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
 


HB0880LRB101 06286 HLH 51312 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 State Finance Act is amended by changing 
5Section 6z-59 as follows:

6 (30 ILCS 105/6z-59)

7 Sec. 6z-59. The Tax Recovery Fund.  There is created in the

8State treasury the Tax Recovery Fund. Through December 31, 2027 
92020, all moneys received from
the
rental, authorized under 
10Section 2705-555 of the Department of Transportation
Law of
the 
11Civil Administrative Code of Illinois, of land, buildings, or 
12improvements
on property
held for development of an airport in 
13Will County by the Department of
Transportation
shall be 
14remitted to the State Treasurer for payment into the Tax

15Recovery Fund. Subject to appropriation, the moneys in the Fund 
16shall be
expended with
the following priority: (1)
to 
17compensate taxing districts for leasehold taxes
then (2) to the 
18General Revenue Fund less any money
necessary to pay 
19maintenance and repair
costs for that real property.
The tax 
20compensation shall be determined in accordance with Sections 
219-195 and
15-55 of
the
Property Tax Code.
Expenditures for 
22these purposes may be made by
Department of Transportation 
23without regard to the fiscal year in which tax
compensation

 
 
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1liability and property maintenance and repair costs
were 
2incurred. Unexpended moneys in the Fund shall not be 
3transferred or
allocated by
the Comptroller or Treasurer to any 
4other fund nor shall the Governor authorize
the
transfer or 
5allocation of those moneys to any other fund. After December 
631, 2027 2020, all
moneys received from the rental, authorized 
7under Section 2705-555 of the
Department
of Transportation Law 
8of the Civil Administrative Code of Illinois, of land,

9buildings, or
improvements on property held for the development 
10of an airport in Will County
by the
Department of 
11Transportation shall not be remitted to the Tax
Recovery
Fund 
12but shall instead be paid to the General Revenue Fund. The 
13balance
remaining in
the Tax Recovery Fund on December 31, 2027 
142020 shall first be
expended to
compensate taxing districts for 
15leasehold taxes for the 2027 2020
tax
assessment year, and
then 
16transferred to
the
General Revenue Fund for the purpose of debt 
17service on State bonds issued to
provide
funds for airport land 
18acquisition in Will County.


19(Source: P.A. 96-192, eff. 8-10-09.)

20 Section 10. The Property Tax Code is amended by changing 
21Section 15-55 as follows:

22 (35 ILCS 200/15-55)


23 Sec. 15-55. State property. 

24 (a) All property belonging to the State of Illinois
is 
 
 
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1exempt. However, the State agency holding title shall file the 
2certificate
of ownership and use required by Section 15-10, 
3together with a copy of any
written lease or agreement, in 
4effect on March 30 of the assessment year,
concerning parcels 
5of 1 acre or more, or an explanation of the terms of any
oral 
6agreement under which the property is leased, subleased or 
7rented.

8 The leased property shall be assessed to the lessee and the 
9taxes thereon
extended and billed to the lessee, and collected 
10in the same manner as
for property which is not exempt. The 
11lessee shall be liable
for the taxes and no lien shall attach 
12to the property of the State.

13 For the purposes of this Section, the word "leases" 
14includes
licenses, franchises, operating agreements and other 
15arrangements under which
private individuals, associations or 
16corporations are granted the right to use
property of the 
17Illinois State Toll Highway Authority and includes all property

18of the Authority used by others without regard to the size of 
19the leased
parcel.

20 (b) However, all property of every kind belonging to the 
21State of
Illinois, which
is or may hereafter be leased to the 
22Illinois Prairie Path Corporation, shall
be exempt from all 
23assessments, taxation or collection, despite the making of
any 
24such lease, if it is used for:


25  (1) conservation, nature trail or any other 
26 charitable,
scientific,
educational or recreational 
 
 
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1 purposes with public benefit, including the
preserving and 
2 aiding in the preservation of natural areas, objects, 
3 flora,
fauna or biotic communities;


4  (2) the establishment of footpaths, trails and other 
5 protected
areas;


6  (3) the conservation of the proper use of natural

7 resources or the promotion of the study of plant and animal 
8 communities and
of other phases of ecology, natural history 
9 and conservation;


10  (4) the promotion of education in the fields of nature,

11 preservation and
conservation; or


12  (5) similar public recreational activities conducted 
13 by the
Illinois
Prairie
Path Corporation.

