Statutes > Illinois Statutes > CHAPTER 35 REVENUE > 35 ILCS 200/ Property Tax Code. > Article 15 - Exemptions

Article 15 - Exemptions


      (35 ILCS 200/Art. 15 heading)
Article 15. Exemptions

    (35 ILCS 200/15‑5)
    Sec. 15‑5. Creation of exemptions. Any person wishing to claim an exemption for the first time, other than a homestead exemption under Sections 15‑165 through 15‑180, shall file an application with the county board of review or board of appeals, following the procedures of Section 16‑70 or 16‑130. In addition, in counties with a population of 3,000,000 or more, the board of review shall transmit to the county assessor's office, within 14 days of receipt, a copy of any application that requests exempt status under Section 15‑40.
(Source: P.A. 92‑333, eff. 8‑10‑01.)

    (35 ILCS 200/15‑10)
    Sec. 15‑10. Exempt property; procedures for certification. All property granted an exemption by the Department pursuant to the requirements of Section 15‑5 and described in the Sections following Section 15‑30 and preceding Section 16‑5, to the extent therein limited, is exempt from taxation. In order to maintain that exempt status, the titleholder or the owner of the beneficial interest of any property that is exempt must file with the chief county assessment officer, on or before January 31 of each year (May 31 in the case of property exempted by Section 15‑170), an affidavit stating whether there has been any change in the ownership or use of the property or the status of the owner‑resident, or that a disabled veteran who qualifies under Section 15‑165 owned and used the property as of January 1 of that year. The nature of any change shall be stated in the affidavit. Failure to file an affidavit shall, in the discretion of the assessment officer, constitute cause to terminate the exemption of that property, notwithstanding any other provision of this Code. Owners of 5 or more such exempt parcels within a county may file a single annual affidavit in lieu of an affidavit for each parcel. The assessment officer, upon request, shall furnish an affidavit form to the owners, in which the owner may state whether there has been any change in the ownership or use of the property or status of the owner or resident as of January 1 of that year. The owner of 5 or more exempt parcels shall list all the properties giving the same information for each parcel as required of owners who file individual affidavits.
    However, titleholders or owners of the beneficial interest in any property exempted under any of the following provisions are not required to submit an annual filing under this Section:
        (1) Section 15‑45 (burial grounds) in counties of
     less than 3,000,000 inhabitants and owned by a not‑for‑profit organization.
        (2) Section 15‑40.
        (3) Section 15‑50 (United States property).
    If there is a change in use or ownership, however, notice must be filed pursuant to Section 15‑20.
    An application for homestead exemptions shall be filed as provided in Section 15‑170 (senior citizens homestead exemption), Section 15‑172 (senior citizens assessment freeze homestead exemption), and Sections 15‑175 (general homestead exemption), 15‑176 (general alternative homestead exemption), and 15‑177 (long‑time occupant homestead exemption), respectively.
(Source: P.A. 95‑644, eff. 10‑12‑07.)

    (35 ILCS 200/15‑15)
    Sec. 15‑15. Obligation to file copies of leases or agreements. If any property listed as exempt by the chief county assessment officer is leased, loaned or otherwise made available for profit, the titleholder or the owner of the beneficial interest shall file with the assessment officer a copy of all such leases or agreements and a complete description of the premises, so the chief county assessment officer can ascertain the exact size and location of the premises in order to create a tax parcel. Failure to file such leases, agreements or descriptions shall, in the discretion of the chief county assessment officer, constitute cause to terminate the exemption, notwithstanding any other provision of this Code.
(Source: P.A. 87‑895; 87‑1189; 88‑455.)

    (35 ILCS 200/15‑20)
    Sec. 15‑20. Notification requirements after change in use or ownership. If any property listed as exempt by the chief county assessment officer has a change in use, a change in leasehold estate, or a change in titleholder of record by purchase, grant, taking or transfer, it is the obligation of the transferee to notify the chief county assessment officer in writing within 30 days of the change. The notice shall be sent by certified mail, return receipt requested, and shall include the name and address of the taxpayer, the legal description of the property, the address of the property, and the permanent index number of the property where such number exists. If the failure to give such notification results in the assessment officer listing the property as exempt in subsequent years, the property shall be considered omitted property for purposes of this Code.
(Source: P.A. 87‑895; 87‑1189; 88‑455; incorporates 88‑221; 88‑670, eff. 12‑2‑94.)

