HB4046 Enrolled

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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. Exemption for leaseback property and 
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qualified leased property. 

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

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

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

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

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government (i) a right to use, control, and possess the 
 


 






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LRB096 11803 HLH 22634 b




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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. Property

shall no longer be exempt under this 
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subsection 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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    (b) Notwithstanding anything in this Code to
the
contrary, 
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all property owned by a municipality with a population of over

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

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inhabitants, or a municipality with home rule powers that is 
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contiguous to a municipality with a population of over 500,000 
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inhabitants,
shall remain exempt from taxation and any 
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leasehold interest in that property
is not
subject to taxation 
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under Section 9-195 if the property, including dedicated public 
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property, is used by a municipality or other unit of local 
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government for the purpose of an airport or parking or for 
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waste disposal or processing and is leased for continued use 
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for the same purpose to another entity whose property is not 
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exempt.
 


 






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    For the purposes of this subsection (b), "airport" does not 
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include any airport property, as defined under Section 10 of 
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the O'Hare Modernization Act.
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    Any transaction described under this subsection must be 
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undertaken in accordance with all appropriate federal laws and 
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regulations.
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    (c) For purposes of this Section, "municipality" means a 
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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; 94-750, eff. 5-9-06.)

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