35 ILCS 200/15-185
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 200/ - Property Tax Code.|Title 4 - Exemptions

(35 ILCS 200/15-185)Sec. 15-185. Exemption for leaseback property and qualified leased property.(a) Notwithstanding anything in this Code to  the  contrary, all property owned by a municipality with a population of over  500,000  inhabitants, a unit of local government whose jurisdiction includes  territory located in  whole or in part within a municipality with a population of over 500,000  inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants,  shall remain exempt from taxation and any leasehold interest in that property  shall not be  subject to taxation under Section 9-195 if    the  property is directly or indirectly leased, sold, or otherwise transferred to  another entity  whose property is not exempt and immediately thereafter is the subject of a  leaseback or  other agreement that directly or indirectly gives the municipality or unit of  local  government (i) a right to use, control, and possess the property or (ii) a  right to require  the other entity, or the other entity's designee or assignee, to use the  property in the  performance of services for the municipality or unit of local government. Property    shall no longer be exempt under this subsection as of the date when the right of  the  municipality or unit of local government to use, control, and possess the  property or to  require the performance of services is terminated and the municipality or unit  of local  government no longer has any option to purchase or otherwise reacquire the  interest in  the property which was transferred by the municipality or unit of local  government.(b) Notwithstanding anything in this Code to  the  contrary, all property owned by a municipality with a population of over  500,000  inhabitants, a unit of local government whose jurisdiction includes  territory located in  whole or in part within a municipality with a population of over 500,000  inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants,  shall remain exempt from taxation and any leasehold interest in that property  is not  subject to taxation under Section 9-195 if the property, including dedicated public property, is used by a municipality or other unit of local government for the purpose of parking and is leased for continued use for the same purpose to another entity whose property is not exempt. If property located in a municipality with a population of more than 500,000 inhabitants is not subject to taxation due to its use for the purpose of parking, and any portion of the property is used for a purpose other than parking, that portion of the property shall be subject to taxation under Section 9-195 for the period of time during which it is used for that non-exempt purpose; provided, however, that the use of a portion of such property for a non-exempt purpose shall have no effect on (i) the exemption of the remaining portion of the property that continues to be used for an exempt purpose, as identified in this subsection, or (ii) the future exemption of that same portion of the property if it ceases to be used for a non-exempt purpose and returned to use for an exempt purpose as identified in this subsection. No taxes shall be assessed on any portion of the property identified in this subsection prior to the effective date of this amendatory Act of the 101st General Assembly.Any transaction described under this subsection must be undertaken in accordance with all appropriate federal laws and regulations.(c) For purposes of this Section, "municipality" means a municipality as defined  in  Section 1-1-2 of the Illinois Municipal Code, and "unit of local government"  means a unit  of local government as defined in Article VII, Section 1 of the Constitution of  the State of  Illinois. The provisions of this Section supersede and control over any  conflicting  provisions of this Code.  (Source: P.A. 101-551, eff. 1-1-20.)