    (35 ILCS 200/15‑25)
    Sec. 15‑25. Removal of exemptions. If the Department determines that any property has been unlawfully exempted from taxation, or is no longer entitled to exemption, the Department shall, before January 1 of any year, direct the chief county assessment officer to assess the property and return it to the assessment rolls for the next assessment year. The Department shall give notice of its decision to the owner of the property by certified mail. The decision shall be subject to review and hearing under Section 8‑35, upon application by the owner filed within 60 days after the notice of decision is mailed. However, the extension of taxes on the assessment shall not be delayed by any proceedings under this Section. If the property is determined to be exempt, any taxes extended upon the assessment shall be abated or, if already paid, be refunded.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (35 ILCS 200/15‑30)
    Sec. 15‑30. Payment to taxing districts for services. Any taxing district may enter into a mutually acceptable agreement with the owner of any exempt property whereby the owner agrees to make payments to the taxing district for the direct and indirect cost of services provided by the district. However, an agreement is not required to establish tax exempt status for the property, nor shall a taxing district use the absence of an agreement to defer or delay zoning changes, site exceptions from zoning, or other administrative measures to coerce an owner of property exempt from taxation to enter into an agreement to make voluntary payments in lieu of property taxes for the direct or indirect costs of services provided by the taxing district. However, any such zoning change, site exception from zoning, or other variance or special use granted by a municipality shall be reversed and returned to its prior status if the property is acquired by a taxable entity or used for a taxable purpose within 10 years after the change in zoning, site exception from zoning, or other variance or special use is granted. No agreement may be of more than 5 years duration, survive a change of use, or require payments in excess of taxes reasonably calculated to be due if such an agreement were not in effect and the property were not granted an exemption. An agreement may be renewed for periods of no more than 5 years.
(Source: P.A. 87‑895; 87‑1189; 88‑455; incorporates 88‑234; 88‑670, eff. 12‑2‑94.)

    (35 ILCS 200/15‑35)
    Sec. 15‑35. Schools. All property donated by the United States for school purposes, and all property of schools, not sold or leased or otherwise used with a view to profit, is exempt, whether owned by a resident or non‑resident of this State or by a corporation incorporated in any state of the United States. Also exempt is:
        (a) property of schools which is leased to a
     municipality to be used for municipal purposes on a not‑for‑profit basis;
        (b) property of schools on which the schools are
     located and any other property of schools used by the schools exclusively for school purposes, including, but not limited to, student residence halls, dormitories and other housing facilities for students and their spouses and children, staff housing facilities, and school‑owned and operated dormitory or residence halls occupied in whole or in part by students who belong to fraternities, sororities, or other campus organizations;
        (c) property donated, granted, received or used for
     public school, college, theological seminary, university, or other educational purposes, whether held in trust or absolutely;
        (d) in counties with more than 200,000 inhabitants
     which classify property, property (including interests in land and other facilities) on or adjacent to (even if separated by a public street, alley, sidewalk, parkway or other public way) the grounds of a school, if that property is used by an academic, research or professional society, institute, association or organization which serves the advancement of learning in a field or fields of study taught by the school and which property is not used with a view to profit;
        (e) property owned by a school district. The
     exemption under this subsection is not affected by any transaction in which, for the purpose of obtaining financing, the school district, directly or indirectly, leases or otherwise transfers the property to another for which or whom property is not exempt and immediately after the lease or transfer enters into a leaseback or other agreement that directly or indirectly gives the school district a right to use, control, and possess the property. In the case of a conveyance of the property, the school district 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 school district.
            (1) If the property has been conveyed as
         described in this subsection, the property is no longer exempt under this Section as of the date when:
                (A) the right of the school district to use,
             control, and possess the property is terminated;
                (B) the school district no longer has an
             option to purchase or otherwise acquire the property; and
                (C) there is no provision for a reverter of
             the property to the school district within the limitations period for reverters.
            (2) Pursuant to Sections 15‑15 and 15‑20 of this
         Code, the school district shall notify the chief county assessment officer of any transaction under this subsection. The chief county assessment officer shall determine initial and continuing compliance with the requirements of this subsection for tax exemption. Failure to notify the chief county assessment officer of a transaction under this subsection 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.
            (3) No provision of this subsection shall be
         construed to affect the obligation of the school district 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.
            (4) The changes made by this amendatory Act of
         the 91st General Assembly are declarative of existing law and shall not be construed as a new enactment; and
        (f) in counties with more than 200,000 inhabitants
     which classify property, property of a corporation, which is an exempt entity under paragraph (3) of Section 501(c) of the Internal Revenue Code or its successor law, used by the corporation for the following purposes: (1) conducting continuing education for professional development of personnel in energy‑related industries; (2) maintaining a library of energy technology information available to students and the public free of charge; and (3) conducting research in energy and environment, which research results could be ultimately accessible to persons involved in education.
(Source: P.A. 91‑513, eff. 8‑13‑99; 91‑578, eff. 8‑14‑99; 92‑16, eff. 6‑28‑01.)

