Illinois General Assembly - Full Text of HB5542
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Full Text of HB5542  103rd General Assembly



HB5542 EngrossedLRB103 37224 HLH 67343 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 changing
5Section 15-65 as follows:
6    (35 ILCS 200/15-65)
7    Sec. 15-65. Charitable purposes. All property of 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
17    income from those activities to support the charitable,
18    religious or beneficent activities of the owner, whether
19    or not such activities occur on the property.
20        (c) Old people's homes, facilities for persons with a
21    developmental disability, and not-for-profit
22    organizations providing services or facilities related to
23    the goals of educational, social and physical development,



HB5542 Engrossed- 2 -LRB103 37224 HLH 67343 b

1    if, upon making application for the exemption, the
2    applicant provides affirmative evidence that the home or
3    facility or organization is an exempt organization under
4    paragraph (3) of Section 501(c) of the Internal Revenue
5    Code or its successor, and either: (i) the bylaws of the
6    home or facility or not-for-profit organization provide
7    for a waiver or reduction, based on an individual's
8    ability to pay, of any entrance fee, assignment of assets,
9    or fee for services, or (ii) the home or facility is
10    qualified, built or financed under Section 202 of the
11    National Housing Act of 1959, as amended.
12        An applicant that has been granted an exemption under
13    this subsection on the basis that its bylaws 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 may be periodically reviewed by the Department to
17    determine if the waiver or reduction was a past policy or
18    is a current policy. The Department may revoke the
19    exemption if it finds that the policy for waiver or
20    reduction is no longer current.
21        If a not-for-profit organization leases property that
22    is otherwise exempt under this subsection to an
23    organization that conducts an activity on the leased
24    premises that would entitle the lessee to an exemption
25    from real estate taxes if the lessee were the owner of the
26    property, then the leased property is exempt.



HB5542 Engrossed- 3 -LRB103 37224 HLH 67343 b

1        (d) Not-for-profit health maintenance organizations
2    certified by the Director of the Illinois Department of
3    Insurance under the Health Maintenance Organization Act,
4    including any health maintenance organization that
5    provides services to members at prepaid rates approved by
6    the Illinois Department of Insurance if the membership of
7    the organization is sufficiently large or of indefinite
8    classes so that the community is benefited by its
9    operation. No exemption shall apply to any hospital or
10    health maintenance organization which has been adjudicated
11    by a court of competent jurisdiction to have denied
12    admission to any person because of race, color, creed, sex
13    or national origin.
14        (e) All free public libraries.
15        (f) Historical societies.
16    Property otherwise qualifying for an exemption under this
17Section shall not lose its exemption because the legal title
18is held (i) by an entity that is organized solely to hold that
19title and that qualifies under paragraph (2) of Section 501(c)
20of the Internal Revenue Code or its successor, whether or not
21that entity receives rent from the charitable organization for
22the repair and maintenance of the property, (ii) by an entity
23that is organized as a partnership or limited liability
24company, in which the charitable organization, or an affiliate
25or subsidiary of the charitable organization, is a general
26partner of the partnership or managing member of the limited



HB5542 Engrossed- 4 -LRB103 37224 HLH 67343 b

1liability company, for the purposes of owning and operating a
2residential rental property that has received an allocation of
3Low Income Housing Tax Credits for 100% of the dwelling units
4under Section 42 of the Internal Revenue Code of 1986, as
5amended, or (iii) for any assessment year including and
6subsequent to January 1, 1996 for which an application for
7exemption has been filed and a decision on which has not become
8final and nonappealable, by a limited liability company
9organized under the Limited Liability Company Act provided
10that (A) the limited liability company's sole member or
11members, as that term is used in Section 1-5 of the Limited
12Liability Company Act, are the institutions of public charity
13that actually and exclusively use the property for charitable
14and beneficent purposes; and (B) the limited liability company
15is a disregarded entity for federal and Illinois income tax
16purposes and, as a result, the limited liability company is
17deemed exempt from income tax liability by virtue of the
18Internal Revenue Code Section 501(c)(3) status of its sole
19member or members; and (C) the limited liability company does
20not lease the property or otherwise use it with a view to
22(Source: P.A. 96-763, eff. 8-25-09.)