Illinois General Assembly - Full Text of SB0527
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Full Text of SB0527  101st General Assembly

SB0527enr 101ST GENERAL ASSEMBLY



 


 
SB0527 EnrolledLRB101 04288 RJF 49296 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 6z-59 as follows:
 
6    (30 ILCS 105/6z-59)
7    Sec. 6z-59. The Tax Recovery Fund. There is created in the
8State treasury the Tax Recovery Fund. Through December 31, 2030
9December 31, 2020, all moneys received from the rental,
10authorized under Section 2705-555 of the Department of
11Transportation Law of the Civil Administrative Code of
12Illinois, of land, buildings, or improvements on property held
13for development of an airport in Will County by the Department
14of Transportation shall be remitted to the State Treasurer for
15payment into the Tax Recovery Fund. Subject to appropriation,
16the moneys in the Fund shall be expended with the following
17priority: (1) to compensate taxing districts for leasehold
18taxes then (2) to the General Revenue Fund less any money
19necessary to pay maintenance and repair costs for that real
20property. The tax compensation shall be determined in
21accordance with Sections 9-195 and 15-55 of the Property Tax
22Code. Expenditures for these purposes may be made by Department
23of Transportation without regard to the fiscal year in which

 

 

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1tax compensation liability and property maintenance and repair
2costs were incurred. Unexpended moneys in the Fund shall not be
3transferred or allocated by the Comptroller or Treasurer to any
4other fund nor shall the Governor authorize the transfer or
5allocation of those moneys to any other fund. After December
631, 2030 December 31, 2020, all moneys received from the
7rental, authorized under Section 2705-555 of the Department of
8Transportation Law of the Civil Administrative Code of
9Illinois, of land, buildings, or improvements on property held
10for the development of an airport in Will County by the
11Department of Transportation shall not be remitted to the Tax
12Recovery Fund but shall instead be paid to the General Revenue
13Fund. The balance remaining in the Tax Recovery Fund on
14December 31, 2030 December 31, 2020 shall first be expended to
15compensate taxing districts for loss of revenue leasehold taxes
16for the 2030 2020 tax assessment year, and then transferred to
17the General Revenue Fund for the purpose of debt service on
18State bonds issued to provide funds for airport land
19acquisition in Will County.
20(Source: P.A. 96-192, eff. 8-10-09.)
 
21    Section 10. The Property Tax Code is amended by changing
22Section 15-55 as follows:
 
23    (35 ILCS 200/15-55)
24    Sec. 15-55. State property.

 

 

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1    (a) All property belonging to the State of Illinois is
2exempt. However, the State agency holding title shall file the
3certificate of ownership and use required by Section 15-10,
4together with a copy of any written lease or agreement, in
5effect on March 30 of the assessment year, concerning parcels
6of 1 acre or more, or an explanation of the terms of any oral
7agreement under which the property is leased, subleased or
8rented.
9    The leased property shall be assessed to the lessee and the
10taxes thereon extended and billed to the lessee, and collected
11in the same manner as for property which is not exempt. The
12lessee shall be liable for the taxes and no lien shall attach
13to the property of the State.
14    For the purposes of this Section, the word "leases"
15includes licenses, franchises, operating agreements and other
16arrangements under which private individuals, associations or
17corporations are granted the right to use property of the
18Illinois State Toll Highway Authority and includes all property
19of the Authority used by others without regard to the size of
20the leased parcel.
21    (b) However, all property of every kind belonging to the
22State of Illinois, which is or may hereafter be leased to the
23Illinois Prairie Path Corporation, shall be exempt from all
24assessments, taxation or collection, despite the making of any
25such lease, if it is used for:
26        (1) conservation, nature trail or any other

 

 

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1    charitable, scientific, educational or recreational
2    purposes with public benefit, including the preserving and
3    aiding in the preservation of natural areas, objects,
4    flora, fauna or biotic communities;
5        (2) the establishment of footpaths, trails and other
6    protected areas;
7        (3) the conservation of the proper use of natural
8    resources or the promotion of the study of plant and animal
9    communities and of other phases of ecology, natural history
10    and conservation;
11        (4) the promotion of education in the fields of nature,
12    preservation and conservation; or
13        (5) similar public recreational activities conducted
14    by the Illinois Prairie Path Corporation.
15    No lien shall attach to the property of the State. No tax
16liability shall become the obligation of or be enforceable
17against Illinois Prairie Path Corporation.
18    (c) If the State sells the James R. Thompson Center or the
19Elgin Mental Health Center and surrounding land located at 750
20S. State Street, Elgin, Illinois, as provided in subdivision
21(a)(2) of Section 7.4 of the State Property Control Act, to
22another entity whose property is not exempt and immediately
23thereafter enters into a leaseback or other agreement that
24directly or indirectly gives the State a right to use, control,
25and possess the property, that portion of the property leased
26and occupied exclusively by the State shall remain exempt under

 

 

