State of Illinois
92nd General Assembly
Legislation

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92_HB2059

 
                                               LRB9204412SMdv

 1        AN ACT concerning taxes, amending named Acts.

 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.  All property of the
 8    following is exempt when actually and  exclusively  used  for
 9    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-                LRB9204412SMdv
 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-                LRB9204412SMdv
 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. 90-207, eff. 1-1-98; 91-416, eff. 8-6-99.)

32        Section  90.  The State Mandates Act is amended by adding
33    Section 8.25 as follows:
 
                            -4-                LRB9204412SMdv
 1        (30 ILCS 805/8.25 new)
 2        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
 3    and  8 of this Act, no reimbursement by the State is required
 4    for  the  implementation  of  any  mandate  created  by  this
 5    amendatory Act of the 92nd General Assembly.

 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.

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