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Public Act 91-0513
SB33 Enrolled LRB9101535PTpk
AN ACT to amend the Property Tax Code by changing
Sections 9-195 and 15-35 and adding Section 15-103.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 9-195 and 15-35 and adding Section 15-103 as
follows:
(35 ILCS 200/9-195)
Sec. 9-195. Leasing of exempt property.
(a) Except as provided in Sections 15-35, Section 15-55,
and 15-100, and 15-103, when property which is exempt from
taxation is leased to another whose property is not exempt,
and the leasing of which does not make the property taxable,
the leasehold estate and the appurtenances shall be listed as
the property of the lessee thereof, or his or her assignee.
Taxes on that property shall be collected in the same manner
as on property that is not exempt, and the lessee shall be
liable for those taxes. However, no tax lien shall attach to
the exempt real estate. The changes made by this amendatory
Act of 1997 and by this amendatory Act of the 91st General
Assembly are declaratory of existing law and shall not be
construed as a new enactment. The changes made by Public
Acts 88-221 and 88-420 that are incorporated into this
Section by this amendatory Act of 1993 are declarative of
existing law and are not a new enactment.
(b) The provisions of this Section regarding taxation of
leasehold interests in exempt property do not apply to any
leasehold interest created pursuant to any transaction
described in subsection (e) of Section 15-35, subsection (b)
of Section 15-100, or Section 15-103.
(Source: P.A. 90-562, eff. 12-16-97.)
(35 ILCS 200/15-35)
Sec. 15-35. Schools. All property donated by the United
States for school purposes, and all property of schools, not
sold or leased or otherwise used with a view to profit, is
exempt, whether owned by a resident or non-resident of this
State or by a corporation incorporated in any state of the
United States. Also exempt is:
(a) property of schools which is leased to a
municipality to be used for municipal purposes on a
not-for-profit basis;
(b) property of schools on which the schools are
located and any other property of schools used by the
schools exclusively for school purposes, including, but
not limited to, student residence halls, dormitories and
other housing facilities for students and their spouses
and children, staff housing facilities, and school-owned
and operated dormitory or residence halls occupied in
whole or in part by students who belong to fraternities,
sororities, or other campus organizations;
(c) property donated, granted, received or used for
public school, college, theological seminary, university,
or other educational purposes, whether held in trust or
absolutely; and
(d) in counties with more than 200,000 inhabitants
which classify property, property (including interests in
land and other facilities) on or adjacent to (even if
separated by a public street, alley, sidewalk, parkway or
other public way) the grounds of a school, if that
property is used by an academic, research or professional
society, institute, association or organization which
serves the advancement of learning in a field or fields
of study taught by the school and which property is not
used with a view to profit; and.
(e) property owned by a school district. The
exemption under this subsection is not affected by any
transaction in which, for the purpose of obtaining
financing, the school district, directly or indirectly,
leases or otherwise transfers the property to another for
which or whom property is not exempt and immediately
after the lease or transfer enters into a leaseback or
other agreement that directly or indirectly gives the
school district a right to use, control, and possess the
property. In the case of a conveyance of the property,
the school district must retain an option to purchase the
property at a future date or, within the limitations
period for reverters, the property must revert back to
the school district.
(1) If the property has been conveyed as
described in this subsection, the property is no
longer exempt under this Section as of the date
when:
(A) the right of the school district to
use, control, and possess the property is
terminated;
(B) the school district no longer has an
option to purchase or otherwise acquire the
property; and
(C) there is no provision for a reverter
of the property to the school district within
the limitations period for reverters.
(2) Pursuant to Sections 15-15 and 15-20 of
this Code, the school district shall notify the
chief county assessment officer of any transaction
under this subsection. The chief county assessment
officer shall determine initial and continuing
compliance with the requirements of this subsection
for tax exemption. Failure to notify the chief
county assessment officer of a transaction under
this subsection or to otherwise comply with the
requirements of Sections 15-15 and 15-20 of this
Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate
the exemption, notwithstanding any other provision
of this Code.
(3) No provision of this subsection shall be
construed to affect the obligation of the school
district to which an exemption certificate has been
issued under this Section from its obligation under
Section 15-10 of this Code to file an annual
certificate of status or to notify the chief county
assessment officer of transfers of interest or other
changes in the status of the property as required by
this Code.
(4) The changes made by this amendatory Act of
the 91st General Assembly are declarative of
existing law and shall not be construed as a new
enactment.
(Source: P.A. 90-655, eff. 7-30-98.)
(35 ILCS 200/15-103 new)
Sec. 15-103. Bi-State Development Agency.
(a) Property owned by the Bi-State Development Agency of
the Missouri-Illinois Metropolitan District is exempt.
(b) The exemption under this Section is not affected by
any transaction in which, for the purpose of obtaining
financing, the Agency, directly or indirectly, leases or
otherwise transfers the property to another for which or whom
property is not exempt and immediately after the lease or
transfer enters into a leaseback or other agreement that
directly or indirectly gives the Agency a right to use,
control, and possess the property. In the case of a
conveyance of the property, the Agency must retain an option
to purchase the property at a future date or, within the
limitations period for reverters, the property must revert
back to the Agency.
(c) If the property has been conveyed as described in
subsection (b), the property is no longer exempt under this
Section as of the date when:
(1) the right of the Agency to use, control, and
possess the property is terminated;
(2) the Agency no longer has an option to purchase
or otherwise acquire the property; and
(3) there is no provision for a reverter of the
property to the Agency within the limitations period for
reverters.
(d) Pursuant to Sections 15-15 and 15-20 of this Code,
the Agency shall notify the chief county assessment officer
of any transaction under subsection (b). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this Section or to otherwise
comply with the requirements of Sections 15-15 and 15-20 of
this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the
exemption, notwithstanding any other provision of this Code.
(e) No provision of this Section shall be construed to
affect the obligation of the Agency under Section 15-10 of
this Code to file an annual certificate of status or to
notify the chief county assessment officer of transfers of
interest or other changes in the status of the property as
required by this Code.
Section 99. Effective date. This Act takes effect upon
becoming law.
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