94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB3057


 
Introduced 1/20/2006, by Sen. Don Harmon
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 200/15-185









    Amends the Property Tax Code. Makes a technical change in a Section concerning leaseback exemptions.
















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A BILL FOR









 











SB3057

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    AN ACT concerning revenue.

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


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



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    (35 ILCS 200/15-185)



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    Sec. 15-185. Leaseback exemption. Notwithstanding anything 
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in this
this Code to
the
contrary, all property owned by a 
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municipality with a population of over
500,000
inhabitants, or 
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a unit of local government whose jurisdiction includes

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territory located in
whole or in part within a municipality 
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with a population of over 500,000
inhabitants,
shall remain 
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exempt from taxation and any leasehold interest in that 
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property
shall not be
subject to taxation under Section 9-195 
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if, for the purpose of obtaining
financing, the
property is 
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directly or indirectly leased, sold, or otherwise transferred 
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to
another entity
whose property is not exempt and immediately 
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thereafter is the subject of a
leaseback or
other agreement 
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that directly or indirectly gives the municipality or unit of

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

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performance of services for the municipality or unit of local 
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government. The
property
shall no longer be exempt under this 
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Section as of the date when the right of
the
municipality or 
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unit of local government to use, control, and possess the

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

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

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    For purposes of this Section, "municipality" means a 
 


 






SB3057
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municipality as defined
in
Section 1-1-2 of the Illinois 
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Municipal Code, and "unit of local government"
means a unit
of 
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local government as defined in Article VII, Section 1 of the 
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Constitution of
the State of
Illinois. The provisions of this 
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Section supersede and control over any
conflicting
provisions 
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of this Code.

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(Source: P.A. 93-19, eff. 6-20-03.)