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Public Act 92-0844
HB1276 Enrolled LRB9203258SMdv
AN ACT in relation to taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 9-195 and 15-60 as follows:
(35 ILCS 200/9-195)
Sec. 9-195. Leasing of exempt property.
(a) Except as provided in Sections 15-35, 15-55, 15-60,
15-100, and 15-103, when property which is exempt from
taxation is leased to another whose property is not exempt,
and the leasing of which does not make the property taxable,
the leasehold estate and the appurtenances shall be listed as
the property of the lessee thereof, or his or her assignee.
Taxes on that property shall be collected in the same manner
as on property that is not exempt, and the lessee shall be
liable for those taxes. However, no tax lien shall attach to
the exempt real estate. The changes made by this amendatory
Act of 1997 and by this amendatory Act of the 91st General
Assembly are declaratory of existing law and shall not be
construed as a new enactment. The changes made by Public
Acts 88-221 and 88-420 that are incorporated into this
Section by this amendatory Act of 1993 are declarative of
existing law and are not a new enactment.
(b) The provisions of this Section regarding taxation of
leasehold interests in exempt property do not apply to any
leasehold interest created pursuant to any transaction
described in subsection (e) of Section 15-35, subsection
(c-5) of Section 15-60, subsection (b) of Section 15-100, or
Section 15-103.
(Source: P.A. 90-562, eff. 12-16-97; 91-513, eff. 8-13-99.)
(35 ILCS 200/15-60)
Sec. 15-60. Taxing district property. All property
belonging to any county or municipality used exclusively for
the maintenance of the poor is exempt, as is all property
owned by a taxing district that is being held for future
expansion or development, except if leased by the taxing
district to lessees for use for other than public purposes.
Also exempt are:
(a) all swamp or overflowed lands belonging to any
county;
(b) all public buildings belonging to any county,
township, or municipality, with the ground on which the
buildings are erected;
(c) all property owned by any municipality located
within its incorporated limits. Any such property leased by
a municipality shall remain exempt, and the leasehold
interest of the lessee shall be assessed under Section 9-195
of this Act, (i) for a lease entered into on or after January
1, 1994, unless the lease expressly provides that this
exemption shall not apply; (ii) for a lease entered into on
or after the effective date of Public Act 87-1280 and before
January 1, 1994, unless the lease expressly provides that
this exemption shall not apply or unless evidence other than
the lease itself substantiates the intent of the parties to
the lease that this exemption shall not apply; and (iii) for
a lease entered into before the effective date of Public Act
87-1280, if the terms of the lease do not bind the lessee to
pay the taxes on the leased property or if, notwithstanding
the terms of the lease, the municipality has filed or
hereafter files a timely exemption petition or complaint with
respect to property consisting of or including the leased
property for an assessment year which includes part or all of
the first 12 months of the lease period. The foregoing
clause (iii) added by Public Act 87-1280 shall not operate to
exempt property for any assessment year as to which no timely
exemption petition or complaint has been filed by the
municipality or as to which an administrative or court
decision denying exemption has become final and
nonappealable. For each assessment year or portion thereof
that property is made exempt by operation of the foregoing
clause (iii), whether such year or portion is before or after
the effective date of Public Act 87-1280, the leasehold
interest of the lessee shall, if necessary, be considered
omitted property for purposes of this Act;
(c-5) Notwithstanding clause (i) of subsection (c), all
property owned by a municipality with a population of over
500,000 that is used for toll road or toll bridge purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation
under Section 9-195 of this Act;
(d) all property owned by any municipality located
outside its incorporated limits but within the same county
when used as a tuberculosis sanitarium, farm colony in
connection with a house of correction, or nursery, garden, or
farm, or for the growing of shrubs, trees, flowers,
vegetables, and plants for use in beautifying, maintaining,
and operating playgrounds, parks, parkways, public grounds,
buildings, and institutions owned or controlled by the
municipality; and
(e) all property owned by a township and operated as
senior citizen housing under Sections 35-50 through 35-50.6
of the Township Code.
All property owned by any municipality outside of its
corporate limits is exempt if used exclusively for municipal
or public purposes.
For purposes of this Section, "municipality" means a
municipality, as defined in Section 1-1-2 of the Illinois
Municipal Code.
(Source: P.A. 89-165, eff. 1-1-96; 90-176, eff. 1-1-98.)
Section 10. The Illinois Municipal Code is amended by
changing Section 8-11-6 as follows:
(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
Sec. 8-11-6. Home Rule Municipal Use Tax Act.
