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Sen. James F. Clayborne, Jr.
Filed: 3/9/2011
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| 1 | | AMENDMENT TO SENATE BILL 2171
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2171 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,
or property that as of December 31, 2010 is exempt |
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| 1 | | from real estate taxes and is owned by a tax-exempt entity, |
| 2 | | shall remain exempt from taxation and any leasehold interest in |
| 3 | | that property
shall not be
subject to taxation under Section |
| 4 | | 9-195 if
the
property is directly or indirectly leased, sold, |
| 5 | | or otherwise transferred to
another entity
whose property is |
| 6 | | not exempt and immediately thereafter is the subject of a
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| 7 | | leaseback or
other agreement that directly or indirectly gives |
| 8 | | the lessee municipality or unit of
local
government (i) a right |
| 9 | | to use, control, and possess the property either directly or |
| 10 | | through its exempt subsidiary or affiliate or (ii) a
right for |
| 11 | | the municipality or unit of local government to require
the |
| 12 | | other entity, or the other entity's designee or assignee, to |
| 13 | | use the
property in the
performance of services for the |
| 14 | | municipality or unit of local government. Property
shall no |
| 15 | | longer be exempt under this subsection as of the date when the |
| 16 | | right of
the
lessee municipality or unit of local government to |
| 17 | | use, control, and possess the
property or for the municipality |
| 18 | | or unit of local government to
require the performance of |
| 19 | | services is terminated and the lessee municipality or unit
of |
| 20 | | local
government no longer has any option to purchase or |
| 21 | | otherwise reacquire the
interest in
the property to the extent |
| 22 | | that such an option or right of reacquisition was part of the |
| 23 | | lease or a provision of the original sale which was transferred |
| 24 | | by the municipality or unit of local
government.
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| 25 | | (b) Notwithstanding anything in this Code to
the
contrary, |
| 26 | | all property owned by a municipality with a population of over
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| 1 | | 500,000
inhabitants, a unit of local government whose |
| 2 | | jurisdiction includes
territory located in
whole or in part |
| 3 | | within a municipality with a population of over 500,000
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| 4 | | inhabitants, or a municipality with home rule powers that is |
| 5 | | contiguous to a municipality with a population of over 500,000 |
| 6 | | inhabitants,
shall remain exempt from taxation and any |
| 7 | | leasehold interest in that property
is not
subject to taxation |
| 8 | | under Section 9-195 if the property, including dedicated public |
| 9 | | property, is used by a municipality or other unit of local |
| 10 | | government for the purpose of an airport or parking or for |
| 11 | | waste disposal or processing and is leased for continued use |
| 12 | | for the same purpose to another entity whose property is not |
| 13 | | exempt. |
| 14 | | For the purposes of this subsection (b), "airport" does not |
| 15 | | include any airport property, as defined under Section 10 of |
| 16 | | the O'Hare Modernization Act. |
| 17 | | Any transaction described under this subsection must be |
| 18 | | undertaken in accordance with all appropriate federal laws and |
| 19 | | regulations. |
| 20 | | (c) For purposes of this Section, "municipality" means a |
| 21 | | municipality as defined
in
Section 1-1-2 of the Illinois |
| 22 | | Municipal Code, and "unit of local government"
means a unit
of |
| 23 | | local government as defined in Article VII, Section 1 of the |
| 24 | | Constitution of
the State of
Illinois. The provisions of this |
| 25 | | Section supersede and control over any
conflicting
provisions |
| 26 | | of this Code.
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