HB1366 Summary

• Amends the Property Tax Code to exempt property leased between government entities (State, units of local government, or school districts) from taxation, including both the property and leasehold interest.

• Adds Section 15-57 to establish that when government-owned property is leased to another government entity, the property remains exempt and the leasehold interest is also exempt from taxation.

• Modifies Section 9-195 to reference the new Section 15-57 exemption and clarifies that leasehold taxation provisions do not apply to government-to-government property leases.

• Amends Section 15-35 regarding school property exemptions to include leasehold interests when schools lease property to the State, units of local government, or school districts for governmental purposes.

• Makes changes applicable to taxable years 2010 and thereafter, with no refund requirement for taxes paid in prior years, and exempts the mandate from State reimbursement requirements.