Revenue & Finance Committee

Filed: 5/19/2009

 

 


 

 


 
09600SB2252ham001 LRB096 10038 HLH 27066 a

1
AMENDMENT TO SENATE BILL 2252

2     AMENDMENT NO. ______. Amend Senate Bill 2252 by replacing
3 everything after the enacting clause with the following:
 
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 otherwise
10 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 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
24 Section shall not lose its exemption because the legal title is
25 held (i) by an entity that is organized solely to hold that
26 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
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 or limited liability
5 company, in which the charitable organization, or an affiliate
6 or subsidiary of the charitable organization, is a general
7 partner of the partnership or managing member of the limited
8 liability company, for the purposes of owning and operating a
9 residential rental property that has received an allocation of
10 Low Income Housing Tax Credits for 100% of the dwelling units
11 under Section 42 of the Internal Revenue Code of 1986, as
12 amended, or (iii) for any assessment year including and
13 subsequent to January 1, 1996 for which an application for
14 exemption has been filed and a decision on which has not become
15 final and nonappealable, by a limited liability company
16 organized under the Limited Liability Company Act provided that
17 (A) the limited liability company receives a notification from
18 the Internal Revenue Service that it qualifies under paragraph
19 (2) or (3) of Section 501(c) of the Internal Revenue Code; (B)
20 the limited liability company's sole members, as that term is
21 used in Section 1-5 of the Limited Liability Company Act, are
22 the institutions of public charity that actually and
23 exclusively use the property for charitable and beneficent
24 purposes; and (C) the limited liability company does not lease
25 the property or otherwise use it with a view to profit.
26 (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)".