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1this Section. For the property to remain exempt under this
2subsection (c), the State must retain an option to purchase the
3property at a future date or, within the limitations period for
4reverters, the property must revert back to the State.
5    If the property has been conveyed as described in this
6subsection (c), the property is no longer exempt pursuant to
7this Section as of the date when:
8        (1) the right of the State to use, control, and possess
9    the property has been terminated; or
10        (2) the State no longer has an option to purchase or
11    otherwise acquire the property and there is no provision
12    for a reverter of the property to the State within the
13    limitations period for reverters.
14    Pursuant to Sections 15-15 and 15-20 of this Code, the
15State shall notify the chief county assessment officer of any
16transaction under this subsection (c). The chief county
17assessment officer shall determine initial and continuing
18compliance with the requirements of this Section for tax
19exemption. Failure to notify the chief county assessment
20officer of a transaction under this subsection (c) or to
21otherwise comply with the requirements of Sections 15-15 and
2215-20 of this Code shall, in the discretion of the chief county
23assessment officer, constitute cause to terminate the
24exemption, notwithstanding any other provision of this Code.
25    (c-1) If the Illinois State Toll Highway Authority sells
26the Illinois State Toll Highway Authority headquarters

 

 

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1building and surrounding land, located at 2700 Ogden Avenue,
2Downers Grove, Illinois as provided in subdivision (a)(2) of
3Section 7.5 of the State Property Control Act, to another
4entity whose property is not exempt and immediately thereafter
5enters into a leaseback or other agreement that directly or
6indirectly gives the State or the Illinois State Toll Highway
7Authority a right to use, control, and possess the property,
8that portion of the property leased and occupied exclusively by
9the State or the Authority shall remain exempt under this
10Section. For the property to remain exempt under this
11subsection (c), the Authority must retain an option to purchase
12the property at a future date or, within the limitations period
13for reverters, the property must revert back to the Authority.
14    If the property has been conveyed as described in this
15subsection (c), the property is no longer exempt pursuant to
16this Section as of the date when:
17        (1) the right of the State or the Authority to use,
18    control, and possess the property has been terminated; or
19        (2) the Authority no longer has an option to purchase
20    or otherwise acquire the property and there is no provision
21    for a reverter of the property to the Authority within the
22    limitations period for reverters.
23    Pursuant to Sections 15-15 and 15-20 of this Code, the
24Authority shall notify the chief county assessment officer of
25any transaction under this subsection (c). The chief county
26assessment officer shall determine initial and continuing

 

 

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1compliance with the requirements of this Section for tax
2exemption. Failure to notify the chief county assessment
3officer of a transaction under this subsection (c) or to
4otherwise comply with the requirements of Sections 15-15 and
515-20 of this Code shall, in the discretion of the chief county
6assessment officer, constitute cause to terminate the
7exemption, notwithstanding any other provision of this Code.
8    (d) For tax years prior to 2019, the The fair market rent
9of each parcel of real property in Will County owned by the
10State of Illinois for the purpose of developing an airport by
11the Department of Transportation shall include the assessed
12value of leasehold tax. The lessee of each parcel of real
13property in Will County owned by the State of Illinois for the
14purpose of developing an airport by the Department of
15Transportation shall not be liable for the taxes thereon. In
16order for the State to compensate taxing districts for the loss
17of revenue leasehold tax under this paragraph, the Will County
18Supervisor of Assessments shall annually certify, in writing,
19to the Department of Transportation, the following amounts: (1)
20for tax years prior to 2019, the the amount of leasehold taxes
21extended for the 2002 property tax year for each such exempt
22parcel; and (2) for tax years 2019 through 2030, the amount of
23taxes that would have been extended for the current tax year
24for each such exempt parcel if those parcels had been owned by
25a person whose property is not exempt. The Department of
26Transportation shall pay to the Will County Treasurer, from the

 

 

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1Tax Recovery Fund, on or before July 1 of each year, the amount
2of leasehold taxes for each such exempt parcel as certified by
3the Will County Supervisor of Assessments. The tax compensation
4shall terminate on December 31, 2030 December 31, 2020. It is
5the duty of the Department of Transportation to file with the
6Office of the Will County Supervisor of Assessments an
7affidavit stating the termination date for rental of each such
8parcel due to airport construction. The affidavit shall include
9the property identification number for each such parcel. In no
10instance shall tax compensation for property owned by the State
11be deemed delinquent or bear interest. In no instance shall a
12lien attach to the property of the State. In no instance shall
13the State be required to pay leasehold tax compensation under
14this subsection in excess of the lesser of (i) the Tax Recovery
15Fund's balance or (ii) $600,000 in any tax year.
16    (e) Public Act 81-1026 applies to all leases or agreements
17entered into or renewed on or after September 24, 1979.
18    (f) Notwithstanding anything to the contrary in this Code,
19all property owned by the State that is the Illiana Expressway,
20as defined in the Public Private Agreements for the Illiana
21Expressway Act, and that is used for transportation purposes
22and that is leased for those purposes to another entity whose
23property is not exempt shall remain exempt, and any leasehold
24interest in the property shall not be subject to taxation under
25Section 9-195 of this Act.
26    (g) Notwithstanding anything to the contrary in this

 

 

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1Section, all property owned by the State or the Illinois State
2Toll Highway Authority that is defined as a transportation
3project under the Public-Private Partnerships for
4Transportation Act and that is used for transportation purposes
5and that is leased for those purposes to another entity whose
6property is not exempt shall remain exempt, and any leasehold
7interest in the property shall not be subject to taxation under
8Section 9-195 of this Act.
9    (h) Notwithstanding anything to the contrary in this Code,
10all property owned by the State that is the South Suburban
11Airport, as defined in the Public-Private Agreements for the
12South Suburban Airport Act, and that is used for airport
13purposes and that is leased for those purposes to another
14entity whose property is not exempt shall remain exempt, and
15any leasehold interest in the property shall not be subject to
16taxation under Section 9-195 of this Act.
17(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.