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90_HB0992enr
35 ILCS 200/15-65
Amends the Property Tax Code. Provides that property
otherwise qualifying for the exemption for charitable
purposes shall not lose the exemption because the legal title
is held, in certain circumstances, by a limited liability
company whose sole members are the institutions of public
charity that actually and exclusively use the property for
charitable and beneficent purposes.
LRB9003374KDks
HB0992 Enrolled LRB9003374KDks
1 AN ACT to amend the Property Tax Code by changing Section
2 15-65.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Property Tax Code is amended by changing
6 Section 15-65 as follows:
7 (35 ILCS 200/15-65)
8 Sec. 15-65. Charitable purposes. All property of the
9 following is exempt when actually and exclusively used for
10 charitable or beneficent purposes, and not leased or
11 otherwise used with a view to profit:
12 (a) Institutions of public charity.
13 (b) Beneficent and charitable organizations
14 incorporated in any state of the United States, including
15 organizations whose owner, and no other person, uses the
16 property exclusively for the distribution, sale, or
17 resale of donated goods and related activities and uses
18 all the income from those activities to support the
19 charitable, religious or beneficent activities of the
20 owner, whether or not such activities occur on the
21 property.
22 (c) Old people's homes, facilities for persons with
23 a developmental disability, and not-for-profit
24 organizations providing services or facilities related to
25 the goals of educational, social and physical
26 development, if, upon making application for the
27 exemption, the applicant provides affirmative evidence
28 that the home or facility or organization is an exempt
29 organization under paragraph (3) of Section 501(c) of the
30 Internal Revenue Code or its successor, and either: (i)
31 the bylaws of the home or facility or not-for-profit
HB0992 Enrolled -2- LRB9003374KDks
1 organization provide for a waiver or reduction, based on
2 an individual's ability to pay, of any entrance fee,
3 assignment of assets, or fee for services, or (ii) the
4 home or facility is qualified, built or financed under
5 Section 202 of the National Housing Act of 1959, as
6 amended.
7 An applicant that has been granted an exemption
8 under this subsection on the basis that its bylaws
9 provide for a waiver or reduction, based on an
10 individual's ability to pay, of any entrance fee,
11 assignment of assets, or fee for services may be
12 periodically reviewed by the Department to determine if
13 the waiver or reduction was a past policy or is a current
14 policy. The Department may revoke the exemption if it
15 finds that the policy for waiver or reduction is no
16 longer current.
17 (d) Not-for-profit health maintenance organizations
18 certified by the Director of the Illinois Department of
19 Insurance under the Health Maintenance Organization Act,
20 including any health maintenance organization that
21 provides services to members at prepaid rates approved by
22 the Illinois Department of Insurance if the membership of
23 the organization is sufficiently large or of indefinite
24 classes so that the community is benefited by its
25 operation. No exemption shall apply to any hospital or
26 health maintenance organization which has been
27 adjudicated by a court of competent jurisdiction to have
28 denied admission to any person because of race, color,
29 creed, sex or national origin.
30 (e) All free public libraries.
31 (f) An historical society, but only if all taxing
32 districts within which the property is situated have
33 adopted a resolution finding that the society is a
34 charitable organization using the property exclusively
HB0992 Enrolled -3- LRB9003374KDks
1 for charitable purposes.
2 Property otherwise qualifying for an exemption under this
3 Section shall not lose its exemption because the legal title
4 is held (i) by an entity that is organized solely to hold
5 that title and that qualifies under paragraph (2) of Section
6 501(c) of the Internal Revenue Code or its successor, whether
7 or not that entity receives rent from the charitable
8 organization for the repair and maintenance of the property,
9 or (ii) by an entity that is organized as a partnership, in
10 which the charitable organization, or an affiliate or
11 subsidiary of the charitable organization, is a general
12 partner, for the purposes of owning and operating a
13 residential rental property that has received an allocation
14 of Low Income Housing Tax Credits for 100% of the dwelling
15 units under Section 42 of the Internal Revenue Code of 1986,
16 or (iii) for any assessment year including and subsequent to
17 January 1, 1996 for which an application for exemption has
18 been filed and a decision on which has not become final and
19 nonappealable, by a limited liability company organized under
20 the Limited Liability Company Act provided that (A) the
21 limited liability company receives a notification from the
22 Internal Revenue Service that it qualifies under paragraph
23 (2) or (3) of Section 501(c) of the Internal Revenue Code;
24 (B) the limited liability company's sole members, as that
25 term is used in Section 1-5 of the Limited Liability Company
26 Act, are the institutions of public charity that actually and
27 exclusively use the property for charitable and beneficent
28 purposes; and (C) the limited liability company does not
29 lease the property or otherwise use it with a view to profit.
30 (Source: P.A. 88-455; 88-660, eff. 9-16-94; 88-670, eff.
31 12-2-94; 88-676, eff. 12-4-94; 89-235, eff. 8-4-95; 89-426,
32 eff. 6-1-96; 89-626, eff. 8-9-96.)