Full Text of HB2849 097th General Assembly
HB2849 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB2849 Introduced 2/22/2011, by Rep. Barbara Flynn Currie SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/9-195 | | 35 ILCS 200/15-35 | | 35 ILCS 200/15-57 new | | 30 ILCS 805/8.35 new | |
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Amends the Property Tax Code. Provides that, if property is owned by the State, a unit of local government, or a school district and that property is leased to the State, a unit of local government, or a school district, then the property and the leasehold interest are exempt from taxation under the Property Tax Code or under any other law. Further provides that property of schools that is leased to the State, a unit of local government, or a school district (now, only leases to a municipality) for governmental purposes on a not-for-profit basis is exempt and that the leasehold interest is not taxable. Amends the State Mandates Act to require implementation without reimbursement. Provides that the changes made by the amendatory Act apply to taxable years 2010 and thereafter. Provides that the changes also apply to taxable years prior to 2010, but no payments of any such taxes need be refunded. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | 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 | | Sections 9-195 and 15-35 and by adding Section 15-57 as | 6 | | follows:
| 7 | | (35 ILCS 200/9-195)
| 8 | | Sec. 9-195. Leasing of exempt property.
| 9 | | (a) Except as provided in Sections 15-35, 15-55, 15-57, | 10 | | 15-60, 15-100,
15-103, and 15-185,
when property which is | 11 | | exempt from taxation is leased to another whose property
is not | 12 | | exempt, and the leasing of which does not make the property | 13 | | taxable,
the leasehold estate and the appurtenances shall be | 14 | | listed as the property of
the lessee thereof, or his or her | 15 | | assignee. Taxes on that property shall be
collected in the same | 16 | | manner as on property that is not exempt, and the lessee
shall | 17 | | be liable for those taxes. However, no tax lien shall attach to | 18 | | the
exempt real estate. The changes made by this amendatory Act | 19 | | of 1997 and by this
amendatory Act of the 91st General Assembly | 20 | | are declaratory of existing law
and shall not be construed as a | 21 | | new enactment. The changes made by Public Acts
88-221 and | 22 | | 88-420 that are incorporated into this Section by this | 23 | | amendatory
Act of 1993 are declarative of existing law and are |
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| 1 | | 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, item (a) of | 6 | | Section 15-35, Section 15-57, subsection (c-5)
of Section | 7 | | 15-60, subsection (b) of Section 15-100, Section 15-103, or
| 8 | | Section 15-185.
| 9 | | (Source: P.A. 92-844, eff. 8-23-02; 92-846, eff.
8-23-02; | 10 | | 93-19, eff. 6-20-03.)
| 11 | | (35 ILCS 200/15-35)
| 12 | | Sec. 15-35. Schools. All property donated by the United | 13 | | States for school
purposes, and all property of schools, not | 14 | | sold or leased or otherwise used
with a view to profit, is | 15 | | exempt, whether owned by a resident or non-resident
of this | 16 | | State or by a corporation incorporated in any state of the | 17 | | United
States. Also exempt is:
| 18 | | (a) property , along with the leasehold interest in that | 19 | | property, of schools which is leased to the State, a unit | 20 | | of local government, or school district municipality to be | 21 | | used for governmental
municipal purposes on a | 22 | | not-for-profit basis;
| 23 | | (b) property of schools on which the schools are | 24 | | located and any other
property of schools used by the | 25 | | schools exclusively for school purposes,
including, but |
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| 1 | | not limited to, student residence halls, dormitories and
| 2 | | other housing facilities for students and their spouses and | 3 | | children, staff
housing facilities, and school-owned and | 4 | | operated dormitory or residence
halls occupied in whole or | 5 | | in part by students who belong to fraternities,
sororities, | 6 | | or other campus organizations;
| 7 | | (c) property donated, granted, received or used for | 8 | | public school,
college, theological seminary, university, | 9 | | or other educational purposes,
whether held in trust or | 10 | | absolutely;
| 11 | | (d) in counties with more than 200,000 inhabitants | 12 | | which classify
property, property (including interests in | 13 | | land and other facilities) on or
adjacent to (even if | 14 | | separated by a public street, alley, sidewalk, parkway or
| 15 | | other public way) the grounds of a school, if that property | 16 | | is used by an
academic, research or professional society, | 17 | | institute, association or
organization which serves the | 18 | | advancement of learning in a field or fields of
study | 19 | | taught by the school and which property is not used with a | 20 | | view to
profit;
| 21 | | (e) property owned by a school district.
