Rep. Barbara Flynn Currie

Filed: 11/15/2010

 

 


 

 


 
09600HB1366ham001LRB096 04938 HLH 43878 a

1
AMENDMENT TO HOUSE BILL 1366

2    AMENDMENT NO. ______. Amend House Bill 1366 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 9-195 and 15-35 and by adding Section 15-57 as
6follows:
 
7    (35 ILCS 200/9-195)
8    Sec. 9-195. Leasing of exempt property.
9    (a) Except as provided in Sections 15-35, 15-55, 15-57,
1015-60, 15-100, 15-103, and 15-185, when property which is
11exempt from taxation is leased to another whose property is not
12exempt, and the leasing of which does not make the property
13taxable, the leasehold estate and the appurtenances shall be
14listed as the property of the lessee thereof, or his or her
15assignee. Taxes on that property shall be collected in the same
16manner as on property that is not exempt, and the lessee shall

 

 

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1be liable for those taxes. However, no tax lien shall attach to
2the exempt real estate. The changes made by this amendatory Act
3of 1997 and by this amendatory Act of the 91st General Assembly
4are declaratory of existing law and shall not be construed as a
5new enactment. The changes made by Public Acts 88-221 and
688-420 that are incorporated into this Section by this
7amendatory Act of 1993 are declarative of existing law and are
8not a new enactment.
9    (b) The provisions of this Section regarding taxation of
10leasehold interests in exempt property do not apply to any
11leasehold interest created pursuant to any transaction
12described in subsection (e) of Section 15-35, item (a) of
13Section 15-35, Section 15-57, subsection (c-5) of Section
1415-60, subsection (b) of Section 15-100, Section 15-103, or
15Section 15-185.
16(Source: P.A. 92-844, eff. 8-23-02; 92-846, eff. 8-23-02;
1793-19, eff. 6-20-03.)
 
18    (35 ILCS 200/15-35)
19    Sec. 15-35. Schools. All property donated by the United
20States for school purposes, and all property of schools, not
21sold or leased or otherwise used with a view to profit, is
22exempt, whether owned by a resident or non-resident of this
23State or by a corporation incorporated in any state of the
24United States. Also exempt is:
25        (a) property, along with the leasehold interest in that

 

 

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1    property, of schools which is leased to the State, a unit
2    of local government, or school district municipality to be
3    used for governmental municipal purposes on a
4    not-for-profit basis;
5        (b) property of schools on which the schools are
6    located and any other property of schools used by the
7    schools exclusively for school purposes, including, but
8    not limited to, student residence halls, dormitories and
9    other housing facilities for students and their spouses and
10    children, staff housing facilities, and school-owned and
11    operated dormitory or residence halls occupied in whole or
12    in part by students who belong to fraternities, sororities,
13    or other campus organizations;
14        (c) property donated, granted, received or used for
15    public school, college, theological seminary, university,
16    or other educational purposes, whether held in trust or
17    absolutely;
18        (d) in counties with more than 200,000 inhabitants
19    which classify property, property (including interests in
20    land and other facilities) on or adjacent to (even if
21    separated by a public street, alley, sidewalk, parkway or
22    other public way) the grounds of a school, if that property
23    is used by an academic, research or professional society,
24    institute, association or organization which serves the
25    advancement of learning in a field or fields of study
26    taught by the school and which property is not used with a

 

 

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1    view to profit;
2        (e) property owned by a school district. The exemption
3    under this subsection is not affected by any transaction in
4    which, for the purpose of obtaining financing, the school
5    district, directly or indirectly, leases or otherwise
6    transfers the property to another for which or whom
7    property is not exempt and immediately after the lease or
8    transfer enters into a leaseback or other agreement that
9    directly or indirectly gives the school district a right to
10    use, control, and possess the property. In the case of a
11    conveyance of the property, the school district must retain
12    an option to purchase the property at a future date or,
13    within the limitations period for reverters, the property
14    must revert back to the school district.
15            (1) If the property has been conveyed as described
16        in this subsection, the property is no longer exempt
17        under this Section as of the date when:
18                (A) the right of the school district to use,
19            control, and possess the property is terminated;
20                (B) the school district no longer has an option
21            to purchase or otherwise acquire the property; and
22                (C) there is no provision for a reverter of the
23            property to the school district within the
24            limitations period for reverters.
25            (2) Pursuant to Sections 15-15 and 15-20 of this
26        Code, the school district shall notify the chief county

 

 

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1        assessment officer of any transaction under this
2        subsection. The chief county assessment officer shall
3        determine initial and continuing compliance with the
4        requirements of this subsection for tax exemption.
5        Failure to notify the chief county assessment officer
6        of a transaction under this subsection or to otherwise
7        comply with the requirements of Sections 15-15 and
8        15-20 of this Code shall, in the discretion of the
9        chief county assessment officer, constitute cause to
10        terminate the exemption, notwithstanding any other
11        provision of this Code.
12            (3) No provision of this subsection shall be
13        construed to affect the obligation of the school
14        district to which an exemption certificate has been
15        issued under this Section from its obligation under
16        Section 15-10 of this Code to file an annual
17        certificate of status or to notify the chief county
18        assessment officer of transfers of interest or other
19        changes in the status of the property as required by
20        this Code.
21            (4) The changes made by this amendatory Act of the
22        91st General Assembly are declarative of existing law
23        and shall not be construed as a new enactment; and
24        (f) in counties with more than 200,000 inhabitants
25    which classify property, property of a corporation, which
26    is an exempt entity under paragraph (3) of Section 501(c)

 

 

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1    of the Internal Revenue Code or its successor law, used by
2    the corporation for the following purposes: (1) conducting
3    continuing education for professional development of
4    personnel in energy-related industries; (2) maintaining a
5    library of energy technology information available to
6    students and the public free of charge; and (3) conducting
7    research in energy and environment, which research results
8    could be ultimately accessible to persons involved in
9    education.
10(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
1192-16, eff. 6-28-01.)
 
12    (35 ILCS 200/15-57 new)
13    Sec. 15-57. Government property leased to another
14government entity. If property is owned by the State, a unit of
15local government, or a school district and that property is
16leased to the State, a unit of local government, or a school
17district, then the property is exempt from taxation under this
18Code and the leasehold interest is exempt from taxation under
19this Code or under any other law. The provisions of this
20Section apply notwithstanding any other provision of law.
 
21    Section 90. The State Mandates Act is amended by adding
22Section 8.35 as follows:
 
23    (30 ILCS 805/8.35 new)

 

 

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1    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 96th General Assembly.
 
5    Section 95. Applicability. The changes made by this
6amendatory Act of the 96th General Assembly apply to taxable
7years 2010 and thereafter. In addition, the changes made by
8this amendatory Act of the 96th General Assembly also apply to
9taxable years prior to 2010, but no such taxes paid for any
10taxable year prior to 2010 need be refunded.
 
11    Section 97. Severability. The provisions of this Act are
12severable under Section 1.31 of the Statute on Statutes.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".