Rep. Margo McDermed

Filed: 3/20/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2613

2    AMENDMENT NO. ______. Amend House Bill 2613 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Finance Act is amended by changing
5Section 6z-59 as follows:
 
6    (30 ILCS 105/6z-59)
7    Sec. 6z-59. The Tax Recovery Fund. There is created in the
8State treasury the Tax Recovery Fund. Through December 31, 2027
92020, all moneys received from the rental, authorized under
10Section 2705-555 of the Department of Transportation Law of the
11Civil Administrative Code of Illinois, of land, buildings, or
12improvements on property held for development of an airport in
13Will County by the Department of Transportation shall be
14remitted to the State Treasurer for payment into the Tax
15Recovery Fund. Subject to appropriation, the moneys in the Fund
16shall be expended with the following priority: (1) to

 

 

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1compensate taxing districts for leasehold taxes then (2) to the
2General Revenue Fund less any money necessary to pay
3maintenance and repair costs for that real property. The tax
4compensation shall be determined in accordance with Sections
59-195 and 15-55 of the Property Tax Code. Expenditures for
6these purposes may be made by Department of Transportation
7without regard to the fiscal year in which tax compensation
8liability and property maintenance and repair costs were
9incurred. Unexpended moneys in the Fund shall not be
10transferred or allocated by the Comptroller or Treasurer to any
11other fund nor shall the Governor authorize the transfer or
12allocation of those moneys to any other fund. After December
1331, 2027 2020, all moneys received from the rental, authorized
14under Section 2705-555 of the Department of Transportation Law
15of the Civil Administrative Code of Illinois, of land,
16buildings, or improvements on property held for the development
17of an airport in Will County by the Department of
18Transportation shall not be remitted to the Tax Recovery Fund
19but shall instead be paid to the General Revenue Fund. The
20balance remaining in the Tax Recovery Fund on December 31, 2027
212020 shall first be expended to compensate taxing districts for
22leasehold taxes for the 2027 2020 tax assessment year, and then
23transferred to the General Revenue Fund for the purpose of debt
24service on State bonds issued to provide funds for airport land
25acquisition in Will County.
26(Source: P.A. 96-192, eff. 8-10-09.)
 

 

 

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1    Section 10. The Property Tax Code is amended by changing
2Section 15-55 as follows:
 
3    (35 ILCS 200/15-55)
4    Sec. 15-55. State property.
5    (a) All property belonging to the State of Illinois is
6exempt. However, the State agency holding title shall file the
7certificate of ownership and use required by Section 15-10,
8together with a copy of any written lease or agreement, in
9effect on March 30 of the assessment year, concerning parcels
10of 1 acre or more, or an explanation of the terms of any oral
11agreement under which the property is leased, subleased or
12rented.
13    The leased property shall be assessed to the lessee and the
14taxes thereon extended and billed to the lessee, and collected
15in the same manner as for property which is not exempt. The
16lessee shall be liable for the taxes and no lien shall attach
17to the property of the State.
18    For the purposes of this Section, the word "leases"
19includes licenses, franchises, operating agreements and other
20arrangements under which private individuals, associations or
21corporations are granted the right to use property of the
22Illinois State Toll Highway Authority and includes all property
23of the Authority used by others without regard to the size of
24the leased parcel.

 

 

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1    (b) However, all property of every kind belonging to the
2State of Illinois, which is or may hereafter be leased to the
3Illinois Prairie Path Corporation, shall be exempt from all
4assessments, taxation or collection, despite the making of any
5such lease, if it is used for:
6        (1) conservation, nature trail or any other
7    charitable, scientific, educational or recreational
8    purposes with public benefit, including the preserving and
9    aiding in the preservation of natural areas, objects,
10    flora, fauna or biotic communities;
11        (2) the establishment of footpaths, trails and other
12    protected areas;
13        (3) the conservation of the proper use of natural
14    resources or the promotion of the study of plant and animal
15    communities and of other phases of ecology, natural history
16    and conservation;
17        (4) the promotion of education in the fields of nature,
18    preservation and conservation; or
19        (5) similar public recreational activities conducted
20    by the Illinois Prairie Path Corporation.
21    No lien shall attach to the property of the State. No tax
22liability shall become the obligation of or be enforceable
23against Illinois Prairie Path Corporation.
24    (c) If the State sells the James R. Thompson Center or the
25Elgin Mental Health Center and surrounding land located at 750
26S. State Street, Elgin, Illinois, as provided in subdivision

 

 

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

 

 

