093_SB0098

 
                                     LRB093 05264 SJM 05353 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The State Finance Act is  amended  by  adding
 5    Sections 5.595 and 6z-59 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595.  The Tax and Assessment Recovery Fund.

 8        (30 ILCS 105/6z-59 new)
 9        Sec.  6z-59.  The Tax and Assessment Recovery Fund. There
10    is created in the  State  treasury  the  Tax  and  Assessment
11    Recovery   Fund.   Through  December  31,  2010,  all  moneys
12    received from the rental, authorized under  Section  2705-555
13    of   the  Department  of  Transportation  Law  of  the  Civil
14    Administrative Code  of  Illinois,  of  land,  buildings,  or
15    improvements  on  property held for development of an airport
16    in Will County by the Department of Transportation  shall  be
17    remitted  to the State Treasurer for payment into the Tax and
18    Assessment  Recovery  Fund.  Subject  to  appropriation,  the
19    moneys in the Fund  shall  be  expended  with  the  following
20    priority:  (1)  to  compensate  units of local government for
21    property taxes and drainage district assessments  that  would
22    have been extended and collected on Will County real property
23    before  ownership  by  the  State  for the development of the
24    airport (tax compensation and assessment compensation);  then
25    (2)  to  pay  maintenance  and  repair  costs  for  that real
26    property. Expenditures for these purposes may be made by  the
27    Department  of  Transportation  without  regard to the fiscal
28    year  in  which  tax   compensation   liability,   assessment
29    compensation  liability,  and property maintenance and repair
30    costs were incurred. Unexpended moneys in the Fund shall  not
 
                            -2-      LRB093 05264 SJM 05353 b
 1    be  transferred  or allocated by the Comptroller or Treasurer
 2    to any other  fund  nor  shall  the  Governor  authorize  the
 3    transfer  or  allocation  of  those moneys to any other fund.
 4    After December 31, 2010, all moneys received from the rental,
 5    authorized  under  Section  2705-555  of  the  Department  of
 6    Transportation  Law  of  the  Civil  Administrative  Code  of
 7    Illinois, of land, buildings,  or  improvements  on  property
 8    held  for the development of an airport in Will County by the
 9    Department of Transportation shall not be remitted to the Tax
10    and Assessment Recovery Fund but shall instead be paid to the
11    General Revenue Fund. The balance remaining in  the  Tax  and
12    Assessment  Recovery Fund on December 31, 2010 shall first be
13    expended to compensate units of local  government  for  taxes
14    and assessments for the 2010 property tax assessment year and
15    prorated  through  December 31, 2010, and then transferred to
16    the General Revenue Fund for the purpose of debt  service  on
17    State   bonds  issued  to  provide  funds  for  airport  land
18    acquisition in Will County.

19        Section 10.  The Property Tax Code is amended by changing
20    Section 15-55 as follows:

21        (35 ILCS 200/15-55)
22        Sec. 15-55.  State property.  All property  belonging  to
23    the  State  of  Illinois is exempt. However, the State agency
24    holding title shall file the certificate of ownership and use
25    required by Section  15-10,  together  with  a  copy  of  any
26    written  lease  or  agreement,  in  effect on March 30 of the
27    assessment year, concerning parcels of 1 acre or more, or  an
28    explanation  of  the  terms of any oral agreement under which
29    the property is leased, subleased or rented.
30        The leased property shall be assessed to the  lessee  and
31    the  taxes  thereon  extended  and  billed to the lessee, and
32    collected in the same manner as for  property  which  is  not
 
                            -3-      LRB093 05264 SJM 05353 b
 1    exempt.  The lessee shall be liable for the taxes and no lien
 2    shall attach to the property of the State.
 3        For the purposes  of  this  Section,  the  word  "leases"
 4    includes licenses, franchises, operating agreements and other
 5    arrangements under which private individuals, associations or
 6    corporations  are  granted  the  right to use property of the
 7    Illinois  State  Toll  Highway  Authority  and  includes  all
 8    property of the Authority used by others  without  regard  to
 9    the size of the leased parcel.
10        However,  all  property  of  every  kind belonging to the
11    State of Illinois, which is or may hereafter be leased to the
12    Illinois Prairie Path Corporation, shall be exempt  from  all
13    assessments,  taxation  or  collection, despite the making of
14    any such lease, if it is used for:
15             (a)  conservation,  nature  trail   or   any   other
16        charitable,   scientific,   educational  or  recreational
17        purposes with public benefit,  including  the  preserving
18        and aiding in the preservation of natural areas, objects,
19        flora, fauna or biotic communities;
20             (b)  the  establishment  of  footpaths,  trails  and
21        other protected areas;
22             (c)  the  conservation  of the proper use of natural
23        resources or the promotion of  the  study  of  plant  and
24        animal  communities  and  of  other  phases  of  ecology,
25        natural history and conservation;
26             (d)  the  promotion  of  education  in the fields of
27        nature, preservation and conservation; or
28             (e)  similar    public    recreational    activities
29        conducted by the Illinois Prairie Path Corporation.
30        No lien shall attach to the property of the State. No tax
31    liability shall become the obligation of  or  be  enforceable
32    against Illinois Prairie Path Corporation.
33        However,  the  lessee  of each parcel of real property in
34    Will County owned by the State of Illinois for the purpose of
 
