98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1432

 

Introduced 2/6/2013, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-60
35 ILCS 200/21-95

    Amends the Property Tax Code. Provides that property owned by an entity created by county or municipal ordinance for the purpose of acquiring troubled property and returning it to productive use is exempt from property taxation. Effective immediately.


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

 

 

A BILL FOR

 

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1    AN ACT concerning property tax.
 
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 15-60 and 21-95 as follows:
 
6    (35 ILCS 200/15-60)
7    Sec. 15-60. Taxing district property. All property
8belonging to any county or municipality used exclusively for
9the maintenance of the poor is exempt, as is all property owned
10by a taxing district that is being held for future expansion or
11development, except if leased by the taxing district to lessees
12for use for other than public purposes.
13    Also exempt are:
14        (a) all swamp or overflowed lands belonging to any
15    county;
16        (b) all public buildings belonging to any county,
17    township, or municipality, with the ground on which the
18    buildings are erected;
19        (c) all property owned by any municipality located
20    within its incorporated limits. Any such property leased by
21    a municipality shall remain exempt, and the leasehold
22    interest of the lessee shall be assessed under Section
23    9-195 of this Act, (i) for a lease entered into on or after

 

 

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1    January 1, 1994, unless the lease expressly provides that
2    this exemption shall not apply; (ii) for a lease entered
3    into on or after the effective date of Public Act 87-1280
4    and before January 1, 1994, unless the lease expressly
5    provides that this exemption shall not apply or unless
6    evidence other than the lease itself substantiates the
7    intent of the parties to the lease that this exemption
8    shall not apply; and (iii) for a lease entered into before
9    the effective date of Public Act 87-1280, if the terms of
10    the lease do not bind the lessee to pay the taxes on the
11    leased property or if, notwithstanding the terms of the
12    lease, the municipality has filed or hereafter files a
13    timely exemption petition or complaint with respect to
14    property consisting of or including the leased property for
15    an assessment year which includes part or all of the first
16    12 months of the lease period. The foregoing clause (iii)
17    added by Public Act 87-1280 shall not operate to exempt
18    property for any assessment year as to which no timely
19    exemption petition or complaint has been filed by the
20    municipality or as to which an administrative or court
21    decision denying exemption has become final and
22    nonappealable. For each assessment year or portion thereof
23    that property is made exempt by operation of the foregoing
24    clause (iii), whether such year or portion is before or
25    after the effective date of Public Act 87-1280, the
26    leasehold interest of the lessee shall, if necessary, be

 

 

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1    considered omitted property for purposes of this Act;
2        (c-5) Notwithstanding clause (i) of subsection (c),
3    all property owned by a municipality with a population of
4    over 500,000 that is used for toll road or toll bridge
5    purposes and that is leased for those purposes to another
6    entity whose property is not exempt shall remain exempt,
7    and any leasehold interest in the property shall not be
8    subject to taxation under Section 9-195 of this Act;
9        (d) all property owned by any municipality located
10    outside its incorporated limits but within the same county
11    when used as a tuberculosis sanitarium, farm colony in
12    connection with a house of correction, or nursery, garden,
13    or farm, or for the growing of shrubs, trees, flowers,
14    vegetables, and plants for use in beautifying,
15    maintaining, and operating playgrounds, parks, parkways,
16    public grounds, buildings, and institutions owned or
17    controlled by the municipality; and
18        (e) all property owned by a township and operated as
19    senior citizen housing under Sections 35-50 through
20    35-50.6 of the Township Code ; and .
21        (f) all property owned by an entity created by a county
22    or by one or more municipalities by ordinance or
23    intergovernmental agreement for the purpose of acquiring
24    tax-delinquent, low-value or other troubled property and
25    returning it to productive use.
26    All property owned by any municipality outside of its

 

 

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1corporate limits is exempt if used exclusively for municipal or
2public purposes.
3    For purposes of this Section, "municipality" means a
4municipality, as defined in Section 1-1-2 of the Illinois
5Municipal Code.
6(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02.)
 
7    (35 ILCS 200/21-95)
8    Sec. 21-95. Tax abatement after acquisition by a
9governmental unit. When any county, municipality, school
10district, or park district acquires property through the
11foreclosure of a lien, through a judicial deed, through the
12foreclosure of receivership certificate lien, or by acceptance
13of a deed of conveyance in lieu of foreclosing any lien against
14the property, or when a government unit acquires property by
15acceptance of a donation, or when a government unit acquires
16property under the Abandoned Housing Rehabilitation Act, or
17when any county or other taxing district acquires a deed for
18property under Section 21-90 or Sections 21-145 and 21-260, or
19when any county, municipality, school district, or park
20district acquires title to property that was to be transferred
21to that county, municipality, school district, or park district
22under the terms of an annexation agreement, development
23agreement, donation agreement, plat of subdivision, or zoning
24ordinance by an entity that has been dissolved or is being
25dissolved or has been in bankruptcy proceedings or is in

 

 

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1bankruptcy proceedings, all due or unpaid property taxes and
2existing liens for unpaid property taxes imposed or pending
3under any law or ordinance of this State or any of its
4political subdivisions shall become null and void.
5(Source: P.A. 96-1142, eff. 7-21-10.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.