Bill Text: IL HB0880 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the State Finance Act. Provides that, beginning on January 1, 2028 (currently, January 1, 2021), moneys received from the rental of land, buildings, or improvements on property held for the development of an airport in Will County by the Department of Transportation shall be paid into the General Revenue Fund instead of the Tax Recovery Fund. Amends the Property Tax Code. Provides that, with respect to real property in Will County owned by the State for the purpose of developing an airport, payments made to compensate taxing districts for leasehold taxes shall be calculated based on the 2019 property tax year (currently, 2002). Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB0880 Detail]

Download: Illinois-2019-HB0880-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB0880 Introduced , by Rep. Margo McDermed SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-59
35 ILCS 200/15-55
70 ILCS 605/5-2 from Ch. 42, par. 5-2
Amends the State Finance Act. Provides that, beginning on January 1, 2028 (currently, January 1, 2021), moneys received from the rental of land, buildings, or improvements on property held for the development of an airport in Will County by the Department of Transportation shall be paid into the General Revenue Fund instead of the Tax Recovery Fund. Amends the Property Tax Code. Provides that, with respect to real property in Will County owned by the State for the purpose of developing an airport, payments made to compensate taxing districts for leasehold taxes shall be calculated based on the 2019 property tax year (currently, 2002). 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 State Finance Act is amended by changing
Section 6z-59 as follows:
(30 ILCS 105/6z-59)
Sec. 6z-59. The Tax Recovery Fund. There is created in the
State treasury the Tax Recovery Fund. Through December 31, 2027
2020, all moneys received from the rental, authorized under
Section 2705-555 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, of land, buildings, or
improvements on property held for development of an airport in
Will County by the Department of Transportation shall be
remitted to the State Treasurer for payment into the Tax
Recovery Fund. Subject to appropriation, the moneys in the Fund
shall be expended with the following priority: (1) to
compensate taxing districts for leasehold taxes then (2) to the
General Revenue Fund less any money necessary to pay
maintenance and repair costs for that real property. The tax
compensation shall be determined in accordance with Sections
9-195 and 15-55 of the Property Tax Code. Expenditures for
these purposes may be made by Department of Transportation
without regard to the fiscal year in which tax compensation

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liability and property maintenance and repair costs were
incurred. Unexpended moneys in the Fund shall not be
transferred or allocated by the Comptroller or Treasurer to any
other fund nor shall the Governor authorize the transfer or
allocation of those moneys to any other fund. After December
31, 2027 2020, all moneys received from the rental, authorized
under Section 2705-555 of the Department of Transportation Law
of the Civil Administrative Code of Illinois, of land,
buildings, or improvements on property held for the development
of an airport in Will County by the Department of
Transportation shall not be remitted to the Tax Recovery Fund
but shall instead be paid to the General Revenue Fund. The
balance remaining in the Tax Recovery Fund on December 31, 2027
2020 shall first be expended to compensate taxing districts for
leasehold taxes for the 2027 2020 tax assessment year, and then
transferred to the General Revenue Fund for the purpose of debt
service on State bonds issued to provide funds for airport land
acquisition in Will County.
(Source: P.A. 96-192, eff. 8-10-09.)
Section 10. The Property Tax Code is amended by changing
Section 15-55 as follows:
(35 ILCS 200/15-55)
Sec. 15-55. State property.
(a) All property belonging to the State of Illinois is

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exempt. However, the State agency holding title shall file the
certificate of ownership and use required by Section 15-10,
together with a copy of any written lease or agreement, in
effect on March 30 of the assessment year, concerning parcels
of 1 acre or more, or an explanation of the terms of any oral
agreement under which the property is leased, subleased or
rented.
The leased property shall be assessed to the lessee and the
taxes thereon extended and billed to the lessee, and collected
in the same manner as for property which is not exempt. The
lessee shall be liable for the taxes and no lien shall attach
to the property of the State.
For the purposes of this Section, the word "leases"
includes licenses, franchises, operating agreements and other
arrangements under which private individuals, associations or
corporations are granted the right to use property of the
Illinois State Toll Highway Authority and includes all property
of the Authority used by others without regard to the size of
the leased parcel.
(b) However, all property of every kind belonging to the
State of Illinois, which is or may hereafter be leased to the
Illinois Prairie Path Corporation, shall be exempt from all
assessments, taxation or collection, despite the making of any
such lease, if it is used for:
(1) conservation, nature trail or any other
charitable, scientific, educational or recreational

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purposes with public benefit, including the preserving and
aiding in the preservation of natural areas, objects,
flora, fauna or biotic communities;
(2) the establishment of footpaths, trails and other
protected areas;
(3) the conservation of the proper use of natural
resources or the promotion of the study of plant and animal
communities and of other phases of ecology, natural history
and conservation;
(4) the promotion of education in the fields of nature,
preservation and conservation; or
(5) similar public recreational activities conducted
by the Illinois Prairie Path Corporation.
No lien shall attach to the property of the State. No tax
liability shall become the obligation of or be enforceable
against Illinois Prairie Path Corporation.
(c) If the State sells the James R. Thompson Center or the
Elgin Mental Health Center and surrounding land located at 750
S. State Street, Elgin, Illinois, as provided in subdivision
(a)(2) of Section 7.4 of the State Property Control Act, to
another entity whose property is not exempt and immediately
thereafter enters into a leaseback or other agreement that
directly or indirectly gives the State a right to use, control,
and possess the property, that portion of the property leased
and occupied exclusively by the State shall remain exempt under
this Section. For the property to remain exempt under this

