Sen. James F. Clayborne, Jr.

Filed: 4/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 400

2    AMENDMENT NO. ______. Amend Senate Bill 400 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 15-185 as follows:
 
6    (35 ILCS 200/15-185)
7    Sec. 15-185. Exemption for leaseback property and
8qualified leased property.
9    (a) Notwithstanding anything in this Code to the contrary,
10all property owned by a municipality or with a population of
11over 500,000 inhabitants, a unit of local government is exempt
12from real estate taxes and such exemption is not affected by
13any transaction in which, for the purpose of obtaining
14financing, the municipality or unit of local government leases
15or otherwise transfers the property whose jurisdiction
16includes territory located in whole or in part within a

 

 

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1municipality with a population of over 500,000 inhabitants, or
2a municipality with home rule powers that is contiguous to a
3municipality with a population of over 500,000 inhabitants,
4shall remain exempt from taxation and any leasehold interest in
5that property shall not be subject to taxation under Section
69-195 if the property is directly or indirectly leased, sold,
7or otherwise transferred to another entity for which or for
8whom whose property is not exempt and immediately after the
9lease or transfer enters into thereafter is the subject of a
10leaseback or other agreement that directly or indirectly gives
11the municipality or unit of local government (i) a right to
12use, control, and possess the property or (ii) a right to
13require the other entity, or the other entity's designee or
14assignee, to use the property in the performance of services
15for the municipality or unit of local government. In the case
16of a conveyance of the property, the municipality or unit of
17local government must retain an option to purchase the property
18at a future date or, within the limitations period for
19reverters, the property must revert back to the municipality or
20unit of local government.
21    If the property has been conveyed as described in this
22subsection, the property is no longer exempt under this Section
23as of the date when:
24        (1) the right of the municipality or unit of local
25    government to use, control, and possess the property is
26    terminated; or

 

 

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1        (2) the municipality or unit of local government no
2    longer has an option to purchase or otherwise acquire the
3    property; and
4        (3) there is no provision for a reverter of the
5    property to the municipality or unit of local government
6    within the limitations period for reverters.
7    Pursuant to Sections 15-15 and 15-20 of this Code, the unit
8of local government shall notify the chief county assessment
9officer of any transaction under this subsection. The chief
10county assessment officer shall determine initial and
11continuing compliance with the requirements of this Section for
12the tax exemption. Failure to notify the chief county
13assessment officer of a transaction under this subsection 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.
18Property shall no longer be exempt under this subsection as of
19the date when the right of the municipality or unit of local
20government to use, control, and possess the property or to
21require the performance of services is terminated and the
22municipality or unit of local government no longer has any
23option to purchase or otherwise reacquire the interest in the
24property which was transferred by the municipality or unit of
25local government.
26    (b) Notwithstanding anything in this Code to the contrary,

 

 

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1all property owned by a municipality with a population of over
2500,000 inhabitants, a unit of local government whose
3jurisdiction includes territory located in whole or in part
4within a municipality with a population of over 500,000
5inhabitants, or a municipality with home rule powers that is
6contiguous to a municipality with a population of over 500,000
7inhabitants, shall remain exempt from taxation and any
8leasehold interest in that property is not subject to taxation
9under Section 9-195 if the property, including dedicated public
10property, is used by a municipality or other unit of local
11government for the purpose of an airport or parking or for
12waste disposal or processing and is leased for continued use
13for the same purpose to another entity whose property is not
14exempt.
15    For the purposes of this subsection (b), "airport" does not
16include any airport property, as defined under Section 10 of
17the O'Hare Modernization Act.
18    Any transaction described under this subsection must be
19undertaken in accordance with all appropriate federal laws and
20regulations.
21    (c) For purposes of this Section, "municipality" means a
22municipality as defined in Section 1-1-2 of the Illinois
23Municipal Code, and "unit of local government" means a unit of
24local government as defined in Article VII, Section 1 of the
25Constitution of the State of Illinois. The provisions of this
26Section supersede and control over any conflicting provisions

 

 

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1of this Code.
2    (d) Notwithstanding anything in this Code to the contrary,
3(i) all property owned by an entity using the property in such
4a manner that it is not subject to real estate taxes pursuant
5to this Article 15 is exempt from real estate taxes, and such
6exemption is not affected by any transaction in which the
7entity, directly or indirectly, on or after the effective date
8of this amendatory Act of the 97th General Assembly, leases,
9sells, or otherwise transfers the property to another entity
10for which or whom property is not exempt, with or without a
11right to repurchase that property and immediately after the
12lease or transfer enters into a leaseback or other agreement
13that directly or indirectly gives the initial entity a right to
14use, control, and possess the property for purposes which would
15qualify the property for a non-homestead real estate tax
16exemption pursuant to this Article 15 by virtue of its use or
17(ii) where, on or after the effective date of this amendatory
18Act of the 97th General Assembly, an entity leases new or
19existing property from another for purposes that would be
20exempt under this Article 15, that property shall be exempt
21from real estate taxes for the term of the lease, or any
22extension thereof, without regard to the nature or character of
23ownership and shall be treated for purposes of this Article 15
24as if the lessee were the owner of the property, as long as the
25property on which the leased improvements are or will be
26located is used for school, religious, or charitable purposes

 

 

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1pursuant to that lease or any renewal thereof.
2    (e) Substantially all of the funds received from the
3conveyance of property subject to a leaseback agreement as
4described in subsection (d) of this Section must be used for
5capital improvement projects and related capital expenditures
6and all funds raised shall be used within the State of
7Illinois.
8    (f) To the extent allowable by law, all construction
9projects using the provisions of subsection (d) above shall be
10subject to the provisions of the Illinois Prevailing Wage Act
11for the initial construction of the improvements and all
12bidders for those projects shall comply with the provisions of
13Section 30-22 of the Illinois Procurement Code.
14    (g) Project labor agreements for the construction projects
15referenced in subsection (f) above shall be required.
16(Source: P.A. 96-779, eff. 8-28-09.)
 
17    Section 97. Savings clause. If any provision of this Act or
18its application to any person or circumstance is held invalid
19by any Court of competent jurisdiction or any federal or State
20government agency having jurisdiction over the subject matter
21of this Act, the invalidity of that provision or application
22does not affect any other provisions or applications of this
23Act that can be given effect without the invalid provision or
24application which are severable under Section 1.31 of the
25Statute on Statutes.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".