100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5722

 

Introduced , by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 605/7  from Ch. 127, par. 133b10
35 ILCS 200/15-55

    Amends the State Property Control Act. Provides that an agency covered by the Act may dispose of unneeded property, including real property, by sale or lease to any duly incorporated non-profit organization or association for the cultivation and sale of fresh fruits and vegetables on a tract of land of less than 5 acres within any local governmental unit, provided that the non-profit organization or association is not controlled, directly or indirectly, by any agricultural, commercial, or other business. Amends the Property Tax Code to provide a property tax exemption for non-profit organizations using land for the cultivation and sale of fresh fruits and vegetables.


LRB100 20219 RJF 35504 b

 

 

A BILL FOR

 

HB5722LRB100 20219 RJF 35504 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Property Control Act is amended by
5changing Section 7 as follows:
 
6    (30 ILCS 605/7)  (from Ch. 127, par. 133b10)
7    Sec. 7. Disposition of transferable property.
8    (a) Except as provided in subsections subsection (c) and
9(d), whenever a responsible officer considers it advantageous
10to the State to dispose of transferable property by trading it
11in for credit on a replacement of like nature, the responsible
12officer shall report the trade-in and replacement to the
13administrator on forms furnished by the latter. The exchange,
14trade or transfer of "textbooks" as defined in Section 18-17 of
15the School Code between schools or school districts pursuant to
16regulations adopted by the State Board of Education under that
17Section shall not constitute a disposition of transferable
18property within the meaning of this Section, even though such
19exchange, trade or transfer occurs within 5 years after the
20textbooks are first provided for loan pursuant to Section 18-17
21of the School Code.
22    (b) Except as provided in subsections subsection (c) and
23(d), whenever it is deemed necessary to dispose of any item of

 

 

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1transferable property, the administrator shall proceed to
2dispose of the property by sale or scrapping as the case may
3be, in whatever manner he considers most advantageous and most
4profitable to the State. Items of transferable property which
5would ordinarily be scrapped and disposed of by burning or by
6burial in a landfill may be examined and a determination made
7whether the property should be recycled. This determination and
8any sale of recyclable property shall be in accordance with
9rules promulgated by the Administrator.
10    When the administrator determines that property is to be
11disposed of by sale, he shall offer it first to the
12municipalities, counties, and school districts of the State and
13to charitable, not-for-profit educational and public health
14organizations, including but not limited to medical
15institutions, clinics, hospitals, health centers, schools,
16colleges, universities, child care centers, museums, nursing
17homes, programs for the elderly, food banks, State Use
18Sheltered Workshops and the Boy and Girl Scouts of America, for
19purchase at an appraised value. Notice of inspection or viewing
20dates and property lists shall be distributed in the manner
21provided in rules and regulations promulgated by the
22Administrator for that purpose.
23    Electronic data processing equipment purchased and charged
24to appropriations may, at the discretion of the administrator,
25be sold, pursuant to contracts entered into by the Director of
26Central Management Services or the heads of agencies exempt

 

 

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1from "The Illinois Purchasing Act". However such equipment
2shall not be sold at prices less than the purchase cost thereof
3or depreciated value as determined by the administrator. No
4sale of the electronic data processing equipment and lease to
5the State by the purchaser of such equipment shall be made
6under this Act unless the Director of Central Management
7Services finds that such contracts are financially
8advantageous to the State.
9    Disposition of other transferable property by sale, except
10sales directly to local governmental units, school districts,
11and not-for-profit educational, charitable and public health
12organizations, shall be subject to the following minimum
13conditions:
14        (1) The administrator shall cause the property to be
15    advertised for sale to the highest responsible bidder,
16    stating time, place, and terms of such sale at least 7 days
17    prior to the time of sale and at least once in a newspaper
18    having a general circulation in the county where the
19    property is to be sold.
20        (2) If no acceptable bids are received, the
21    administrator may then sell the property in whatever manner
22    he considers most advantageous and most profitable to the
23    State.
24    (c) Notwithstanding any other provision of this Act, an
25agency covered by this Act may transfer books, serial
26publications, or other library materials that are transferable

 

 

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1property, or that have been withdrawn from the agency's library
2collection through a regular collection evaluation process, to
3any of the following entities:
4        (1) Another agency covered by this Act located in
5    Illinois.
6        (2) A State supported university library located in
7    Illinois.
8        (3) A tax-supported public library located in
9    Illinois, including a library established by a public
10    library district.
11        (4) A library system organized under the Illinois
12    Library System Act or any library located in Illinois that
13    is a member of such a system.
14        (5) A non-profit agency, located in or outside
15    Illinois.
16    A transfer of property under this subsection is not subject
17to the requirements of subsection (a) or (b).
18    In addition, an agency covered by this Act may sell or
19exchange books, serial publications, and other library
20materials that have been withdrawn from its library collection
21through a regular collection evaluation process. Those items
22may be sold to the public at library book sales or to book
23dealers or may be offered through exchange to book dealers or
24other organizations. Revenues generated from the sale of
25withdrawn items shall be retained by the agency in a separate
26account to be used solely for the purchase of library

