98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3408

 

Introduced 2/14/2014, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/9-195
35 ILCS 200/15-60
35 ILCS 200/21-95
30 ILCS 805/8.38 new

    Amends the Property Tax Code. Provides that certain property owned by a county, municipality, taxing district, unit of local government, or by one or more municipalities pursuant to an ordinance or intergovernmental agreement, that is held for land bank purposes is exempt from taxation under the Code. Provides that the property remains exempt even if the property is leased to another entity whose property is not exempt. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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
5Sections 9-195, 15-60, and 21-95 as follows:
 
6    (35 ILCS 200/9-195)
7    Sec. 9-195. Leasing of exempt property.
8    (a) Except as provided in Sections 15-35, 15-55, 15-60,
915-100, 15-103, 15-160, and 15-185, when property which is
10exempt from taxation is leased to another whose property is not
11exempt, and the leasing of which does not make the property
12taxable, the leasehold estate and the appurtenances shall be
13listed as the property of the lessee thereof, or his or her
14assignee. Taxes on that property shall be collected in the same
15manner as on property that is not exempt, and the lessee shall
16be liable for those taxes. However, no tax lien shall attach to
17the exempt real estate. The changes made by this amendatory Act
18of 1997 and by this amendatory Act of the 91st General Assembly
19are declaratory of existing law and shall not be construed as a
20new enactment. The changes made by Public Acts 88-221 and
2188-420 that are incorporated into this Section by this
22amendatory Act of 1993 are declarative of existing law and are
23not a new enactment.

 

 

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1    (b) The provisions of this Section regarding taxation of
2leasehold interests in exempt property do not apply to any
3leasehold interest created pursuant to any transaction
4described in subsection (e) of Section 15-35, subsection (c-5)
5or (g) of Section 15-60, subsection (b) of Section 15-100,
6Section 15-103, Section 15-160, or Section 15-185.
7(Source: P.A. 97-1161, eff. 6-1-13.)
 
8    (35 ILCS 200/15-60)
9    Sec. 15-60. Taxing district property. All property
10belonging to any county or municipality used exclusively for
11the maintenance of the poor is exempt, as is all property owned
12by a taxing district that is being held for future expansion or
13development, except if leased by the taxing district to lessees
14for use for other than public purposes.
15    Also exempt are:
16        (a) all swamp or overflowed lands belonging to any
17    county;
18        (b) all public buildings belonging to any county,
19    township, or municipality, with the ground on which the
20    buildings are erected;
21        (c) all property owned by any municipality located
22    within its incorporated limits. Any such property leased by
23    a municipality shall remain exempt, and the leasehold
24    interest of the lessee shall be assessed under Section
25    9-195 of this Act, (i) for a lease entered into on or after

 

 

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1    January 1, 1994, unless the lease expressly provides that
2    this exemption shall not apply; (ii) for a lease entered
3    into on or after the effective date of Public Act 87-1280
4    and before January 1, 1994, unless the lease expressly
5    provides that this exemption shall not apply or unless
6    evidence other than the lease itself substantiates the
7    intent of the parties to the lease that this exemption
8    shall not apply; and (iii) for a lease entered into before
9    the effective date of Public Act 87-1280, if the terms of
10    the lease do not bind the lessee to pay the taxes on the
11    leased property or if, notwithstanding the terms of the
12    lease, the municipality has filed or hereafter files a
13    timely exemption petition or complaint with respect to
14    property consisting of or including the leased property for
15    an assessment year which includes part or all of the first
16    12 months of the lease period. The foregoing clause (iii)
17    added by Public Act 87-1280 shall not operate to exempt
18    property for any assessment year as to which no timely
19    exemption petition or complaint has been filed by the
20    municipality or as to which an administrative or court
21    decision denying exemption has become final and
22    nonappealable. For each assessment year or portion thereof
23    that property is made exempt by operation of the foregoing
24    clause (iii), whether such year or portion is before or
25    after the effective date of Public Act 87-1280, the
26    leasehold interest of the lessee shall, if necessary, be

