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