Full Text of SB0527 101st General Assembly
SB0527enr 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Finance Act is amended by changing | 5 | | Section 6z-59 as follows: | 6 | | (30 ILCS 105/6z-59)
| 7 | | Sec. 6z-59. The Tax Recovery Fund. There is created in the
| 8 | | State treasury the Tax Recovery Fund. Through December 31, 2030 | 9 | | December 31, 2020 , all moneys received from
the
rental, | 10 | | authorized under Section 2705-555 of the Department of | 11 | | Transportation
Law of
the Civil Administrative Code of | 12 | | Illinois, of land, buildings, or improvements
on property
held | 13 | | for development of an airport in Will County by the Department | 14 | | of
Transportation
shall be remitted to the State Treasurer for | 15 | | payment into the Tax
Recovery Fund. Subject to appropriation, | 16 | | the moneys in the Fund shall be
expended with
the following | 17 | | priority: (1)
to compensate taxing districts for leasehold | 18 | | taxes
then (2) to the General Revenue Fund less any money
| 19 | | necessary to pay maintenance and repair
costs for that real | 20 | | property.
The tax compensation shall be determined in | 21 | | accordance with Sections 9-195 and
15-55 of
the
Property Tax | 22 | | Code.
Expenditures for these purposes may be made by
Department | 23 | | of Transportation without regard to the fiscal year in which |
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| 1 | | tax
compensation
liability and property maintenance and repair | 2 | | costs
were incurred. Unexpended moneys in the Fund shall not be | 3 | | transferred or
allocated by
the Comptroller or Treasurer to any | 4 | | other fund nor shall the Governor authorize
the
transfer or | 5 | | allocation of those moneys to any other fund. After December | 6 | | 31, 2030 December 31, 2020 , all
moneys received from the | 7 | | rental, authorized under Section 2705-555 of the
Department
of | 8 | | Transportation Law of the Civil Administrative Code of | 9 | | Illinois, of land,
buildings, or
improvements on property held | 10 | | for the development of an airport in Will County
by the
| 11 | | Department of Transportation shall not be remitted to the Tax
| 12 | | Recovery
Fund but shall instead be paid to the General Revenue | 13 | | Fund. The balance
remaining in
the Tax Recovery Fund on | 14 | | December 31, 2030 December 31, 2020 shall first be
expended to
| 15 | | compensate taxing districts for loss of revenue leasehold taxes | 16 | | for the 2030 2020
tax
assessment year, and
then transferred to
| 17 | | the
General Revenue Fund for the purpose of debt service on | 18 | | State bonds issued to
provide
funds for airport land | 19 | | acquisition in Will County.
| 20 | | (Source: P.A. 96-192, eff. 8-10-09.) | 21 | | Section 10. The Property Tax Code is amended by changing | 22 | | Section 15-55 as follows: | 23 | | (35 ILCS 200/15-55)
| 24 | | Sec. 15-55. State property.
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| 1 | | (a) All property belonging to the State of Illinois
is | 2 | | exempt. However, the State agency holding title shall file the | 3 | | certificate
of ownership and use required by Section 15-10, | 4 | | together with a copy of any
written lease or agreement, in | 5 | | effect on March 30 of the assessment year,
concerning parcels | 6 | | of 1 acre or more, or an explanation of the terms of any
oral | 7 | | agreement under which the property is leased, subleased or | 8 | | rented.
| 9 | | The leased property shall be assessed to the lessee and the | 10 | | taxes thereon
extended and billed to the lessee, and collected | 11 | | in the same manner as
for property which is not exempt. The | 12 | | lessee shall be liable
for the taxes and no lien shall attach | 13 | | to the property of the State.
| 14 | | For the purposes of this Section, the word "leases" | 15 | | includes
licenses, franchises, operating agreements and other | 16 | | arrangements under which
private individuals, associations or | 17 | | corporations are granted the right to use
property of the | 18 | | Illinois State Toll Highway Authority and includes all property
| 19 | | of the Authority used by others without regard to the size of | 20 | | the leased
parcel.