 

 

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1materials; except that in the case of the State Library,
2revenues from the sale of withdrawn items shall be deposited
3into the State Library Fund to be used for the purposes stated
4in Section 25 of the State Library Act.
5    For purposes of this subsection (c), "library materials"
6means physical entities of any substance that serve as carriers
7of information, including, without limitation, books, serial
8publications, periodicals, microforms, graphics, audio or
9video recordings, and machine readable data files.
10    (d) Notwithstanding any other provision of this Act, an
11agency covered by this Act may dispose of unneeded property,
12including real property, by sale or lease to any duly
13incorporated non-profit organization or association for the
14cultivation and sale of fresh fruits and vegetables on a tract
15of land of less than 5 acres within any local governmental
16unit, provided that the non-profit organization or association
17is not controlled, directly or indirectly, by any agricultural,
18commercial, or other business. The non-profit organization or
19association under this subsection (d) shall be authorized to
20sell fresh fruits and vegetables either on the land that was
21conveyed, off that land, or both, provided, that the sales are
22related or incidental to the non-profit purposes of the
23organization or association, and the net proceeds received by
24the non-profit organization or association are used to further
25the non-profit purposes of the organization or association.
26    A transfer of property under this subsection (d) is not

 

 

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1subject to the requirements of subsection (a) or (b).
2(Source: P.A. 96-498, eff. 8-14-09.)
 
3    Section 10. The Property Tax Code is amended by changing
4Section 15-55 as follows:
 
5    (35 ILCS 200/15-55)
6    Sec. 15-55. State property.
7    (a) All property belonging to the State of Illinois is
8exempt. However, the State agency holding title shall file the
9certificate of ownership and use required by Section 15-10,
10together with a copy of any written lease or agreement, in
11effect on March 30 of the assessment year, concerning parcels
12of 1 acre or more, or an explanation of the terms of any oral
13agreement under which the property is leased, subleased or
14rented.
15    The leased property shall be assessed to the lessee and the
16taxes thereon extended and billed to the lessee, and collected
17in the same manner as for property which is not exempt. The
18lessee shall be liable for the taxes and no lien shall attach
19to the property of the State.
20    For the purposes of this Section, the word "leases"
21includes licenses, franchises, operating agreements and other
22arrangements under which private individuals, associations or
23corporations are granted the right to use property of the
24Illinois State Toll Highway Authority and includes all property

 

 

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1of the Authority used by others without regard to the size of
2the leased parcel.
3    (b) However, all property of every kind belonging to the
4State of Illinois, which is or may hereafter be leased to the
5Illinois Prairie Path Corporation, shall be exempt from all
6assessments, taxation or collection, despite the making of any
7such lease, if it is used for:
8        (1) conservation, nature trail or any other
9    charitable, scientific, educational or recreational
10    purposes with public benefit, including the preserving and
11    aiding in the preservation of natural areas, objects,
12    flora, fauna or biotic communities;
13        (2) the establishment of footpaths, trails and other
14    protected areas;
15        (3) the conservation of the proper use of natural
16    resources or the promotion of the study of plant and animal
17    communities and of other phases of ecology, natural history
18    and conservation;
19        (4) the promotion of education in the fields of nature,
20    preservation and conservation; or
21        (5) similar public recreational activities conducted
22    by the Illinois Prairie Path Corporation.
23    No lien shall attach to the property of the State. No tax
24liability shall become the obligation of or be enforceable
25against Illinois Prairie Path Corporation.
26    (b-5) However, all property of every kind belonging to the

 

 

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1State of Illinois, which is or may be sold or leased to a
2non-profit organization specified under subsection (d) of
3Section 7 of the State Property Control Act, shall be exempt
4from all assessments, taxation, or collection, despite the
5making of any such sale or lease, if it is used for the
6cultivation and sale of fresh fruits and vegetables, and the
7net proceeds received by the non-profit organization or
8association are used to further the non-profit purposes of the
9organization or association.
10    (c) If the State sells the James R. Thompson Center or the
11Elgin Mental Health Center and surrounding land located at 750
12S. State Street, Elgin, Illinois, as provided in subdivision
13(a)(2) of Section 7.4 of the State Property Control Act, to
14another entity whose property is not exempt and immediately
15thereafter enters into a leaseback or other agreement that
16directly or indirectly gives the State a right to use, control,
17and possess the property, that portion of the property leased
18and occupied exclusively by the State shall remain exempt under
19this Section. For the property to remain exempt under this
20subsection (c), the State must retain an option to purchase the
21property at a future date or, within the limitations period for
22reverters, the property must revert back to the State.
23    If the property has been conveyed as described in this
24subsection (c), the property is no longer exempt pursuant to
25this Section as of the date when:
26        (1) the right of the State to use, control, and possess

 

 

