Full Text of SB0400 97th General Assembly
SB0400sam001 97TH GENERAL ASSEMBLY | Sen. James F. Clayborne, Jr. Filed: 4/11/2011
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| 1 | | AMENDMENT TO SENATE BILL 400
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 400 by replacing | 3 | | everything after the enacting clause with the following:
| 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 or with a population of | 11 | | over
500,000
inhabitants, a unit of local government is exempt | 12 | | from real estate taxes and such exemption is not affected by | 13 | | any transaction in which, for the purpose of obtaining | 14 | | financing, the municipality or unit of local government leases | 15 | | or otherwise transfers the property whose jurisdiction | 16 | | includes
territory located in
whole or in part within a |
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| 1 | | municipality with a population of over 500,000
inhabitants, or | 2 | | a municipality with home rule powers that is contiguous to a | 3 | | municipality with a population of over 500,000 inhabitants,
| 4 | | shall remain exempt from taxation and any leasehold interest in | 5 | | that property
shall not be
subject to taxation under Section | 6 | | 9-195 if
the
property is directly or indirectly leased, sold, | 7 | | or otherwise transferred to
another entity
for which or for | 8 | | whom whose property is not exempt and immediately after the | 9 | | lease or transfer enters into thereafter is the subject of a
| 10 | | leaseback or
other agreement that directly or indirectly gives | 11 | | the municipality or unit of
local
government (i) a right to | 12 | | use, control, and possess the property or (ii) a
right to | 13 | | require
the other entity, or the other entity's designee or | 14 | | assignee, to use the
property in the
performance of services | 15 | | for the municipality or unit of local government. In the case | 16 | | of a conveyance of the property, the municipality or unit of | 17 | | local government must retain an option to purchase the property | 18 | | at a future date or, within the limitations period for | 19 | | reverters, the property must revert back to the municipality or | 20 | | unit of local government. | 21 | | If the property has been conveyed as described in this | 22 | | subsection, the property is no longer exempt under this Section | 23 | | as of the date when: | 24 | | (1) the right of the municipality or unit of local | 25 | | government to use, control, and possess the property is | 26 | | terminated; or |
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| 1 | | (2) the municipality or unit of local government no | 2 | | longer has an option to purchase or otherwise acquire the | 3 | | property; and | 4 | | (3) there is no provision for a reverter of the | 5 | | property to the municipality or unit of local government | 6 | | within the limitations period for reverters. | 7 | | Pursuant to Sections 15-15 and 15-20 of this Code, the unit | 8 | | of local government shall notify the chief county assessment | 9 | | officer of any transaction under this subsection. The chief | 10 | | county assessment officer shall determine initial and | 11 | | continuing compliance with the requirements of this Section for | 12 | | the tax exemption. Failure to notify the chief county | 13 | | assessment officer of a transaction under this subsection or to | 14 | | otherwise comply with the requirements of Sections 15-15 and | 15 | | 15-20 of this Code shall, in the discretion of the chief county | 16 | | assessment officer, constitute cause to terminate the | 17 | | exemption, notwithstanding any other provision of this Code. | 18 | | Property
shall no longer be exempt under this subsection as of | 19 | | the date when the right of
the
municipality or unit of local | 20 | | government to use, control, and possess the
property or to
| 21 | | require the performance of services is terminated and the | 22 | | municipality or unit
of local
government no longer has any | 23 | | option to purchase or otherwise reacquire the
interest in
the | 24 | | property which was transferred by the municipality or unit of | 25 | | local
government.
