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Public Act 101-0532
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| SB0527 Enrolled | LRB101 04288 RJF 49296 b |
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AN ACT concerning government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The State Finance Act is amended by changing |
Section 6z-59 as follows:
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(30 ILCS 105/6z-59)
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Sec. 6z-59. The Tax Recovery Fund. There is created in the
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State treasury the Tax Recovery Fund. Through December 31, 2030 |
December 31, 2020, all moneys received from
the
rental, |
authorized under Section 2705-555 of the Department of |
Transportation
Law of
the Civil Administrative Code of |
Illinois, of land, buildings, or improvements
on property
held |
for development of an airport in Will County by the Department |
of
Transportation
shall be remitted to the State Treasurer for |
payment into the Tax
Recovery Fund. Subject to appropriation, |
the moneys in the Fund shall be
expended with
the following |
priority: (1)
to compensate taxing districts for leasehold |
taxes
then (2) to the General Revenue Fund less any money
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necessary to pay maintenance and repair
costs for that real |
property.
The tax compensation shall be determined in |
accordance with Sections 9-195 and
15-55 of
the
Property Tax |
Code.
Expenditures for these purposes may be made by
Department |
of Transportation without regard to the fiscal year in which |
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tax
compensation
liability and property maintenance and repair |
costs
were incurred. Unexpended moneys in the Fund shall not be |
transferred or
allocated by
the Comptroller or Treasurer to any |
other fund nor shall the Governor authorize
the
transfer or |
allocation of those moneys to any other fund. After December |
31, 2030 December 31, 2020, all
moneys received from the |
rental, authorized under Section 2705-555 of the
Department
of |
Transportation Law of the Civil Administrative Code of |
Illinois, of land,
buildings, or
improvements on property held |
for the development of an airport in Will County
by the
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Department of Transportation shall not be remitted to the Tax
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Recovery
Fund but shall instead be paid to the General Revenue |
Fund. The balance
remaining in
the Tax Recovery Fund on |
December 31, 2030 December 31, 2020 shall first be
expended to
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compensate taxing districts for loss of revenue leasehold taxes |
for the 2030 2020
tax
assessment year, and
then transferred to
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the
General Revenue Fund for the purpose of debt service on |
State bonds issued to
provide
funds for airport land |
acquisition in Will County.
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(Source: P.A. 96-192, eff. 8-10-09.)
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Section 10. The Property Tax Code is amended by changing |
Section 15-55 as follows:
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(35 ILCS 200/15-55)
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Sec. 15-55. State property.
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(a) All property belonging to the State of Illinois
is |
exempt. However, the State agency holding title shall file the |
certificate
of ownership and use required by Section 15-10, |
together with a copy of any
written lease or agreement, in |
effect on March 30 of the assessment year,
concerning parcels |
of 1 acre or more, or an explanation of the terms of any
oral |
agreement under which the property is leased, subleased or |
rented.
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The leased property shall be assessed to the lessee and the |
taxes thereon
extended and billed to the lessee, and collected |
in the same manner as
for property which is not exempt. The |
lessee shall be liable
for the taxes and no lien shall attach |
to the property of the State.
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For the purposes of this Section, the word "leases" |
includes
licenses, franchises, operating agreements and other |
arrangements under which
private individuals, associations or |
corporations are granted the right to use
property of the |
Illinois State Toll Highway Authority and includes all property
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of the Authority used by others without regard to the size of |
the leased
parcel.
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(b) However, all property of every kind belonging to the |
State of
Illinois, which
is or may hereafter be leased to the |
Illinois Prairie Path Corporation, shall
be exempt from all |
assessments, taxation or collection, despite the making of
any |
such lease, if it is used for:
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(1) conservation, nature trail or any other |
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charitable,
scientific,
educational or recreational |
purposes with public benefit, including the
preserving and |
aiding in the preservation of natural areas, objects, |
flora,
fauna or biotic communities;
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(2) the establishment of footpaths, trails and other |
protected
areas;
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(3) the conservation of the proper use of natural
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resources or the promotion of the study of plant and animal |
communities and
of other phases of ecology, natural history |
and conservation;
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(4) the promotion of education in the fields of nature,
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preservation and
conservation; or
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(5) similar public recreational activities conducted |
by the
Illinois
Prairie
Path Corporation.
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No lien shall attach to the property of the State. No tax |
liability shall
become the obligation of or be enforceable |
against Illinois Prairie Path
Corporation.
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(c) If the State sells the
James R.
Thompson Center
or the |
Elgin Mental Health Center and surrounding land located at 750 |
S.
State Street,
Elgin, Illinois, as provided in subdivision |
(a)(2) of Section 7.4 of
the State Property Control Act,
to
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another entity whose property is not exempt and immediately |
thereafter enters
into a
leaseback or other agreement that |
directly or indirectly gives the State a
right to use,
control, |
and possess the property, that portion of the property leased |
and
occupied exclusively by the State shall remain exempt under |
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this
Section.
For the property to remain exempt under this |
subsection (c), the State must
retain an
option to purchase the |
property at a future date or, within the limitations
period for
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reverters, the property must revert back to the State.
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If the property has been conveyed as described in this |
subsection (c), the
property
is no longer exempt pursuant to |
this Section as of the date when:
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(1) the right of the State to use, control, and possess |
the property has
been
terminated; or
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(2) the State no longer has an option to
purchase or |
otherwise acquire the property and
there is no provision |
for a reverter of the property to the State
within the |
limitations period for reverters.
