Full Text of HB6272 98th General Assembly
HB6272 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB6272 Introduced , by Rep. Rich Brauer SYNOPSIS AS INTRODUCED: |
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30 ILCS 605/7.1 | from Ch. 127, par. 133b10.1 |
35 ILCS 200/15-60 |
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Amends the State Property Control Act. Provides that (i) if an agency conveys surplus real property to the State by quitclaim deed and (ii) if that surplus real property remains titled to the State and remains subject to the jurisdiction of the Administrator 15 years after the execution of that quitclaim deed, then the Administrator shall convey the surplus real property by quitclaim deed to the municipality in which the property is located or, if the property is located in an unincorporated area of a county, to the county. Amends the Property Tax Code. Provides that surplus property that is conveyed to a county or municipality in that manner is not exempt from taxation in any taxable year in which the municipality or county owns the property. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Property Control Act is amended by | 5 | | changing Section 7.1 as follows:
| 6 | | (30 ILCS 605/7.1) (from Ch. 127, par. 133b10.1)
| 7 | | Sec. 7.1.
(a) Except as otherwise provided by law, all | 8 | | surplus real
property held by the State of Illinois shall be | 9 | | disposed of by the
administrator as provided in this Section. | 10 | | "Surplus real property," as
used in this Section, means any | 11 | | real property to which the State holds fee
simple title or
| 12 | | lesser interest, and is vacant, unoccupied or unused and which | 13 | | has no
foreseeable use by the owning agency.
| 14 | | (b) All responsible officers shall submit an Annual Real | 15 | | Property
Utilization Report to the Administrator, or annual | 16 | | update of such
report, on forms required by the Administrator, | 17 | | by July 31 of each year.
The Administrator may require such | 18 | | documentation as he deems reasonably
necessary in connection | 19 | | with this Report, and shall require that such
Report include | 20 | | the following information:
| 21 | | (1) A legal description of all real property owned by | 22 | | the State
under the control of the responsible officer.
| 23 | | (2) A description of the use of the real property |
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| 1 | | listed under (1).
| 2 | | (3) A list of any improvements made to such real | 3 | | property during the
previous year.
| 4 | | (4) The dates on which the State first acquired its | 5 | | interest in such
real property, and the purchase price and | 6 | | source of the funds used to
acquire the property.
| 7 | | (5) Plans for the future use of currently unused real | 8 | | property.
| 9 | | (6) A declaration of any surplus real property.
On or | 10 | | before October 31 of each year the Administrator shall | 11 | | furnish
copies of each responsible officer's report along | 12 | | with a list of surplus
property indexed by legislative | 13 | | district to the General Assembly.
| 14 | | This report shall be filed with the Speaker, the Minority | 15 | | Leader and the
Clerk of the House of Representatives and the | 16 | | President, the Minority
Leader and the Secretary of the Senate | 17 | | and shall be duplicated and made
available to the members of | 18 | | the General Assembly for evaluation by such
members for | 19 | | possible liquidation of unused public property at public sale.
| 20 | | (c) Following receipt of the Annual Real Property | 21 | | Utilization Report
required under paragraph (b), the | 22 | | Administrator shall notify all State
agencies by October 31 of | 23 | | all declared surplus real
property. Any State
agency may submit | 24 | | a written request to the Administrator, within 60 days
of the | 25 | | date of such notification, to have control of surplus real
| 26 | | property transferred to that agency. Such request must indicate |
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| 1 | | the
reason for the transfer and the intended use to be made of | 2 | | such surplus
real property. The Administrator may deny any or | 3 | | all such requests by a
State agency or agencies if the | 4 | | Administrator determines that it is more
advantageous to the | 5 | | State to dispose of the surplus real property under
paragraph | 6 | | (d). In case requests for the same surplus real property are
| 7 | | received from more than one State agency, the Administrator | 8 | | shall weigh
the benefits to the State and determine to which | 9 | | agency, if any, to
transfer control of such property. The | 10 | | Administrator shall coordinate
the use and disposal of State | 11 | | surplus real property with any State space
utilization program.
| 12 | | (d) Any surplus real property which is not transferred to | 13 | | the
control of another State agency under paragraph (c) shall | 14 | | be disposed of
by the Administrator. No appraisal is required | 15 | | if during his initial
survey of surplus real property the | 16 | | Administrator determines such
property has a fair market value | 17 | | of less than $5,000. If the value of
such property is | 18 | | determined by the Administrator in his initial survey
to be | 19 | | $5,000 or more, then the Administrator shall obtain 3 | 20 | | appraisals
of such real property, one of which shall be | 21 | | performed by an appraiser
residing in the county in which said | 22 | | surplus real property is located.
