Full Text of HB1366 96th General Assembly
HB1366eng 96TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning government.
| 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 96th General Assembly. | 21 | | Section 95. Applicability. The changes made by this | 22 | | amendatory Act of the 96th 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 96th 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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