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Public Act 100-0456 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Property Tax Code is amended by changing | ||||
Sections 10-365, 10-370, 10-375, and 10-380 as follows: | ||||
(35 ILCS 200/10-365) | ||||
Sec. 10-365. U.S. Military Public/Private Residential | ||||
Developments. Unless otherwise agreed to pursuant to a separate | ||||
settlement agreement pursuant to Section 10-385 of this Code, | ||||
PPV Leases must be classified and valued as set forth in | ||||
Sections 10-370 through 10-380 during the period beginning | ||||
January 1, 2006 and ending December 31, 2055 January 1, 2017 .
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(Source: P.A. 98-494, eff. 1-1-14; 99-738, eff. 8-5-16.) | ||||
(35 ILCS 200/10-370) | ||||
Sec. 10-370. Definitions. For the purposes of this Division | ||||
14: | ||||
(a) "PPV Lease" means a leasehold interest in property that | ||||
is exempt from taxation under Section 15-50 of this Code and | ||||
that is leased, pursuant to authority set forth in Chapter 10 | ||||
of the United States Code, to another whose property is not | ||||
exempt for the purpose of, after January 1, 2006, the design, | ||||
finance, construction, renovation, management, operation, and |
maintenance of rental housing units and associated | ||
improvements at military training facilities, military bases, | ||
and related military support facilities in the State of | ||
Illinois. All interests enjoyed pursuant to the authority set | ||
forth in Chapter 159 or Chapter 169 of Title 10 of the United | ||
States Code are considered leaseholds for the purposes of this | ||
Division. The changes to this Section made by this amendatory | ||
Act of the 97th General Assembly apply beginning on January 1, | ||
2006. | ||
(b) For tax years prior to 2017, for For naval training | ||
facilities, naval bases, and naval support facilities, "net | ||
operating income" means all revenues received minus the lesser | ||
of (i) 62% of all revenues or (ii) actual expenses before | ||
interest, taxes, depreciation, and amortization. For all other | ||
military training facilities, military bases, and related | ||
military support facilities, "net operating income" means all | ||
revenues received minus the lesser of (i) 42% of all revenues | ||
or (ii) actual expenses before interest, taxes, depreciation, | ||
and amortization. | ||
(b-5) For tax year 2017 and thereafter, for naval training | ||
facilities, naval bases, and naval support facilities, "net | ||
operating income" means all revenues received minus the actual | ||
expenses before interest, taxes, depreciation, and | ||
amortization. | ||
(c) "Tax load factor" means the level of assessment, as set | ||
forth under item (b) of Section 9-145 or under Section 9-150, |
multiplied by the cumulative tax rate for the current taxable | ||
year.
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(Source: P.A. 97-942, eff. 8-10-12; 98-494, eff. 1-1-14.) | ||
(35 ILCS 200/10-375) | ||
Sec. 10-375. Valuation. | ||
(a) A PPV Lease must be valued at its fair cash value, as | ||
provided under item (b) of Section 9-145 or under Section | ||
9-150. | ||
(b) The fair cash value of a PPV Lease must be determined | ||
by using an income capitalization approach.
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(c) To determine the fair cash value of a PPV Lease, the | ||
net operating income is divided by (i) a rate of 12% 7.75% plus | ||
(ii) the actual or most recently ascertainable tax load factor | ||
for the subject year. | ||
(d) By April 15 of each year, the holder of a PPV Lease | ||
must report to the chief county assessment officer in each | ||
county in which the leasehold property is located the annual | ||
gross income and expenses derived and incurred from the PPV | ||
Lease, including the rental of leased property for each | ||
military housing facility subject to a PPV Lease.
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(Source: P.A. 94-974, eff. 6-30-06.) | ||
(35 ILCS 200/10-380) | ||
Sec. 10-380. For the taxable years 2006 through 2055 2016 , | ||
the chief county assessment officer in the county in which |
property subject to a PPV Lease is located shall apply the | ||
provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this | ||
Division 14 in assessing and determining the value of any PPV | ||
Lease for purposes of the property tax laws of this State. | ||
(Source: P.A. 98-463, eff. 8-16-13; 98-494, eff. 1-1-14; | ||
99-738, eff. 8-5-16.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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