102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3257

 

Introduced 2/19/2021, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-35

    Amends the Property Tax Code. Provides that dormitories, residence halls, and other housing facilities, whether owned by the school or not, are exempt if: (1) the dormitory, residence hall, or other housing facility is approved by the school; (2) the dormitory, residence hall, or other housing facility is owned and operated by a nonprofit organization; and (3) the dormitory, residence hall, or other housing facility is occupied in whole or in part as living quarters by students who belong to fraternities, sororities, or other campus organizations. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 15-35 as follows:
 
6    (35 ILCS 200/15-35)
7    Sec. 15-35. Schools. All property donated by the United
8States for school purposes, and all property of schools, not
9sold or leased or otherwise used with a view to profit, is
10exempt, whether owned by a resident or non-resident of this
11State or by a corporation incorporated in any state of the
12United States. Also exempt is:
13        (a) property of schools which is leased to a
14    municipality to be used for municipal purposes on a
15    not-for-profit basis;
16        (b) property of schools on which the schools are
17    located and any other property of schools used by the
18    schools exclusively for school purposes, including, but
19    not limited to: (1) , student residence halls, dormitories
20    and other housing facilities for students and their
21    spouses and children; (2) , staff housing facilities; (3)
22    , and school-owned and operated dormitory or residence
23    halls occupied in whole or in part by students who belong

 

 

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1    to fraternities, sororities, or other campus
2    organizations; and (4) dormitories, residence halls, and
3    other housing facilities, whether owned by the school or
4    not, that meet the following criteria:
5            (A) the dormitory, residence hall, or other
6        housing facility is approved by the school;
7            (B) the dormitory, residence hall, or other
8        housing facility is owned and operated by a nonprofit
9        organization; and
10            (C) the dormitory, residence hall, or other
11        housing facility is occupied in whole or in part as
12        living quarters by students who belong to
13        fraternities, sororities, or other campus
14        organizations.
15        (c) property donated, granted, received or used for
16    public school, college, theological seminary, university,
17    or other educational purposes, whether held in trust or
18    absolutely;
19        (d) in counties with more than 200,000 inhabitants
20    which classify property, property (including interests in
21    land and other facilities) on or adjacent to (even if
22    separated by a public street, alley, sidewalk, parkway or
23    other public way) the grounds of a school, if that
24    property is used by an academic, research or professional
25    society, institute, association or organization which
26    serves the advancement of learning in a field or fields of

 

 

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1    study taught by the school and which property is not used
2    with a view to profit;
3        (e) property owned by a school district. The exemption
4    under this subsection is not affected by any transaction
5    in which, for the purpose of obtaining financing, the
6    school district, directly or indirectly, leases or
7    otherwise transfers the property to another for which or
8    whom property is not exempt and immediately after the
9    lease or transfer enters into a leaseback or other
10    agreement that directly or indirectly gives the school
11    district a right to use, control, and possess the
12    property. In the case of a conveyance of the property, the
13    school district must retain an option to purchase the
14    property at a future date or, within the limitations
15    period for reverters, the property must revert back to the
16    school district.
17            (1) If the property has been conveyed as described
18        in this subsection, the property is no longer exempt
19        under this Section as of the date when:
20                (A) the right of the school district to use,
21            control, and possess the property is terminated;
22                (B) the school district no longer has an
23            option to purchase or otherwise acquire the
24            property; and
25                (C) there is no provision for a reverter of
26            the property to the school district within the

 

 

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1            limitations period for reverters.
2            (2) Pursuant to Sections 15-15 and 15-20 of this
3        Code, the school district shall notify the chief
4        county assessment officer of any transaction under
5        this subsection. The chief county assessment officer
6        shall determine initial and continuing compliance with
7        the requirements of this subsection for tax exemption.
8        Failure to notify the chief county assessment officer
9        of a transaction under this subsection or to otherwise
10        comply with the requirements of Sections 15-15 and
11        15-20 of this Code shall, in the discretion of the
12        chief county assessment officer, constitute cause to
13        terminate the exemption, notwithstanding any other
14        provision of this Code.
15            (3) No provision of this subsection shall be
16        construed to affect the obligation of the school
17        district to which an exemption certificate has been
18        issued under this Section from its obligation under
19        Section 15-10 of this Code to file an annual
20        certificate of status or to notify the chief county
21        assessment officer of transfers of interest or other
22        changes in the status of the property as required by
23        this Code.
24            (4) The changes made by this amendatory Act of the
25        91st General Assembly are declarative of existing law
26        and shall not be construed as a new enactment; and

 

 

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1        (f) in counties with more than 200,000 inhabitants
2    which classify property, property of a corporation, which
3    is an exempt entity under paragraph (3) of Section 501(c)
4    of the Internal Revenue Code or its successor law, used by
5    the corporation for the following purposes: (1) conducting
6    continuing education for professional development of
7    personnel in energy-related industries; (2) maintaining a
8    library of energy technology information available to
9    students and the public free of charge; and (3) conducting
10    research in energy and environment, which research results
11    could be ultimately accessible to persons involved in
12    education.
13(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
1492-16, eff. 6-28-01.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.