Illinois General Assembly - Full Text of SB1598
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Full Text of SB1598  100th General Assembly


Sen. Terry Link

Filed: 3/2/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1598 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Property Tax Code is amended by changing
5Sections 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
8Developments. Unless otherwise agreed to pursuant to a separate
9settlement agreement, PPV Leases must be classified and valued
10as set forth in Sections 10-370 through 10-380 during the
11period beginning January 1, 2006 and ending December 31, 2055
12January 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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2    (a) "PPV Lease" means a leasehold interest in property that
3is exempt from taxation under Section 15-50 of this Code and
4that is leased, pursuant to authority set forth in Chapter 10
5of the United States Code, to another whose property is not
6exempt for the purpose of, after January 1, 2006, the design,
7finance, construction, renovation, management, operation, and
8maintenance of rental housing units and associated
9improvements at military training facilities, military bases,
10and related military support facilities in the State of
11Illinois. All interests enjoyed pursuant to the authority set
12forth in Chapter 159 or Chapter 169 of Title 10 of the United
13States Code are considered leaseholds for the purposes of this
14Division. The changes to this Section made by this amendatory
15Act of the 97th General Assembly apply beginning on January 1,
162006. Beginning with the 2017 tax year, this Section applies
17only to naval training facilities, naval bases, and naval
18support facilities.
19    (b) For tax years prior to 2017, for For naval training
20facilities, naval bases, and naval support facilities, "net
21operating income" means all revenues received minus the lesser
22of (i) 62% of all revenues or (ii) actual expenses before
23interest, taxes, depreciation, and amortization. For tax years
24prior to 2017, for For all other military training facilities,
25military bases, and related military support facilities, "net
26operating income" means all revenues received minus the lesser



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1of (i) 42% of all revenues or (ii) actual expenses before
2interest, taxes, depreciation, and amortization.
3    (b-5) For tax year 2017 and thereafter, for naval training
4facilities, naval bases, and naval support facilities, "net
5operating income" means all revenues received minus the actual
6expenses before interest, taxes, depreciation, and
8    (c) "Tax load factor" means the level of assessment, as set
9forth under item (b) of Section 9-145 or under Section 9-150,
10multiplied by the cumulative tax rate for the current taxable
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
16provided under item (b) of Section 9-145 or under Section
18    (b) The fair cash value of a PPV Lease must be determined
19by using an income capitalization approach.
20    (c) To determine the fair cash value of a PPV Lease, the
21net operating income is divided by (i) a rate of 12% 7.75% plus
22(ii) the actual or most recently ascertainable tax load factor
23for the subject year.
24    (d) By April 15 of each year, the holder of a PPV Lease
25must report to the chief county assessment officer in each



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1county in which the leasehold property is located the annual
2gross income and expenses derived and incurred from the PPV
3Lease, including the rental of leased property for each
4military 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,
8the chief county assessment officer in the county in which
9property subject to a PPV Lease is located shall apply the
10provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this
11Division 14 in assessing and determining the value of any PPV
12Lease 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;
1499-738, eff. 8-5-16.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".