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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 002 ] |
92_HB1276enr HB1276 Enrolled LRB9203258SMdv 1 AN ACT in relation to taxes. 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 15-60 as follows: 6 (35 ILCS 200/9-195) 7 Sec. 9-195. Leasing of exempt property. 8 (a) Except as provided in Sections 15-35, 15-55, 15-60, 9 15-100, and 15-103, when property which is exempt from 10 taxation is leased to another whose property is not exempt, 11 and the leasing of which does not make the property taxable, 12 the leasehold estate and the appurtenances shall be listed as 13 the property of the lessee thereof, or his or her assignee. 14 Taxes on that property shall be collected in the same manner 15 as on property that is not exempt, and the lessee shall be 16 liable for those taxes. However, no tax lien shall attach to 17 the exempt real estate. The changes made by this amendatory 18 Act of 1997 and by this amendatory Act of the 91st General 19 Assembly are declaratory of existing law and shall not be 20 construed as a new enactment. The changes made by Public 21 Acts 88-221 and 88-420 that are incorporated into this 22 Section by this amendatory Act of 1993 are declarative of 23 existing law and are not a new enactment. 24 (b) The provisions of this Section regarding taxation of 25 leasehold interests in exempt property do not apply to any 26 leasehold interest created pursuant to any transaction 27 described in subsection (e) of Section 15-35, subsection 28 (c-5) of Section 15-60, subsection (b) of Section 15-100, or 29 Section 15-103. 30 (Source: P.A. 90-562, eff. 12-16-97; 91-513, eff. 8-13-99.) HB1276 Enrolled -2- LRB9203258SMdv 1 (35 ILCS 200/15-60) 2 Sec. 15-60. Taxing district property. All property 3 belonging to any county or municipality used exclusively for 4 the maintenance of the poor is exempt, as is all property 5 owned by a taxing district that is being held for future 6 expansion or development, except if leased by the taxing 7 district to lessees for use for other than public purposes. 8 Also exempt are: 9 (a) all swamp or overflowed lands belonging to any 10 county; 11 (b) all public buildings belonging to any county, 12 township, or municipality, with the ground on which the 13 buildings are erected; 14 (c) all property owned by any municipality located 15 within its incorporated limits. Any such property leased by 16 a municipality shall remain exempt, and the leasehold 17 interest of the lessee shall be assessed under Section 9-195 18 of this Act, (i) for a lease entered into on or after January 19 1, 1994, unless the lease expressly provides that this 20 exemption shall not apply; (ii) for a lease entered into on 21 or after the effective date of Public Act 87-1280 and before 22 January 1, 1994, unless the lease expressly provides that 23 this exemption shall not apply or unless evidence other than 24 the lease itself substantiates the intent of the parties to 25 the lease that this exemption shall not apply; and (iii) for 26 a lease entered into before the effective date of Public Act 27 87-1280, if the terms of the lease do not bind the lessee to 28 pay the taxes on the leased property or if, notwithstanding 29 the terms of the lease, the municipality has filed or 30 hereafter files a timely exemption petition or complaint with 31 respect to property consisting of or including the leased 32 property for an assessment year which includes part or all of 33 the first 12 months of the lease period. The foregoing 34 clause (iii) added by Public Act 87-1280 shall not operate to HB1276 Enrolled -3- LRB9203258SMdv 1 exempt property for any assessment year as to which no timely 2 exemption petition or complaint has been filed by the 3 municipality or as to which an administrative or court 4 decision denying exemption has become final and 5 nonappealable. For each assessment year or portion thereof 6 that property is made exempt by operation of the foregoing 7 clause (iii), whether such year or portion is before or after 8 the effective date of Public Act 87-1280, the leasehold 9 interest of the lessee shall, if necessary, be considered 10 omitted property for purposes of this Act; 11 (c-5) Notwithstanding clause (i) of subsection (c), all 12 property owned by a municipality with a population of over 13 500,000 that is used for toll road or toll bridge purposes 14 and that is leased for those purposes to another entity whose 15 property is not exempt shall remain exempt, and any leasehold 16 interest in the property shall not be subject to taxation 17 under Section 9-195 of this Act; 18 (d) all property owned by any municipality located 19 outside its incorporated limits but within the same county 20 when used as a tuberculosis sanitarium, farm colony in 21 connection with a house of correction, or nursery, garden, or 22 farm, or for the growing of shrubs, trees, flowers, 23 vegetables, and plants for use in beautifying, maintaining, 24 and operating playgrounds, parks, parkways, public grounds, 25 buildings, and institutions owned or controlled by the 26 municipality; and 27 (e) all property owned by a township and operated as 28 senior citizen housing under Sections 35-50 through 35-50.6 29 of the Township Code. 30 All property owned by any municipality outside of its 31 corporate limits is exempt if used exclusively for municipal 32 or public purposes. 