093_SB0873eng

 
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 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Finance Act is amended by adding
 5    Sections 5.595 and 6z-59 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595.  The Tax Recovery Fund.

 8        (30 ILCS 105/6z-59 new)
 9        Sec. 6z-59. The Tax Recovery Fund. There  is  created  in
10    the  State  treasury the Tax Recovery Fund.  Through December
11    31, 2010, all moneys received  from  the  rental,  authorized
12    under  Section  2705-555  of the Department of Transportation
13    Law of the Civil Administrative Code of  Illinois,  of  land,
14    buildings,  or  improvements on property held for development
15    of  an  airport  in  Will  County  by   the   Department   of
16    Transportation  shall  be remitted to the State Treasurer for
17    payment into the Tax Recovery Fund. Subject to appropriation,
18    the moneys in the Fund shall be expended with  the  following
19    priority:  (1)  to  compensate  units of local government for
20    property taxes that would have been extended and collected on
21    Will County real property before ownership by the  State  for
22    the  development  of the airport (tax compensation); then (2)
23    to pay maintenance and repair costs for that  real  property.
24    The  tax  compensation shall be determined in accordance with
25    Section 15-55 of the  Property  Tax  Code.  Expenditures  for
26    these  purposes  may  be made by Department of Transportation
27    without regard to the fiscal year in which  tax  compensation
28    liability  and  property  maintenance  and  repair costs were
29    incurred.  Unexpended  moneys  in  the  Fund  shall  not   be
30    transferred  or  allocated by the Comptroller or Treasurer to
 
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 1    any other fund nor shall the Governor authorize the  transfer
 2    or  allocation  of  those  moneys  to  any  other fund. After
 3    December 31, 2010,  all  moneys  received  from  the  rental,
 4    authorized  under  Section  2705-555  of  the  Department  of
 5    Transportation  Law  of  the  Civil  Administrative  Code  of
 6    Illinois,  of  land,  buildings,  or improvements on property
 7    held for the development of an airport in Will County by  the
 8    Department of Transportation shall not be remitted to the Tax
 9    Recovery  Fund  but  shall  instead  be  paid  to the General
10    Revenue Fund. The balance remaining in the Tax Recovery  Fund
11    on  December  31,  2010 shall first be expended to compensate
12    units of local government for taxes for the 2010 property tax
13    assessment year, and then transferred to the General  Revenue
14    Fund for the purpose of debt service on State bonds issued to
15    provide funds for airport land acquisition in Will County.

16        Section 10.  The Property Tax Code is amended by changing
17    Section 15-55 as follows:

18        (35 ILCS 200/15-55)
19        Sec.  15-55.   State property.  All property belonging to
20    the State of Illinois is exempt. However,  the  State  agency
21    holding title shall file the certificate of ownership and use
22    required  by  Section  15-10,  together  with  a  copy of any
23    written lease or agreement, in effect  on  March  30  of  the
24    assessment  year, concerning parcels of 1 acre or more, or an
25    explanation of the terms of any oral  agreement  under  which
26    the property is leased, subleased or rented.
27        The  leased  property shall be assessed to the lessee and
28    the taxes thereon extended and  billed  to  the  lessee,  and
29    collected  in  the  same  manner as for property which is not
30    exempt. The lessee shall be liable for the taxes and no  lien
31    shall attach to the property of the State.
32        For  the  purposes  of  this  Section,  the word "leases"
 
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 1    includes licenses, franchises, operating agreements and other
 2    arrangements under which private individuals, associations or
 3    corporations are granted the right to  use  property  of  the
 4    Illinois  State  Toll  Highway  Authority  and  includes  all
 5    property  of  the  Authority used by others without regard to
 6    the size of the leased parcel.
 7        However, all property of  every  kind  belonging  to  the
 8    State of Illinois, which is or may hereafter be leased to the
 9    Illinois  Prairie  Path Corporation, shall be exempt from all
10    assessments, taxation or collection, despite  the  making  of
11    any such lease, if it is used for:
12             (a)  conservation,   nature   trail   or  any  other
13        charitable,  scientific,  educational   or   recreational
14        purposes  with  public  benefit, including the preserving
15        and aiding in the preservation of natural areas, objects,
16        flora, fauna or biotic communities;
17             (b)  the  establishment  of  footpaths,  trails  and
18        other protected areas;
19             (c)  the conservation of the proper use  of  natural
20        resources  or  the  promotion  of  the study of plant and
21        animal  communities  and  of  other  phases  of  ecology,
22        natural history and conservation;
23             (d)  the promotion of education  in  the  fields  of
24        nature, preservation and conservation; or
25             (e)  similar    public    recreational    activities
26        conducted by the Illinois Prairie Path Corporation.
27        No lien shall attach to the property of the State. No tax
28    liability  shall  become  the obligation of or be enforceable
29    against Illinois Prairie Path Corporation.
30        However, the lessee of each parcel of  real  property  in
31    Will County owned by the State of Illinois for the purpose of
32    developing  an  airport  by  the Department of Transportation
33    shall not be liable for the taxes thereon. In order  for  the
34    State  to compensate units of local government for taxes that
 
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 1    would have been extended and collected on  Will  County  real
 2    property before ownership by the State for the development of
 3    the  airport, the Will County Supervisor of Assessments shall
 4    certify, in writing, to the Department of Transportation, the
 5    amount of assessed taxes for each such parcel  for  the  2001
 6    property tax year. The Department of Transportation shall pay
 7    to  the Will County Treasurer, from the Tax Recovery Fund, on
 8    or before July 1 of each year, the amount of  rent  collected
 9    for  each parcel during the previous year (tax compensation).
10    The payment, however, shall not exceed, for each parcel,  the
11    assessed tax amount for the 2001 property tax year.  Annually
12    the  Will  County Treasurer shall distribute a portion of the
13    entire payment for each parcel to the  corporate  authorities
14    of  each  taxing  district  in an amount equal to that taxing
15    district's pro rata share of that parcel's 2001 property  tax
16    bill.  The  Will  County  Treasurer  shall  treat  the annual
17    Department  of  Transportation  payments  as  taxes  for  the
18    limited purpose of distributing the  payments  in  accordance
19    with  Sections  20-85  through  20-160  of this Code. The tax
20    compensation shall terminate on December 31, 2010. It is  the
21    duty  of  the  Department  of Transportation to file with the
22    Office of  the  Will  County  Supervisor  of  Assessments  an
23    affidavit  stating  the  termination  date for rental of each
24    such parcel due to airport construction. The affidavit  shall
25    include  the  property  identification  number  for each such
26    parcel. In no instance shall tax  compensation  for  property
27    owned  by the State be deemed delinquent or bear interest. In
28    no instance shall a lien attach to the property of the State.
29    In no instance shall the State be required  to  pay  property
30    tax  compensation  in  excess  of  the  Tax  Recovery  Fund's
31    balance.
32        Public  Act  81-1026  applies to all leases or agreements
33    entered into or renewed on or after September 24, 1979.
34    (Source: P.A. 86-413; 88-455.)
 
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 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.