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subsection (c), the State 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 State.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
(1) the right of the State to use, control, and possess
the property has been terminated; or
(2) the State no longer has an option to purchase or
otherwise acquire the property and there is no provision
for a reverter of the property to the State within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
State shall notify the chief county assessment officer of any
transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) 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.
(c-1) If the Illinois State Toll Highway Authority sells
the Illinois State Toll Highway Authority headquarters
building and surrounding land, located at 2700 Ogden Avenue,

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Downers Grove, Illinois as provided in subdivision (a)(2) of
Section 7.5 of the State Property Control Act, to another
entity whose property is not exempt and immediately thereafter
enters into a leaseback or other agreement that directly or
indirectly gives the State or the Illinois State Toll Highway
Authority a right to use, control, and possess the property,
that portion of the property leased and occupied exclusively by
the State or the Authority shall remain exempt under this
Section. For the property to remain exempt under this
subsection (c), the Authority 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 Authority.
If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
(1) the right of the State or the Authority to use,
control, and possess the property has been terminated; or
(2) the Authority no longer has an option to purchase
or otherwise acquire the property and there is no provision
for a reverter of the property to the Authority within the
limitations period for reverters.
Pursuant to Sections 15-15 and 15-20 of this Code, the
Authority shall notify the chief county assessment officer of
any transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax

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exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) 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.
(d) The fair market rent of each parcel of real property in
Will County owned by the State of Illinois for the purpose of
developing an airport by the Department of Transportation and
leased by a third party or third parties shall include the
assessed value of leasehold tax. The lessee of each parcel of
real property in Will County owned by the State of Illinois for
the purpose of developing an airport by the Department of
Transportation shall not be liable for the taxes thereon. In
order for the State to compensate taxing districts, including,
without limitation, drainage districts organized under the
Illinois Drainage Code, for the leasehold tax under this
paragraph the Will County Supervisor of Assessments shall
certify, in writing, to the Department of Transportation: (i)
for payments occurring on or before July 1, 2019, the amount of
leasehold taxes extended for the 2002 property tax year for
each such exempt parcel; and (ii) for payments after July 1,
2019, the amount of leasehold taxes that would have been
extended for the 2019 property tax year for each such exempt
parcel. The Department of Transportation shall pay to the Will
County Treasurer, from the Tax Recovery Fund, on or before July

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1 of each year, the amount of leasehold taxes for each such
exempt parcel as certified by the Will County Supervisor of
Assessments under item (i) of this subsection (d) for payments
on or before July 1, 2019 and under item (ii) of this
subsection (d) for payments after July 1, 2019. The tax
compensation shall terminate on December 31, 2027 2020. It is
the duty of the Department of Transportation to file with the
Office of the Will County Supervisor of Assessments an
affidavit stating the termination date for rental of each such
parcel due to airport construction. The affidavit shall include
the property identification number for each such parcel. In no
instance shall tax compensation for property owned by the State
be deemed delinquent or bear interest. In no instance shall a
lien attach to the property of the State. In no instance shall
the State be required to pay leasehold tax compensation in
excess of the Tax Recovery Fund's balance.
(e) Public Act 81-1026 applies to all leases or agreements
entered into or renewed on or after September 24, 1979.
(f) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the Illiana Expressway,
as defined in the Public Private Agreements for the Illiana
Expressway Act, and that is used for transportation 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.

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(g) Notwithstanding anything to the contrary in this
Section, all property owned by the State or the Illinois State
Toll Highway Authority that is defined as a transportation
project under the Public-Private Partnerships for
Transportation Act and that is used for transportation 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.
(h) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the South Suburban
Airport, as defined in the Public-Private Agreements for the
South Suburban Airport Act, and that is used for airport
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.
(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)
Section 15. The Illinois Drainage Code is amended by
changing Section 5-2 as follows:
(70 ILCS 605/5-2) (from Ch. 42, par. 5-2)
Sec. 5-2. Original assessments - Property subject to
assessment. Upon the Organization of the district, the
commissioners shall proceed to make out their assessment roll

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of benefits, damages and compensation, and they shall include
therein all lands, lots, railroads, and other property within
the district, including leasehold parcels in Will County owned
by the State of Illinois as provided for under subsection (d)
of Section 15-55 of the Property Tax Code, other than public
highways, streets and alleys, which, in their opinion, will be
benefited, taken or damaged by the proposed work. Whenever
another district or a municipal corporation exercising
drainage powers has been made a party to the proceedings to
organize the district, then the commissioners shall also
include such other district or municipal corporation in their
assessment roll.
(Source: P.A. 83-726.)
Section 99. Effective date. This Act takes effect upon
becoming law.