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Rep. George Scully Jr.
Filed: 3/2/2006
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09400HB5000ham002 |
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LRB094 15260 DRJ 56938 a |
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| AMENDMENT TO HOUSE BILL 5000
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| AMENDMENT NO. ______. Amend House Bill 5000, AS AMENDED, by |
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| replacing the title with the following: |
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| "AN ACT concerning taxation."; and
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| by replacing everything after the enacting clause with the |
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| following: |
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| "Section 5. The Property Tax Code is amended by changing |
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| Section 15-65 as follows:
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| (35 ILCS 200/15-65)
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| Sec. 15-65. Charitable purposes. All property of the |
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| following is exempt
when actually and exclusively used for |
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| charitable or beneficent purposes, and
not leased or otherwise |
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| used with a view to profit:
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| (a) Institutions of public charity.
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| (b) Beneficent and charitable organizations |
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| incorporated in any state of
the United States, including |
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| organizations whose owner, and no other person,
uses the |
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| property exclusively for the distribution, sale, or resale |
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| of donated
goods and related activities and uses all the |
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| income from those activities to
support the charitable, |
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| religious or beneficent activities of the owner,
whether or |
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| not such activities occur on the property.
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| (c) Old people's homes, facilities for persons with a |
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LRB094 15260 DRJ 56938 a |
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| developmental
disability, and not-for-profit organizations |
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| providing services or facilities
related to the goals of |
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| educational, social and physical development, if, upon
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| making application for the exemption, the applicant |
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| provides affirmative
evidence that the home or facility or |
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| organization is an exempt organization
under paragraph (3) |
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| of Section 501(c) of the Internal Revenue Code or its
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| successor, and either: (i) the bylaws of the home or |
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| facility or not-for-profit
organization provide for a |
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| waiver or reduction, based on an individual's
ability to |
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| pay, of any entrance fee, assignment of assets, or fee for |
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| services,
or (ii) the home or facility is qualified, built |
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| or financed under Section 202
of the National Housing Act |
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| of 1959, as amended.
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| An applicant that has been granted an exemption under |
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| this subsection on
the basis that its bylaws provide for a |
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| waiver or reduction, based on an
individual's ability to |
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| pay, of any entrance fee, assignment of assets, or fee
for |
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| services may be periodically reviewed by the Department to |
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| determine if the
waiver or reduction was a past policy or |
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| is a current policy. The Department
may revoke the |
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| exemption if it finds that the policy for waiver or |
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| reduction is
no longer current.
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| If a not-for-profit organization leases property that |
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| is otherwise exempt
under this subsection to an |
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| organization that conducts an activity on the
leased |
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| premises that would entitle the lessee to an exemption from |
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| real estate
taxes if the lessee were the owner of the |
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| property, then the leased property
is exempt.
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| (d) Not-for-profit health maintenance organizations |
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| certified by the
Director of the Illinois Department of |
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| Insurance under the Health Maintenance
Organization Act, |
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| including any health maintenance organization that
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| provides services to members at prepaid rates approved by |
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09400HB5000ham002 |
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LRB094 15260 DRJ 56938 a |
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| the Illinois
Department of Insurance if the membership of |
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| the organization is sufficiently
large or of indefinite |
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| classes so that the community is benefited by its
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| operation. No exemption shall apply to any hospital or |
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| health maintenance
organization which has been adjudicated |
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| by a court of competent jurisdiction to
have denied |
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| admission to any person because of race, color, creed, sex |
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| or
national origin.
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| (e) All free public libraries.
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| (f) Historical societies.
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| Property used for hospital purposes may qualify for the |
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| exemption under this Section only if the hospital meets all of |
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| the following criteria: |
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| (1) The services provided by the hospital are for an |
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| indefinite number of persons for their general welfare or |
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| in some way reduce the burdens on government. |
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| (2) The organization owning the hospital has no |
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| capital, capital stock, or shareholders and does not profit |
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| from the operation of the hospital. |
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| (3) Funds for the operation of the hospital are derived |
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| mainly from private and public charity, and those funds are |
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| held in trust for the objects and purposes expressed in the |
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| charter of the organization owning the hospital. |
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| (4) Charity hospital care is dispensed to all who need |
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| and apply for it. |
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| (5) No obstacles are placed in the way of those seeking |
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| services from the hospital. |
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| (6) The primary use of the hospital property is for |
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| charitable purposes.
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| Property otherwise qualifying for an exemption under this |
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| Section shall not
lose its exemption because the legal title is |
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| held (i) by an entity that is
organized solely to hold that |
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| title and that qualifies under paragraph (2) of
Section 501(c) |
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| of the Internal Revenue Code or its successor, whether or not
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| that entity receives rent from the charitable organization for |
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| the repair and
maintenance of the property, (ii) by an entity |
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| that is organized as
a
partnership, in which the charitable |
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| organization, or an affiliate or
subsidiary of the charitable |
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| organization, is a general partner, for the
purposes of owning |
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| and operating a residential rental property that has
received |
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| an allocation of Low Income Housing Tax Credits for 100%
of the |
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| dwelling units under Section 42 of the Internal Revenue
Code of |
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| 1986, or (iii) for any assessment year including and subsequent |
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| to
January 1, 1996 for which an application for exemption has |
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| been filed and a
decision on which has not become final and |
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| nonappealable, by a limited
liability company organized under |
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| the Limited Liability Company Act provided
that (A) the limited |
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| liability company receives a notification from the
Internal |
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| Revenue Service that it qualifies under paragraph (2) or (3) of
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| Section 501(c) of the Internal Revenue Code; (B) the limited |
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| liability
company's sole
members, as that term is used in |
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| Section 1-5 of the Limited Liability Company
Act, are the |
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| institutions of public charity that actually and exclusively |
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| use
the property for charitable and beneficent purposes; and |
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| (C) the limited
liability company does not lease the property |
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| or otherwise use it with a view
to profit.
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| (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)
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| Section 99. Effective date. This Act takes effect January |
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| 1, 2007.".
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