The average of these 3 | 23 | | appraisals, plus the costs of obtaining the
appraisals, shall | 24 | | represent the fair market value of the surplus real
property. | 25 | | No surplus real property may be conveyed by the Administrator
| 26 | | for less than the fair market value. Prior to offering the |
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| 1 | | surplus real
property for sale to the public the Administrator | 2 | | shall give notice in
writing of the existence and fair market | 3 | | value of the surplus real
property to the governing bodies of | 4 | | the county and of all cities,
villages and incorporated towns | 5 | | in the county in which such real
property is located. Any such | 6 | | governing body may exercise its option to
acquire the surplus | 7 | | real property for the fair market value within 60
days of the | 8 | | notice. After the 60 day period has passed, the
Administrator | 9 | | may sell the surplus real property by public auction
following | 10 | | notice of such sale by publication on 3 separate days not less
| 11 | | than 15 nor more than 30 days prior to the sale in the State | 12 | | newspaper
and in a newspaper having general circulation in the | 13 | | county in which the
surplus real property is located. The | 14 | | Administrator shall post "For
Sale" signs of a conspicuous | 15 | | nature on such surplus real property
offered for sale to the | 16 | | public. If no acceptable offers for the surplus
real property | 17 | | are received, the Administrator may have new appraisals of
such | 18 | | property made. The Administrator shall have all power necessary | 19 | | to
convey surplus real property under this Section. All moneys | 20 | | received
for the sale of surplus real property shall be | 21 | | deposited in the General
Revenue Fund, except that: | 22 | | (1) Where moneys expended for the acquisition of such
| 23 | | real property were from a special fund which is still a | 24 | | special fund in
the State treasury, this special fund shall | 25 | | be reimbursed in the amount
of the original expenditure and | 26 | | any amount in excess thereof shall be
deposited in the |
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| 1 | | General Revenue Fund. | 2 | | (2) Whenever a State mental health facility operated by | 3 | | the Department of Human Services is closed and the real | 4 | | estate on which the facility is located is sold by the | 5 | | State, the net proceeds of the sale of the real estate | 6 | | shall be deposited into the Community Mental Health | 7 | | Medicaid Trust Fund. | 8 | | (3) Whenever a State developmental disabilities | 9 | | facility operated by the Department of Human Services is | 10 | | closed and the real estate on which the facility is located | 11 | | is sold by the State, the net proceeds of the sale of the | 12 | | real estate shall be deposited into the Community | 13 | | Developmental Disability Services Medicaid Trust Fund.
| 14 | | The Administrator shall have authority to order such | 15 | | surveys, abstracts
of title, or commitments for title insurance | 16 | | as may, in his reasonable
discretion, be deemed necessary to | 17 | | demonstrate to prospective purchasers or
bidders good and | 18 | | marketable title in any property offered for sale pursuant
to | 19 | | this Section. Unless otherwise specifically authorized by the | 20 | | General
Assembly, all conveyances of property made by the | 21 | | Administrator shall be by
quit claim deed.
| 22 | | (d-5) Notwithstanding subsection (d) of this Section or any | 23 | | other provision of law, if, 15 years after the execution of a | 24 | | quitclaim deed under 44 Ill. Adm. Code 5000.760(a), the surplus | 25 | | real property transferred remains titled to the State of | 26 | | Illinois and remains subject to the jurisdiction of the |
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| 1 | | Administrator under this Act, then the Administrator shall | 2 | | convey the surplus real property by quitclaim deed as follows: | 3 | | if the surplus real property is located within the corporate | 4 | | limits of a municipality, then it shall be conveyed to that | 5 | | municipality; if the surplus real property is located in an | 6 | | unincorporated area of a county, then it shall be conveyed to | 7 | | the county in which it is located. The municipality or county | 8 | | receiving the surplus real property under this subsection (d-5) | 9 | | shall receive title to the surplus real property in fee simple | 10 | | absolute and may use or dispose of all or a portion of the | 11 | | surplus real property in such manner as the corporate | 12 | | authorities of the municipality or county may, by resolution, | 13 | | determine. | 14 | | (e) The Administrator shall submit an annual report on or | 15 | | before
February 1 to the Governor and the General Assembly | 16 | | containing a
detailed statement of surplus real property either | 17 | | transferred or
conveyed under this Section.
| 18 | | (Source: P.A. 96-527, eff. 1-1-10; 96-660, eff. 8-25-09; | 19 | | 96-1000, eff. 7-2-10.)
| 20 | | Section 10. The Property Tax Code is amended by changing | 21 | | Section 15-60 as follows:
| 22 | | (35 ILCS 200/15-60)
| 23 | | Sec. 15-60. Taxing district property. All property | 24 | | belonging to any county
or municipality used exclusively for |
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| 1 | | the maintenance of the poor is exempt,
as is all property owned | 2 | | by a taxing district that is being held for future
expansion or | 3 | | development, except if leased by the taxing district to lessees
| 4 | | for use for other than public purposes.
