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Sen. David Koehler
Filed: 5/7/2012
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| 1 | | AMENDMENT TO SENATE BILL 3210
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3210 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 5. The Property Tax Code is amended by changing |
| 5 | | Section 15-185 as follows:
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| 6 | | (35 ILCS 200/15-185)
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| 7 | | Sec. 15-185. Exemption for leaseback property and |
| 8 | | qualified leased property.
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| 9 | | (a) Notwithstanding anything in this Code to
the
contrary, |
| 10 | | all property owned by a municipality with a population of over
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| 11 | | 500,000
inhabitants, a unit of local government whose |
| 12 | | jurisdiction includes
territory located in
whole or in part |
| 13 | | within a municipality with a population of over 500,000
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| 14 | | inhabitants, or a municipality with home rule powers that is |
| 15 | | contiguous to a municipality with a population of over 500,000 |
| 16 | | inhabitants,
shall remain exempt from taxation and any |
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| 1 | | leasehold interest in that property
shall not be
subject to |
| 2 | | taxation under Section 9-195 if
the
property is directly or |
| 3 | | indirectly leased, sold, or otherwise transferred to
another |
| 4 | | entity
whose property is not exempt and immediately thereafter |
| 5 | | is the subject of a
leaseback or
other agreement that directly |
| 6 | | or indirectly gives the municipality or unit of
local
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| 7 | | government (i) a right to use, control, and possess the |
| 8 | | property or (ii) a
right to require
the other entity, or the |
| 9 | | other entity's designee or assignee, to use the
property in the
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| 10 | | performance of services for the municipality or unit of local |
| 11 | | government. Property
shall no longer be exempt under this |
| 12 | | subsection as of the date when the right of
the
municipality or |
| 13 | | unit of local government to use, control, and possess the
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| 14 | | property or to
require the performance of services is |
| 15 | | terminated and the municipality or unit
of local
government no |
| 16 | | longer has any option to purchase or otherwise reacquire the
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| 17 | | interest in
the property which was transferred by the |
| 18 | | municipality or unit of local
government.
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| 19 | | (b) Notwithstanding anything in this Code to
the
contrary, |
| 20 | | all property owned by a municipality with a population of over
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| 21 | | 500,000
inhabitants, a unit of local government whose |
| 22 | | jurisdiction includes
territory located in
whole or in part |
| 23 | | within a municipality with a population of over 500,000
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| 24 | | inhabitants, or a municipality with home rule powers that is |
| 25 | | contiguous to a municipality with a population of over 500,000 |
| 26 | | inhabitants,
shall remain exempt from taxation and any |
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| 1 | | leasehold interest in that property
is not
subject to taxation |
| 2 | | under Section 9-195 if the property, including dedicated public |
| 3 | | property, is used by a municipality or other unit of local |
| 4 | | government for the purpose of an airport or parking or for |
| 5 | | waste disposal or processing and is leased for continued use |
| 6 | | for the same purpose to another entity whose property is not |
| 7 | | exempt. |
| 8 | | For the purposes of this subsection (b), "airport" does not |
| 9 | | include any airport property, as defined under Section 10 of |
| 10 | | the O'Hare Modernization Act. |
| 11 | | Any transaction described under this subsection must be |
| 12 | | undertaken in accordance with all appropriate federal laws and |
| 13 | | regulations. |
| 14 | | (c) For purposes of this Section, "municipality" means a |
| 15 | | municipality as defined
in
Section 1-1-2 of the Illinois |
| 16 | | Municipal Code, and "unit of local government"
means a unit
of |
| 17 | | local government as defined in Article VII, Section 1 of the |
| 18 | | Constitution of
the State of
Illinois. The provisions of this |
| 19 | | Section supersede and control over any
conflicting
provisions |
| 20 | | of this Code.
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| 21 | | (d) Notwithstanding any provision of this Code to the |
| 22 | | contrary, in the case of a healthcare facility that is located |
| 23 | | within the cities of Rockford, Pontiac, Bloomington, |
| 24 | | Galesburg, Monmouth, or Peoria, or located within 20 miles of |
| 25 | | the municipal boundaries of any of those cities: |
| 26 | | (1) if the property is owned by an entity that uses the |
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| 1 | | property as a healthcare facility and in such a manner that |
| 2 | | the property is exempt from taxation under this Article 15, |
| 3 | | then that property is exempt from real estate taxes, and |
| 4 | | that exemption is not affected by any transaction in which |
| 5 | | the entity, directly or indirectly, on or after the |
| 6 | | effective date of this amendatory Act of the 97th General |
| 7 | | Assembly, leases, sells, or otherwise transfers the |
| 8 | | property to another entity for which or for whom property |
| 9 | | is not exempt, with or without a right to repurchase that |
| 10 | | property, and immediately after the lease or transfer |
| 11 | | enters into a leaseback or other agreement that directly or |
| 12 | | indirectly gives the initial entity a right to use, |
| 13 | | control, and possess the property as a healthcare facility |
| 14 | | in a manner that would qualify the property for a |
| 15 | | non-homestead real estate tax exemption pursuant to this |
| 16 | | Article 15 by virtue of its use; or |
| 17 | | (2) if, on or after the effective date of this |
| 18 | | amendatory Act of the 97th General Assembly, an entity |
| 19 | | leases such new or existing healthcare facility property |
| 20 | | from another for purposes that would be exempt under this |
| 21 | | Article 15, that property is exempt from real estate taxes |
| 22 | | for the term of the lease, or any extension thereof, |
| 23 | | without regard to the nature or character of ownership and |
| 24 | | shall be treated for purposes of this Article 15 as if the |
| 25 | | lessee were the owner of the property, as long as the |
| 26 | | property on which the leased improvements are or will be |
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| 1 | | located is used as a healthcare facility pursuant to that |
| 2 | | lease or any renewal thereof. |
| 3 | | For the purposes of this subsection (d), "healthcare |
| 4 | | facility" has the same meaning as provided in Section 10 of the |
| 5 | | Smoke Free Illinois Act. |
| 6 | | (e) Substantially all of the funds received from the |
| 7 | | conveyance of property subject to a leaseback agreement as |
| 8 | | described in subsection (d) of this Section must be used for |
| 9 | | capital improvement projects and related capital expenditures |
| 10 | | and all funds raised shall be used within the State of |
| 11 | | Illinois. |
| 12 | | (f) To the extent allowable by law, all construction |
| 13 | | projects using the provisions of subsection (d) above shall be |
| 14 | | subject to the provisions of the Illinois Prevailing Wage Act |
| 15 | | for the initial construction of the improvements and all |
| 16 | | bidders for those projects shall comply with the provisions of |
| 17 | | Section 30-22 of the Illinois Procurement Code. |
| 18 | | (g) Project labor agreements for the construction projects |
| 19 | | referenced in subsection (f) above shall be required. |
| 20 | | (Source: P.A. 96-779, eff. 8-28-09.)
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| 21 | | Section 97. Savings clause. If any provision of this Act or |
| 22 | | its application to any person or circumstance is held invalid |
| 23 | | by any Court of competent jurisdiction or any federal or State |
| 24 | | government agency having jurisdiction over the subject matter |
| 25 | | of this Act, the invalidity of that provision or application |