100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2613

 

Introduced , by Rep. Margo McDermed

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-55
70 ILCS 605/5-2  from Ch. 42, par. 5-2

    Amends the Property Tax Code. Provides that property in Will County owned by the Illinois Department of Transportation shall be subject to taxation for the 2017 to 2027 levy years by the drainage district in which the property is located. Amends the Illinois Drainage Code making conforming changes. Effective immediately.


LRB100 10550 AWJ 20766 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2613LRB100 10550 AWJ 20766 b

1    AN ACT concerning revenue.
 
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
5Section 15-55 as follows:
 
6    (35 ILCS 200/15-55)
7    Sec. 15-55. State property.
8    (a) All property belonging to the State of Illinois is
9exempt. However, the State agency holding title shall file the
10certificate of ownership and use required by Section 15-10,
11together with a copy of any written lease or agreement, in
12effect on March 30 of the assessment year, concerning parcels
13of 1 acre or more, or an explanation of the terms of any oral
14agreement under which the property is leased, subleased or
15rented.
16    The leased property shall be assessed to the lessee and the
17taxes thereon extended and billed to the lessee, and collected
18in the same manner as for property which is not exempt. The
19lessee shall be liable for the taxes and no lien shall attach
20to the property of the State.
21    For the purposes of this Section, the word "leases"
22includes licenses, franchises, operating agreements and other
23arrangements under which private individuals, associations or

 

 

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1corporations are granted the right to use property of the
2Illinois State Toll Highway Authority and includes all property
3of the Authority used by others without regard to the size of
4the leased parcel.
5    (b) However, all property of every kind belonging to the
6State of Illinois, which is or may hereafter be leased to the
7Illinois Prairie Path Corporation, shall be exempt from all
8assessments, taxation or collection, despite the making of any
9such lease, if it is used for:
10        (1) conservation, nature trail or any other
11    charitable, scientific, educational or recreational
12    purposes with public benefit, including the preserving and
13    aiding in the preservation of natural areas, objects,
14    flora, fauna or biotic communities;
15        (2) the establishment of footpaths, trails and other
16    protected areas;
17        (3) the conservation of the proper use of natural
18    resources or the promotion of the study of plant and animal
19    communities and of other phases of ecology, natural history
20    and conservation;
21        (4) the promotion of education in the fields of nature,
22    preservation and conservation; or
23        (5) similar public recreational activities conducted
24    by the Illinois Prairie Path Corporation.
25    No lien shall attach to the property of the State. No tax
26liability shall become the obligation of or be enforceable

 

 

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1against Illinois Prairie Path Corporation.
2    (c) If the State sells the James R. Thompson Center or the
3Elgin Mental Health Center and surrounding land located at 750
4S. State Street, Elgin, Illinois, as provided in subdivision
5(a)(2) of Section 7.4 of the State Property Control Act, to
6another entity whose property is not exempt and immediately
7thereafter enters into a leaseback or other agreement that
8directly or indirectly gives the State a right to use, control,
9and possess the property, that portion of the property leased
10and occupied exclusively by the State shall remain exempt under
11this Section. For the property to remain exempt under this
12subsection (c), the State must retain an option to purchase the
13property at a future date or, within the limitations period for
14reverters, the property must revert back to the State.
15    If the property has been conveyed as described in this
16subsection (c), the property is no longer exempt pursuant to
17this Section as of the date when:
18        (1) the right of the State to use, control, and possess
19    the property has been terminated; or
20        (2) the State no longer has an option to purchase or
21    otherwise acquire the property and there is no provision
22    for a reverter of the property to the State within the
23    limitations period for reverters.
24    Pursuant to Sections 15-15 and 15-20 of this Code, the
25State shall notify the chief county assessment officer of any
26transaction under this subsection (c). The chief county

 

 

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1assessment officer shall determine initial and continuing
2compliance with the requirements of this Section for tax
3exemption. Failure to notify the chief county assessment
4officer of a transaction under this subsection (c) or to
5otherwise comply with the requirements of Sections 15-15 and
615-20 of this Code shall, in the discretion of the chief county
7assessment officer, constitute cause to terminate the
8exemption, notwithstanding any other provision of this Code.
9    (c-1) If the Illinois State Toll Highway Authority sells
10the Illinois State Toll Highway Authority headquarters
11building and surrounding land, located at 2700 Ogden Avenue,
12Downers Grove, Illinois as provided in subdivision (a)(2) of
13Section 7.5 of the State Property Control Act, to another
14entity whose property is not exempt and immediately thereafter
15enters into a leaseback or other agreement that directly or
16indirectly gives the State or the Illinois State Toll Highway
17Authority a right to use, control, and possess the property,
18that portion of the property leased and occupied exclusively by
19the State or the Authority shall remain exempt under this
20Section. For the property to remain exempt under this
21subsection (c), the Authority must retain an option to purchase
22the property at a future date or, within the limitations period
23for reverters, the property must revert back to the Authority.
24    If the property has been conveyed as described in this
25subsection (c), the property is no longer exempt pursuant to
26this Section as of the date when:

