093_HB3485

 
                                     LRB093 11178 SJM 12166 b

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Property Tax Code is amended by changing
 5    Section 15-65 as follows:

 6        (35 ILCS 200/15-65)
 7        Sec. 15-65.  Charitable purposes exemption.  All property
 8    of the following is exempt when actually and exclusively used
 9    for charitable or beneficent  purposes,  and  not  leased  or
10    otherwise used with a view to profit:
11             (a)  Institutions of public charity.
12             (b)  Beneficent    and    charitable   organizations
13        incorporated in any state of the United States, including
14        organizations whose owner, and no other person, uses  the
15        property  exclusively  for  the  distribution,  sale,  or
16        resale  of  donated goods and related activities and uses
17        all the income  from  those  activities  to  support  the
18        charitable,  religious  or  beneficent  activities of the
19        owner, whether  or  not  such  activities  occur  on  the
20        property.
21             (c)  Old people's homes, facilities for persons with
22        a    developmental    disability,    and   not-for-profit
23        organizations providing services or facilities related to
24        the   goals   of   educational,   social   and   physical
25        development,  if,  upon  making   application   for   the
26        exemption,  the  applicant  provides affirmative evidence
27        that the home or facility or organization  is  an  exempt
28        organization under paragraph (3) of Section 501(c) of the
29        Internal  Revenue  Code or its successor, and either: (i)
30        the bylaws of the  home  or  facility  or  not-for-profit
31        organization  provide for a waiver or reduction, based on
 
                            -2-      LRB093 11178 SJM 12166 b
 1        an individual's ability to  pay,  of  any  entrance  fee,
 2        assignment  of  assets,  or fee for services, or (ii) the
 3        home or facility is qualified, built  or  financed  under
 4        Section  202  of  the  National  Housing  Act of 1959, as
 5        amended.
 6             An applicant that  has  been  granted  an  exemption
 7        under  this  subsection  on  the  basis  that  its bylaws
 8        provide  for  a  waiver  or  reduction,   based   on   an
 9        individual's   ability  to  pay,  of  any  entrance  fee,
10        assignment  of  assets,  or  fee  for  services  may   be
11        periodically  reviewed  by the Department to determine if
12        the waiver or reduction was a past policy or is a current
13        policy.  The Department may revoke the  exemption  if  it
14        finds  that  the  policy  for  waiver  or reduction is no
15        longer current.
16             If a  not-for-profit  organization  leases  property
17        that  is  otherwise  exempt  under  this subsection to an
18        organization that conducts  an  activity  on  the  leased
19        premises  that  would  entitle the lessee to an exemption
20        from real estate taxes if the lessee were  the  owner  of
21        the property, then the leased property is exempt.
22             (d)  Not-for-profit health maintenance organizations
23        certified  by  the Director of the Illinois Department of
24        Insurance under the Health Maintenance Organization  Act,
25        including   any   health  maintenance  organization  that
26        provides services to members at prepaid rates approved by
27        the Illinois Department of Insurance if the membership of
28        the organization is sufficiently large or  of  indefinite
29        classes  so  that  the  community  is  benefited  by  its
30        operation.   No  exemption shall apply to any hospital or
31        health   maintenance   organization   which   has    been
32        adjudicated  by a court of competent jurisdiction to have
33        denied admission to any person because  of  race,  color,
34        creed, sex or national origin.
 
                            -3-      LRB093 11178 SJM 12166 b
 1             (e)  All free public libraries.
 2             (f)  Historical societies.
 3        Property otherwise qualifying for an exemption under this
 4    Section  shall not lose its exemption because the legal title
 5    is held (i) by an entity that is  organized  solely  to  hold
 6    that  title and that qualifies under paragraph (2) of Section
 7    501(c) of the Internal Revenue Code or its successor, whether
 8    or  not  that  entity  receives  rent  from  the   charitable
 9    organization  for the repair and maintenance of the property,
10    (ii) by an entity that is  organized  as  a  partnership,  in
11    which   the  charitable  organization,  or  an  affiliate  or
12    subsidiary of  the  charitable  organization,  is  a  general
13    partner,   for   the  purposes  of  owning  and  operating  a
14    residential rental property that has received  an  allocation
15    of  Low  Income  Housing Tax Credits for 100% of the dwelling
16    units under Section 42 of the Internal Revenue Code of  1986,
17    or  (iii) for any assessment year including and subsequent to
18    January 1, 1996 for which an application  for  exemption  has
19    been  filed  and a decision on which has not become final and
20    nonappealable, by a limited liability company organized under
21    the Limited Liability  Company  Act  provided  that  (A)  the
22    limited  liability  company  receives a notification from the
23    Internal Revenue Service that it  qualifies  under  paragraph
24    (2)  or  (3)  of Section 501(c) of the Internal Revenue Code;
25    (B) the limited liability company's  sole  members,  as  that
26    term  is used in Section 1-5 of the Limited Liability Company
27    Act, are the institutions of public charity that actually and
28    exclusively use the property for  charitable  and  beneficent
29    purposes;  and  (C)  the  limited  liability company does not
30    lease the property or otherwise use it with a view to profit.
31    (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)