Sen. Toi W. Hutchinson

Filed: 5/9/2012





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2    AMENDMENT NO. ______. Amend House Bill 1645 by replacing
3everything after the enacting clause with the following:
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



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1    income from those activities to support the charitable,
2    religious or beneficent activities of the owner, whether or
3    not such activities occur on the property.
4        (c) Old people's homes, facilities for persons with a
5    developmental disability, and not-for-profit organizations
6    providing services or facilities related to the goals of
7    educational, social and physical development, if, upon
8    making application for the exemption, the applicant
9    provides affirmative evidence that the home or facility or
10    organization is an exempt organization under paragraph (3)
11    of Section 501(c) of the Internal Revenue Code or its
12    successor, and either: (i) the bylaws of the home or
13    facility or not-for-profit organization 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, or (ii) the home or facility is qualified, built
17    or financed under Section 202 of the National Housing Act
18    of 1959, as amended.
19        An applicant that has been granted an exemption under
20    this subsection on the basis that its bylaws provide for a
21    waiver or reduction, based on an individual's ability to
22    pay, of any entrance fee, assignment of assets, or fee for
23    services may be periodically reviewed by the Department to
24    determine if the waiver or reduction was a past policy or
25    is a current policy. The Department may revoke the
26    exemption if it finds that the policy for waiver or



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1    reduction is no longer current.
2        If a not-for-profit organization leases property that
3    is otherwise exempt under this subsection to an
4    organization that conducts an activity on the leased
5    premises that would entitle the lessee to an exemption from
6    real estate taxes if the lessee were the owner of the
7    property, then the leased property is exempt.
8        (d) Not-for-profit health maintenance organizations
9    certified by the Director of the Illinois Department of
10    Insurance under the Health Maintenance Organization Act,
11    including any health maintenance organization that
12    provides services to members at prepaid rates approved by
13    the Illinois Department of Insurance if the membership of
14    the organization is sufficiently large or of indefinite
15    classes so that the community is benefited by its
16    operation. No exemption shall apply to any hospital or
17    health maintenance organization which has been adjudicated
18    by a court of competent jurisdiction to have denied
19    admission to any person because of race, color, creed, sex
20    or national origin.
21        (e) All free public libraries.
22        (f) Historical societies.
23    Property otherwise qualifying for an exemption under this
24Section shall not lose its exemption because the legal title is
25held (i) by an entity that is organized solely to hold that
26title and that qualifies under paragraph (2) of Section 501(c)



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1of the Internal Revenue Code or its successor, whether or not
2that entity receives rent from the charitable organization for
3the repair and maintenance of the property, (ii) by an entity
4that is organized as a partnership or limited liability
5company, in which the charitable organization, or an affiliate
6or subsidiary of the charitable organization, is a general
7partner of the partnership or managing member of the limited
8liability company, for the purposes of owning and operating a
9residential rental property that has received an allocation of
10Low Income Housing Tax Credits for 100% of the dwelling units
11under Section 42 of the Internal Revenue Code of 1986, as
12amended, or (iii) for any assessment year including and
13subsequent to January 1, 1996 for which an application for
14exemption has been filed and a decision on which has not become
15final and nonappealable, by a limited liability company
16organized under the Limited Liability Company Act provided that
17(A) the limited liability company's sole member or members, as
18that term is used in Section 1-5 of the Limited Liability
19Company Act, are the institutions of public charity that
20actually and exclusively use the property for charitable and
21beneficent purposes; (B) the limited liability company is a
22disregarded entity for federal and Illinois income tax purposes
23and, as a result, the limited liability company is deemed
24exempt from income tax liability by virtue of the Internal
25Revenue Code Section 501(c)(3) status of its sole member or
26members; and (C) the limited liability company does not lease



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1the property or otherwise use it with a view to profit.
2(Source: P.A. 96-763, eff. 8-25-09.)".