The exemption | 22 | | under this subsection is not affected by any
transaction
in | 23 | | which, for
the purpose of obtaining financing, the school | 24 | | district,
directly or
indirectly, leases or otherwise | 25 | | transfers the property to another for which or
whom | 26 | | property is not exempt and immediately after the lease or |
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| 1 | | transfer enters
into a leaseback
or other agreement that | 2 | | directly or indirectly gives the school district a
right to
| 3 | | use, control, and possess the property. In the case of a
| 4 | | conveyance
of the property, the school district must retain | 5 | | an option
to
purchase the property at a future date or, | 6 | | within the limitations period for
reverters, the property | 7 | | must revert back to the school district.
| 8 | | (1) If the property has been conveyed as described | 9 | | in this subsection,
the
property is no longer exempt | 10 | | under this Section as of the date when:
| 11 | | (A) the right of the school district to use, | 12 | | control,
and possess
the property is terminated;
| 13 | | (B) the school district no longer has an option | 14 | | to
purchase or otherwise acquire the property; and
| 15 | | (C) there is no provision for a reverter of the | 16 | | property to the school
district
within the | 17 | | limitations period for reverters.
| 18 | | (2) Pursuant to Sections 15-15 and 15-20 of this | 19 | | Code, the school
district
shall notify the chief county | 20 | | assessment officer of
any transaction under this | 21 | | subsection. The chief county
assessment officer shall
| 22 | | determine initial and continuing compliance with the | 23 | | requirements of this
subsection for tax exemption. | 24 | | Failure to notify the chief county assessment
officer | 25 | | of a transaction under this subsection or to otherwise | 26 | | comply with the
requirements of Sections
15-15 and |
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| 1 | | 15-20 of this Code shall, in the discretion of the | 2 | | chief county
assessment officer, constitute cause to | 3 | | terminate the exemption,
notwithstanding any other | 4 | | provision of this Code.
| 5 | | (3) No provision of this subsection shall be | 6 | | construed to affect the
obligation
of the school | 7 | | district to which an exemption certificate has been | 8 | | issued under
this Section from its obligation
under | 9 | | Section 15-10 of this Code to file
an annual | 10 | | certificate of status or to notify the chief county | 11 | | assessment
officer of transfers of interest or other | 12 | | changes in the status of the property
as required by | 13 | | this Code.
| 14 | | (4) The changes made by this amendatory Act of the | 15 | | 91st General Assembly
are declarative of existing law | 16 | | and shall not be construed as a new
enactment; and
| 17 | | (f) in counties with more than 200,000 inhabitants | 18 | | which
classify
property,
property of a corporation, which | 19 | | is an exempt entity under paragraph (3) of
Section 501(c) | 20 | | of the Internal Revenue Code or its successor law, used by | 21 | | the
corporation for the following purposes: (1) conducting | 22 | | continuing education
for professional development of | 23 | | personnel in energy-related industries; (2)
maintaining a | 24 | | library of energy technology information available to | 25 | | students
and the public free of charge; and (3) conducting | 26 | | research in energy and
environment, which research results |
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| 1 | | could be ultimately accessible to persons
involved in | 2 | | education.
| 3 | | (Source: P.A. 91-513, eff. 8-13-99; 91-578, eff.
8-14-99; | 4 | | 92-16, eff. 6-28-01.)
| 5 | | (35 ILCS 200/15-57 new) | 6 | | Sec. 15-57. Government property leased to another | 7 | | government entity. If property is owned by the State, a unit of | 8 | | local government, or a school district and that property is | 9 | | leased to the State, a unit of local government, or a school | 10 | | district, then the property is exempt from taxation under this | 11 | | Code and the leasehold interest is exempt from taxation under | 12 | | this Code or under any other law. The provisions of this | 13 | | Section apply notwithstanding any other provision of law. | 14 | | Section 90. The State Mandates Act is amended by adding | 15 | | Section 8.35 as follows: | 16 | | (30 ILCS 805/8.35 new) | 17 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 18 | | of this Act, no reimbursement by the State is required for the | 19 | | implementation of any mandate created by this amendatory Act of | 20 | | the 97th General Assembly. | 21 | | Section 95. Applicability. The changes made by this | 22 | | amendatory Act of the 97th General Assembly apply to taxable |
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| 1 | | years 2010 and thereafter. In addition, the changes made by | 2 | | this amendatory Act of the 97th General Assembly also apply to | 3 | | taxable years prior to 2010, but no such taxes paid for any | 4 | | taxable year prior to 2010 need be refunded. | 5 | | Section 97. Severability. The provisions of this Act are | 6 | | severable under Section 1.31 of the Statute on Statutes.
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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