    (35 ILCS 200/15‑40)
    Sec. 15‑40. Religious purposes, orphanages, or school and religious purposes.
    (a) Property used exclusively for:
        (1) religious purposes, or
        (2) school and religious purposes, or
        (3) orphanages
qualifies for exemption as long as it is not used with a view to profit.
    (b) Property that is owned by
        (1) churches or
        (2) religious institutions or
        (3) religious denominations
and that is used in conjunction therewith as housing facilities provided for ministers (including bishops, district superintendents and similar church officials whose ministerial duties are not limited to a single congregation), their spouses, children and domestic workers, performing the duties of their vocation as ministers at such churches or religious institutions or for such religious denominations, including the convents and monasteries where persons engaged in religious activities reside also qualifies for exemption.
    A parsonage, convent or monastery or other housing facility shall be considered under this Section to be exclusively used for religious purposes when the persons who perform religious related activities shall, as a condition of their employment or association, reside in the facility.
    (c) In Cook County, whenever any interest in a property exempt under this Section is transferred, notice of that transfer must be filed with the county recorder. The chief county assessment officer shall prepare and make available a form notice for this purpose. Whenever a notice is filed, the county recorder shall transmit a copy of that recorded notice to the chief county assessment officer within 14 days after receipt.
(Source: P.A. 92‑333, eff. 8‑10‑01.)

    (35 ILCS 200/15‑45)
    Sec. 15‑45. Cemetery purposes. All property used exclusively for cemetery purposes is exempt. Property used exclusively for cemetery purposes includes cemetery grounds and improvements such as offices, maintenance buildings, mausoleums, and other structures in which human or cremated remains are buried, interred, entombed, or inurned and real property that is used exclusively in the establishment, operation, administration, preservation, security, repair, or maintenance of the cemetery.
(Source: P.A. 92‑733, eff. 7‑25‑02.)

    (35 ILCS 200/15‑50)
    Sec. 15‑50. United States property. All property of the United States is exempt, except such property as the United States has permitted or may permit to be taxed.
(Source: Laws 1959, p. 1549, 1554, 2219, and 2224; P.A. 88‑455.)

