Full Text of HB4142 97th General Assembly
HB4142 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4142 Introduced 1/30/2012, by Rep. Jehan A. Gordon SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that a Section of the Code concerning exemptions for leaseback property also applies to property that is (i) owned by a private entity and (ii) eligible for a religious or charitable exemption under the Code. Provides that, for purposes of the exemption, the lessee shall be treated as if it were the owner of the property as long as the property is used for school, religious, or charitable purposes. Contains provisions requiring that the funds received from the conveyance of the property must be used for certain purposes. Provides that projects using funds from the sale of certain property that is subject to a leaseback are subject to the provisions of the Illinois Prevailing Wage Act for the initial construction of the improvements and all bidders for those projects shall comply with the Illinois Procurement Code. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-185 as follows:
| 6 | | (35 ILCS 200/15-185)
| 7 | | Sec. 15-185. Exemption for leaseback property and | 8 | | qualified leased property.
| 9 | | (a) Notwithstanding anything in this Code to
the
contrary, | 10 | | all property owned by a municipality with a population of over
| 11 | | 500,000
inhabitants, a unit of local government whose | 12 | | jurisdiction includes
territory located in
whole or in part | 13 | | within a municipality with a population of over 500,000
| 14 | | inhabitants, or a municipality with home rule powers that is | 15 | | contiguous to a municipality with a population of over 500,000 | 16 | | inhabitants,
shall remain exempt from taxation and any | 17 | | leasehold interest in that property
shall not be
subject to | 18 | | taxation under Section 9-195 if
the
property is directly or | 19 | | indirectly leased, sold, or otherwise transferred to
another | 20 | | entity
whose property is not exempt and immediately thereafter | 21 | | is the subject of a
leaseback or
other agreement that directly | 22 | | or indirectly gives the municipality or unit of
local
| 23 | | government (i) a right to use, control, and possess the |
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| 1 | | property or (ii) a
right to require
the other entity, or the | 2 | | other entity's designee or assignee, to use the
property in the
| 3 | | performance of services for the municipality or unit of local | 4 | | government. Property
shall no longer be exempt under this | 5 | | subsection as of the date when the right of
the
municipality or | 6 | | unit of local government to use, control, and possess the
| 7 | | property or to
require the performance of services is | 8 | | terminated and the municipality or unit
of local
government no | 9 | | longer has any option to purchase or otherwise reacquire the
| 10 | | interest in
the property which was transferred by the | 11 | | municipality or unit of local
government.
| 12 | | (b) Notwithstanding anything in this Code to
the
contrary, | 13 | | all property owned by a municipality with a population of over
| 14 | | 500,000
inhabitants, a unit of local government whose | 15 | | jurisdiction includes
territory located in
whole or in part | 16 | | within a municipality with a population of over 500,000
| 17 | | inhabitants, or a municipality with home rule powers that is | 18 | | contiguous to a municipality with a population of over 500,000 | 19 | | inhabitants,
shall remain exempt from taxation and any | 20 | | leasehold interest in that property
is not
subject to taxation | 21 | | under Section 9-195 if the property, including dedicated public | 22 | | property, is used by a municipality or other unit of local | 23 | | government for the purpose of an airport or parking or for | 24 | | waste disposal or processing and is leased for continued use | 25 | | for the same purpose to another entity whose property is not | 26 | | exempt. |
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| 1 | | For the purposes of this subsection (b), "airport" does not | 2 | | include any airport property, as defined under Section 10 of | 3 | | the O'Hare Modernization Act. | 4 | | Any transaction described under this subsection must be | 5 | | undertaken in accordance with all appropriate federal laws and | 6 | | regulations. | 7 | | (c) For purposes of this Section, "municipality" means a | 8 | | municipality as defined
in
Section 1-1-2 of the Illinois | 9 | | Municipal Code, and "unit of local government"
means a unit
of | 10 | | local government as defined in Article VII, Section 1 of the | 11 | | Constitution of
the State of
Illinois. The provisions of this | 12 | | Section supersede and control over any
conflicting
provisions | 13 | | of this Code.
| 14 | | (d) Notwithstanding anything in this Code to the contrary, | 15 | | all property owned by a private entity that is exempt from real | 16 | | estate taxes under Section 15-40 or 15-65 shall remain exempt | 17 | | as provided in this subsection (d), and that exemption is not | 18 | | affected by (i) any transaction in which the private entity, | 19 | | directly or indirectly, on or after the effective date of this | 20 | | amendatory Act of the 97th General Assembly, leases, sells, or | 21 | | otherwise transfers the property to another entity for which or | 22 | | for whom the property is not exempt, with or without a right to | 23 | | repurchase that property, and immediately after the lease or | 24 | | transfer enters into a leaseback or other agreement that | 25 | | directly or indirectly gives the initial entity a right to use, | 26 | | control, and possess the property for purposes that would |
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| 1 | | qualify the property for an exemption pursuant to Section 15-40 | 2 | | or 15-65 by virtue of its use or (ii) any lease executed on or | 3 | | after the effective date of this amendatory Act of the 97th | 4 | | General Assembly of new or existing property from another | 5 | | entity for purposes that would be exempt under Section 15-40 or | 6 | | 15-65. Property exempted under this subsection (d) shall remain | 7 | | exempt from real estate taxes for the term of the lease, or any | 8 | | extension thereof, without regard to the nature or character of | 9 | | ownership, and the lessee shall be treated for purposes of this | 10 | | Article 15 as if it were the owner of the property, as long as | 11 | | the property on which the leased improvements are or will be | 12 | | located is used for school, religious, or charitable purposes | 13 | | pursuant to that lease or any renewal thereof. | 14 | | (e) Property is not eligible for an exemption under | 15 | | subsection (d) of this Section unless substantially all of the | 16 | | funds received from the conveyance of property subject to the | 17 | | leaseback agreement are used for capital improvement projects | 18 | | and related capital expenditures and all funds raised are used | 19 | | within the State of Illinois. | 20 | | (f) To the extent allowable by law, all construction | 21 | | projects using the provisions of subsection (d) above shall be | 22 | | subject to the provisions of the Illinois Prevailing Wage Act | 23 | | for the initial construction of the improvements and all | 24 | | bidders for those projects shall comply with the provisions of | 25 | | Section 30-22 of the Illinois Procurement Code. | 26 | | (g) Project labor agreements for the construction projects |
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| 1 | | referenced in subsection (f) above shall be required. | 2 | | (Source: P.A. 96-779, eff. 8-28-09.)
| 3 | | Section 97. Savings clause. If any provision of this Act or | 4 | | its application to any person or circumstance is held invalid | 5 | | by any Court of competent jurisdiction or any federal or State | 6 | | government agency having jurisdiction over the subject matter | 7 | | of this Act, the invalidity of that provision or application | 8 | | does not affect any other provisions or applications of this | 9 | | Act that can be given effect without the invalid provision or | 10 | | application which are severable under Section 1.31 of the | 11 | | Statute on Statutes. | 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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