101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0880

 

Introduced , by Rep. Margo McDermed

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-59
35 ILCS 200/15-55
70 ILCS 605/5-2  from Ch. 42, par. 5-2

    Amends the State Finance Act. Provides that, beginning on January 1, 2028 (currently, January 1, 2021), moneys received from the rental of land, buildings, or improvements on property held for the development of an airport in Will County by the Department of Transportation shall be paid into the General Revenue Fund instead of the Tax Recovery Fund. Amends the Property Tax Code. Provides that, with respect to real property in Will County owned by the State for the purpose of developing an airport, payments made to compensate taxing districts for leasehold taxes shall be calculated based on the 2019 property tax year (currently, 2002). Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 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
17compensate taxing districts for leasehold taxes then (2) to the
18General Revenue Fund less any money necessary to pay
19maintenance and repair costs for that real property. The tax
20compensation shall be determined in accordance with Sections
219-195 and 15-55 of the Property Tax Code. Expenditures for
22these purposes may be made by Department of Transportation
23without regard to the fiscal year in which tax compensation

 

 

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1liability and property maintenance and repair costs were
2incurred. Unexpended moneys in the Fund shall not be
3transferred or allocated by the Comptroller or Treasurer to any
4other fund nor shall the Governor authorize the transfer or
5allocation of those moneys to any other fund. After December
631, 2027 2020, all moneys received from the rental, authorized
7under Section 2705-555 of the Department of Transportation Law
8of the Civil Administrative Code of Illinois, of land,
9buildings, or improvements on property held for the development
10of an airport in Will County by the Department of
11Transportation shall not be remitted to the Tax Recovery Fund
12but shall instead be paid to the General Revenue Fund. The
13balance remaining in the Tax Recovery Fund on December 31, 2027
142020 shall first be expended to compensate taxing districts for
15leasehold taxes for the 2027 2020 tax assessment year, and then
16transferred to the General Revenue Fund for the purpose of debt
17service on State bonds issued to provide funds for airport land
18acquisition in Will County.
19(Source: P.A. 96-192, eff. 8-10-09.)
 
20    Section 10. The Property Tax Code is amended by changing
21Section 15-55 as follows:
 
22    (35 ILCS 200/15-55)
23    Sec. 15-55. State property.
24    (a) All property belonging to the State of Illinois is

 

 

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1exempt. However, the State agency holding title shall file the
2certificate of ownership and use required by Section 15-10,
3together with a copy of any written lease or agreement, in
4effect on March 30 of the assessment year, concerning parcels
5of 1 acre or more, or an explanation of the terms of any oral
6agreement under which the property is leased, subleased or
7rented.
8    The leased property shall be assessed to the lessee and the
9taxes thereon extended and billed to the lessee, and collected
10in the same manner as for property which is not exempt. The
11lessee shall be liable for the taxes and no lien shall attach
12to the property of the State.
13    For the purposes of this Section, the word "leases"
14includes licenses, franchises, operating agreements and other
15arrangements under which private individuals, associations or
16corporations are granted the right to use property of the
17Illinois State Toll Highway Authority and includes all property
18of the Authority used by others without regard to the size of
19the leased parcel.
20    (b) However, all property of every kind belonging to the
21State of Illinois, which is or may hereafter be leased to the
22Illinois Prairie Path Corporation, shall be exempt from all
23assessments, taxation or collection, despite the making of any
24such lease, if it is used for:
25        (1) conservation, nature trail or any other
26    charitable, scientific, educational or recreational

 

 

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1    purposes with public benefit, including the preserving and
2    aiding in the preservation of natural areas, objects,
3    flora, fauna or biotic communities;
4        (2) the establishment of footpaths, trails and other
5    protected areas;
6        (3) the conservation of the proper use of natural
7    resources or the promotion of the study of plant and animal
8    communities and of other phases of ecology, natural history
9    and conservation;
10        (4) the promotion of education in the fields of nature,
11    preservation and conservation; or
12        (5) similar public recreational activities conducted
13    by the Illinois Prairie Path Corporation.
14    No lien shall attach to the property of the State. No tax
15liability shall become the obligation of or be enforceable
16against Illinois Prairie Path Corporation.
17    (c) If the State sells the James R. Thompson Center or the
18Elgin Mental Health Center and surrounding land located at 750
19S. State Street, Elgin, Illinois, as provided in subdivision
20(a)(2) of Section 7.4 of the State Property Control Act, to
21another entity whose property is not exempt and immediately
22thereafter enters into a leaseback or other agreement that
23directly or indirectly gives the State a right to use, control,
24and possess the property, that portion of the property leased
25and occupied exclusively by the State shall remain exempt under
26this Section. For the property to remain exempt under this

 

 