| 21 | | (b) However, all property of every kind belonging to the | 22 | | State of
Illinois, which
is or may hereafter be leased to the | 23 | | Illinois Prairie Path Corporation, shall
be exempt from all | 24 | | assessments, taxation or collection, despite the making of
any | 25 | | such lease, if it is used for:
| 26 | | (1) conservation, nature trail or any other |
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| 1 | | charitable,
scientific,
educational or recreational | 2 | | purposes with public benefit, including the
preserving and | 3 | | aiding in the preservation of natural areas, objects, | 4 | | flora,
fauna or biotic communities;
| 5 | | (2) the establishment of footpaths, trails and other | 6 | | protected
areas;
| 7 | | (3) the conservation of the proper use of natural
| 8 | | resources or the promotion of the study of plant and animal | 9 | | communities and
of other phases of ecology, natural history | 10 | | and conservation;
| 11 | | (4) the promotion of education in the fields of nature,
| 12 | | preservation and
conservation; or
| 13 | | (5) similar public recreational activities conducted | 14 | | by the
Illinois
Prairie
Path Corporation.
| 15 | | No lien shall attach to the property of the State. No tax | 16 | | liability shall
become the obligation of or be enforceable | 17 | | against Illinois Prairie Path
Corporation.
| 18 | | (c) If the State sells the
James R.
Thompson Center
or the | 19 | | Elgin Mental Health Center and surrounding land located at 750 | 20 | | S.
State Street,
Elgin, Illinois, as provided in subdivision | 21 | | (a)(2) of Section 7.4 of
the State Property Control Act,
to
| 22 | | another entity whose property is not exempt and immediately | 23 | | thereafter enters
into a
leaseback or other agreement that | 24 | | directly or indirectly gives the State a
right to use,
control, | 25 | | and possess the property, that portion of the property leased | 26 | | and
occupied exclusively by the State shall remain exempt under |
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| 1 | | this
Section.
For the property to remain exempt under this | 2 | | subsection (c), the State must
retain an
option to purchase the | 3 | | property at a future date or, within the limitations
period for
| 4 | | reverters, the property must revert back to the State.
| 5 | | If the property has been conveyed as described in this | 6 | | subsection (c), the
property
is no longer exempt pursuant to | 7 | | this Section as of the date when:
| 8 | | (1) the right of the State to use, control, and possess | 9 | | the property has
been
terminated; or
| 10 | | (2) the State no longer has an option to
purchase or | 11 | | otherwise acquire the property and
there is no provision | 12 | | for a reverter of the property to the State
within the | 13 | | limitations period for reverters.
| 14 | | Pursuant to Sections 15-15 and 15-20 of this Code, the | 15 | | State shall notify the
chief
county assessment officer of any | 16 | | transaction under this subsection (c). The
chief county
| 17 | | assessment officer shall determine initial and continuing | 18 | | compliance with the
requirements of this Section for tax | 19 | | exemption. Failure to notify the chief
county
assessment | 20 | | officer of a transaction under this subsection (c) or to | 21 | | otherwise
comply with
the requirements of Sections 15-15 and | 22 | | 15-20 of this Code shall, in the
discretion of the
chief county | 23 | | assessment officer, constitute cause to terminate the | 24 | | exemption,
notwithstanding any other provision of this Code.
| 25 | | (c-1) If the Illinois State Toll Highway Authority sells | 26 | | the
Illinois State Toll Highway Authority headquarters |
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| 1 | | building and surrounding
land,
located at 2700 Ogden Avenue, | 2 | | Downers Grove, Illinois
as provided in subdivision (a)(2) of | 3 | | Section 7.5 of
the State Property Control Act,
to
another | 4 | | entity whose property is not exempt and immediately thereafter | 5 | | enters
into a
leaseback or other agreement that directly or | 6 | | indirectly gives the State or the
Illinois State Toll Highway | 7 | | Authority a
right to use,
control, and possess the property, | 8 | | that portion of the property leased and
occupied exclusively by | 9 | | the State or the Authority shall remain exempt under
this
| 10 | | Section.
For the property to remain exempt under this | 11 | | subsection (c), the Authority must
retain an
option to purchase | 12 | | the property at a future date or, within the limitations
period | 13 | | for
reverters, the property must revert back to the Authority.
| 14 | | If the property has been conveyed as described in this | 15 | | subsection (c), the
property
is no longer exempt pursuant to | 16 | | this Section as of the date when:
| 17 | | (1) the right of the State or the Authority to use, | 18 | | control, and possess
the
property has
been
terminated; or
| 19 | | (2) the Authority no longer has an option to
purchase | 20 | | or otherwise acquire the property and
there is no provision | 21 | | for a reverter of the property to the Authority
within the | 22 | | limitations period for reverters.
