Full Text of HB3426 101st General Assembly
HB3426 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3426 Introduced , by Rep. Terra Costa Howard SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that, if an airport authority enters into a lease with a tenant to occupy space on airport premises, and the tenant is liable for the payment of property taxes on the property, the lease shall contain certain language regarding the liability of the tenant for unpaid taxes. Provides that, if the tenant fails to make timely payment of those taxes, the tenant shall be liable for an additional penalty not to exceed the amount of taxes in arrears. Effective immediately.
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| | | FISCAL 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 9-195 as follows:
| 6 | | (35 ILCS 200/9-195)
| 7 | | (Text of Section WITH the changes made by P.A. 97-1161, | 8 | | which has been held unconstitutional) | 9 | | Sec. 9-195. Leasing of exempt property.
| 10 | | (a) Except as provided in Sections 15-35, 15-55, 15-60, | 11 | | 15-100,
15-103, 15-160, and 15-185,
when property which is | 12 | | exempt from taxation is leased to another whose property
is not | 13 | | exempt, and the leasing of which does not make the property | 14 | | taxable,
the leasehold estate and the appurtenances shall be | 15 | | listed as the property of
the lessee thereof, or his or her | 16 | | assignee. Taxes on that property shall be
collected in the same | 17 | | manner as on property that is not exempt, and the lessee
shall | 18 | | be liable for those taxes. However, no tax lien shall attach to | 19 | | the
exempt real estate. The changes made by Public Act 90-562 | 20 | | and by Public Act 91-513 are declaratory of existing law
and | 21 | | shall not be construed as a new enactment. The changes made by | 22 | | Public Acts
88-221 and 88-420 that are incorporated into this | 23 | | Section by Public Act 88-670 are declarative of existing law |
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| 1 | | and are not a new enactment.
| 2 | | (b) The provisions of this Section regarding taxation of | 3 | | leasehold interests
in exempt property do not apply to any | 4 | | leasehold interest created pursuant to
any transaction | 5 | | described in subsection (e) of Section 15-35, subsection (c-5)
| 6 | | of Section 15-60, subsection (b) of Section 15-100, Section | 7 | | 15-103, Section 15-160, or
Section 15-185 of this Code or | 8 | | Section 6c of the Downstate Forest Preserve District Act.
| 9 | | (c) If an airport authority enters into a lease with a | 10 | | tenant to occupy space on airport premises, and the tenant is | 11 | | liable for the payment of property taxes on the property, the | 12 | | lease shall contain the following language: | 13 | | "Lessee shall be liable for the payment of property | 14 | | taxes with respect to the leasehold interest in accordance | 15 | | with the terms and conditions of Section 9-195 of the | 16 | | Property Tax Code.". | 17 | | If a tenant described in this subsection (c) is liable for | 18 | | the payment of property taxes, and the tenant fails to make | 19 | | timely payment of those taxes, the tenant shall be liable for | 20 | | an additional penalty not to exceed the amount of taxes in | 21 | | arrears. | 22 | | (Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16 .)
| 23 | | (Text of Section WITHOUT the changes made by P.A. 97-1161, | 24 | | which has been held unconstitutional) | 25 | | Sec. 9-195. Leasing of exempt property.
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| 1 | | (a) Except as provided in Sections 15-35, 15-55, 15-60, | 2 | | 15-100,
15-103, and 15-185,
when property which is exempt from | 3 | | taxation is leased to another whose property
is not exempt, and | 4 | | the leasing of which does not make the property taxable,
the | 5 | | leasehold estate and the appurtenances shall be listed as the | 6 | | property of
the lessee thereof, or his or her assignee. Taxes | 7 | | on that property shall be
collected in the same manner as on | 8 | | property that is not exempt, and the lessee
shall be liable for | 9 | | those taxes. However, no tax lien shall attach to the
exempt | 10 | | real estate. The changes made by Public Act 90-562 and by | 11 | | Public Act 91-513 are declaratory of existing law
and shall not | 12 | | be construed as a new enactment. The changes made by Public | 13 | | Acts
88-221 and 88-420 that are incorporated into this Section | 14 | | by Public Act 88-670 are declarative of existing law and are | 15 | | not a new enactment.
| 16 | | (b) The provisions of this Section regarding taxation of | 17 | | leasehold interests
in exempt property do not apply to any | 18 | | leasehold interest created pursuant to
any transaction | 19 | | described in subsection (e) of Section 15-35, subsection (c-5)
| 20 | | of Section 15-60, subsection (b) of Section 15-100, Section | 21 | | 15-103, or
Section 15-185 of this Code or Section 6c of the | 22 | | Downstate Forest Preserve District Act.
| 23 | | (c) If an airport authority enters into a lease with a | 24 | | tenant to occupy space on airport premises, and the tenant is | 25 | | liable for the payment of property taxes on the property, the | 26 | | lease shall contain the following language: |
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| 1 | | "Lessee shall be liable for the payment of property | 2 | | taxes with respect to the leasehold interest in accordance | 3 | | with the terms and conditions of Section 9-195 of the | 4 | | Property Tax Code.". | 5 | | If a tenant described in this subsection (c) is liable for | 6 | | the payment of property taxes, and the tenant fails to make | 7 | | timely payment of those taxes, the tenant shall be liable for | 8 | | an additional penalty not to exceed the amount of taxes in | 9 | | arrears. | 10 | | (Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16 .)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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