33 For purposes of this Section, "municipality" means a 34 municipality, as defined in Section 1-1-2 of the Illinois HB1276 Enrolled -4- LRB9203258SMdv 1 Municipal Code. 2 (Source: P.A. 89-165, eff. 1-1-96; 90-176, eff. 1-1-98.) 3 Section 10. The Illinois Municipal Code is amended by 4 changing Section 8-11-6 as follows: 5 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6) 6 Sec. 8-11-6. Home Rule Municipal Use Tax Act. 7 (a) The corporate authorities of a home rule 8 municipality may impose a tax upon the privilege of using, in 9 such municipality, any item of tangible personal property 10 which is purchased at retail from a retailer, and which is 11 titled or registered at a location within the corporate 12 limits of such home rule municipality with an agency of this 13 State's government, at a rate which is an increment of 1/4% 14 and based on the selling price of such tangible personal 15 property, as "selling price" is defined in the Use Tax Act. 16 In home rule municipalities with less than 2,000,000 17 inhabitants, the tax shall be collected by the municipality 18 imposing the tax from persons whose Illinois address for 19 titling or registration purposes is given as being in such 20 municipality. 21 (b) In home rule municipalities with 2,000,000 or more 22 inhabitants, the corporate authorities of the municipality 23 may additionally impose a tax beginning July 1, 1991 upon the 24 privilege of using in the municipality, any item of tangible 25 personal property, other than tangible personal property 26 titled or registered with an agency of the State's 27 government, that is purchased at retail from a retailer 28 located outside the corporate limits of the municipality, at 29 a rate that is an increment of 1/4% not to exceed 1% and 30 based on the selling price of the tangible personal property, 31 as "selling price" is defined in the Use Tax Act. Such tax 32 shall be collected from the purchaseror the retailereither HB1276 Enrolled -5- LRB9203258SMdv 1 by the municipality imposing such tax or by the Department of 2 Revenue pursuant to an agreement between the Department and 3 the municipality. 4 To prevent multiple home rule taxation, the use in a home 5 rule municipality of tangible personal property that is 6 acquired outside the municipality and caused to be brought 7 into the municipality by a person who has already paid a home 8 rule municipal tax in another municipality in respect to the 9 sale, purchase, or use of that property, shall be exempt to 10 the extent of the amount of the tax properly due and paid in 11 the other home rule municipality. 12 (c) If a municipality having 2,000,000 or more 13 inhabitants imposes the tax authorized by subsection (a), 14 then the tax shall be collected by the Illinois Department of 15 Revenue when the property is purchased at retail from a 16 retailer in the county in which the home rule municipality 17 imposing the tax is located, and in all contiguous counties. 18 The tax shall be remitted to the State, or an exemption 19 determination must be obtained from the Department before the 20 title or certificate of registration for the property may be 21 issued. The tax or proof of exemption may be transmitted to 22 the Department by way of the State agency with which, or 23 State officer with whom, the tangible personal property must 24 be titled or registered if the Department and that agency or 25 State officer determine that this procedure will expedite the 26 processing of applications for title or registration. 27 The Department shall have full power to administer and 28 enforce this Section to collect all taxes, penalties and 29 interest due hereunder, to dispose of taxes, penalties and 30 interest so collected in the manner hereinafter provided, and 31 determine all rights to credit memoranda or refunds arising 32 on account of the erroneous payment of tax, penalty or 33 interest hereunder. In the administration of and compliance 34 with this Section the Department and persons who are subject HB1276 Enrolled -6- LRB9203258SMdv 1 to this Section shall have the same rights, remedies, 2 privileges, immunities, powers and duties, and be subject to 3 the same conditions, restrictions, limitations, penalties and 4 definitions of terms, and employ the same modes of procedure 5 as are prescribed in Sections 2 (except the definition of 6 "retailer maintaining a place of business in this State"), 3 7 (except provisions pertaining to the State rate of tax, and 8 except provisions concerning collection or refunding of the 9 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 10 of the Use Tax Act, which are not inconsistent with this 11 Section, as fully as if provisions contained in those 12 Sections of the Use Tax Act were set forth herein. 