                            -4-      LRB093 05264 SJM 05353 b
 1    developing an airport by  the  Department  of  Transportation
 2    shall  not  be liable for the taxes thereon. In order for the
 3    State to compensate units of local government for taxes  that
 4    would  have  been  extended and collected on Will County real
 5    property before ownership by the State for the development of
 6    the airport, the Will County Supervisor of Assessments  shall
 7    certify, in writing, to the Department of Transportation, the
 8    amount  of  assessed  taxes for each such parcel for the 2001
 9    property tax year. The Department of Transportation shall pay
10    to the Will County Treasurer, from  the  Tax  and  Assessment
11    Recovery  Fund,  on or before July 1 of each year, the amount
12    of rent collected for each parcel during  the  previous  year
13    (tax  compensation).  The payment, however, shall not exceed,
14    for each  parcel,  the  assessed  tax  amount  for  the  2001
15    property  tax  year.  The tax compensation shall terminate on
16    December 31, 2010. It  is  the  duty  of  the  Department  of
17    Transportation  to  file  with  the Office of the Will County
18    Supervisor  of   Assessments   an   affidavit   stating   the
19    termination  date  for  rental  of  each  such  parcel due to
20    airport  construction.  The  affidavit  shall   include   the
21    property  identification  number  for each such parcel. In no
22    instance shall tax compensation for  property  owned  by  the
23    State  be  deemed delinquent or bear interest. In no instance
24    shall a lien attach to the  property  of  the  State.  In  no
25    instance  shall  the  State  be  required to pay property tax
26    compensation in excess of the  Tax  and  Assessment  Recovery
27    Fund's balance.
28        Public  Act  81-1026  applies to all leases or agreements
29    entered into or renewed on or after September 24, 1979.
30    (Source: P.A. 86-413; 88-455.)

31        Section 15.  The Illinois Drainage  Code  is  amended  by
32    adding Section 5-32 as follows:
 
                            -5-      LRB093 05264 SJM 05353 b
 1        (70 ILCS 605/5-32 new)
 2        Sec.  5-32.  Exemption.  Real property owned by the State
 3    of Illinois in Will County for the purpose of  developing  an
 4    airport  by  the  Department of Transportation is exempt from
 5    assessments. Assessments shall not be extended and billed  to
 6    the  State's  lessee. During the State's ownership, it is the
 7    duty of the Department of Transportation to  file  with  each
 8    affected  drainage  district, on or before January 31 of each
 9    year, an affidavit stating whether there has been any  change
10    in  property  ownership. In order for the State to compensate
11    Will County drainage districts  for  assessments  that  would
12    have  been collected on that property, each affected drainage
13    district shall certify, in  writing,  to  the  Department  of
14    Transportation,  the  amount of assessments for each affected
15    parcel for the 2001 property assessment year. The  Department
16    of   Transportation   shall  pay  to  the  affected  drainage
17    district, from the Tax and Assessment Recovery  Fund,  on  or
18    before  July 1 of each year, the amount of rent collected for
19    each  parcel  during  the  previous  year,  reduced  by   the
20    Department's  payments  to  the Will County Treasurer for tax
21    compensation liabilities under Section 15-55 of the  Property
22    Tax  Code  (assessment  compensation).  The annual payment to
23    each drainage district shall not exceed, for each parcel, the
24    assessment amount for the 2001 property assessment year.  The
25    assessment compensation shall terminate on December 31, 2010.
26    It  is  the  duty of the Department of Transportation to file
27    with each affected drainage district an affidavit stating the
28    termination date for  rental  of  each  such  parcel  due  to
29    airport   construction.   The  affidavit  shall  include  the
30    property identification number for each such  parcel.  In  no
31    instance  shall assessment compensation for property owned by
32    the State be  deemed  delinquent  or  bear  interest.  In  no
33    instance shall a lien attach to the property of the State. In
34    no  instance  shall  the  State be required to pay assessment
 
                            -6-      LRB093 05264 SJM 05353 b
 1    compensation in excess of the  Tax  and  Assessment  Recovery
 2    Fund's balance.

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.