98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3273

 

Introduced , by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-87 new
35 ILCS 105/3-8.5 new
35 ILCS 110/3-8.5 new
35 ILCS 115/3-8.5 new
35 ILCS 120/2-9.5 new

    Amends the Property Tax Code. Creates an exemption for property on which a hospice residence is located if the hospice provider meets certain criteria related to charity care. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to create an exemption for hospice providers. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3273LRB098 08177 HLH 38273 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 adding
5Section 15-87 as follows:
 
6    (35 ILCS 200/15-87 new)
7    Sec. 15-87. Hospice residence exemption.
8    (a) Property on which a hospice residence is located shall
9be issued a charitable exemption under this Section if the
10value of services or activities listed in subsection (b) for
11the taxable year equals or exceeds the estimated property tax
12liability for the property for the year for which exemption is
13sought. For purposes of making the calculations required by
14this Section, if the hospice provider owns more than one
15hospice residence, the value of the services or activities
16listed in subsection (b) shall be calculated on the basis of
17only those services and activities relating to the subject
18property, and the relevant hospice's estimated property tax
19liability shall be calculated only with respect to the
20properties comprising that hospice residence.
21    Notwithstanding any other provisions of this Act, any
22parcel or portion thereof, that is owned by a for-profit
23entity, or that is leased, licensed or operated by a for-profit

 

 

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1entity regardless of whether a hospice program is provided on
2that parcel shall not qualify for exemption. If a parcel has
3both exempt and non-exempt uses, an exemption may be granted
4for the qualifying portion of that parcel. In the case of
5parking lots and common areas serving both exempt and
6non-exempt uses those parcels or portions thereof may qualify
7for an exemption in proportion to the amount of qualifying use.
8    (b) The following services and activities shall be
9considered for purposes of making the calculations required by
10subsection (a):
11        (1) Charity care. Free or discounted services provided
12    to low-income and underserved individuals either without
13    charge or at a reduced rate pursuant to the hospice
14    provider's financial assistance policy.
15        (2) Subsidy of State or local governments. Direct or
16    indirect financial or in-kind subsidies of State or local
17    governments by the hospice provider that pay for or
18    subsidize activities or programs related to health care for
19    low-income or underserved individuals.
20        (3) Dual-eligible subsidy. The amount of subsidy
21    provided to government by treating dual-eligible
22    Medicare/Medicaid patients.
23        (4) Relief of the burden of government related to the
24    care of low-income individuals. Except to the extent
25    otherwise taken into account in this subsection, the
26    portion of unreimbursed costs of the hospice provider

 

 

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1    attributable to providing, paying for, or subsidizing
2    goods, activities, or services that relieve the burden of
3    government related to care for low-income individuals.
4        (5) Any other activity by the hospice provider that the
5    Department determines relieves the burden of government or
6    addresses the health of low-income or underserved
7    individuals.
8    (c) Each hospice provider applying for an exemption under
9this Section shall use an application form provided by the
10Department. The application form shall specify the records
11required in support of the application and those records shall
12be submitted to the Department with the application form. Each
13application or affidavit shall contain a verification by the
14Chief Executive Officer of the hospice provider under oath or
15affirmation stating that each statement in the application or
16affidavit and each document submitted with the application or
17affidavit is true and correct.
18    (d) For the purposes of this Section:
19        "Hospice residence" has the meaning ascribed to that
20    term in the Hospice Program Licensing Act.
21        "Hospice provider" means a licensed public agency or
22    private organization, or a subdivision of either of those,
23    that is primarily engaged in providing care to terminally
24    ill individuals through a program of home care or inpatient
25    care, or both home care and inpatient care, utilizing a
26    medically directed interdisciplinary hospice care team of

 

 

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1    professionals or volunteers, or both professionals and
2    volunteers.
3    (e) Nothing in this Section shall be construed to limit the
4ability of otherwise eligible taxpayers to obtain or maintain
5property tax exemptions pursuant to a provision of the Property
6Tax Code other than this Section.
 
7    Section 10. The Use Tax Act is amended by adding Section
83-8.5 as follows:
 
9    (35 ILCS 105/3-8.5 new)
10    Sec. 3-8.5. Hospice provider. Tangible personal property
11sold to or used by a hospice provider is exempt from taxation
12under this Act during each taxable year in which the hospice
13provider's property is exempt under Section 15-87 of the
14Property Tax Code. For the purpose of this Section, "hospice
15provider" has the meaning ascribed to that term in Section
1615-87 of the Property Tax Code.
17    This Section is exempt from the provisions of Section 3-90.
 
18    Section 15. The Service Use Tax Act is amended by adding
19Section 3-8.5 as follows:
 
20    (35 ILCS 110/3-8.5 new)
21    Sec. 3-8.5. Hospice provider. Tangible personal property
22sold to or used by a hospice provider is exempt from taxation

 

 

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1under this Act during each taxable year in which the hospice
2provider's property is exempt under Section 15-87 of the
3Property Tax Code. For the purpose of this Section, "hospice
4provider" has the meaning ascribed to that term in Section
515-87 of the Property Tax Code.
6    This Section is exempt from the provisions of Section 3-75.
 
7    Section 20. The Service Occupation Tax Act is amended by
8adding Section 3-8.5 as follows:
 
9    (35 ILCS 115/3-8.5 new)
10    Sec. 3-8.5. Hospice provider. Tangible personal property
11sold to or used by a hospice provider is exempt from taxation
12under this Act during each taxable year in which the hospice
13provider's property is exempt under Section 15-87 of the
14Property Tax Code. For the purpose of this Section, "hospice
15provider" has the meaning ascribed to that term in Section
1615-87 of the Property Tax Code.
17    This Section is exempt from the provisions of Section 3-55.
 
18    Section 25. The Retailers' Occupation Tax Act is amended by
19adding Section 2-9.5 as follows:
 
20    (35 ILCS 120/2-9.5 new)
21    Sec. 2-9.5. Hospice provider. Tangible personal property
22sold to or used by a hospice provider is exempt from taxation

 

 

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1under this Act during each taxable year in which the hospice
2provider's property is exempt under Section 15-87 of the
3Property Tax Code. For the purpose of this Section, "hospice
4provider" has the meaning ascribed to that term in Section
515-87 of the Property Tax Code.
6    This Section is exempt from the provisions of Section 2-70.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.