Bill Text: IL SB3210 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Amends the Property Tax Code. In a Section concerning exemptions for leaseback property, provides that the Section applies to all property that is exempt under Article 15 of the Property Tax Code. Provides that, for exemption purposes, the property shall be treated as though the lessee were the owner of the property as long as the property on which the leased improvements is located is used for school, religious, or charitable purposes pursuant to that lease or any renewal of that lease. Contains provisions requiring that the funds received from the conveyance of the property must be used for certain purposes. Provides that projects using funds from the sale of certain property that is subject to a leaseback are subject to the provisions of the Illinois Prevailing Wage Act for the initial construction of the improvements and all bidders for those projects shall comply with the Illinois Procurement Code. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3210 Detail]

Download: Illinois-2011-SB3210-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
Section 15-185 as follows:
(35 ILCS 200/15-185)
Sec. 15-185. Exemption for leaseback property and
qualified leased property.
(a) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, a unit of local government whose
jurisdiction includes territory located in whole or in part
within a municipality with a population of over 500,000
inhabitants, or a municipality with home rule powers that is
contiguous to a municipality with a population of over 500,000
inhabitants, shall remain exempt from taxation and any
leasehold interest in that property shall not be subject to
taxation under Section 9-195 if the property is directly or
indirectly leased, sold, or otherwise transferred to another
entity whose property is not exempt and immediately thereafter
is the subject of a leaseback or other agreement that directly
or indirectly gives the municipality or unit of local
government (i) a right to use, control, and possess the

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

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For the purposes of this subsection (b), "airport" does not
include any airport property, as defined under Section 10 of
the O'Hare Modernization Act.
Any transaction described under this subsection must be
undertaken in accordance with all appropriate federal laws and
regulations.
(c) For purposes of this Section, "municipality" means a
municipality as defined in Section 1-1-2 of the Illinois
Municipal Code, and "unit of local government" means a unit of
local government as defined in Article VII, Section 1 of the
Constitution of the State of Illinois. The provisions of this
Section supersede and control over any conflicting provisions
of this Code.
(d) Notwithstanding any provision of this Code to the
contrary, in the case of a healthcare facility that is located
within the cities of Rockford, Pontiac, Bloomington,
Galesburg, Monmouth, or Peoria, or located within 20 miles of
the municipal boundaries of any of those cities:
(1) if the property is owned by an entity that uses the
property as a healthcare facility and in such a manner that
the property is exempt from taxation under this Article 15,
then that property is exempt from real estate taxes, and
that exemption is not affected by any transaction in which
the entity, directly or indirectly, on or after the
effective date of this amendatory Act of the 97th General
Assembly, leases, sells, or otherwise transfers the

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property to another entity for which or for whom property
is not exempt, with or without a right to repurchase that
property, and immediately after the lease or transfer
enters into a leaseback or other agreement that directly or
indirectly gives the initial entity a right to use,
control, and possess the property as a healthcare facility
in a manner that would qualify the property for a
non-homestead real estate tax exemption pursuant to this
Article 15 by virtue of its use; or
(2) if, on or after the effective date of this
amendatory Act of the 97th General Assembly, an entity
leases such new or existing healthcare facility property
from another for purposes that would be exempt under this
Article 15, that property is exempt from real estate taxes
for the term of the lease, or any extension thereof,
without regard to the nature or character of ownership and
shall be treated for purposes of this Article 15 as if the
lessee were the owner of the property, as long as the
property on which the leased improvements are or will be
located is used as a healthcare facility pursuant to that
lease or any renewal thereof.
For the purposes of this subsection (d), "healthcare
facility" has the same meaning as provided in Section 10 of the
Smoke Free Illinois Act.
(e) Substantially all of the funds received from the
conveyance of property subject to a leaseback agreement as

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described in subsection (d) of this Section must be used for
capital improvement projects and related capital expenditures
and all funds raised shall be used within the State of
Illinois.
(f) To the extent allowable by law, all construction
projects using the provisions of subsection (d) above shall be
subject to the provisions of the Illinois Prevailing Wage Act
for the initial construction of the improvements and all
bidders for those projects shall comply with the provisions of
Section 30-22 of the Illinois Procurement Code.
(g) Project labor agreements for the construction projects
referenced in subsection (f) above shall be required.
(Source: P.A. 96-779, eff. 8-28-09.)
Section 97. Savings clause. If any provision of this Act or
its application to any person or circumstance is held invalid
by any Court of competent jurisdiction or any federal or State
government agency having jurisdiction over the subject matter
of this Act, the invalidity of that provision or application
does not affect any other provisions or applications of this
Act that can be given effect without the invalid provision or
application which are severable under Section 1.31 of the
Statute on Statutes.