| 23 | | Pursuant to Sections 15-15 and 15-20 of this Code, the | 24 | | Authority
shall notify the
chief
county assessment officer of | 25 | | any transaction under this subsection (c). The
chief county
| 26 | | assessment officer shall determine initial and continuing |
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| 1 | | compliance with the
requirements of this Section for tax | 2 | | exemption. Failure to notify the chief
county
assessment | 3 | | officer of a transaction under this subsection (c) or to | 4 | | otherwise
comply with
the requirements of Sections 15-15 and | 5 | | 15-20 of this Code shall, in the
discretion of the
chief county | 6 | | assessment officer, constitute cause to terminate the | 7 | | exemption,
notwithstanding any other provision of this Code.
| 8 | | (d) For tax years prior to 2019, the The fair market rent | 9 | | of each parcel of real property in Will
County owned by the | 10 | | State of Illinois for the purpose of developing an airport
by | 11 | | the Department of Transportation shall include the assessed | 12 | | value of
leasehold tax. The lessee of each parcel of real | 13 | | property in Will
County owned by
the
State of Illinois for the | 14 | | purpose of developing an airport by the Department of
| 15 | | Transportation shall not be liable for the taxes thereon. In | 16 | | order for the
State to
compensate taxing districts for
the loss | 17 | | of revenue leasehold tax under this paragraph ,
the Will County | 18 | | Supervisor of Assessments shall
annually certify, in
writing, | 19 | | to the
Department of Transportation, the following amounts: (1) | 20 | | for tax years prior to 2019, the the amount of leasehold taxes
| 21 | | extended for the 2002 property tax
year for
each such exempt | 22 | | parcel ; and (2) for tax years 2019 through 2030, the amount of | 23 | | taxes that would have been extended for the current tax year | 24 | | for each such exempt parcel if those parcels had been owned by | 25 | | a person whose property is not exempt .
The Department of | 26 | | Transportation shall pay to the Will
County
Treasurer, from the |
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| 1 | | Tax Recovery Fund, on or before July 1 of each
year, the amount | 2 | | of leasehold taxes for each such exempt parcel as certified
by | 3 | | the Will County Supervisor of Assessments. The tax compensation | 4 | | shall
terminate
on
December 31, 2030 December 31, 2020 . It is | 5 | | the duty of the Department of Transportation to file
with the
| 6 | | Office of the Will County Supervisor of Assessments an | 7 | | affidavit stating the
termination
date for rental of each such | 8 | | parcel due to airport construction. The affidavit
shall include
| 9 | | the property identification number for each such parcel. In no | 10 | | instance shall
tax
compensation for property owned by the State | 11 | | be deemed delinquent or bear
interest. In
no instance shall a | 12 | | lien attach to the property of the State. In no instance
shall | 13 | | the State
be required to pay leasehold tax compensation under | 14 | | this subsection in excess of the lesser of (i) the Tax
Recovery | 15 | | Fund's balance or (ii) $600,000 in any tax year .
| 16 | | (e) Public Act 81-1026 applies to all leases or agreements | 17 | | entered into
or
renewed on or after September 24, 1979.
| 18 | | (f) Notwithstanding anything to the contrary in this Code, | 19 | | all property owned by the State that is the Illiana Expressway, | 20 | | as defined in the Public Private Agreements for the Illiana | 21 | | Expressway Act, and that is used for transportation purposes | 22 | | and that is leased for those purposes to another entity whose | 23 | | property is not exempt shall remain exempt, and any leasehold | 24 | | interest in the property shall not be subject to taxation under | 25 | | Section 9-195 of this Act. | 26 | | (g) Notwithstanding anything to the contrary in this |
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| 1 | | Section, all property owned by the State or the Illinois State | 2 | | Toll Highway Authority that is defined as a transportation | 3 | | project under the Public-Private Partnerships for | 4 | | Transportation Act and that is used for transportation purposes | 5 | | and that is leased for those purposes to another entity whose | 6 | | property is not exempt shall remain exempt, and any leasehold | 7 | | interest in the property shall not be subject to taxation under | 8 | | Section 9-195 of this Act. | 9 | | (h) Notwithstanding anything to the contrary in this Code, | 10 | | all property owned by the State that is the South Suburban | 11 | | Airport, as defined in the Public-Private Agreements for the | 12 | | South Suburban Airport Act, and that is used for airport | 13 | | purposes and that is leased for those purposes to another | 14 | | entity whose property is not exempt shall remain exempt, and | 15 | | any leasehold interest in the property shall not be subject to | 16 | | taxation under Section 9-195 of this Act. | 17 | | (Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law. |
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