Bill Text: IL HB3426 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Property Tax Code. Provides that, if an airport authority enters into a lease with a tenant to occupy space on airport premises, and the tenant is liable for the payment of property taxes on the property, the lease shall contain certain language regarding the liability of the tenant for unpaid taxes. Provides that, if the tenant fails to make timely payment of those taxes, the tenant shall be liable for an additional penalty not to exceed the amount of taxes in arrears. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Engrossed) 2019-05-31 - Rule 3-9(a) / Re-referred to Assignments [HB3426 Detail]

Download: Illinois-2019-HB3426-Engrossed.html



HB3426 EngrossedLRB101 09016 HLH 54109 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Section 9-195 as follows:
6 (35 ILCS 200/9-195)
7 (Text of Section WITH the changes made by P.A. 97-1161,
8which has been held unconstitutional)
9 Sec. 9-195. Leasing of exempt property.
10 (a) Except as provided in Sections 15-35, 15-55, 15-60,
1115-100, 15-103, 15-160, and 15-185, when property which is
12exempt from taxation is leased to another whose property is not
13exempt, and the leasing of which does not make the property
14taxable, the leasehold estate and the appurtenances shall be
15listed as the property of the lessee thereof, or his or her
16assignee. Taxes on that property shall be collected in the same
17manner as on property that is not exempt, and the lessee shall
18be liable for those taxes. However, no tax lien shall attach to
19the exempt real estate. The changes made by Public Act 90-562
20and by Public Act 91-513 are declaratory of existing law and
21shall not be construed as a new enactment. The changes made by
22Public Acts 88-221 and 88-420 that are incorporated into this
23Section by Public Act 88-670 are declarative of existing law

HB3426 Engrossed- 2 -LRB101 09016 HLH 54109 b
1and are not a new enactment.
2 (b) The provisions of this Section regarding taxation of
3leasehold interests in exempt property do not apply to any
4leasehold interest created pursuant to any transaction
5described in subsection (e) of Section 15-35, subsection (c-5)
6of Section 15-60, subsection (b) of Section 15-100, Section
715-103, Section 15-160, or Section 15-185 of this Code or
8Section 6c of the Downstate Forest Preserve District Act.
9 (c) If an airport authority enters into a lease with a
10tenant to occupy space on airport premises, and the tenant is
11liable for the payment of property taxes on the property, the
12lease shall contain the following language:
13 "Lessee shall be liable for the payment of property
14 taxes with respect to the leasehold interest in accordance
15 with the terms and conditions of Section 9-195 of the
16 Property Tax Code.".
17 If a tenant described in this subsection (c) is liable for
18the payment of property taxes, and the tenant fails to make
19timely payment of those taxes, the tenant shall be liable for
20an additional penalty not to exceed the amount of taxes in
21arrears.
22(Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)
23 (Text of Section WITHOUT the changes made by P.A. 97-1161,
24which has been held unconstitutional)
25 Sec. 9-195. Leasing of exempt property.

HB3426 Engrossed- 3 -LRB101 09016 HLH 54109 b
1 (a) Except as provided in Sections 15-35, 15-55, 15-60,
215-100, 15-103, and 15-185, when property which is exempt from
3taxation is leased to another whose property is not exempt, and
4the leasing of which does not make the property taxable, the
5leasehold estate and the appurtenances shall be listed as the
6property of the lessee thereof, or his or her assignee. Taxes
7on that property shall be collected in the same manner as on
8property that is not exempt, and the lessee shall be liable for
9those taxes. However, no tax lien shall attach to the exempt
10real estate. The changes made by Public Act 90-562 and by
11Public Act 91-513 are declaratory of existing law and shall not
12be construed as a new enactment. The changes made by Public
13Acts 88-221 and 88-420 that are incorporated into this Section
14by Public Act 88-670 are declarative of existing law and are
15not a new enactment.
16 (b) The provisions of this Section regarding taxation of
17leasehold interests in exempt property do not apply to any
18leasehold interest created pursuant to any transaction
19described in subsection (e) of Section 15-35, subsection (c-5)
20of Section 15-60, subsection (b) of Section 15-100, Section
2115-103, or Section 15-185 of this Code or Section 6c of the
22Downstate Forest Preserve District Act.
23 (c) If an airport authority enters into a lease with a
24tenant to occupy space on airport premises, and the tenant is
25liable for the payment of property taxes on the property, the
26lease shall contain the following language:

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1 "Lessee shall be liable for the payment of property
2 taxes with respect to the leasehold interest in accordance
3 with the terms and conditions of Section 9-195 of the
4 Property Tax Code.".
5 If a tenant described in this subsection (c) is liable for
6the payment of property taxes, and the tenant fails to make
7timely payment of those taxes, the tenant shall be liable for
8an additional penalty not to exceed the amount of taxes in
9arrears.
10(Source: P.A. 99-219, eff. 7-31-15; 99-642, eff. 7-28-16.)
11 Section 99. Effective date. This Act takes effect upon
12becoming law.
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