14 No lien shall attach to the property of the State. No tax 
15liability shall
become the obligation of or be enforceable 
16against Illinois Prairie Path
Corporation.

17 (c) If the State sells the
James R.
Thompson Center
or the 
18Elgin Mental Health Center and surrounding land located at 750 
19S.
State Street,
Elgin, Illinois, as provided in subdivision 
20(a)(2) of Section 7.4 of
the State Property Control Act,
to

21another entity whose property is not exempt and immediately 
22thereafter enters
into a
leaseback or other agreement that 
23directly or indirectly gives the State a
right to use,
control, 
24and possess the property, that portion of the property leased 
25and
occupied exclusively by the State shall remain exempt under 
26this
Section.
For the property to remain exempt under this 
 
 
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1subsection (c), the State must
retain an
option to purchase the 
2property at a future date or, within the limitations
period for

3reverters, the property must revert back to the State.

4 If the property has been conveyed as described in this 
5subsection (c), the
property
is no longer exempt pursuant to 
6this Section as of the date when:


7  (1) the right of the State to use, control, and possess 
8 the property has
been
terminated; or


9  (2) the State no longer has an option to
purchase or 
10 otherwise acquire the property and
there is no provision 
11 for a reverter of the property to the State
within the 
12 limitations period for reverters.

13 Pursuant to Sections 15-15 and 15-20 of this Code, the 
14State shall notify the
chief
county assessment officer of any 
15transaction under this subsection (c). The
chief county

16assessment officer shall determine initial and continuing 
17compliance with the
requirements of this Section for tax 
18exemption. Failure to notify the chief
county
assessment 
19officer of a transaction under this subsection (c) or to 
20otherwise
comply with
the requirements of Sections 15-15 and 
2115-20 of this Code shall, in the
discretion of the
chief county 
22assessment officer, constitute cause to terminate the 
23exemption,
notwithstanding any other provision of this Code.

24 (c-1) If the Illinois State Toll Highway Authority sells 
25the
Illinois State Toll Highway Authority headquarters 
26building and surrounding
land,
located at 2700 Ogden Avenue, 
 
 
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1Downers Grove, Illinois
as provided in subdivision (a)(2) of 
2Section 7.5 of
the State Property Control Act,
to
another 
3entity whose property is not exempt and immediately thereafter 
4enters
into a
leaseback or other agreement that directly or 
5indirectly gives the State or the
Illinois State Toll Highway 
6Authority a
right to use,
control, and possess the property, 
7that portion of the property leased and
occupied exclusively by 
8the State or the Authority shall remain exempt under
this

9Section.
For the property to remain exempt under this 
10subsection (c), the Authority must
retain an
option to purchase 
11the property at a future date or, within the limitations
period 
12for
reverters, the property must revert back to the Authority.

13 If the property has been conveyed as described in this 
14subsection (c), the
property
is no longer exempt pursuant to 
15this Section as of the date when:


16  (1) the right of the State or the Authority to use, 
17 control, and possess
the
property has
been
terminated; or


18  (2) the Authority no longer has an option to
purchase 
19 or otherwise acquire the property and
there is no provision 
20 for a reverter of the property to the Authority
within the 
21 limitations period for reverters.

22 Pursuant to Sections 15-15 and 15-20 of this Code, the 
23Authority
shall notify the
chief
county assessment officer of 
24any transaction under this subsection (c). The
chief county

25assessment officer shall determine initial and continuing 
26compliance with the
requirements of this Section for tax 
 
 
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1exemption. Failure to notify the chief
county
assessment 
2officer of a transaction under this subsection (c) or to 
3otherwise
comply with
the requirements of Sections 15-15 and 
415-20 of this Code shall, in the
discretion of the
chief county 
5assessment officer, constitute cause to terminate the 
6exemption,
notwithstanding any other provision of this Code.

