093_SB0873eng SB873 Engrossed LRB093 02815 RCE 02831 b 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 SB873 Engrossed -2- LRB093 02815 RCE 02831 b 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" SB873 Engrossed -3- LRB093 02815 RCE 02831 b 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 SB873 Engrossed -4- LRB093 02815 RCE 02831 b 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.) SB873 Engrossed -5- LRB093 02815 RCE 02831 b 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.