest in accordance 
3    with the terms and conditions of Section 9-195 of the 
4    Property Tax Code.". 
5    If a tenant described in this subsection (c) is liable for 
6the payment of property taxes, and the tenant fails to make 
7timely payment of those taxes, the tenant shall be liable for 
8an additional penalty not to exceed the amount of taxes in 
9arrears. 
10(Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)
 
 
11    Section 99. Effective date. This Act takes effect upon 
12becoming law.