Public Act 101-0551
 
SB1456 EnrolledLRB101 09049 HLH 54142 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Section 15-185 as follows:
 
    (35 ILCS 200/15-185)
    Sec. 15-185. Exemption for leaseback property and
qualified leased property.
    (a) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, a unit of local government whose
jurisdiction includes territory located in whole or in part
within a municipality with a population of over 500,000
inhabitants, or a municipality with home rule powers that is
contiguous to a municipality with a population of over 500,000
inhabitants, shall remain exempt from taxation and any
leasehold interest in that property shall not be subject to
taxation under Section 9-195 if the property is directly or
indirectly leased, sold, or otherwise transferred to another
entity whose property is not exempt and immediately thereafter
is the subject of a leaseback or other agreement that directly
or indirectly gives the municipality or unit of local
government (i) a right to use, control, and possess the
property or (ii) a right to require the other entity, or the
other entity's designee or assignee, to use the property in the
performance of services for the municipality or unit of local
government. Property shall no longer be exempt under this
subsection as of the date when the right of the municipality or
unit of local government to use, control, and possess the
property or to require the performance of services is
terminated and the municipality or unit of local government no
longer has any option to purchase or otherwise reacquire the
interest in the property which was transferred by the
municipality or unit of local government.
    (b) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, a unit of local government whose
jurisdiction includes territory located in whole or in part
within a municipality with a population of over 500,000
inhabitants, or a municipality with home rule powers that is
contiguous to a municipality with a population of over 500,000
inhabitants, shall remain exempt from taxation and any
leasehold interest in that property is not subject to taxation
under Section 9-195 if the property, including dedicated public
property, is used by a municipality or other unit of local
government for the purpose of an airport or parking or for
waste disposal or processing and is leased for continued use
for the same purpose to another entity whose property is not
exempt. If property located in a municipality with a population
of more than 500,000 inhabitants is not subject to taxation due
to its use for the purpose of parking, and any portion of the
property is used for a purpose other than parking, that portion
of the property shall be subject to taxation under Section
9-195 for the period of time during which it is used for that
non-exempt purpose; provided, however, that the use of a
portion of such property for a non-exempt purpose shall have no
effect on (i) the exemption of the remaining portion of the
property that continues to be used for an exempt purpose, as
identified in this subsection, or (ii) the future exemption of
that same portion of the property if it ceases to be used for a
non-exempt purpose and returned to use for an exempt purpose as
identified in this subsection. No taxes shall be assessed on
any portion of the property identified in this subsection prior
to the effective date of this amendatory Act of the 101st
General Assembly.
    For the purposes of this subsection (b), "airport" does not
include any airport property, as defined under Section 10 of
the O'Hare Modernization Act.
    Any transaction described under this subsection must be
undertaken in accordance with all appropriate federal laws and
regulations.
    (c) For purposes of this Section, "municipality" means a
municipality as defined in Section 1-1-2 of the Illinois
Municipal Code, and "unit of local government" means a unit of
local government as defined in Article VII, Section 1 of the
Constitution of the State of Illinois. The provisions of this
Section supersede and control over any conflicting provisions
of this Code.
(Source: P.A. 96-779, eff. 8-28-09.)

Effective Date: 1/1/2020