Bill Text: IL SB1456 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the Property Tax Code. Provides that certain leasehold property that is used for an airport, for parking, or for waste disposal or processing and is used for a non-exempt purpose is subject to taxation as a leasehold for the period of time during which it is used for that non-exempt purpose. Provides that the use of a portion of that property for a non-exempt purpose shall have no effect on (i) the exemption of the remaining portion of the property that continues to be used for an exempt purpose or (ii) the future exemption of that same portion of the property if it ceases to be used for a non-exempt purpose and returned to use for an exempt purpose.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Enrolled) 2019-06-28 - Sent to the Governor [SB1456 Detail]

Download: Illinois-2019-SB1456-Enrolled.html



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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 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 with a population of over
11500,000 inhabitants, a unit of local government whose
12jurisdiction includes territory located in whole or in part
13within a municipality with a population of over 500,000
14inhabitants, or a municipality with home rule powers that is
15contiguous to a municipality with a population of over 500,000
16inhabitants, shall remain exempt from taxation and any
17leasehold interest in that property shall not be subject to
18taxation under Section 9-195 if the property is directly or
19indirectly leased, sold, or otherwise transferred to another
20entity whose property is not exempt and immediately thereafter
21is the subject of a leaseback or other agreement that directly
22or indirectly gives the municipality or unit of local
23government (i) a right to use, control, and possess the

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1property or (ii) a right to require the other entity, or the
2other entity's designee or assignee, to use the property in the
3performance of services for the municipality or unit of local
4government. Property shall no longer be exempt under this
5subsection as of the date when the right of the municipality or
6unit of local government to use, control, and possess the
7property or to require the performance of services is
8terminated and the municipality or unit of local government no
9longer has any option to purchase or otherwise reacquire the
10interest in the property which was transferred by the
11municipality or unit of local government.
12 (b) Notwithstanding anything in this Code to the contrary,
13all property owned by a municipality with a population of over
14500,000 inhabitants, a unit of local government whose
15jurisdiction includes territory located in whole or in part
16within a municipality with a population of over 500,000
17inhabitants, or a municipality with home rule powers that is
18contiguous to a municipality with a population of over 500,000
19inhabitants, shall remain exempt from taxation and any
20leasehold interest in that property is not subject to taxation
21under Section 9-195 if the property, including dedicated public
22property, is used by a municipality or other unit of local
23government for the purpose of an airport or parking or for
24waste disposal or processing and is leased for continued use
25for the same purpose to another entity whose property is not
26exempt. If property located in a municipality with a population

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1of more than 500,000 inhabitants is not subject to taxation due
2to its use for the purpose of parking, and any portion of the
3property is used for a purpose other than parking, that portion
4of the property shall be subject to taxation under Section
59-195 for the period of time during which it is used for that
6non-exempt purpose; provided, however, that the use of a
7portion of such property for a non-exempt purpose shall have no
8effect on (i) the exemption of the remaining portion of the
9property that continues to be used for an exempt purpose, as
10identified in this subsection, or (ii) the future exemption of
11that same portion of the property if it ceases to be used for a
12non-exempt purpose and returned to use for an exempt purpose as
13identified in this subsection. No taxes shall be assessed on
14any portion of the property identified in this subsection prior
15to the effective date of this amendatory Act of the 101st
16General Assembly.
17 For the purposes of this subsection (b), "airport" does not
18include any airport property, as defined under Section 10 of
19the O'Hare Modernization Act.
20 Any transaction described under this subsection must be
21undertaken in accordance with all appropriate federal laws and
22regulations.
23 (c) For purposes of this Section, "municipality" means a
24municipality as defined in Section 1-1-2 of the Illinois
25Municipal Code, and "unit of local government" means a unit of
26local government as defined in Article VII, Section 1 of the

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1Constitution of the State of Illinois. The provisions of this
2Section supersede and control over any conflicting provisions
3of this Code.
4(Source: P.A. 96-779, eff. 8-28-09.)
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