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| | SB1456 Enrolled | | LRB101 09049 HLH 54142 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 15-185 as follows:
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| 6 | | (35 ILCS 200/15-185)
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| 7 | | Sec. 15-185. Exemption for leaseback property and |
| 8 | | qualified leased property.
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| 9 | | (a) Notwithstanding anything in this Code to
the
contrary, |
| 10 | | all property owned by a municipality with a population of over
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| 11 | | 500,000
inhabitants, a unit of local government whose |
| 12 | | jurisdiction includes
territory located in
whole or in part |
| 13 | | within a municipality with a population of over 500,000
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| 14 | | inhabitants, or a municipality with home rule powers that is |
| 15 | | contiguous to a municipality with a population of over 500,000 |
| 16 | | inhabitants,
shall remain exempt from taxation and any |
| 17 | | leasehold interest in that property
shall not be
subject to |
| 18 | | taxation under Section 9-195 if
the
property is directly or |
| 19 | | indirectly leased, sold, or otherwise transferred to
another |
| 20 | | entity
whose property is not exempt and immediately thereafter |
| 21 | | is the subject of a
leaseback or
other agreement that directly |
| 22 | | or indirectly gives the municipality or unit of
local
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| 23 | | government (i) a right to use, control, and possess the |
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| 1 | | property or (ii) a
right to require
the other entity, or the |
| 2 | | other entity's designee or assignee, to use the
property in the
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| 3 | | performance of services for the municipality or unit of local |
| 4 | | government. Property
shall no longer be exempt under this |
| 5 | | subsection as of the date when the right of
the
municipality or |
| 6 | | unit of local government to use, control, and possess the
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| 7 | | property or to
require the performance of services is |
| 8 | | terminated and the municipality or unit
of local
government no |
| 9 | | longer has any option to purchase or otherwise reacquire the
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| 10 | | interest in
the property which was transferred by the |
| 11 | | municipality or unit of local
government.
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| 12 | | (b) Notwithstanding anything in this Code to
the
contrary, |
| 13 | | all property owned by a municipality with a population of over
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| 14 | | 500,000
inhabitants, a unit of local government whose |
| 15 | | jurisdiction includes
territory located in
whole or in part |
| 16 | | within a municipality with a population of over 500,000
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| 17 | | inhabitants, or a municipality with home rule powers that is |
| 18 | | contiguous to a municipality with a population of over 500,000 |
| 19 | | inhabitants,
shall remain exempt from taxation and any |
| 20 | | leasehold interest in that property
is not
subject to taxation |
| 21 | | under Section 9-195 if the property, including dedicated public |
| 22 | | property, is used by a municipality or other unit of local |
| 23 | | government for the purpose of an airport or parking or for |
| 24 | | waste disposal or processing and is leased for continued use |
| 25 | | for the same purpose to another entity whose property is not |
| 26 | | exempt. If property located in a municipality with a population |
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| 1 | | of more than 500,000 inhabitants is not subject to taxation due |
| 2 | | to its use for the purpose of parking, and any portion of the |
| 3 | | property is used for a purpose other than parking, that portion |
| 4 | | of the property shall be subject to taxation under Section |
| 5 | | 9-195 for the period of time during which it is used for that |
| 6 | | non-exempt purpose; provided, however, that the use of a |
| 7 | | portion of such property for a non-exempt purpose shall have no |
| 8 | | effect on (i) the exemption of the remaining portion of the |
| 9 | | property that continues to be used for an exempt purpose, as |
| 10 | | identified in this subsection, or (ii) the future exemption of |
| 11 | | that same portion of the property if it ceases to be used for a |
| 12 | | non-exempt purpose and returned to use for an exempt purpose as |
| 13 | | identified in this subsection. No taxes shall be assessed on |
| 14 | | any portion of the property identified in this subsection prior |
| 15 | | to the effective date of this amendatory Act of the 101st |
| 16 | | General Assembly. |
| 17 | | For the purposes of this subsection (b), "airport" does not |
| 18 | | include any airport property, as defined under Section 10 of |
| 19 | | the O'Hare Modernization Act. |
| 20 | | Any transaction described under this subsection must be |
| 21 | | undertaken in accordance with all appropriate federal laws and |
| 22 | | regulations. |
| 23 | | (c) For purposes of this Section, "municipality" means a |
| 24 | | municipality as defined
in
Section 1-1-2 of the Illinois |
| 25 | | Municipal Code, and "unit of local government"
means a unit
of |
| 26 | | local government as defined in Article VII, Section 1 of the |