State of Illinois
91st General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ House Amendment 001 ]

91_SB0033

 
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 1        AN ACT to amend the Property Tax Code by changing Section
 2    9-195 and adding Section 15-103.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The Property Tax Code is amended by changing
 6    Sections 9-195 and adding Section 15-103 as follows:

 7        (35 ILCS 200/9-195)
 8        Sec. 9-195.  Leasing of exempt property.
 9        (a)  Except as provided in Sections  Section  15-55,  and
10    15-100,  and  15-103,  when  property  which  is  exempt from
11    taxation is leased to another whose property is  not  exempt,
12    and  the leasing of which does not make the property taxable,
13    the leasehold estate and the appurtenances shall be listed as
14    the property of the lessee thereof, or his or  her  assignee.
15    Taxes  on that property shall be collected in the same manner
16    as on property that is not exempt, and the  lessee  shall  be
17    liable for those taxes.  However, no tax lien shall attach to
18    the  exempt  real estate. The changes made by this amendatory
19    Act of 1997 are declaratory of existing law and shall not  be
20    construed  as  a  new  enactment.  The changes made by Public
21    Acts 88-221  and  88-420  that  are  incorporated  into  this
22    Section  by  this  amendatory  Act of 1993 are declarative of
23    existing law and are not a new enactment.
24        (b)  The provisions of this Section regarding taxation of
25    leasehold interests in exempt property do not  apply  to  any
26    leasehold   interest  created  pursuant  to  any  transaction
27    described in subsection (b) of Section 15-100 or  in  Section
28    15-103.
29    (Source: P.A. 90-562, eff. 12-16-97.)

30        (35 ILCS 200/15-103 new)
 
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 1        Sec. 15-103.  Bi-State Development Agency.
 2        (a)  Property owned by the Bi-State Development Agency of
 3    the Missouri-Illinois Metropolitan District is exempt.
 4        (b)  The  exemption under this Section is not affected by
 5    any transaction  in  which,  for  the  purpose  of  obtaining
 6    financing,  the  Agency,  directly  or  indirectly, leases or
 7    otherwise transfers the property to another for which or whom
 8    property is not exempt and immediately  after  the  lease  or
 9    transfer  enters  into  a  leaseback  or other agreement that
10    directly or indirectly gives  the  Agency  a  right  to  use,
11    control,  and  possess  the  property.   In  the  case  of  a
12    conveyance  of the property, the Agency must retain an option
13    to purchase the property at a  future  date  or,  within  the
14    limitations  period  for  reverters, the property must revert
15    back to the Agency.
16        (c)  If the property has been conveyed  as  described  in
17    subsection  (b),  the property is no longer exempt under this
18    Section as of the date when:
19             (1)  the right of the Agency to  use,  control,  and
20        possess the property is terminated;
21             (2)  the  Agency no longer has an option to purchase
22        or otherwise acquire the property; and
23             (3)  there is no provision for  a  reverter  of  the
24        property  to the Agency within the limitations period for
25        reverters.
26        (d)  Pursuant to Sections 15-15 and 15-20 of  this  Code,
27    the  Agency  shall notify the chief county assessment officer
28    of any transaction under subsection (b).   The  chief  county
29    assessment  officer  shall  determine  initial and continuing
30    compliance with the requirements  of  this  Section  for  tax
31    exemption.   Failure  to  notify  the chief county assessment
32    officer of a transaction under this Section or  to  otherwise
33    comply  with  the requirements of Sections 15-15 and 15-20 of
34    this Code shall,  in  the  discretion  of  the  chief  county
 
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 1    assessment   officer,   constitute  cause  to  terminate  the
 2    exemption, notwithstanding any other provision of this Code.
 3        (e)  No provision of this Section shall be  construed  to
 4    affect  the  obligation  of the Agency under Section 15-10 of
 5    this Code to file an  annual  certificate  of  status  or  to
 6    notify  the  chief  county assessment officer of transfers of
 7    interest or other changes in the status of  the  property  as
 8    required by this Code.

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.

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