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1otherwise comply with the requirements of Sections 15-15 and
215-20 of this Code shall, in the discretion of the chief county
3assessment officer, constitute cause to terminate the
4exemption, notwithstanding any other provision of this Code.
5    (c-1) If the Illinois State Toll Highway Authority sells
6the Illinois State Toll Highway Authority headquarters
7building and surrounding land, located at 2700 Ogden Avenue,
8Downers Grove, Illinois as provided in subdivision (a)(2) of
9Section 7.5 of the State Property Control Act, to another
10entity whose property is not exempt and immediately thereafter
11enters into a leaseback or other agreement that directly or
12indirectly gives the State or the Illinois State Toll Highway
13Authority a right to use, control, and possess the property,
14that portion of the property leased and occupied exclusively by
15the State or the Authority shall remain exempt under this
16Section. For the property to remain exempt under this
17subsection (c), the Authority must retain an option to purchase
18the property at a future date or, within the limitations period
19for reverters, the property must revert back to the Authority.
20    If the property has been conveyed as described in this
21subsection (c), the property is no longer exempt pursuant to
22this Section as of the date when:
23        (1) the right of the State or the Authority to use,
24    control, and possess the property has been terminated; or
25        (2) the Authority no longer has an option to purchase
26    or otherwise acquire the property and there is no provision

 

 

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1    for a reverter of the property to the Authority within the
2    limitations period for reverters.
3    Pursuant to Sections 15-15 and 15-20 of this Code, the
4Authority shall notify the chief county assessment officer of
5any transaction under this subsection (c). The chief county
6assessment officer shall determine initial and continuing
7compliance with the requirements of this Section for tax
8exemption. Failure to notify the chief county assessment
9officer of a transaction under this subsection (c) or to
10otherwise comply with the requirements of Sections 15-15 and
1115-20 of this Code shall, in the discretion of the chief county
12assessment officer, constitute cause to terminate the
13exemption, notwithstanding any other provision of this Code.
14    (d) The fair market rent of each parcel of real property in
15Will County owned by the State of Illinois for the purpose of
16developing an airport by the Department of Transportation and
17leased by a third party or third parties shall include the
18assessed value of leasehold tax. The lessee of each parcel of
19real property in Will County owned by the State of Illinois for
20the purpose of developing an airport by the Department of
21Transportation shall not be liable for the taxes thereon. In
22order for the State to compensate taxing districts, including,
23without limitation, drainage districts organized under the
24Illinois Drainage Code, for the leasehold tax under this
25paragraph the Will County Supervisor of Assessments shall
26certify, in writing, to the Department of Transportation: (i)

 

 

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1for payments occurring on or before July 1, 2017, the amount of
2leasehold taxes extended for the 2002 property tax year for
3each such exempt parcel; and (ii) for payments after July 1,
42017, the amount of leasehold taxes that would have been
5extended for the 2017 property tax year for each such exempt
6parcel. The Department of Transportation shall pay to the Will
7County Treasurer, from the Tax Recovery Fund, on or before July
81 of each year, the amount of leasehold taxes for each such
9exempt parcel as certified by the Will County Supervisor of
10Assessments under item (i) of this subsection (d) for payments
11on or before July 1, 2017 and under item (ii) of this
12subsection (d) for payments after July 1, 2017. The tax
13compensation shall terminate on December 31, 2027 2020. It is
14the duty of the Department of Transportation to file with the
15Office of the Will County Supervisor of Assessments an
16affidavit stating the termination date for rental of each such
17parcel due to airport construction. The affidavit shall include
18the property identification number for each such parcel. In no
19instance shall tax compensation for property owned by the State
20be deemed delinquent or bear interest. In no instance shall a
21lien attach to the property of the State. In no instance shall
22the State be required to pay leasehold tax compensation in
23excess of the Tax Recovery Fund's balance.
24    (e) Public Act 81-1026 applies to all leases or agreements
25entered into or renewed on or after September 24, 1979.
26    (f) Notwithstanding anything to the contrary in this Code,

 

 

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1all property owned by the State that is the Illiana Expressway,
2as defined in the Public Private Agreements for the Illiana
3Expressway Act, and that is used for transportation purposes
4and that is leased for those purposes to another entity whose
5property is not exempt shall remain exempt, and any leasehold
6interest in the property shall not be subject to taxation under
7Section 9-195 of this Act.
8    (g) Notwithstanding anything to the contrary in this
9Section, all property owned by the State or the Illinois State
10Toll Highway Authority that is defined as a transportation
11project under the Public-Private Partnerships for
12Transportation Act and that is used for transportation purposes
13and that is leased for those purposes to another entity whose
14property is not exempt shall remain exempt, and any leasehold
15interest in the property shall not be subject to taxation under
16Section 9-195 of this Act.
17    (h) Notwithstanding anything to the contrary in this Code,
18all property owned by the State that is the South Suburban
19Airport, as defined in the Public-Private Agreements for the
20South Suburban Airport Act, and that is used for airport
21purposes and that is leased for those purposes to another
22entity whose property is not exempt shall remain exempt, and
23any leasehold interest in the property shall not be subject to
24taxation under Section 9-195 of this Act.
25(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
 

 

 

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