(a) The corporate authorities of a home rule
municipality may impose a tax upon the privilege of using, in
such municipality, any item of tangible personal property
which is purchased at retail from a retailer, and which is
titled or registered at a location within the corporate
limits of such home rule municipality with an agency of this
State's government, at a rate which is an increment of 1/4%
and based on the selling price of such tangible personal
property, as "selling price" is defined in the Use Tax Act.
In home rule municipalities with less than 2,000,000
inhabitants, the tax shall be collected by the municipality
imposing the tax from persons whose Illinois address for
titling or registration purposes is given as being in such
municipality.
(b) In home rule municipalities with 2,000,000 or more
inhabitants, the corporate authorities of the municipality
may additionally impose a tax beginning July 1, 1991 upon the
privilege of using in the municipality, any item of tangible
personal property, other than tangible personal property
titled or registered with an agency of the State's
government, that is purchased at retail from a retailer
located outside the corporate limits of the municipality, at
a rate that is an increment of 1/4% not to exceed 1% and
based on the selling price of the tangible personal property,
as "selling price" is defined in the Use Tax Act. Such tax
shall be collected from the purchaser or the retailer either
by the municipality imposing such tax or by the Department of
Revenue pursuant to an agreement between the Department and
the municipality.
To prevent multiple home rule taxation, the use in a home
rule municipality of tangible personal property that is
acquired outside the municipality and caused to be brought
into the municipality by a person who has already paid a home
rule municipal tax in another municipality in respect to the
sale, purchase, or use of that property, shall be exempt to
the extent of the amount of the tax properly due and paid in
the other home rule municipality.
(c) If a municipality having 2,000,000 or more
inhabitants imposes the tax authorized by subsection (a),
then the tax shall be collected by the Illinois Department of
Revenue when the property is purchased at retail from a
retailer in the county in which the home rule municipality
imposing the tax is located, and in all contiguous counties.
The tax shall be remitted to the State, or an exemption
determination must be obtained from the Department before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to
the Department by way of the State agency with which, or
State officer with whom, the tangible personal property must
be titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this Section to collect all taxes, penalties and
interest due hereunder, to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this Section the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are prescribed in Sections 2 (except the definition of
"retailer maintaining a place of business in this State"), 3
(except provisions pertaining to the State rate of tax, and
except provisions concerning collection or refunding of the
tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
of the Use Tax Act, which are not inconsistent with this
Section, as fully as if provisions contained in those
Sections of the Use Tax Act were set forth herein.
Whenever the Department determines that a refund shall be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties and
interest collected hereunder. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the State Comptroller the disbursement of stated sums of
money to named municipalities, the municipality in each
instance to be that municipality from which the Department
during the second preceding calendar month, collected
municipal use tax from any person whose Illinois address for
titling or registration purposes is given as being in such
municipality. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, less the amount expended during the second
preceding month by the Department to be paid from the
appropriation to the Department from the Home Rule Municipal
Retailers' Occupation Tax Trust Fund. The appropriation to
cover the costs incurred by the Department in administering
and enforcing this Section shall not exceed 2% of the amount
estimated to be deposited into the Home Rule Municipal
Retailers' Occupation Tax Trust Fund during the fiscal year
for which the appropriation is made. Within 10 days after
receipt by the State Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the State Comptroller by the
Department, the State Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with the
directions contained in that certification.
Any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall be adopted and a certified copy thereof filed with the
Department on or before October 1, whereupon the Department
of Revenue shall proceed to administer and enforce this
Section on behalf of the municipalities as of January 1 next
following such adoption and filing. Beginning April 1, 1998,
any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall either (i) be adopted and a certified copy thereof
filed with the Department on or before April 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the municipalities as of July 1
next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before October 1, whereupon the Department of Revenue shall
proceed to administer and enforce this Section on behalf of
the municipalities as of January 1 next following the
adoption and filing.
Nothing in this subsection (c) shall prevent a home rule
municipality from collecting the tax pursuant to subsection
(a) in any situation where such tax is not collected by the
Department of Revenue under this subsection (c).
(d) Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135, and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
(e) As used in this Section, "Municipal" and
"Municipality" means a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
(f) This Section shall be known and may be cited as the
Home Rule Municipal Use Tax Act.
(Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01.)
Section 90. The State Mandates Act is amended by adding
Section 8.26 as follows:
(30 ILCS 805/8.26 new)
Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 92nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly June 01, 2002.
Approved August 23, 2002.
Effective August 23, 2002.
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