| 5 | | Also exempt are:
| 6 | | (a) all swamp or overflowed lands belonging to any | 7 | | county;
| 8 | | (b) all public buildings belonging to any county, | 9 | | township, or
municipality, with the ground on which the | 10 | | buildings are erected;
| 11 | | (c) all property owned by any municipality located | 12 | | within its
incorporated limits. Any such property leased by | 13 | | a municipality shall
remain exempt, and the leasehold | 14 | | interest of the lessee shall be assessed under
Section | 15 | | 9-195 of this Act, (i) for a lease entered into on or after | 16 | | January 1,
1994, unless the lease expressly provides that | 17 | | this exemption shall not apply;
(ii) for a lease entered | 18 | | into on or after the effective date of Public Act
87-1280 | 19 | | and before January 1, 1994, unless the lease expressly | 20 | | provides that
this exemption shall not apply or unless | 21 | | evidence other than the lease itself
substantiates the | 22 | | intent of the parties to the lease that this exemption | 23 | | shall
not apply; and (iii) for a lease entered into before | 24 | | the effective date of
Public Act 87-1280, if the terms of | 25 | | the lease do not bind the lessee to pay the
taxes on the | 26 | | leased property or if, notwithstanding the terms of the |
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| 1 | | lease, the
municipality has filed or hereafter files a | 2 | | timely exemption petition or
complaint with respect to | 3 | | property consisting of or including the leased
property for | 4 | | an assessment year which includes part or all of the first | 5 | | 12
months of the lease period. The foregoing clause (iii) | 6 | | added by Public Act
87-1280 shall not operate to exempt | 7 | | property for any assessment year as to
which no timely | 8 | | exemption petition or complaint has been filed by the
| 9 | | municipality or as to which an administrative or court | 10 | | decision denying
exemption has become final and | 11 | | nonappealable. For each assessment year or
portion thereof | 12 | | that property is made exempt by operation of the foregoing
| 13 | | clause (iii), whether such year or portion is before or | 14 | | after the effective
date of Public Act 87-1280, the | 15 | | leasehold interest of the lessee shall, if
necessary, be | 16 | | considered omitted property for purposes of this Act;
| 17 | | (c-5) Notwithstanding clause (i) of subsection (c), | 18 | | all property owned by
a municipality with a population of | 19 | | over 500,000 that is used for toll road or
toll bridge | 20 | | purposes and that is leased for those purposes to another | 21 | | entity
whose property is not exempt shall remain exempt, | 22 | | and any leasehold interest in
the property shall not be | 23 | | subject to taxation under Section 9-195 of this Act;
| 24 | | (d) all property owned by any municipality located | 25 | | outside its
incorporated limits but within the same county | 26 | | when used as a tuberculosis
sanitarium, farm colony in |
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| 1 | | connection with a house of correction, or nursery,
garden, | 2 | | or farm, or for the growing of shrubs, trees, flowers, | 3 | | vegetables, and
plants for use in beautifying, | 4 | | maintaining, and operating playgrounds, parks,
parkways, | 5 | | public grounds, buildings, and institutions owned or | 6 | | controlled
by the municipality;
| 7 | | (e) all property owned by a township and operated as | 8 | | senior citizen
housing under Sections 35-50 through | 9 | | 35-50.6 of the Township Code; and | 10 | | (f) all property owned by the Executive Board of the | 11 | | Mutual Aid Box Alarm System (MABAS), a unit of | 12 | | intergovernmental cooperation, that is used for the public | 13 | | purpose of disaster preparedness and response for units of | 14 | | local government and the State of Illinois pursuant to | 15 | | Section 10 of Article VII of the Illinois Constitution and | 16 | | the Intergovernmental Cooperation Act.
| 17 | | All property owned by any municipality outside of its | 18 | | corporate limits is
exempt if used exclusively for municipal or | 19 | | public purposes.
| 20 | | Notwithstanding this Section or any other provision of law, | 21 | | if real property is conveyed to a municipality or a county | 22 | | under subsection (d-5) of Section 7.1 of the State Property | 23 | | Control Act, then that property is not entitled to an exemption | 24 | | under this Section or any other Section of this Code in any | 25 | | taxable year in which the municipality or county owns the | 26 | | property. |
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| 1 | | For purposes of this Section, "municipality" means a | 2 | | municipality, as
defined in Section 1-1-2 of the Illinois | 3 | | Municipal Code.
| 4 | | (Source: P.A. 98-206, eff. 1-1-14.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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