Full Text of SB0400 97th General Assembly
SB0400eng 97TH GENERAL ASSEMBLY |
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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 | | (i) all property owned by an entity using the property in such | 16 | | a manner that it is not subject to real estate taxes pursuant | 17 | | to this Article 15 is exempt from real estate taxes, and such | 18 | | exemption is not affected by any transaction in which the | 19 | | entity, directly or indirectly, on or after the effective date | 20 | | of this amendatory Act of the 97th General Assembly, leases, | 21 | | sells, or otherwise transfers the property to another entity | 22 | | for which or for whom property is not exempt, with or without a | 23 | | right to repurchase that property, and immediately after the | 24 | | lease or transfer enters into a leaseback or other agreement | 25 | | that directly or indirectly gives the initial entity a right to | 26 | | use, control, and possess the property for purposes that would |
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| 1 | | qualify the property for a non-homestead real estate tax | 2 | | exemption pursuant to this Article 15 by virtue of its use or | 3 | | (ii) where, on or after the effective date of this amendatory | 4 | | Act of the 97th General Assembly, an entity leases new or | 5 | | existing property from another for purposes that would be | 6 | | exempt under this Article 15, that property shall be exempt | 7 | | 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 shall be treated for purposes of this Article 15 | 10 | | as if the lessee were the owner of the property, as long as the | 11 | | 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) Substantially all of the funds received from the | 15 | | conveyance of property subject to a leaseback agreement as | 16 | | described in subsection (d) of this Section must be used for | 17 | | capital improvement projects and related capital expenditures | 18 | | and all funds raised shall be used within the State of | 19 | | 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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