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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
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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 |
17 | | leasehold interest in that property
shall not be
subject to |
18 | | taxation under Section 9-195 if
the
property is directly or |
19 | | indirectly leased, sold, or otherwise transferred to
another |
20 | | entity
whose property is not exempt and immediately thereafter |
21 | | is the subject of a
leaseback or
other agreement that directly |
22 | | or indirectly gives the municipality or unit of
local
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23 | | government (i) a right to use, control, and possess the |
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1 | | property or (ii) a
right to require
the other entity, or the |
2 | | other entity's designee or assignee, to use the
property in the
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3 | | performance of services for the municipality or unit of local |
4 | | government. Property
shall no longer be exempt under this |
5 | | subsection as of the date when the right of
the
municipality or |
6 | | unit of local government to use, control, and possess the
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7 | | property or to
require the performance of services is |
8 | | terminated and the municipality or unit
of local
government no |
9 | | longer has any option to purchase or otherwise reacquire the
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10 | | interest in
the property which was transferred by the |
11 | | municipality or unit of local
government.
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12 | | (b) Notwithstanding anything in this Code to
the
contrary, |
13 | | all property owned by a municipality with a population of over
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14 | | 500,000
inhabitants, a unit of local government whose |
15 | | jurisdiction includes
territory located in
whole or in part |
16 | | within a municipality with a population of over 500,000
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17 | | inhabitants, or a municipality with home rule powers that is |
18 | | contiguous to a municipality with a population of over 500,000 |
19 | | inhabitants,
shall remain exempt from taxation and any |
20 | | leasehold interest in that property
is not
subject to taxation |
21 | | under Section 9-195 if the property, including dedicated public |
22 | | property, is used by a municipality or other unit of local |
23 | | government for the purpose of an airport or parking or for |
24 | | waste disposal or processing and is leased for continued use |
25 | | for the same purpose to another entity whose property is not |
26 | | exempt. |
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1 | | For the purposes of this subsection (b), "airport" does not |
2 | | include any airport property, as defined under Section 10 of |
3 | | the O'Hare Modernization Act. |
4 | | Any transaction described under this subsection must be |
5 | | undertaken in accordance with all appropriate federal laws and |
6 | | regulations. |
7 | | (c) For purposes of this Section, "municipality" means a |
8 | | municipality as defined
in
Section 1-1-2 of the Illinois |
9 | | Municipal Code, and "unit of local government"
means a unit
of |
10 | | local government as defined in Article VII, Section 1 of the |
11 | | Constitution of
the State of
Illinois. The provisions of this |
12 | | Section supersede and control over any
conflicting
provisions |
13 | | of this Code.
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14 | | (d) Notwithstanding any provision of this Code to the |
15 | | contrary, in the case of a healthcare facility that is located |
16 | | within the cities of Rockford, Pontiac, Bloomington, |
17 | | Galesburg, Monmouth, or Peoria, or located within 20 miles of |
18 | | the municipal boundaries of any of those cities: |
19 | | (1) if the property is owned by an entity that uses the |
20 | | property as a healthcare facility and in such a manner that |
21 | | the property is exempt from taxation under this Article 15, |
22 | | then that property is exempt from real estate taxes, and |
23 | | that exemption is not affected by any transaction in which |
24 | | the entity, directly or indirectly, on or after the |
25 | | effective date of this amendatory Act of the 97th General |
26 | | Assembly, leases, sells, or otherwise transfers the |
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1 | | property to another entity for which or for whom property |
2 | | is not exempt, with or without a right to repurchase that |
3 | | property, and immediately after the lease or transfer |
4 | | enters into a leaseback or other agreement that directly or |
5 | | indirectly gives the initial entity a right to use, |
6 | | control, and possess the property as a healthcare facility |
7 | | in a manner that would qualify the property for a |
8 | | non-homestead real estate tax exemption pursuant to this |
9 | | Article 15 by virtue of its use; or |
10 | | (2) if, on or after the effective date of this |
11 | | amendatory Act of the 97th General Assembly, an entity |
12 | | leases such new or existing healthcare facility property |
13 | | from another for purposes that would be exempt under this |
14 | | Article 15, that property is exempt from real estate taxes |
15 | | for the term of the lease, or any extension thereof, |
16 | | without regard to the nature or character of ownership and |
17 | | shall be treated for purposes of this Article 15 as if the |
18 | | lessee were the owner of the property, as long as the |
19 | | property on which the leased improvements are or will be |
20 | | located is used as a healthcare facility pursuant to that |
21 | | lease or any renewal thereof. |
22 | | For the purposes of this subsection (d), "healthcare |
23 | | facility" has the same meaning as provided in Section 10 of the |
24 | | Smoke Free Illinois Act. |
25 | | (e) Substantially all of the funds received from the |
26 | | conveyance of property subject to a leaseback agreement as |
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1 | | described in subsection (d) of this Section must be used for |
2 | | capital improvement projects and related capital expenditures |
3 | | and all funds raised shall be used within the State of |
4 | | Illinois. |
5 | | (f) To the extent allowable by law, all construction |
6 | | projects using the provisions of subsection (d) above shall be |
7 | | subject to the provisions of the Illinois Prevailing Wage Act |
8 | | for the initial construction of the improvements and all |
9 | | bidders for those projects shall comply with the provisions of |
10 | | Section 30-22 of the Illinois Procurement Code. |
11 | | (g) Project labor agreements for the construction projects |
12 | | referenced in subsection (f) above shall be required. |
13 | | (Source: P.A. 96-779, eff. 8-28-09.)
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14 | | Section 97. Savings clause. If any provision of this Act or |
15 | | its application to any person or circumstance is held invalid |
16 | | by any Court of competent jurisdiction or any federal or State |
17 | | government agency having jurisdiction over the subject matter |
18 | | of this Act, the invalidity of that provision or application |
19 | | does not affect any other provisions or applications of this |
20 | | Act that can be given effect without the invalid provision or |
21 | | application which are severable under Section 1.31 of the |
22 | | Statute on Statutes.
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