13 Whenever the Department determines that a refund shall be 14 made under this Section to a claimant instead of issuing a 15 credit memorandum, the Department shall notify the State 16 Comptroller, who shall cause the order to be drawn for the 17 amount specified, and to the person named, in such 18 notification from the Department. Such refund shall be paid 19 by the State Treasurer out of the home rule municipal 20 retailers' occupation tax fund. 21 The Department shall forthwith pay over to the State 22 Treasurer, ex officio, as trustee, all taxes, penalties and 23 interest collected hereunder. On or before the 25th day of 24 each calendar month, the Department shall prepare and certify 25 to the State Comptroller the disbursement of stated sums of 26 money to named municipalities, the municipality in each 27 instance to be that municipality from which the Department 28 during the second preceding calendar month, collected 29 municipal use tax from any person whose Illinois address for 30 titling or registration purposes is given as being in such 31 municipality. The amount to be paid to each municipality 32 shall be the amount (not including credit memoranda) 33 collected hereunder during the second preceding calendar 34 month by the Department, and not including an amount equal to HB1276 Enrolled -7- LRB9203258SMdv 1 the amount of refunds made during the second preceding 2 calendar month by the Department on behalf of such 3 municipality, less the amount expended during the second 4 preceding month by the Department to be paid from the 5 appropriation to the Department from the Home Rule Municipal 6 Retailers' Occupation Tax Trust Fund. The appropriation to 7 cover the costs incurred by the Department in administering 8 and enforcing this Section shall not exceed 2% of the amount 9 estimated to be deposited into the Home Rule Municipal 10 Retailers' Occupation Tax Trust Fund during the fiscal year 11 for which the appropriation is made. Within 10 days after 12 receipt by the State Comptroller of the disbursement 13 certification to the municipalities provided for in this 14 Section to be given to the State Comptroller by the 15 Department, the State Comptroller shall cause the orders to 16 be drawn for the respective amounts in accordance with the 17 directions contained in that certification. 18 Any ordinance imposing or discontinuing any tax to be 19 collected and enforced by the Department under this Section 20 shall be adopted and a certified copy thereof filed with the 21 Department on or before October 1, whereupon the Department 22 of Revenue shall proceed to administer and enforce this 23 Section on behalf of the municipalities as of January 1 next 24 following such adoption and filing. Beginning April 1, 1998, 25 any ordinance imposing or discontinuing any tax to be 26 collected and enforced by the Department under this Section 27 shall either (i) be adopted and a certified copy thereof 28 filed with the Department on or before April 1, whereupon the 29 Department of Revenue shall proceed to administer and enforce 30 this Section on behalf of the municipalities as of July 1 31 next following the adoption and filing; or (ii) be adopted 32 and a certified copy thereof filed with the Department on or 33 before October 1, whereupon the Department of Revenue shall 34 proceed to administer and enforce this Section on behalf of HB1276 Enrolled -8- LRB9203258SMdv 1 the municipalities as of January 1 next following the 2 adoption and filing. 3 Nothing in this subsection (c) shall prevent a home rule 4 municipality from collecting the tax pursuant to subsection 5 (a) in any situation where such tax is not collected by the 6 Department of Revenue under this subsection (c). 7 (d) Any unobligated balance remaining in the Municipal 8 Retailers' Occupation Tax Fund on December 31, 1989, which 9 fund was abolished by Public Act 85-1135, and all receipts of 10 municipal tax as a result of audits of liability periods 11 prior to January 1, 1990, shall be paid into the Local 12 Government Tax Fund, for distribution as provided by this 13 Section prior to the enactment of Public Act 85-1135. All 14 receipts of municipal tax as a result of an assessment not 15 arising from an audit, for liability periods prior to January 16 1, 1990, shall be paid into the Local Government Tax Fund for 17 distribution before July 1, 1990, as provided by this Section 18 prior to the enactment of Public Act 85-1135, and on and 19 after July 1, 1990, all such receipts shall be distributed as 20 provided in Section 6z-18 of the State Finance Act. 21 (e) As used in this Section, "Municipal" and 22 "Municipality" means a city, village or incorporated town, 23 including an incorporated town which has superseded a civil 24 township. 25 (f) This Section shall be known and may be cited as the 26 Home Rule Municipal Use Tax Act. 27 (Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01.) 28 Section 90. The State Mandates Act is amended by adding 29 Section 8.26 as follows: 30 (30 ILCS 805/8.26 new) 31 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6 32 and 8 of this Act, no reimbursement by the State is required HB1276 Enrolled -9- LRB9203258SMdv 1 for the implementation of any mandate created by this 2 amendatory Act of the 92nd General Assembly. 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.