 

 

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1    considered omitted property for purposes of this Act;
2        (c-5) Notwithstanding clause (i) of subsection (c),
3    all property owned by a municipality with a population of
4    over 500,000 that is used for toll road or toll bridge
5    purposes and that is leased for those purposes to another
6    entity whose property is not exempt shall remain exempt,
7    and any leasehold interest in the property shall not be
8    subject to taxation under Section 9-195 of this Act;
9        (d) all property owned by any municipality located
10    outside its incorporated limits but within the same county
11    when used as a tuberculosis sanitarium, farm colony in
12    connection with a house of correction, or nursery, garden,
13    or farm, or for the growing of shrubs, trees, flowers,
14    vegetables, and plants for use in beautifying,
15    maintaining, and operating playgrounds, parks, parkways,
16    public grounds, buildings, and institutions owned or
17    controlled by the municipality;
18        (e) all property owned by a township and operated as
19    senior citizen housing under Sections 35-50 through
20    35-50.6 of the Township Code; and
21        (f) all property owned by the Executive Board of the
22    Mutual Aid Box Alarm System (MABAS), a unit of
23    intergovernmental cooperation, that is used for the public
24    purpose of disaster preparedness and response for units of
25    local government and the State of Illinois pursuant to
26    Section 10 of Article VII of the Illinois Constitution and

 

 

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1    the Intergovernmental Cooperation Act; and .
2        (g) all property owned by a county, municipality,
3    taxing district, unit of local government, or by one or
4    more municipalities pursuant to an ordinance or
5    intergovernmental agreement, that is held for land bank
6    purposes, including to promote redevelopment and reuse of
7    vacant, abandoned, and tax-delinquent properties, to
8    support targeted efforts to stabilize neighborhoods, and
9    to stimulate residential, commercial and industrial
10    development; any such property held for land bank purposes
11    that is leased for those purposes to another entity whose
12    property is not exempt shall remain exempt, and any
13    leasehold interest in the property shall not be subject to
14    taxation under Section 9-195 of this Act.
15    All property owned by any municipality outside of its
16corporate limits is exempt if used exclusively for municipal or
17public purposes.
18    For purposes of this Section, "municipality" means a
19municipality, as defined in Section 1-1-2 of the Illinois
20Municipal Code.
21(Source: P.A. 98-206, eff. 1-1-14.)
 
22    (35 ILCS 200/21-95)
23    Sec. 21-95. Tax abatement after acquisition by a
24governmental unit. When any county, municipality, school
25district, or park district acquires property through the

 

 

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1foreclosure of a lien, through a judicial deed, through the
2foreclosure of receivership certificate lien, or by acceptance
3of a deed of conveyance in lieu of foreclosing any lien against
4the property, or when a government unit acquires property under
5the Abandoned Housing Rehabilitation Act, or when any county or
6other taxing district acquires a deed for property under
7Section 21-90 or Sections 21-145 and 21-260, or when a county,
8municipality, taxing district, unit of local government, or one
9or more municipalities pursuant to an ordinance or
10intergovernmental agreement, acquires property for land bank
11purposes as described in subsection (g) of Section 15-60, or
12when any county, municipality, school district, or park
13district acquires title to property that was to be transferred
14to that county, municipality, school district, or park district
15under the terms of an annexation agreement, development
16agreement, donation agreement, plat of subdivision, or zoning
17ordinance by an entity that has been dissolved or is being
18dissolved or has been in bankruptcy proceedings or is in
19bankruptcy proceedings, all due or unpaid property taxes and
20existing liens for unpaid property taxes imposed or pending
21under any law or ordinance of this State or any of its
22political subdivisions shall become null and void.
23(Source: P.A. 96-1142, eff. 7-21-10.)
 
24    Section 90. The State Mandates Act is amended by adding
25Section 8.38 as follows:
 

 

 

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1    (30 ILCS 805/8.38 new)
2    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 98th General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.