100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1598

 

Introduced 2/9/2017, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/10-365
35 ILCS 200/10-370
35 ILCS 200/10-375
35 ILCS 200/10-380

    Amends the Property Tax Code. Provides that the valuation procedures for PPV leases sunsets on January 1, 2056 (currently, January 1, 2016). Provides that the definition of "net operating income" is the same for naval training facilities as it is for other military training facilities. Makes changes concerning the calculation of the fair cash value of a PPV Lease. Effective immediately.


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

 

 

A BILL FOR

 

SB1598LRB100 11175 HLH 21472 b

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
5Sections 10-365, 10-370, 10-375 and 10-380 as follows:
 
6    (35 ILCS 200/10-365)
7    Sec. 10-365. U.S. Military Public/Private Residential
8Developments. PPV Leases must be classified and valued as set
9forth in Sections 10-370 through 10-380 during the period
10beginning January 1, 2006 and ending January 1, 2056 January 1,
112017.
12(Source: P.A. 98-494, eff. 1-1-14; 99-738, eff. 8-5-16.)
 
13    (35 ILCS 200/10-370)
14    Sec. 10-370. Definitions. For the purposes of this Division
1514:
16    (a) "PPV Lease" means a leasehold interest in property that
17is exempt from taxation under Section 15-50 of this Code and
18that is leased, pursuant to authority set forth in Chapter 10
19of the United States Code, to another whose property is not
20exempt for the purpose of, after January 1, 2006, the design,
21finance, construction, renovation, management, operation, and
22maintenance of rental housing units and associated

 

 

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1improvements at military training facilities, military bases,
2and related military support facilities in the State of
3Illinois. All interests enjoyed pursuant to the authority set
4forth in Chapter 159 or Chapter 169 of Title 10 of the United
5States Code are considered leaseholds for the purposes of this
6Division. The changes to this Section made by this amendatory
7Act of the 97th General Assembly apply beginning on January 1,
82006.
9    (b) For naval training facilities, naval bases, and naval
10support facilities, "net operating income" means all revenues
11received minus the lesser of (i) 62% of all revenues or (ii)
12actual expenses before interest, taxes, depreciation, and
13amortization. For all other military training facilities,
14military bases, and related military support facilities, "net
15operating income" means all revenues received minus the lesser
16of (i) 42% of all revenues or (ii) actual expenses before
17interest, taxes, depreciation, and amortization.
18    (c) "Tax load factor" means the level of assessment, as set
19forth under item (b) of Section 9-145 or under Section 9-150,
20multiplied by the cumulative tax rate for the current taxable
21year.
22(Source: P.A. 97-942, eff. 8-10-12; 98-494, eff. 1-1-14.)
 
23    (35 ILCS 200/10-375)
24    Sec. 10-375. Valuation.
25    (a) A PPV Lease must be valued at its fair cash value, as

 

 

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1provided under item (b) of Section 9-145 or under Section
29-150.
3    (b) The fair cash value of a PPV Lease must be determined
4by using an income capitalization approach.
5    (c) To determine the fair cash value of a PPV Lease, the
6net operating income is divided by (i) a rate of 12% 7.75% plus
7(ii) the actual or most recently ascertainable tax load factor
8for the subject year.
9    (d) By April 15 of each year, the holder of a PPV Lease
10must report to the chief county assessment officer in each
11county in which the leasehold property is located the annual
12gross income and expenses derived and incurred from the PPV
13Lease, including the rental of leased property for each
14military housing facility subject to a PPV Lease.
15(Source: P.A. 94-974, eff. 6-30-06.)
 
16    (35 ILCS 200/10-380)
17    Sec. 10-380. For the taxable years 2006 through 2055 2016,
18the chief county assessment officer in the county in which
19property subject to a PPV Lease is located shall apply the
20provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this
21Division 14 in assessing and determining the value of any PPV
22Lease for purposes of the property tax laws of this State.
23(Source: P.A. 98-463, eff. 8-16-13; 98-494, eff. 1-1-14;
2499-738, eff. 8-5-16.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.