Full Text of SB1598 100th General Assembly
SB1598sam001 100TH GENERAL ASSEMBLY | Sen. Terry Link Filed: 3/2/2017
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| 1 | | AMENDMENT TO SENATE BILL 1598
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1598 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Sections 10-365, 10-370, 10-375, and 10-380 as follows: | 6 | | (35 ILCS 200/10-365) | 7 | | Sec. 10-365. U.S. Military Public/Private Residential | 8 | | Developments. Unless otherwise agreed to pursuant to a separate | 9 | | settlement agreement, PPV Leases must be classified and valued | 10 | | as set forth in Sections 10-370 through 10-380 during the | 11 | | period beginning January 1, 2006 and ending December 31, 2055 | 12 | | January 1, 2017 .
| 13 | | (Source: P.A. 98-494, eff. 1-1-14; 99-738, eff. 8-5-16.) | 14 | | (35 ILCS 200/10-370) | 15 | | Sec. 10-370. Definitions. For the purposes of this Division |
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| 1 | | 14: | 2 | | (a) "PPV Lease" means a leasehold interest in property that | 3 | | is exempt from taxation under Section 15-50 of this Code and | 4 | | that is leased, pursuant to authority set forth in Chapter 10 | 5 | | of the United States Code, to another whose property is not | 6 | | exempt for the purpose of, after January 1, 2006, the design, | 7 | | finance, construction, renovation, management, operation, and | 8 | | maintenance of rental housing units and associated | 9 | | improvements at military training facilities, military bases, | 10 | | and related military support facilities in the State of | 11 | | Illinois. All interests enjoyed pursuant to the authority set | 12 | | forth in Chapter 159 or Chapter 169 of Title 10 of the United | 13 | | States Code are considered leaseholds for the purposes of this | 14 | | Division. The changes to this Section made by this amendatory | 15 | | Act of the 97th General Assembly apply beginning on January 1, | 16 | | 2006. Beginning with the 2017 tax year, this Section applies | 17 | | only to naval training facilities, naval bases, and naval | 18 | | support facilities. | 19 | | (b) For tax years prior to 2017, for For naval training | 20 | | facilities, naval bases, and naval support facilities, "net | 21 | | operating income" means all revenues received minus the lesser | 22 | | of (i) 62% of all revenues or (ii) actual expenses before | 23 | | interest, taxes, depreciation, and amortization. For tax years | 24 | | prior to 2017, for For all other military training facilities, | 25 | | military bases, and related military support facilities, "net | 26 | | operating income" means all revenues received minus the lesser |
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| 1 | | of (i) 42% of all revenues or (ii) actual expenses before | 2 | | interest, taxes, depreciation, and amortization. | 3 | | (b-5) For tax year 2017 and thereafter, for naval training | 4 | | facilities, naval bases, and naval support facilities, "net | 5 | | operating income" means all revenues received minus the actual | 6 | | expenses before interest, taxes, depreciation, and | 7 | | amortization. | 8 | | (c) "Tax load factor" means the level of assessment, as set | 9 | | forth under item (b) of Section 9-145 or under Section 9-150, | 10 | | multiplied by the cumulative tax rate for the current taxable | 11 | | year.
| 12 | | (Source: P.A. 97-942, eff. 8-10-12; 98-494, eff. 1-1-14.) | 13 | | (35 ILCS 200/10-375) | 14 | | Sec. 10-375. Valuation. | 15 | | (a) A PPV Lease must be valued at its fair cash value, as | 16 | | provided under item (b) of Section 9-145 or under Section | 17 | | 9-150. | 18 | | (b) The fair cash value of a PPV Lease must be determined | 19 | | by using an income capitalization approach.
| 20 | | (c) To determine the fair cash value of a PPV Lease, the | 21 | | net operating income is divided by (i) a rate of 12% 7.75% plus | 22 | | (ii) the actual or most recently ascertainable tax load factor | 23 | | for the subject year. | 24 | | (d) By April 15 of each year, the holder of a PPV Lease | 25 | | must report to the chief county assessment officer in each |
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| 1 | | county in which the leasehold property is located the annual | 2 | | gross income and expenses derived and incurred from the PPV | 3 | | Lease, including the rental of leased property for each | 4 | | military housing facility subject to a PPV Lease.
| 5 | | (Source: P.A. 94-974, eff. 6-30-06.) | 6 | | (35 ILCS 200/10-380) | 7 | | Sec. 10-380. For the taxable years 2006 through 2055 2016 , | 8 | | the chief county assessment officer in the county in which | 9 | | property subject to a PPV Lease is located shall apply the | 10 | | provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this | 11 | | Division 14 in assessing and determining the value of any PPV | 12 | | Lease for purposes of the property tax laws of this State. | 13 | | (Source: P.A. 98-463, eff. 8-16-13; 98-494, eff. 1-1-14; | 14 | | 99-738, eff. 8-5-16.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
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