| 26 | | (b) Notwithstanding anything in this Code to
the
contrary, |
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| 1 | | all property owned by a municipality with a population of over
| 2 | | 500,000
inhabitants, a unit of local government whose | 3 | | jurisdiction includes
territory located in
whole or in part | 4 | | within a municipality with a population of over 500,000
| 5 | | inhabitants, or a municipality with home rule powers that is | 6 | | contiguous to a municipality with a population of over 500,000 | 7 | | inhabitants,
shall remain exempt from taxation and any | 8 | | leasehold interest in that property
is not
subject to taxation | 9 | | under Section 9-195 if the property, including dedicated public | 10 | | property, is used by a municipality or other unit of local | 11 | | government for the purpose of an airport or parking or for | 12 | | waste disposal or processing and is leased for continued use | 13 | | for the same purpose to another entity whose property is not | 14 | | exempt. | 15 | | For the purposes of this subsection (b), "airport" does not | 16 | | include any airport property, as defined under Section 10 of | 17 | | the O'Hare Modernization Act. | 18 | | Any transaction described under this subsection must be | 19 | | undertaken in accordance with all appropriate federal laws and | 20 | | regulations. | 21 | | (c) For purposes of this Section, "municipality" means a | 22 | | municipality as defined
in
Section 1-1-2 of the Illinois | 23 | | Municipal Code, and "unit of local government"
means a unit
of | 24 | | local government as defined in Article VII, Section 1 of the | 25 | | Constitution of
the State of
Illinois. The provisions of this | 26 | | Section supersede and control over any
conflicting
provisions |
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| 1 | | of this Code.
| 2 | | (d) Notwithstanding anything in this Code to the contrary, | 3 | | (i) all property owned by an entity using the property in such | 4 | | a manner that it is not subject to real estate taxes pursuant | 5 | | to this Article 15 is exempt from real estate taxes, and such | 6 | | exemption is not affected by any transaction in which the | 7 | | entity, directly or indirectly, on or after the effective date | 8 | | of this amendatory Act of the 97th General Assembly, leases, | 9 | | sells, or otherwise transfers the property to another entity | 10 | | for which or whom property is not exempt, with or without a | 11 | | right to repurchase that property and immediately after the | 12 | | lease or transfer enters into a leaseback or other agreement | 13 | | that directly or indirectly gives the initial entity a right to | 14 | | use, control, and possess the property for purposes which would | 15 | | qualify the property for a non-homestead real estate tax | 16 | | exemption pursuant to this Article 15 by virtue of its use or | 17 | | (ii) where, on or after the effective date of this amendatory | 18 | | Act of the 97th General Assembly, an entity leases new or | 19 | | existing property from another for purposes that would be | 20 | | exempt under this Article 15, that property shall be exempt | 21 | | from real estate taxes for the term of the lease, or any | 22 | | extension thereof, without regard to the nature or character of | 23 | | ownership and shall be treated for purposes of this Article 15 | 24 | | as if the lessee were the owner of the property, as long as the | 25 | | property on which the leased improvements are or will be | 26 | | located is used for school, religious, or charitable purposes |
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| 1 | | pursuant to that lease or any renewal thereof. | 2 | | (e) Substantially all of the funds received from the | 3 | | conveyance of property subject to a leaseback agreement as | 4 | | described in subsection (d) of this Section must be used for | 5 | | capital improvement projects and related capital expenditures | 6 | | and all funds raised shall be used within the State of | 7 | | Illinois. | 8 | | (f) To the extent allowable by law, new construction | 9 | | projects using the provisions of subsection (d) above shall be | 10 | | subject to the provisions of the Illinois Prevailing Wage Act | 11 | | for the initial construction of the improvements and all | 12 | | bidders for those projects shall comply with the provisions of | 13 | | Section 30-22 of the Illinois Procurement Code. | 14 | | (g) Project labor agreements for the construction projects | 15 | | referenced in subsection (f) above shall be required. | 16 | | (Source: P.A. 96-779, eff. 8-28-09.)
| 17 | | Section 97. Savings clause. If any provision of this Act or | 18 | | its application to any person or circumstance is held invalid | 19 | | by any Court of competent jurisdiction or any federal or State | 20 | | government agency having jurisdiction over the subject matter | 21 | | of this Act, the invalidity of that provision or application | 22 | | does not affect any other provisions or applications of this | 23 | | Act that can be given effect without the invalid provision or | 24 | | application which are severable under Section 1.31 of the | 25 | | Statute on Statutes.
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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