Public Act 93-0658

SB1937 Enrolled                      LRB093 08848 RCE 09080 b

    AN ACT concerning taxes.

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

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

    (30 ILCS 105/5.595 new)
    Sec. 5.595.  The Tax Recovery Fund.

    (30 ILCS 105/6z-59 new)
    Sec. 6z-59. The Tax Recovery Fund. There  is  created  in
the  State  treasury the Tax Recovery Fund.  Through December
31, 2010, all moneys received  from  the  rental,  authorized
under  Section  2705-555  of the Department of Transportation
Law of the Civil Administrative Code of  Illinois,  of  land,
buildings,  or  improvements on property held for development
of  an  airport  in  Will  County  by   the   Department   of
Transportation  shall  be remitted to the State Treasurer for
payment into the Tax Recovery Fund. Subject to appropriation,
the moneys in the Fund shall be expended with  the  following
priority:  (1)  to  compensate taxing districts for leasehold
taxes then (2) to the General Revenue  Fund  less  any  money
necessary  to  pay maintenance and repair costs for that real
property.  The  tax  compensation  shall  be  determined   in
accordance  with Sections 9-195 and 15-55 of the Property Tax
Code.  Expenditures  for  these  purposes  may  be  made   by
Department  of  Transportation  without  regard to the fiscal
year  in  which  tax  compensation  liability  and   property
maintenance and repair costs were incurred. Unexpended moneys
in  the  Fund  shall  not  be transferred or allocated by the
Comptroller or Treasurer to any  other  fund  nor  shall  the
Governor authorize the transfer or allocation of those moneys
to  any  other  fund.  After  December  31,  2010, all moneys
received from the rental, authorized under  Section  2705-555
of   the  Department  of  Transportation  Law  of  the  Civil
Administrative Code  of  Illinois,  of  land,  buildings,  or
improvements  on  property  held  for  the  development of an
airport in Will County by the  Department  of  Transportation
shall  not  be  remitted  to  the Tax Recovery Fund but shall
instead be paid to the  General  Revenue  Fund.  The  balance
remaining in the Tax Recovery Fund on December 31, 2010 shall
first   be   expended  to  compensate  taxing  districts  for
leasehold taxes for the 2010 tax assessment  year,  and  then
transferred  to  the  General Revenue Fund for the purpose of
debt service on State  bonds  issued  to  provide  funds  for
airport land acquisition in Will County.

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

    (35 ILCS 200/15-55)
    Sec.  15-55.   State property.  All property belonging to
the State of Illinois is exempt. However,  the  State  agency
holding title shall file the certificate of ownership and use
required  by  Section  15-10,  together  with  a  copy of any
written lease or agreement, in effect  on  March  30  of  the
assessment  year, concerning parcels of 1 acre or more, or an
explanation of the terms of any oral  agreement  under  which
the property is leased, subleased or rented.
    The  leased  property shall be assessed to the lessee and
the taxes thereon extended and  billed  to  the  lessee,  and
collected  in  the  same  manner as for property which is not
exempt. The lessee shall be liable for the taxes and no  lien
shall attach to the property of the State.
    For  the  purposes  of  this  Section,  the word "leases"
includes licenses, franchises, operating agreements and other
arrangements under which private individuals, associations or
corporations are granted the right to  use  property  of  the
Illinois  State  Toll  Highway  Authority  and  includes  all
property  of  the  Authority used by others without regard to
the size of the leased parcel.
    However, all property of  every  kind  belonging  to  the
State of Illinois, which is or may hereafter be leased to the
Illinois  Prairie  Path Corporation, shall be exempt from all
assessments, taxation or collection, despite  the  making  of
any such lease, if it is used for:
         (a)  conservation,   nature   trail   or  any  other
    charitable,  scientific,  educational   or   recreational
    purposes  with  public  benefit, including the preserving
    and aiding in the preservation of natural areas, objects,
    flora, fauna or biotic communities;
         (b)  the  establishment  of  footpaths,  trails  and
    other protected areas;
         (c)  the conservation of the proper use  of  natural
    resources  or  the  promotion  of  the study of plant and
    animal  communities  and  of  other  phases  of  ecology,
    natural history and conservation;
         (d)  the promotion of education  in  the  fields  of
    nature, preservation and conservation; or
         (e)  similar    public    recreational    activities
    conducted by the Illinois Prairie Path Corporation.
    No lien shall attach to the property of the State. No tax
liability  shall  become  the obligation of or be enforceable
against Illinois Prairie Path Corporation.
    However, the fair market  rent of  each  parcel  of  real
property  in  Will  County owned by the State of Illinois for
the purpose of developing an airport  by  the  Department  of
Transportation  shall include the assessed value of leasehold
tax. The lessee of each  parcel  of  real  property  in  Will
County  owned  by  the  State  of Illinois for the purpose of
developing an airport by  the  Department  of  Transportation
shall  not  be liable for the taxes thereon. In order for the
State to compensate taxing districts for  the  leasehold  tax
under   this   paragraph   the   Will  County  Supervisor  of
Assessments shall certify, in writing, to the  Department  of
Transportation,  the  amount  of leasehold taxes extended for
the 2002 property tax year for each such exempt  parcel.  The
Department  of  Transportation  shall  pay to the Will County
Treasurer, from the Tax Recovery Fund, on or before July 1 of
each year, the amount of leasehold taxes for each such exempt
parcel  as  certified  by  the  Will  County  Supervisor   of
Assessments. The tax compensation shall terminate on December
31,  2010. It is the duty of the Department of Transportation
to file with the Office of  the  Will  County  Supervisor  of
Assessments  an  affidavit  stating  the termination date for
rental of each such parcel due to airport  construction.  The
affidavit  shall  include  the property identification number
for each such parcel. In no instance shall  tax  compensation
for  property owned by the State be deemed delinquent or bear
interest. In no instance shall a lien attach to the  property
of  the  State. In no instance shall the State be required to
pay leasehold tax compensation in excess of the Tax  Recovery
Fund's balance.
    Public  Act  81-1026  applies to all leases or agreements
entered into or renewed on or after September 24, 1979.
(Source: P.A. 86-413; 88-455.)

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