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1    the property has been terminated; or
2        (2) the State no longer has an option to purchase or
3    otherwise acquire the property and there is no provision
4    for a reverter of the property to the State within the
5    limitations period for reverters.
6    Pursuant to Sections 15-15 and 15-20 of this Code, the
7State shall notify the chief county assessment officer of any
8transaction under this subsection (c). The chief county
9assessment officer shall determine initial and continuing
10compliance with the requirements of this Section for tax
11exemption. Failure to notify the chief county assessment
12officer of a transaction under this subsection (c) or to
13otherwise comply with the requirements of Sections 15-15 and
1415-20 of this Code shall, in the discretion of the chief county
15assessment officer, constitute cause to terminate the
16exemption, notwithstanding any other provision of this Code.
17    (c-1) If the Illinois State Toll Highway Authority sells
18the Illinois State Toll Highway Authority headquarters
19building and surrounding land, located at 2700 Ogden Avenue,
20Downers Grove, Illinois as provided in subdivision (a)(2) of
21Section 7.5 of the State Property Control Act, to another
22entity whose property is not exempt and immediately thereafter
23enters into a leaseback or other agreement that directly or
24indirectly gives the State or the Illinois State Toll Highway
25Authority a right to use, control, and possess the property,
26that portion of the property leased and occupied exclusively by

 

 

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1the State or the Authority shall remain exempt under this
2Section. For the property to remain exempt under this
3subsection (c), the Authority must retain an option to purchase
4the property at a future date or, within the limitations period
5for reverters, the property must revert back to the Authority.
6    If the property has been conveyed as described in this
7subsection (c), the property is no longer exempt pursuant to
8this Section as of the date when:
9        (1) the right of the State or the Authority to use,
10    control, and possess the property has been terminated; or
11        (2) the Authority no longer has an option to purchase
12    or otherwise acquire the property and there is no provision
13    for a reverter of the property to the Authority within the
14    limitations period for reverters.
15    Pursuant to Sections 15-15 and 15-20 of this Code, the
16Authority shall notify the chief county assessment officer of
17any transaction under this subsection (c). The chief county
18assessment officer shall determine initial and continuing
19compliance with the requirements of this Section for tax
20exemption. Failure to notify the chief county assessment
21officer of a transaction under this subsection (c) or to
22otherwise comply with the requirements of Sections 15-15 and
2315-20 of this Code shall, in the discretion of the chief county
24assessment officer, constitute cause to terminate the
25exemption, notwithstanding any other provision of this Code.
26    (d) The fair market rent of each parcel of real property in

 

 

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1Will County owned by the State of Illinois for the purpose of
2developing an airport by the Department of Transportation shall
3include the assessed value of leasehold tax. The lessee of each
4parcel of real property in Will County owned by the State of
5Illinois for the purpose of developing an airport by the
6Department of Transportation shall not be liable for the taxes
7thereon. In order for the State to compensate taxing districts
8for the leasehold tax under this paragraph the Will County
9Supervisor of Assessments shall certify, in writing, to the
10Department of Transportation, the amount of leasehold taxes
11extended for the 2002 property tax year for each such exempt
12parcel. The Department of Transportation shall pay to the Will
13County Treasurer, from the Tax Recovery Fund, on or before July
141 of each year, the amount of leasehold taxes for each such
15exempt parcel as certified by the Will County Supervisor of
16Assessments. The tax compensation shall terminate on December
1731, 2020. It is the duty of the Department of Transportation to
18file with the Office of the Will County Supervisor of
19Assessments an affidavit stating the termination date for
20rental of each such parcel due to airport construction. The
21affidavit shall include the property identification number for
22each such parcel. In no instance shall tax compensation for
23property owned by the State be deemed delinquent or bear
24interest. In no instance shall a lien attach to the property of
25the State. In no instance shall the State be required to pay
26leasehold tax compensation in excess of the Tax Recovery Fund's

 

 

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1balance.
2    (e) Public Act 81-1026 applies to all leases or agreements
3entered into or renewed on or after September 24, 1979.
4    (f) Notwithstanding anything to the contrary in this Code,
5all property owned by the State that is the Illiana Expressway,
6as defined in the Public Private Agreements for the Illiana
7Expressway Act, and that is used for transportation purposes
8and that is leased for those purposes to another entity whose
9property is not exempt shall remain exempt, and any leasehold
10interest in the property shall not be subject to taxation under
11Section 9-195 of this Act.
12    (g) Notwithstanding anything to the contrary in this
13Section, all property owned by the State or the Illinois State
14Toll Highway Authority that is defined as a transportation
15project under the Public-Private Partnerships for
16Transportation Act and that is used for transportation purposes
17and that is leased for those purposes to another entity whose
18property is not exempt shall remain exempt, and any leasehold
19interest in the property shall not be subject to taxation under
20Section 9-195 of this Act.
21    (h) Notwithstanding anything to the contrary in this Code,
22all property owned by the State that is the South Suburban
23Airport, as defined in the Public-Private Agreements for the
24South Suburban Airport Act, and that is used for airport
25purposes and that is leased for those purposes to another
26entity whose property is not exempt shall remain exempt, and

 

 

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1any leasehold interest in the property shall not be subject to
2taxation under Section 9-195 of this Act.
3(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)