    (35 ILCS 200/15‑55)
    Sec. 15‑55. State property.
    (a) All property belonging to the State of Illinois is exempt. However, the State agency holding title shall file the certificate of ownership and use required by Section 15‑10, together with a copy of any written lease or agreement, in effect on March 30 of the assessment year, concerning parcels of 1 acre or more, or an explanation of the terms of any oral agreement under which the property is leased, subleased or rented.
    The leased property shall be assessed to the lessee and the taxes thereon extended and billed to the lessee, and collected in the same manner as for property which is not exempt. The lessee shall be liable for the taxes and no lien shall attach to the property of the State.
    For the purposes of this Section, the word "leases" includes licenses, franchises, operating agreements and other arrangements under which private individuals, associations or corporations are granted the right to use property of the Illinois State Toll Highway Authority and includes all property of the Authority used by others without regard to the size of the leased parcel.
    (b) However, all property of every kind belonging to the State of Illinois, which is or may hereafter be leased to the Illinois Prairie Path Corporation, shall be exempt from all assessments, taxation or collection, despite the making of any such lease, if it is used for:
        (1) conservation, nature trail or any other
     charitable, scientific, educational or recreational purposes with public benefit, including the preserving and aiding in the preservation of natural areas, objects, flora, fauna or biotic communities;
        (2) the establishment of footpaths, trails and other
     protected areas;
        (3) the conservation of the proper use of natural
     resources or the promotion of the study of plant and animal communities and of other phases of ecology, natural history and conservation;
        (4) the promotion of education in the fields of
     nature, preservation and conservation; or
        (5) similar public recreational activities conducted
     by the Illinois Prairie Path Corporation.
    No lien shall attach to the property of the State. No tax liability shall become the obligation of or be enforceable against Illinois Prairie Path Corporation.
    (c) If the State sells the James R. Thompson Center or the Elgin Mental Health Center and surrounding land located at 750 S. State Street, Elgin, Illinois, as provided in subdivision (a)(2) of Section 7.4 of the State Property Control Act, to another entity whose property is not exempt and immediately thereafter enters into a leaseback or other agreement that directly or indirectly gives the State a right to use, control, and possess the property, that portion of the property leased and occupied exclusively by the State shall remain exempt under this Section. For the property to remain exempt under this subsection (c), the State 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 State.
    If the property has been conveyed as described in this subsection (c), the property is no longer exempt pursuant to this Section as of the date when:
        (1) the right of the State to use, control, and
     possess the property has been terminated; or
        (2) the State no longer has an option to purchase or
     otherwise acquire the property and there is no provision for a reverter of the property to the State within the limitations period for reverters.
    Pursuant to Sections 15‑15 and 15‑20 of this Code, the State shall notify the chief county assessment officer of any transaction under this subsection (c). 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 subsection (c) 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.
    (c‑1) If the Illinois State Toll Highway Authority sells the Illinois State Toll Highway Authority headquarters building and surrounding land, located at 2700 Ogden Avenue, Downers Grove, Illinois as provided in subdivision (a)(2) of Section 7.5 of the State Property Control Act, to another entity whose property is not exempt and immediately thereafter enters into a leaseback or other agreement that directly or indirectly gives the State or the Illinois State Toll Highway Authority a right to use, control, and possess the property, that portion of the property leased and occupied exclusively by the State or the Authority shall remain exempt under this Section. For the property to remain exempt under this subsection (c), the 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 Authority.
    If the property has been conveyed as described in this subsection (c), the property is no longer exempt pursuant to this Section as of the date when:
        (1) the right of the State or the Authority to use,
     control, and possess the property has been terminated; or
        (2) the Authority no longer has an option to
     purchase or otherwise acquire the property and there is no provision for a reverter of the property to the Authority within the limitations period for reverters.
    Pursuant to Sections 15‑15 and 15‑20 of this Code, the Authority shall notify the chief county assessment officer of any transaction under this subsection (c). 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 subsection (c) 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.
    (d) The fair market rent of each parcel of real property in Will County owned by the State of Illinois for the purpose of developing an airport by the Department of Transportation shall include the assessed value of leasehold tax. The lessee of each parcel of real property in Will County owned by the State of Illinois for the purpose of developing an airport by the Department of Transportation shall not be liable for the taxes thereon. In order for the State to compensate taxing districts for the leasehold tax under this paragraph the Will County Supervisor of Assessments shall certify, in writing, to the Department of Transportation, the amount of leasehold taxes extended for the 2002 property tax year for each such exempt parcel. The Department of Transportation shall pay to the Will County Treasurer, from the Tax Recovery Fund, on or before July 1 of each year, the amount of leasehold taxes for each such exempt parcel as certified by the Will County Supervisor of Assessments. The tax compensation shall terminate on December 31, 2020. It is the duty of the Department of Transportation to file with the Office of the Will County Supervisor of Assessments an affidavit stating the termination date for rental of each such parcel due to airport construction. The affidavit shall include the property identification number for each such parcel. In no instance shall tax compensation for property owned by the State be deemed delinquent or bear interest. In no instance shall a lien attach to the property of the State. In no instance shall the State be required to pay leasehold tax compensation in excess of the Tax Recovery Fund's balance.
    (e) Public Act 81‑1026 applies to all leases or agreements entered into or renewed on or after September 24, 1979.
    (f) Notwithstanding anything to the contrary in this Code, all property owned by the State that is the Illiana Expressway, as defined in the Public Private Agreements for the Illiana Expressway Act, and that is used for transportation purposes and that is leased for those purposes to another entity whose property is not exempt shall remain exempt, and any leasehold interest in the property shall not be subject to taxation under Section 9‑195 of this Act.
(Source: P.A. 95‑331, eff. 8‑21‑07; 96‑192, eff. 8‑10‑09; 96‑913, eff. 6‑9‑10.)

