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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_SB0033enr SB33 Enrolled LRB9101535PTpk 1 AN ACT to amend the Property Tax Code by changing 2 Sections 9-195 and 15-35 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 15-35 and adding Section 15-103 as 7 follows: 8 (35 ILCS 200/9-195) 9 Sec. 9-195. Leasing of exempt property. 10 (a) Except as provided in Sections 15-35,Section15-55, 11and15-100, and 15-103, when property which is exempt from 12 taxation is leased to another whose property is not exempt, 13 and the leasing of which does not make the property taxable, 14 the leasehold estate and the appurtenances shall be listed as 15 the property of the lessee thereof, or his or her assignee. 16 Taxes on that property shall be collected in the same manner 17 as on property that is not exempt, and the lessee shall be 18 liable for those taxes. However, no tax lien shall attach to 19 the exempt real estate. The changes made by this amendatory 20 Act of 1997 and by this amendatory Act of the 91st General 21 Assembly are declaratory of existing law and shall not be 22 construed as a new enactment. The changes made by Public 23 Acts 88-221 and 88-420 that are incorporated into this 24 Section by this amendatory Act of 1993 are declarative of 25 existing law and are not a new enactment. 26 (b) The provisions of this Section regarding taxation of 27 leasehold interests in exempt property do not apply to any 28 leasehold interest created pursuant to any transaction 29 described in subsection (e) of Section 15-35, subsection (b) 30 of Section 15-100, or Section 15-103. 31 (Source: P.A. 90-562, eff. 12-16-97.) SB33 Enrolled -2- LRB9101535PTpk 1 (35 ILCS 200/15-35) 2 Sec. 15-35. Schools. All property donated by the United 3 States for school purposes, and all property of schools, not 4 sold or leased or otherwise used with a view to profit, is 5 exempt, whether owned by a resident or non-resident of this 6 State or by a corporation incorporated in any state of the 7 United States. Also exempt is: 8 (a) property of schools which is leased to a 9 municipality to be used for municipal purposes on a 10 not-for-profit basis; 11 (b) property of schools on which the schools are 12 located and any other property of schools used by the 13 schools exclusively for school purposes, including, but 14 not limited to, student residence halls, dormitories and 15 other housing facilities for students and their spouses 16 and children, staff housing facilities, and school-owned 17 and operated dormitory or residence halls occupied in 18 whole or in part by students who belong to fraternities, 19 sororities, or other campus organizations; 20 (c) property donated, granted, received or used for 21 public school, college, theological seminary, university, 22 or other educational purposes, whether held in trust or 23 absolutely;and24 (d) in counties with more than 200,000 inhabitants 25 which classify property, property (including interests in 26 land and other facilities) on or adjacent to (even if 27 separated by a public street, alley, sidewalk, parkway or 28 other public way) the grounds of a school, if that 29 property is used by an academic, research or professional 30 society, institute, association or organization which 31 serves the advancement of learning in a field or fields 32 of study taught by the school and which property is not 33 used with a view to profit; and.34 (e) property owned by a school district. The SB33 Enrolled -3- LRB9101535PTpk 1 exemption under this subsection is not affected by any 2 transaction in which, for the purpose of obtaining 3 financing, the school district, directly or indirectly, 4 leases or otherwise transfers the property to another for 5 which or whom property is not exempt and immediately 6 after the lease or transfer enters into a leaseback or 7 other agreement that directly or indirectly gives the 8 school district a right to use, control, and possess the 9 property. In the case of a conveyance of the property, 10 the school district must retain an option to purchase the 11 property at a future date or, within the limitations 12 period for reverters, the property must revert back to 13 the school district. 14 (1) If the property has been conveyed as 15 described in this subsection, the property is no 16 longer exempt under this Section as of the date 17 when: 18 (A) the right of the school district to 19 use, control, and possess the property is 20 terminated; 21 (B) the school district no longer has an 22 option to purchase or otherwise acquire the 23 property; and 24 (C) there is no provision for a reverter 25 of the property to the school district within 26 the limitations period for reverters. 27 (2) Pursuant to Sections 15-15 and 15-20 of 28 this Code, the school district shall notify the 29 chief county assessment officer of any transaction 30 under this subsection. The chief county assessment 31 officer shall determine initial and continuing 32 compliance with the requirements of this subsection 33 for tax exemption. Failure to notify the chief 34 county assessment officer of a transaction under SB33 Enrolled -4- LRB9101535PTpk 1 this subsection or to otherwise comply with the 2 requirements of Sections 15-15 and 15-20 of this 3 Code shall, in the discretion of the chief county 4 assessment officer, constitute cause to terminate 5 the exemption, notwithstanding any other provision 6 of this Code. 7 (3) No provision of this subsection shall be 8 construed to affect the obligation of the school 9 district to which an exemption certificate has been 10 issued under this Section from its obligation under 11 Section 15-10 of this Code to file an annual 12 certificate of status or to notify the chief county 13 assessment officer of transfers of interest or other 14 changes in the status of the property as required by 15 this Code. 16 (4) The changes made by this amendatory Act of 17 the 91st General Assembly are declarative of 18 existing law and shall not be construed as a new 19 enactment. 20 (Source: P.A. 90-655, eff. 7-30-98.) 21 (35 ILCS 200/15-103 new) 22 Sec. 15-103. Bi-State Development Agency. 23 (a) Property owned by the Bi-State Development Agency of 24 the Missouri-Illinois Metropolitan District is exempt. 25 (b) The exemption under this Section is not affected by 26 any transaction in which, for the purpose of obtaining 27 financing, the Agency, directly or indirectly, leases or 28 otherwise transfers the property to another for which or whom 29 property is not exempt and immediately after the lease or 30 transfer enters into a leaseback or other agreement that 31 directly or indirectly gives the Agency a right to use, 32 control, and possess the property. In the case of a 33 conveyance of the property, the Agency must retain an option SB33 Enrolled -5- LRB9101535PTpk 1 to purchase the property at a future date or, within the 2 limitations period for reverters, the property must revert 3 back to the Agency. 4 (c) If the property has been conveyed as described in 5 subsection (b), the property is no longer exempt under this 6 Section as of the date when: 7 (1) the right of the Agency to use, control, and 8 possess the property is terminated; 9 (2) the Agency no longer has an option to purchase 10 or otherwise acquire the property; and 11 (3) there is no provision for a reverter of the 12 property to the Agency within the limitations period for 13 reverters. 14 (d) Pursuant to Sections 15-15 and 15-20 of this Code, 15 the Agency shall notify the chief county assessment officer 16 of any transaction under subsection (b). The chief county 17 assessment officer shall determine initial and continuing 18 compliance with the requirements of this Section for tax 19 exemption. Failure to notify the chief county assessment 20 officer of a transaction under this Section or to otherwise 21 comply with the requirements of Sections 15-15 and 15-20 of 22 this Code shall, in the discretion of the chief county 23 assessment officer, constitute cause to terminate the 24 exemption, notwithstanding any other provision of this Code. 25 (e) No provision of this Section shall be construed to 26 affect the obligation of the Agency under Section 15-10 of 27 this Code to file an annual certificate of status or to 28 notify the chief county assessment officer of transfers of 29 interest or other changes in the status of the property as 30 required by this Code. SB33 Enrolled -6- LRB9101535PTpk 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.