94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2872


 
Introduced 1/20/2006, by Sen. Don Harmon
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 200/15-185









    Amends the Property Tax Code. Provides for a property tax exemption for property that is leased by a municipality or unit of local government to another entity whose property is not exempt for the purpose of parking or for waste disposal or processing. Makes other changes.
















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FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB2872

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    AN ACT concerning revenue.

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


 
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    Section 5. The Property Tax Code is amended  by changing 
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Section 15-185 as follows:
 



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    (35 ILCS 200/15-185)



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    Sec. 15-185. Exemption for leaseback property and 
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qualified leased property
Leaseback exemption. 

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    (a) Notwithstanding anything in this Code to
the
contrary, 
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all property owned by a municipality with a population of over

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500,000
inhabitants, or a unit of local government whose 
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jurisdiction includes
territory located in
whole or in part 
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within a municipality with a population of over 500,000

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inhabitants,
shall remain exempt from taxation and any 
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leasehold interest in that property
shall not be
subject to 
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taxation under Section 9-195 if either of the following 
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requirements are satisfied: , for the purpose of obtaining

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financing,

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        (1) The
the
property is directly or indirectly leased, 
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    sold, or otherwise transferred to
another entity
whose 
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    property is not exempt and immediately thereafter is the 
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    subject of a
leaseback or
other agreement that directly or 
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    indirectly gives the municipality or unit of
local

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    government (i) a right to use, control, and possess the 
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    property or (ii) a
right to require
the other entity, or 
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    the other entity's designee or assignee, to use the

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    property in the
performance of services for the 
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    municipality or unit of local government. Property
The

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    property
shall no longer be exempt under this item (1)

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    Section as of the date when the right of
the
municipality 
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    or unit of local government to use, control, and possess 
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    the
property or to
require the performance of services is 
 


 






SB2872
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    terminated and the municipality or unit
of local
government 
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    no longer has any option to purchase or otherwise reacquire 
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    the
interest in
the property which was transferred by the 
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    municipality or unit of local
government; or
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        (2) The property is leased by a municipality or unit of 
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    local government to another entity whose property is not 
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    exempt for the purpose of parking or for waste disposal or 
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    processing.

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    (b) For purposes of this Section, "municipality" means a 
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municipality as defined
in
Section 1-1-2 of the Illinois 
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Municipal Code, and "unit of local government"
means a unit
of 
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local government as defined in Article VII, Section 1 of the 
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Constitution of
the State of
Illinois. The provisions of this 
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Section supersede and control over any
conflicting
provisions 
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of this Code.

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(Source: P.A. 93-19, eff. 6-20-03.)