35 ILCS 200/15-100
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 200/ - Property Tax Code.|Title 4 - Exemptions

Sec. 15-100.     Public transportation systems.(a) All property belonging to any  municipal corporation created for the sole purpose of owning and operating a  transportation system for public service is exempt.(b) Property owned by  (i) a municipal corporation of 500,000 or more  inhabitants, used for public transportation purposes, and  operated by the Chicago Transit Authority;  (ii) the Regional Transportation Authority;  (iii) any  service board or division of the Regional Transportation Authority; (iv) the  Northeast Illinois Regional Commuter Railroad Corporation; or  (v) the Chicago Transit Authority  shall be exempt.  For purposes of this Section alone,  the Regional Transportation Authority, any service board or division of the  Regional Transportation Authority, the Northeast Illinois Regional Commuter  Railroad Corporation, the Chicago Transit Authority, or a  municipal corporation, as defined in item (i),  shall be deemed an "eligible transportation authority".  The  exemption provided in this subsection shall not be affected by any transaction  in which, for  the purpose of obtaining financing, the eligible transportation authority,  directly or  indirectly, leases or otherwise transfers such property to another whose  property is not exempt and immediately thereafter enters into a leaseback or  other agreement that directly or indirectly gives the eligible transportation  authority  a right to use, control, and possess the property.  In the case of a conveyance  of such property, the eligible transportation authority must retain an option  to  purchase the property at a future date or, within the limitations period for  reverters, the property must revert back to the eligible transportation  authority.(c) If such property has been conveyed as described in subsection (b), the  property will no longer be exempt pursuant to this Section as of the date when:(1) the right of the eligible transportation     authority to use, control, and possess the property has been terminated;(2) the eligible transportation authority no longer     has an option to purchase or otherwise acquire the property; and(3) there is no provision for a reverter of the     property to the eligible transportation authority within the limitations period for reverters.(d) Pursuant to Sections 15-15 and 15-20 of this Code, the eligible  transportation authority shall notify the chief county assessment officer of  any transaction under subsection (b) of this Section.  The chief county  assessment officer shall  determine initial and continuing compliance with the requirements of this  Section for tax exemption.  Failure to notify the chief county assessment  officer of a transaction under this Section or to otherwise comply with the  requirements of Sections  15-15 and 15-20 of this Code shall, in the discretion of the chief county  assessment officer, constitute cause to terminate the exemption,  notwithstanding any other provision of this Code.(e) No provision of this Section shall be construed to affect the obligation  of the eligible transportation authority to which an exemption certificate has  been issued  under this Section from its obligation under Section 15-10 of this Code to file  an annual certificate of status or to notify the chief county assessment  officer of transfers of interest or other changes in the status of the property  as required by this Code.(f) The changes made by this amendatory Act of 1997 are declarative of  existing law and shall not be construed as a new enactment.    (Source: P.A. 90-562, eff. 12-16-97.)