Bill Text: IL HB3257 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that dormitories, residence halls, and other housing facilities, whether owned by the school or not, are exempt if: (1) the dormitory, residence hall, or other housing facility is approved by the school; (2) the dormitory, residence hall, or other housing facility is owned and operated by a nonprofit organization; and (3) the dormitory, residence hall, or other housing facility is occupied in whole or in part as living quarters by students who belong to fraternities, sororities, or other campus organizations. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3257 Detail]

Download: Illinois-2021-HB3257-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3257 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-35
Amends the Property Tax Code. Provides that dormitories, residence halls, and other housing facilities, whether owned by the school or not, are exempt if: (1) the dormitory, residence hall, or other housing facility is approved by the school; (2) the dormitory, residence hall, or other housing facility is owned and operated by a nonprofit organization; and (3) the dormitory, residence hall, or other housing facility is occupied in whole or in part as living quarters by students who belong to fraternities, sororities, or other campus organizations. 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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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 15-35 as follows:
(35 ILCS 200/15-35)
Sec. 15-35. Schools. All property donated by the United
States for school purposes, and all property of schools, not
sold or leased or otherwise used with a view to profit, is
exempt, whether owned by a resident or non-resident of this
State or by a corporation incorporated in any state of the
United States. Also exempt is:
(a) property of schools which is leased to a
municipality to be used for municipal purposes on a
not-for-profit basis;
(b) property of schools on which the schools are
located and any other property of schools used by the
schools exclusively for school purposes, including, but
not limited to: (1) , student residence halls, dormitories
and other housing facilities for students and their
spouses and children; (2) , staff housing facilities; (3)
, and school-owned and operated dormitory or residence
halls occupied in whole or in part by students who belong

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to fraternities, sororities, or other campus
organizations; and (4) dormitories, residence halls, and
other housing facilities, whether owned by the school or
not, that meet the following criteria:
(A) the dormitory, residence hall, or other
housing facility is approved by the school;
(B) the dormitory, residence hall, or other
housing facility is owned and operated by a nonprofit
organization; and
(C) the dormitory, residence hall, or other
housing facility is occupied in whole or in part as
living quarters by students who belong to
fraternities, sororities, or other campus
organizations.
(c) property donated, granted, received or used for
public school, college, theological seminary, university,
or other educational purposes, whether held in trust or
absolutely;
(d) in counties with more than 200,000 inhabitants
which classify property, property (including interests in
land and other facilities) on or adjacent to (even if
separated by a public street, alley, sidewalk, parkway or
other public way) the grounds of a school, if that
property is used by an academic, research or professional
society, institute, association or organization which
serves the advancement of learning in a field or fields of

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study taught by the school and which property is not used
with a view to profit;
(e) property owned by a school district. The exemption
under this subsection is not affected by any transaction
in which, for the purpose of obtaining financing, the
school district, directly or indirectly, leases or
otherwise transfers the property to another for which or
whom property is not exempt and immediately after the
lease or transfer enters into a leaseback or other
agreement that directly or indirectly gives the school
district a right to use, control, and possess the
property. In the case of a conveyance of the property, the
school district must retain an option to purchase the
property at a future date or, within the limitations
period for reverters, the property must revert back to the
school district.
(1) If the property has been conveyed as described
in this subsection, the property is no longer exempt
under this Section as of the date when:
(A) the right of the school district to use,
control, and possess the property is terminated;
(B) the school district no longer has an
option to purchase or otherwise acquire the
property; and
(C) there is no provision for a reverter of
the property to the school district within the

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limitations period for reverters.
(2) Pursuant to Sections 15-15 and 15-20 of this
Code, the school district shall notify the chief
county assessment officer of any transaction under
this subsection. The chief county assessment officer
shall determine initial and continuing compliance with
the requirements of this subsection for tax exemption.
Failure to notify the chief county assessment officer
of a transaction under this subsection or to otherwise
comply with the requirements of Sections 15-15 and
15-20 of this Code shall, in the discretion of the
chief county assessment officer, constitute cause to
terminate the exemption, notwithstanding any other
provision of this Code.
(3) No provision of this subsection shall be
construed to affect the obligation of the school
district to which an exemption certificate has been
issued under this Section from its obligation under
Section 15-10 of this Code to file an annual
certificate of status or to notify the chief county
assessment officer of transfers of interest or other
changes in the status of the property as required by
this Code.
(4) The changes made by this amendatory Act of the
91st General Assembly are declarative of existing law
and shall not be construed as a new enactment; and

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(f) in counties with more than 200,000 inhabitants
which classify property, property of a corporation, which
is an exempt entity under paragraph (3) of Section 501(c)
of the Internal Revenue Code or its successor law, used by
the corporation for the following purposes: (1) conducting
continuing education for professional development of
personnel in energy-related industries; (2) maintaining a
library of energy technology information available to
students and the public free of charge; and (3) conducting
research in energy and environment, which research results
could be ultimately accessible to persons involved in
education.
(Source: P.A. 91-513, eff. 8-13-99; 91-578, eff. 8-14-99;
92-16, eff. 6-28-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.