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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Sections 10-365, 10-370, 10-375, and 10-380 as follows: | ||||||
6 | (35 ILCS 200/10-365) | ||||||
7 | Sec. 10-365. U.S. Military Public/Private Residential | ||||||
8 | Developments. Unless otherwise agreed to pursuant to a separate | ||||||
9 | settlement agreement pursuant to Section 10-385 of this Code, | ||||||
10 | PPV Leases must be classified and valued as set forth in | ||||||
11 | Sections 10-370 through 10-380 during the period beginning | ||||||
12 | January 1, 2006 and ending December 31, 2055 January 1, 2017 .
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13 | (Source: P.A. 98-494, eff. 1-1-14; 99-738, eff. 8-5-16.) | ||||||
14 | (35 ILCS 200/10-370) | ||||||
15 | Sec. 10-370. Definitions. For the purposes of this Division | ||||||
16 | 14: | ||||||
17 | (a) "PPV Lease" means a leasehold interest in property that | ||||||
18 | is exempt from taxation under Section 15-50 of this Code and | ||||||
19 | that is leased, pursuant to authority set forth in Chapter 10 | ||||||
20 | of the United States Code, to another whose property is not | ||||||
21 | exempt for the purpose of, after January 1, 2006, the design, | ||||||
22 | finance, construction, renovation, management, operation, and |
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1 | maintenance of rental housing units and associated | ||||||
2 | improvements at military training facilities, military bases, | ||||||
3 | and related military support facilities in the State of | ||||||
4 | Illinois. All interests enjoyed pursuant to the authority set | ||||||
5 | forth in Chapter 159 or Chapter 169 of Title 10 of the United | ||||||
6 | States Code are considered leaseholds for the purposes of this | ||||||
7 | Division. The changes to this Section made by this amendatory | ||||||
8 | Act of the 97th General Assembly apply beginning on January 1, | ||||||
9 | 2006. | ||||||
10 | (b) For tax years prior to 2017, for For naval training | ||||||
11 | facilities, naval bases, and naval support facilities, "net | ||||||
12 | operating income" means all revenues received minus the lesser | ||||||
13 | of (i) 62% of all revenues or (ii) actual expenses before | ||||||
14 | interest, taxes, depreciation, and amortization. For all other | ||||||
15 | military training facilities, military bases, and related | ||||||
16 | military support facilities, "net operating income" means all | ||||||
17 | revenues received minus the lesser of (i) 42% of all revenues | ||||||
18 | or (ii) actual expenses before interest, taxes, depreciation, | ||||||
19 | and amortization. | ||||||
20 | (b-5) For tax year 2017 and thereafter, for naval training | ||||||
21 | facilities, naval bases, and naval support facilities, "net | ||||||
22 | operating income" means all revenues received minus the actual | ||||||
23 | expenses before interest, taxes, depreciation, and | ||||||
24 | amortization. | ||||||
25 | (c) "Tax load factor" means the level of assessment, as set | ||||||
26 | forth under item (b) of Section 9-145 or under Section 9-150, |
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1 | multiplied by the cumulative tax rate for the current taxable | ||||||
2 | year.
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3 | (Source: P.A. 97-942, eff. 8-10-12; 98-494, eff. 1-1-14.) | ||||||
4 | (35 ILCS 200/10-375) | ||||||
5 | Sec. 10-375. Valuation. | ||||||
6 | (a) A PPV Lease must be valued at its fair cash value, as | ||||||
7 | provided under item (b) of Section 9-145 or under Section | ||||||
8 | 9-150. | ||||||
9 | (b) The fair cash value of a PPV Lease must be determined | ||||||
10 | by using an income capitalization approach.
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11 | (c) To determine the fair cash value of a PPV Lease, the | ||||||
12 | net operating income is divided by (i) a rate of 12% 7.75% plus | ||||||
13 | (ii) the actual or most recently ascertainable tax load factor | ||||||
14 | for the subject year. | ||||||
15 | (d) By April 15 of each year, the holder of a PPV Lease | ||||||
16 | must report to the chief county assessment officer in each | ||||||
17 | county in which the leasehold property is located the annual | ||||||
18 | gross income and expenses derived and incurred from the PPV | ||||||
19 | Lease, including the rental of leased property for each | ||||||
20 | military housing facility subject to a PPV Lease.
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21 | (Source: P.A. 94-974, eff. 6-30-06.) | ||||||
22 | (35 ILCS 200/10-380) | ||||||
23 | Sec. 10-380. For the taxable years 2006 through 2055 2016 , | ||||||
24 | the chief county assessment officer in the county in which |
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1 | property subject to a PPV Lease is located shall apply the | ||||||
2 | provisions of Sections 10-370(b)(i) and 10-375(c)(i) of this | ||||||
3 | Division 14 in assessing and determining the value of any PPV | ||||||
4 | Lease for purposes of the property tax laws of this State. | ||||||
5 | (Source: P.A. 98-463, eff. 8-16-13; 98-494, eff. 1-1-14; | ||||||
6 | 99-738, eff. 8-5-16.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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