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1subsection (c), the State must retain an option to purchase the
2property at a future date or, within the limitations period for
3reverters, the property must revert back to the State.
4    If the property has been conveyed as described in this
5subsection (c), the property is no longer exempt pursuant to
6this Section as of the date when:
7        (1) the right of the State to use, control, and possess
8    the property has been terminated; or
9        (2) the State no longer has an option to purchase or
10    otherwise acquire the property and there is no provision
11    for a reverter of the property to the State within the
12    limitations period for reverters.
13    Pursuant to Sections 15-15 and 15-20 of this Code, the
14State shall notify the chief county assessment officer of any
15transaction under this subsection (c). The chief county
16assessment officer shall determine initial and continuing
17compliance with the requirements of this Section for tax
18exemption. Failure to notify the chief county assessment
19officer of a transaction under this subsection (c) or to
20otherwise comply with the requirements of Sections 15-15 and
2115-20 of this Code shall, in the discretion of the chief county
22assessment officer, constitute cause to terminate the
23exemption, notwithstanding any other provision of this Code.
24    (c-1) If the Illinois State Toll Highway Authority sells
25the Illinois State Toll Highway Authority headquarters
26building and surrounding land, located at 2700 Ogden Avenue,

 

 

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

 

 

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1exemption. Failure to notify the chief county assessment
2officer of a transaction under this subsection (c) or to
3otherwise comply with the requirements of Sections 15-15 and
415-20 of this Code shall, in the discretion of the chief county
5assessment officer, constitute cause to terminate the
6exemption, notwithstanding any other provision of this Code.
7    (d) The fair market rent of each parcel of real property in
8Will County owned by the State of Illinois for the purpose of
9developing an airport by the Department of Transportation and
10leased by a third party or third parties shall include the
11assessed value of leasehold tax. The lessee of each parcel of
12real property in Will County owned by the State of Illinois for
13the purpose of developing an airport by the Department of
14Transportation shall not be liable for the taxes thereon. In
15order for the State to compensate taxing districts, including,
16without limitation, drainage districts organized under the
17Illinois Drainage Code, for the leasehold tax under this
18paragraph the Will County Supervisor of Assessments shall
19certify, in writing, to the Department of Transportation: (i)
20for payments occurring on or before July 1, 2019, the amount of
21leasehold taxes extended for the 2002 property tax year for
22each such exempt parcel; and (ii) for payments after July 1,
232019, the amount of leasehold taxes that would have been
24extended for the 2019 property tax year for each such exempt
25parcel. The Department of Transportation shall pay to the Will
26County Treasurer, from the Tax Recovery Fund, on or before July

 

 

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11 of each year, the amount of leasehold taxes for each such
2exempt parcel as certified by the Will County Supervisor of
3Assessments under item (i) of this subsection (d) for payments
4on or before July 1, 2019 and under item (ii) of this
5subsection (d) for payments after July 1, 2019. The tax
6compensation shall terminate on December 31, 2027 2020. It is
7the duty of the Department of Transportation to file with the
8Office of the Will County Supervisor of Assessments an
9affidavit stating the termination date for rental of each such
10parcel due to airport construction. The affidavit shall include
11the property identification number for each such parcel. In no
12instance shall tax compensation for property owned by the State
13be deemed delinquent or bear interest. In no instance shall a
14lien attach to the property of the State. In no instance shall
15the State be required to pay leasehold tax compensation in
16excess of the Tax Recovery Fund's balance.
17    (e) Public Act 81-1026 applies to all leases or agreements
18entered into or renewed on or after September 24, 1979.
19    (f) Notwithstanding anything to the contrary in this Code,
20all property owned by the State that is the Illiana Expressway,
21as defined in the Public Private Agreements for the Illiana
22Expressway Act, and that is used for transportation purposes
23and that is leased for those purposes to another entity whose
24property is not exempt shall remain exempt, and any leasehold
25interest in the property shall not be subject to taxation under
26Section 9-195 of this Act.

 

 

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1    (g) Notwithstanding anything to the contrary in this
2Section, all property owned by the State or the Illinois State
3Toll Highway Authority that is defined as a transportation
4project under the Public-Private Partnerships for
5Transportation Act and that is used for transportation purposes
6and that is leased for those purposes to another entity whose
7property is not exempt shall remain exempt, and any leasehold
8interest in the property shall not be subject to taxation under
9Section 9-195 of this Act.
10    (h) Notwithstanding anything to the contrary in this Code,
11all property owned by the State that is the South Suburban
12Airport, as defined in the Public-Private Agreements for the
13South Suburban Airport Act, and that is used for airport
14purposes and that is leased for those purposes to another
15entity whose property is not exempt shall remain exempt, and
16any leasehold interest in the property shall not be subject to
17taxation under Section 9-195 of this Act.
18(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
 
19    Section 15. The Illinois Drainage Code is amended by
20changing Section 5-2 as follows:
 
21    (70 ILCS 605/5-2)  (from Ch. 42, par. 5-2)
22    Sec. 5-2. Original assessments - Property subject to
23assessment. Upon the Organization of the district, the
24commissioners shall proceed to make out their assessment roll

 

 

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1of benefits, damages and compensation, and they shall include
2therein all lands, lots, railroads, and other property within
3the district, including leasehold parcels in Will County owned
4by the State of Illinois as provided for under subsection (d)
5of Section 15-55 of the Property Tax Code, other than public
6highways, streets and alleys, which, in their opinion, will be
7benefited, taken or damaged by the proposed work. Whenever
8another district or a municipal corporation exercising
9drainage powers has been made a party to the proceedings to
10organize the district, then the commissioners shall also
11include such other district or municipal corporation in their
12assessment roll.
13(Source: P.A. 83-726.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.