    (35 ILCS 200/15‑60)
    Sec. 15‑60. Taxing district property. All property belonging to any county or municipality used exclusively for the maintenance of the poor is exempt, as is all property owned by a taxing district that is being held for future expansion or development, except if leased by the taxing district to lessees for use for other than public purposes.
    Also exempt are:
        (a) all swamp or overflowed lands belonging to any
     county;
        (b) all public buildings belonging to any county,
     township, or municipality, with the ground on which the buildings are erected;
        (c) all property owned by any municipality located
     within its incorporated limits. Any such property leased by a municipality shall remain exempt, and the leasehold interest of the lessee shall be assessed under Section 9‑195 of this Act, (i) for a lease entered into on or after January 1, 1994, unless the lease expressly provides that this exemption shall not apply; (ii) for a lease entered into on or after the effective date of Public Act 87‑1280 and before January 1, 1994, unless the lease expressly provides that this exemption shall not apply or unless evidence other than the lease itself substantiates the intent of the parties to the lease that this exemption shall not apply; and (iii) for a lease entered into before the effective date of Public Act 87‑1280, if the terms of the lease do not bind the lessee to pay the taxes on the leased property or if, notwithstanding the terms of the lease, the municipality has filed or hereafter files a timely exemption petition or complaint with respect to property consisting of or including the leased property for an assessment year which includes part or all of the first 12 months of the lease period. The foregoing clause (iii) added by Public Act 87‑1280 shall not operate to exempt property for any assessment year as to which no timely exemption petition or complaint has been filed by the municipality or as to which an administrative or court decision denying exemption has become final and nonappealable. For each assessment year or portion thereof that property is made exempt by operation of the foregoing clause (iii), whether such year or portion is before or after the effective date of Public Act 87‑1280, the leasehold interest of the lessee shall, if necessary, be considered omitted property for purposes of this Act;
        (c‑5) Notwithstanding clause (i) of subsection (c),
     all property owned by a municipality with a population of over 500,000 that is used for toll road or toll bridge purposes and that is leased for those purposes to another entity whose property is not exempt shall remain exempt, and any leasehold interest in the property shall not be subject to taxation under Section 9‑195 of this Act;
        (d) all property owned by any municipality located
     outside its incorporated limits but within the same county when used as a tuberculosis sanitarium, farm colony in connection with a house of correction, or nursery, garden, or farm, or for the growing of shrubs, trees, flowers, vegetables, and plants for use in beautifying, maintaining, and operating playgrounds, parks, parkways, public grounds, buildings, and institutions owned or controlled by the municipality; and
        (e) all property owned by a township and operated as
     senior citizen housing under Sections 35‑50 through 35‑50.6 of the Township Code.
    All property owned by any municipality outside of its corporate limits is exempt if used exclusively for municipal or public purposes.
    For purposes of this Section, "municipality" means a municipality, as defined in Section 1‑1‑2 of the Illinois Municipal Code.
(Source: P.A. 92‑844, eff. 8‑23‑02; 92‑846, eff. 8‑23‑02.)

    (35 ILCS 200/15‑65)
    Sec. 15‑65. Charitable purposes. All property of the following is exempt when actually and exclusively used for charitable or beneficent purposes, and not leased or otherwise used with a view to profit:
        (a) Institutions of public charity.
        (b) Beneficent and charitable organizations
     incorporated in any state of the United States, including or