 

 

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1        (1) the right of the State or the Authority to use,
2    control, and possess the property has been terminated; or
3        (2) the Authority no longer has an option to purchase
4    or otherwise acquire the property and there is no provision
5    for a reverter of the property to the Authority within the
6    limitations period for reverters.
7    Pursuant to Sections 15-15 and 15-20 of this Code, the
8Authority shall notify the chief county assessment officer of
9any transaction under this subsection (c). The chief county
10assessment officer shall determine initial and continuing
11compliance with the requirements of this Section for tax
12exemption. Failure to notify the chief county assessment
13officer of a transaction under this subsection (c) or to
14otherwise comply with the requirements of Sections 15-15 and
1515-20 of this Code shall, in the discretion of the chief county
16assessment officer, constitute cause to terminate the
17exemption, notwithstanding any other provision of this Code.
18    (d) The fair market rent of each parcel of real property in
19Will County owned by the State of Illinois for the purpose of
20developing an airport by the Department of Transportation shall
21include the assessed value of leasehold tax. The lessee of each
22parcel of real property in Will County owned by the State of
23Illinois for the purpose of developing an airport by the
24Department of Transportation shall not be liable for the taxes
25thereon. In order for the State to compensate taxing districts
26for the leasehold tax under this paragraph the Will County

 

 

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1Supervisor of Assessments shall certify, in writing, to the
2Department of Transportation, the amount of leasehold taxes
3extended for the 2002 property tax year for each such exempt
4parcel. The Department of Transportation shall pay to the Will
5County Treasurer, from the Tax Recovery Fund, on or before July
61 of each year, the amount of leasehold taxes for each such
7exempt parcel as certified by the Will County Supervisor of
8Assessments. The tax compensation shall terminate on December
931, 2020. It is the duty of the Department of Transportation to
10file with the Office of the Will County Supervisor of
11Assessments an affidavit stating the termination date for
12rental of each such parcel due to airport construction. The
13affidavit shall include the property identification number for
14each such parcel. In no instance shall tax compensation for
15property owned by the State be deemed delinquent or bear
16interest. In no instance shall a lien attach to the property of
17the State. In no instance shall the State be required to pay
18leasehold tax compensation in excess of the Tax Recovery Fund's
19balance.
20    (e) Public Act 81-1026 applies to all leases or agreements
21entered into or renewed on or after September 24, 1979.
22    (f) Notwithstanding anything to the contrary in this Code,
23all property owned by the State that is the Illiana Expressway,
24as defined in the Public Private Agreements for the Illiana
25Expressway Act, and that is used for transportation purposes
26and that is leased for those purposes to another entity whose

 

 

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1property is not exempt shall remain exempt, and any leasehold
2interest in the property shall not be subject to taxation under
3Section 9-195 of this Act.
4    (g) Notwithstanding anything to the contrary in this
5Section, all property owned by the State or the Illinois State
6Toll Highway Authority that is defined as a transportation
7project under the Public-Private Partnerships for
8Transportation Act and that is used for transportation purposes
9and that is leased for those purposes to another entity whose
10property is not exempt shall remain exempt, and any leasehold
11interest in the property shall not be subject to taxation under
12Section 9-195 of this Act.
13    (h) Notwithstanding anything to the contrary in this Code,
14all property owned by the State that is the South Suburban
15Airport, as defined in the Public-Private Agreements for the
16South Suburban Airport Act, and that is used for airport
17purposes and that is leased for those purposes to another
18entity whose property is not exempt shall remain exempt, and
19any leasehold interest in the property shall not be subject to
20taxation under Section 9-195 of this Act.
21    (i) Notwithstanding any other provision of this Code, for
22the levy years 2017 through 2027, property in Will County owned
23by the Illinois Department of Transportation located within a
24drainage district under the Illinois Drainage Code previously
25exempt from taxation under this Code shall be subject to
26taxation by any drainage district in which the property is

 

 

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1located.
2(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
 
3    Section 10. The Illinois Drainage Code is amended by
4changing Section 5-2 as follows:
 
5    (70 ILCS 605/5-2)  (from Ch. 42, par. 5-2)
6    Sec. 5-2. Original assessments - Property subject to
7assessment. Upon the Organization of the district, the
8commissioners shall proceed to make out their assessment roll
9of benefits, damages and compensation, and they shall include
10therein all lands, lots, railroads, and other property within
11the district, including property in Will County owned by the
12Illinois Department of Transportation as provided for under
13subsection (i) of Section 15-55 of the Property Tax Code, other
14than public highways, streets and alleys, which, in their
15opinion, will be benefited, taken or damaged by the proposed
16work. Whenever another district or a municipal corporation
17exercising drainage powers has been made a party to the
18proceedings to organize the district, then the commissioners
19shall also include such other district or municipal corporation
20in their assessment roll.
21(Source: P.A. 83-726.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.