Illinois General Assembly - Illinois Compiled Statutes

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35 ILCS 200/15-185

(35 ILCS 200/15-185)

Sec. 15-185. Exemption for leaseback property and qualified leased property.

(a) Notwithstanding anything in this Code to
the
contrary, all property owned by a municipality with a population of over
500,000
inhabitants, a unit of local government whose jurisdiction includes
territory located in
whole or in part within a municipality with a population of over 500,000
inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants,
shall remain exempt from taxation and any leasehold interest in that property
shall not be
subject to taxation under Section 9-195 if

the
property is directly or indirectly leased, sold, or otherwise transferred to
another entity
whose property is not exempt and immediately thereafter is the subject of a
leaseback or
other agreement that directly or indirectly gives the municipality or unit of
local
government (i) a right to use, control, and possess the property or (ii) a
right to require
the other entity, or the other entity's designee or assignee, to use the
property in the
performance of services for the municipality or unit of local government. Property

shall no longer be exempt under this subsection as of the date when the right of
the
municipality or unit of local government to use, control, and possess the
property or to
require the performance of services is terminated and the municipality or unit
of local
government no longer has any option to purchase or otherwise reacquire the
interest in
the property which was transferred by the municipality or unit of local
government.

(b) Notwithstanding anything in this Code to
the
contrary, all property owned by a municipality with a population of over
500,000
inhabitants, a unit of local government whose jurisdiction includes
territory located in
whole or in part within a municipality with a population of over 500,000
inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants,
shall remain exempt from taxation and any leasehold interest in that property
is not
subject to taxation under Section 9-195 if the property, including dedicated public property, is used by a municipality or other unit of local government for the purpose of parking and is leased for continued use for the same purpose to another entity whose property is not exempt. If property located in a municipality with a population of more than 500,000 inhabitants is not subject to taxation due to its use for the purpose of parking, and any portion of the property is used for a purpose other than parking, that portion of the property shall be subject to taxation under Section 9-195 for the period of time during which it is used for that non-exempt purpose; provided, however, that the use of a portion of such property for a non-exempt purpose shall have no effect on (i) the exemption of the remaining portion of the property that continues to be used for an exempt purpose, as identified in this subsection, or (ii) the future exemption of that same portion of the property if it ceases to be used for a non-exempt purpose and returned to use for an exempt purpose as identified in this subsection. No taxes shall be assessed on any portion of the property identified in this subsection prior to the effective date of this amendatory Act of the 101st General Assembly.

Any transaction described under this subsection must be undertaken in accordance with all appropriate federal laws and regulations.

(c) For purposes of this Section, "municipality" means a municipality as defined
in
Section 1-1-2 of the Illinois Municipal Code, and "unit of local government"
means a unit
of local government as defined in Article VII, Section 1 of the Constitution of
the State of
Illinois. The provisions of this Section supersede and control over any
conflicting
provisions of this Code.

(Source: P.A. 101-551, eff. 1-1-20.)