Sen. James F. Clayborne, Jr.

Filed: 5/10/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 400

2    AMENDMENT NO. ______. Amend Senate Bill 400 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 15-185 as follows:
 
6    (35 ILCS 200/15-185)
7    Sec. 15-185. Exemption for leaseback property and
8qualified leased property.
9    (a) Notwithstanding anything in this Code to the contrary,
10all property owned by a municipality with a population of over
11500,000 inhabitants, a unit of local government whose
12jurisdiction includes territory located in whole or in part
13within a municipality with a population of over 500,000
14inhabitants, or a municipality with home rule powers that is
15contiguous to a municipality with a population of over 500,000
16inhabitants, shall remain exempt from taxation and any

 

 

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1leasehold interest in that property shall not be subject to
2taxation under Section 9-195 if the property is directly or
3indirectly leased, sold, or otherwise transferred to another
4entity whose property is not exempt and immediately thereafter
5is the subject of a leaseback or other agreement that directly
6or indirectly gives the municipality or unit of local
7government (i) a right to use, control, and possess the
8property or (ii) a right to require the other entity, or the
9other entity's designee or assignee, to use the property in the
10performance of services for the municipality or unit of local
11government. Property shall no longer be exempt under this
12subsection as of the date when the right of the municipality or
13unit of local government to use, control, and possess the
14property or to require the performance of services is
15terminated and the municipality or unit of local government no
16longer has any option to purchase or otherwise reacquire the
17interest in the property which was transferred by the
18municipality or unit of local government.
19    (b) Notwithstanding anything in this Code to the contrary,
20all property owned by a municipality with a population of over
21500,000 inhabitants, a unit of local government whose
22jurisdiction includes territory located in whole or in part
23within a municipality with a population of over 500,000
24inhabitants, or a municipality with home rule powers that is
25contiguous to a municipality with a population of over 500,000
26inhabitants, shall remain exempt from taxation and any

 

 

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1leasehold interest in that property is not subject to taxation
2under Section 9-195 if the property, including dedicated public
3property, is used by a municipality or other unit of local
4government for the purpose of an airport or parking or for
5waste disposal or processing and is leased for continued use
6for the same purpose to another entity whose property is not
7exempt.
8    For the purposes of this subsection (b), "airport" does not
9include any airport property, as defined under Section 10 of
10the O'Hare Modernization Act.
11    Any transaction described under this subsection must be
12undertaken in accordance with all appropriate federal laws and
13regulations.
14    (c) For purposes of this Section, "municipality" means a
15municipality as defined in Section 1-1-2 of the Illinois
16Municipal Code, and "unit of local government" means a unit of
17local government as defined in Article VII, Section 1 of the
18Constitution of the State of Illinois. The provisions of this
19Section supersede and control over any conflicting provisions
20of this Code.
21    (d) Notwithstanding anything in this Code to the contrary,
22(i) all property owned by an entity using the property in such
23a manner that it is not subject to real estate taxes pursuant
24to this Article 15 is exempt from real estate taxes, and such
25exemption is not affected by any transaction in which the
26entity, directly or indirectly, on or after the effective date

 

 

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1of this amendatory Act of the 97th General Assembly, leases,
2sells, or otherwise transfers the property to another entity
3for which or for whom property is not exempt, with or without a
4right to repurchase that property, and immediately after the
5lease or transfer enters into a leaseback or other agreement
6that directly or indirectly gives the initial entity a right to
7use, control, and possess the property for purposes that would
8qualify the property for a non-homestead real estate tax
9exemption pursuant to this Article 15 by virtue of its use or
10(ii) where, on or after the effective date of this amendatory
11Act of the 97th General Assembly, an entity leases new or
12existing property from another for purposes that would be
13exempt under this Article 15, that property shall be exempt
14from real estate taxes for the term of the lease, or any
15extension thereof, without regard to the nature or character of
16ownership and shall be treated for purposes of this Article 15
17as if the lessee were the owner of the property, as long as the
18property on which the leased improvements are or will be
19located is used for school, religious, or charitable purposes
20pursuant to that lease or any renewal thereof.
21    (e) Substantially all of the funds received from the
22conveyance of property subject to a leaseback agreement as
23described in subsection (d) of this Section must be used for
24capital improvement projects and related capital expenditures
25and all funds raised shall be used within the State of
26Illinois.

 

 

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1    (f) To the extent allowable by law, all construction
2projects using the provisions of subsection (d) above shall be
3subject to the provisions of the Illinois Prevailing Wage Act
4for the initial construction of the improvements and all
5bidders for those projects shall comply with the provisions of
6Section 30-22 of the Illinois Procurement Code.
7    (g) Project labor agreements for the construction projects
8referenced in subsection (f) above shall be required.
9(Source: P.A. 96-779, eff. 8-28-09.)
 
10    Section 97. Savings clause. If any provision of this Act or
11its application to any person or circumstance is held invalid
12by any Court of competent jurisdiction or any federal or State
13government agency having jurisdiction over the subject matter
14of this Act, the invalidity of that provision or application
15does not affect any other provisions or applications of this
16Act that can be given effect without the invalid provision or
17application which are severable under Section 1.31 of the
18Statute on Statutes.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".