Illinois General Assembly

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Full Text of SB2510  97th General Assembly



State of Illinois
2011 and 2012


Introduced 10/25/2011, by Sen. Kirk W. Dillard


35 ILCS 200/15-65

    Amends the Property Tax Code. Makes a technical change in a Section concerning exemptions for property used for charitable purposes.

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SB2510LRB097 14260 HLH 59007 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Section 15-65 as follows:
6    (35 ILCS 200/15-65)
7    Sec. 15-65. Charitable purposes. All property of the the
8following is exempt when actually and exclusively used for
9charitable or beneficent purposes, and not leased or otherwise
10used 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 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.
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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1    making application for the exemption, the applicant
2    provides affirmative evidence that the home or facility or
3    organization is an exempt organization under paragraph (3)
4    of Section 501(c) of the Internal Revenue Code or its
5    successor, and either: (i) the bylaws of the home or
6    facility or not-for-profit organization provide for a
7    waiver or reduction, based on an individual's ability to
8    pay, of any entrance fee, assignment of assets, or fee for
9    services, or (ii) the home or facility is qualified, built
10    or financed under Section 202 of the National Housing Act
11    of 1959, as amended.
12        An applicant that has been granted an exemption under
13    this subsection on the basis that its bylaws provide for a
14    waiver or reduction, based on an individual's ability to
15    pay, of any entrance fee, assignment of assets, or fee for
16    services may be periodically reviewed by the Department to
17    determine if the waiver or reduction was a past policy or
18    is a current policy. The Department may revoke the
19    exemption if it finds that the policy for waiver or
20    reduction is no longer current.
21        If a not-for-profit organization leases property that
22    is otherwise exempt under this subsection to an
23    organization that conducts an activity on the leased
24    premises that would entitle the lessee to an exemption from
25    real estate taxes if the lessee were the owner of the
26    property, then the leased property is exempt.



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1        (d) Not-for-profit health maintenance organizations
2    certified by the Director of the Illinois Department of
3    Insurance under the Health Maintenance Organization Act,
4    including any health maintenance organization that
5    provides services to members at prepaid rates approved by
6    the Illinois Department of Insurance if the membership of
7    the organization is sufficiently large or of indefinite
8    classes so that the community is benefited by its
9    operation. No exemption shall apply to any hospital or
10    health maintenance organization which has been adjudicated
11    by a court of competent jurisdiction to have denied
12    admission to any person because of race, color, creed, sex
13    or national origin.
14        (e) All free public libraries.
15        (f) Historical societies.
16    Property otherwise qualifying for an exemption under this
17Section shall not lose its exemption because the legal title is
18held (i) by an entity that is organized solely to hold that
19title and that qualifies under paragraph (2) of Section 501(c)
20of the Internal Revenue Code or its successor, whether or not
21that entity receives rent from the charitable organization for
22the repair and maintenance of the property, (ii) by an entity
23that is organized as a partnership or limited liability
24company, in which the charitable organization, or an affiliate
25or subsidiary of the charitable organization, is a general
26partner of the partnership or managing member of the limited



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1liability company, for the purposes of owning and operating a
2residential rental property that has received an allocation of
3Low Income Housing Tax Credits for 100% of the dwelling units
4under Section 42 of the Internal Revenue Code of 1986, as
5amended, or (iii) for any assessment year including and
6subsequent to January 1, 1996 for which an application for
7exemption has been filed and a decision on which has not become
8final and nonappealable, by a limited liability company
9organized under the Limited Liability Company Act provided that
10(A) the limited liability company's sole member or members, as
11that term is used in Section 1-5 of the Limited Liability
12Company Act, are the institutions of public charity that
13actually and exclusively use the property for charitable and
14beneficent purposes; (B) the limited liability company is a
15disregarded entity for federal and Illinois income tax purposes
16and, as a result, the limited liability company is deemed
17exempt from income tax liability by virtue of the Internal
18Revenue Code Section 501(c)(3) status of its sole member or
19members; and (C) the limited liability company does not lease
20the property or otherwise use it with a view to profit.
21(Source: P.A. 96-763, eff. 8-25-09.)