7 (d) The fair market rent of each parcel of real property in 
8Will
County owned by the State of Illinois for the purpose of 
9developing an airport
by the Department of Transportation and 
10leased by a third party or third parties shall include the 
11assessed value of
leasehold tax. The lessee of each parcel of 
12real property in Will
County owned by
the
State of Illinois for 
13the purpose of developing an airport by the Department of

14Transportation shall not be liable for the taxes thereon. In 
15order for the
State to
compensate taxing districts, including, 
16without limitation, drainage districts organized under the 
17Illinois Drainage Code, for
the leasehold tax under this 
18paragraph
the Will County Supervisor of Assessments shall

19certify, in
writing, to the
Department of Transportation: (i) 
20for payments occurring on or before July 1, 2019, the amount of 
21leasehold taxes
extended for the 2002 property tax
year for

22each such exempt parcel; and (ii) for payments after July 1, 
232019, the amount of leasehold taxes that would have been 
24extended for the 2019 property tax year for each such exempt 
25parcel.
The Department of Transportation shall pay to the Will

26County
Treasurer, from the Tax Recovery Fund, on or before July 
 
 
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11 of each
year, the amount of leasehold taxes for each such 
2exempt parcel as certified
by the Will County Supervisor of 
3Assessments under item (i) of this subsection (d) for payments 
4on or before July 1, 2019 and under item (ii) of this 
5subsection (d) for payments after July 1, 2019. The tax 
6compensation shall
terminate
on
December 31, 2027 2020. It is 
7the duty of the Department of Transportation to file
with the

8Office of the Will County Supervisor of Assessments an 
9affidavit stating the
termination
date for rental of each such 
10parcel due to airport construction. The affidavit
shall include

11the property identification number for each such parcel. In no 
12instance shall
tax
compensation for property owned by the State 
13be deemed delinquent or bear
interest. In
no instance shall a 
14lien attach to the property of the State. In no instance
shall 
15the State
be required to pay leasehold tax compensation in 
16excess of the Tax
Recovery Fund's balance.

17 (e) Public Act 81-1026 applies to all leases or agreements 
18entered into
or
renewed on or after September 24, 1979.

19 (f) Notwithstanding anything to the contrary in this Code, 
20all property owned by the State that is the Illiana Expressway, 
21as defined in the Public Private Agreements for the Illiana 
22Expressway Act, and that is used for transportation purposes 
23and that is leased for those purposes to another entity whose 
24property is not exempt shall remain exempt, and any leasehold 
25interest in the property shall not be subject to taxation under 
26Section 9-195 of this Act. 
 
 
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1 (g) Notwithstanding anything to the contrary in this 
2Section, all property owned by the State or the Illinois State 
3Toll Highway Authority that is defined as a transportation 
4project under the Public-Private Partnerships for 
5Transportation Act and that is used for transportation purposes 
6and that is leased for those purposes to another entity whose 
7property is not exempt shall remain exempt, and any leasehold 
8interest in the property shall not be subject to taxation under 
9Section 9-195 of this Act. 
10 (h) Notwithstanding anything to the contrary in this Code, 
11all property owned by the State that is the South Suburban 
12Airport, as defined in the Public-Private Agreements for the 
13South Suburban Airport Act, and that is used for airport 
14purposes and that is leased for those purposes to another 
15entity whose property is not exempt shall remain exempt, and 
16any leasehold interest in the property shall not be subject to 
17taxation under Section 9-195 of this Act. 
18(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13.)


19 Section 15. The Illinois Drainage Code is amended by 
20changing Section 5-2 as follows:




21 (70 ILCS 605/5-2) (from Ch. 42, par. 5-2)



22 Sec. 5-2. 
Original
assessments - Property subject to 
23assessment.
Upon the Organization of the district, the 
24commissioners shall proceed
to make out their assessment roll 
 
 
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1of benefits, damages and compensation,
and they shall include 
2therein all lands, lots, railroads, and other property
within 
3the district, including leasehold parcels in Will County owned 
4by the State of Illinois as provided for under subsection (d) 
5of Section 15-55 of the Property Tax Code, other than
public 
6highways, streets and alleys, which, in their
opinion, will be 
7benefited, taken or damaged by the proposed work. Whenever

8another district or a municipal corporation exercising 
9drainage powers has
been made a party to the proceedings to 
10organize the district, then the
commissioners shall also 
11include such other district or municipal
corporation in their 
12assessment roll.

13(Source: P.A. 83-726.)



14 Section 99. Effective date. This Act takes effect upon 
15becoming law.