Bill Text: IL SB3408 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. Provides that certain property owned by a county, municipality, taxing district, unit of local government, or by one or more municipalities pursuant to an ordinance or intergovernmental agreement, that is held for land bank purposes is exempt from taxation under the Code. Provides that the property remains exempt even if the property is leased to another entity whose property is not exempt. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB3408 Detail]

Download: Illinois-2013-SB3408-Engrossed.html

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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
Sections 9-195, 15-60, and 21-95 as follows:
(35 ILCS 200/9-195)
Sec. 9-195. Leasing of exempt property.
(a) Except as provided in Sections 15-35, 15-55, 15-60,
15-100, 15-103, 15-160, and 15-185, when property which is
exempt from taxation is leased to another whose property is not
exempt, and the leasing of which does not make the property
taxable, the leasehold estate and the appurtenances shall be
listed as the property of the lessee thereof, or his or her
assignee. Taxes on that property shall be collected in the same
manner as on property that is not exempt, and the lessee shall
be liable for those taxes. However, no tax lien shall attach to
the exempt real estate. The changes made by this amendatory Act
of 1997 and by this amendatory Act of the 91st General Assembly
are declaratory of existing law and shall not be construed as a
new enactment. The changes made by Public Acts 88-221 and
88-420 that are incorporated into this Section by this
amendatory Act of 1993 are declarative of existing law and are
not a new enactment.

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(b) The provisions of this Section regarding taxation of
leasehold interests in exempt property do not apply to any
leasehold interest created pursuant to any transaction
described in subsection (e) of Section 15-35, subsection (c-5)
or (g) of Section 15-60, subsection (b) of Section 15-100,
Section 15-103, Section 15-160, or Section 15-185.
(Source: P.A. 97-1161, eff. 6-1-13.)
(35 ILCS 200/15-60)
Sec. 15-60. Taxing district property. All property
belonging to any county or municipality used exclusively for
the maintenance of the poor is exempt, as is all property owned
by a taxing district that is being held for future expansion or
development, except if leased by the taxing district to lessees
for use for other than public purposes.
Also exempt are:
(a) all swamp or overflowed lands belonging to any
county;
(b) all public buildings belonging to any county,
township, or municipality, with the ground on which the
buildings are erected;
(c) all property owned by any municipality located
within its incorporated limits. Any such property leased by
a municipality shall remain exempt, and the leasehold
interest of the lessee shall be assessed under Section
9-195 of this Act, (i) for a lease entered into on or after

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January 1, 1994, unless the lease expressly provides that
this exemption shall not apply; (ii) for a lease entered
into on or after the effective date of Public Act 87-1280
and before January 1, 1994, unless the lease expressly
provides that this exemption shall not apply or unless
evidence other than the lease itself substantiates the
intent of the parties to the lease that this exemption
shall not apply; and (iii) for a lease entered into before
the effective date of Public Act 87-1280, if the terms of
the lease do not bind the lessee to pay the taxes on the
leased property or if, notwithstanding the terms of the
lease, the municipality has filed or hereafter files a
timely exemption petition or complaint with respect to
property consisting of or including the leased property for
an assessment year which includes part or all of the first
12 months of the lease period. The foregoing clause (iii)
added by Public Act 87-1280 shall not operate to exempt
property for any assessment year as to which no timely
exemption petition or complaint has been filed by the
municipality or as to which an administrative or court
decision denying exemption has become final and
nonappealable. For each assessment year or portion thereof
that property is made exempt by operation of the foregoing
clause (iii), whether such year or portion is before or
after the effective date of Public Act 87-1280, the
leasehold interest of the lessee shall, if necessary, be

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considered omitted property for purposes of this Act;
(c-5) Notwithstanding clause (i) of subsection (c),
all property owned by a municipality with a population of
over 500,000 that is used for toll road or toll bridge
purposes and that is leased for those purposes to another
entity whose property is not exempt shall remain exempt,
and any leasehold interest in the property shall not be
subject to taxation under Section 9-195 of this Act;
(d) all property owned by any municipality located
outside its incorporated limits but within the same county
when used as a tuberculosis sanitarium, farm colony in
connection with a house of correction, or nursery, garden,
or farm, or for the growing of shrubs, trees, flowers,
vegetables, and plants for use in beautifying,
maintaining, and operating playgrounds, parks, parkways,
public grounds, buildings, and institutions owned or
controlled by the municipality;
(e) all property owned by a township and operated as
senior citizen housing under Sections 35-50 through
35-50.6 of the Township Code; and
(f) all property owned by the Executive Board of the
Mutual Aid Box Alarm System (MABAS), a unit of
intergovernmental cooperation, that is used for the public
purpose of disaster preparedness and response for units of
local government and the State of Illinois pursuant to
Section 10 of Article VII of the Illinois Constitution and

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the Intergovernmental Cooperation Act; and .
(g) all property owned by a county of more than
3,000,000 inhabitants, or by one or more municipalities
within such a county, for which a land bank has been
created pursuant to an ordinance or intergovernmental
agreement in order to promote redevelopment or reuse of
vacant, abandoned, or tax-delinquent properties, to
support targeted efforts to stabilize neighborhoods, and
to stimulate residential, commercial, and industrial
development; all property owned by a county of more than
3,000,000 inhabitants, or one or more municipalities
within such a county, for which a land bank has been
created pursuant to an ordinance or intergovernmental
agreement, that is leased for land banking purposes to
another entity whose property is not exempt shall remain
exempt, and any leasehold interest in the property shall
not be subject to taxation under Section 9-195 of this Act
for a period of 10 years.
All property owned by any municipality outside of its
corporate limits is exempt if used exclusively for municipal or
public purposes.
For purposes of this Section, "municipality" means a
municipality, as defined in Section 1-1-2 of the Illinois
Municipal Code.
(Source: P.A. 98-206, eff. 1-1-14.)

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(35 ILCS 200/21-95)
Sec. 21-95. Tax abatement after acquisition by a
governmental unit. When any county, municipality, school
district, or park district acquires property through the
foreclosure of a lien, through a judicial deed, through the
foreclosure of receivership certificate lien, or by acceptance
of a deed of conveyance in lieu of foreclosing any lien against
the property, or when a government unit acquires property under
the Abandoned Housing Rehabilitation Act, or when any county or
other taxing district acquires a deed for property under
Section 21-90 or Sections 21-145 and 21-260, or when any
county, municipality, school district, or park district
acquires title to property that was to be transferred to that
county, municipality, school district, or park district under
the terms of an annexation agreement, development agreement,
donation agreement, plat of subdivision, or zoning ordinance by
an entity that has been dissolved or is being dissolved or has
been in bankruptcy proceedings or is in bankruptcy proceedings,
or when a county of more than 3,000,000 inhabitants, or one or
more municipalities within a county of more than 3,000,000
inhabitants, for which a land bank has been created pursuant to
an ordinance or intergovernmental agreement, acquires property
for land bank purposes as described in subsection (g) of
Section 15-60, all due or unpaid property taxes and existing
liens for unpaid property taxes imposed or pending under any
law or ordinance of this State or any of its political

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subdivisions shall become null and void.
(Source: P.A. 96-1142, eff. 7-21-10.)
Section 90. The State Mandates Act is amended by adding
Section 8.38 as follows:
(30 ILCS 805/8.38 new)
Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 98th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.