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Pursuant to Sections 15-15 and 15-20 of this Code, the |
State shall notify the
chief
county assessment officer of any |
transaction under this subsection (c). The
chief county
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assessment officer shall determine initial and continuing |
compliance with the
requirements of this Section for tax |
exemption. Failure to notify the chief
county
assessment |
officer of a transaction under this subsection (c) or to |
otherwise
comply with
the requirements of Sections 15-15 and |
15-20 of this Code shall, in the
discretion of the
chief county |
assessment officer, constitute cause to terminate the |
exemption,
notwithstanding any other provision of this Code.
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(c-1) If the Illinois State Toll Highway Authority sells |
the
Illinois State Toll Highway Authority headquarters |
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building and surrounding
land,
located at 2700 Ogden Avenue, |
Downers Grove, Illinois
as provided in subdivision (a)(2) of |
Section 7.5 of
the State Property Control Act,
to
another |
entity whose property is not exempt and immediately thereafter |
enters
into a
leaseback or other agreement that directly or |
indirectly gives the State or the
Illinois State Toll Highway |
Authority a
right to use,
control, and possess the property, |
that portion of the property leased and
occupied exclusively by |
the State or the Authority shall remain exempt under
this
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Section.
For the property to remain exempt under this |
subsection (c), the Authority must
retain an
option to purchase |
the property at a future date or, within the limitations
period |
for
reverters, the property must revert back to the Authority.
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If the property has been conveyed as described in this |
subsection (c), the
property
is no longer exempt pursuant to |
this Section as of the date when:
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(1) the right of the State or the Authority to use, |
control, and possess
the
property has
been
terminated; or
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(2) the Authority no longer has an option to
purchase |
or otherwise acquire the property and
there is no provision |
for a reverter of the property to the Authority
within the |
limitations period for reverters.
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Pursuant to Sections 15-15 and 15-20 of this Code, the |
Authority
shall notify the
chief
county assessment officer of |
any transaction under this subsection (c). The
chief county
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assessment officer shall determine initial and continuing |
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compliance with the
requirements of this Section for tax |
exemption. Failure to notify the chief
county
assessment |
officer of a transaction under this subsection (c) or to |
otherwise
comply with
the requirements of Sections 15-15 and |
15-20 of this Code shall, in the
discretion of the
chief county |
assessment officer, constitute cause to terminate the |
exemption,
notwithstanding any other provision of this Code.
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(d) For tax years prior to 2019, the The fair market rent |
of each parcel of real property in Will
County owned by the |
State of Illinois for the purpose of developing an airport
by |
the Department of Transportation shall include the assessed |
value of
leasehold tax. The lessee of each parcel of real |
property in Will
County owned by
the
State of Illinois for the |
purpose of developing an airport by the Department of
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Transportation shall not be liable for the taxes thereon. In |
order for the
State to
compensate taxing districts for
the loss |
of revenue leasehold tax under this paragraph,
the Will County |
Supervisor of Assessments shall
annually certify, in
writing, |
to the
Department of Transportation, the following amounts: (1) |
for tax years prior to 2019, the the amount of leasehold taxes
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extended for the 2002 property tax
year for
each such exempt |
parcel; and (2) for tax years 2019 through 2030, the amount of |
taxes that would have been extended for the current tax year |
for each such exempt parcel if those parcels had been owned by |
a person whose property is not exempt.
The Department of |
Transportation shall pay to the Will
County
Treasurer, from the |
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Tax Recovery Fund, on or before July 1 of each
year, the amount |
of leasehold taxes for each such exempt parcel as certified
by |
the Will County Supervisor of Assessments. The tax compensation |
shall
terminate
on
December 31, 2030 December 31, 2020. It is |
the duty of the Department of Transportation to file
with the
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Office of the Will County Supervisor of Assessments an |
affidavit stating the
termination
date for rental of each such |
parcel due to airport construction. The affidavit
shall include
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the property identification number for each such parcel. In no |
instance shall
tax
compensation for property owned by the State |
be deemed delinquent or bear
interest. In
no instance shall a |
lien attach to the property of the State. In no instance
shall |
the State
be required to pay leasehold tax compensation under |
this subsection in excess of the lesser of (i) the Tax
Recovery |
Fund's balance or (ii) $600,000 in any tax year.
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(e) Public Act 81-1026 applies to all leases or agreements |
entered into
or
renewed on or after September 24, 1979.
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(f) Notwithstanding anything to the contrary in this Code, |
all property owned by the State that is the Illiana Expressway, |
as defined in the Public Private Agreements for the Illiana |
Expressway Act, and that is used for transportation purposes |
and that is leased for those purposes to another entity whose |
property is not exempt shall remain exempt, and any leasehold |
interest in the property shall not be subject to taxation under |
Section 9-195 of this Act. |
(g) Notwithstanding anything to the contrary in this |
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Section, all property owned by the State or the Illinois State |
Toll Highway Authority that is defined as a transportation |
project under the Public-Private Partnerships for |
Transportation Act and that is used for transportation purposes |
and that is leased for those purposes to another entity whose |
property is not exempt shall remain exempt, and any leasehold |
interest in the property shall not be subject to taxation under |
Section 9-195 of this Act. |
(h) Notwithstanding anything to the contrary in this Code, |
all property owned by the State that is the South Suburban |
Airport, as defined in the Public-Private Agreements for the |
South Suburban Airport Act, and that is used for airport |
purposes and that is leased for those purposes to another |
entity whose property is not exempt shall remain exempt, and |
any leasehold interest in the property shall not be subject to |
taxation under Section 9-195 of this Act. |
(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
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Section 99. Effective date. This Act takes effect upon |
becoming law. |