Public Act 103-0954
 
SB3209 EnrolledLRB103 37226 HLH 67345 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing 
Section 15-65 as follows:
 
    (35 ILCS 200/15-65)
    Sec. 15-65. Charitable purposes. All property of the 
following is exempt when actually and exclusively used for 
charitable or beneficent purposes, and not leased or otherwise 
used with a view to profit: 
        (a) Institutions of public charity. 
        (b) Beneficent and charitable organizations 
    incorporated in any state of the United States, including 
    organizations whose owner, and no other person, uses the 
    property exclusively for the distribution, sale, or resale 
    of donated goods and related activities and uses all the 
    income from those activities to support the charitable, 
    religious or beneficent activities of the owner, whether 
    or not such activities occur on the property. 
        (c) Old people's homes, facilities for persons with a 
    developmental disability, and not-for-profit 
    organizations providing services or facilities related to 
    the goals of educational, social and physical development, 
    if, upon making application for the exemption, the 
    applicant provides affirmative evidence that the home or 
    facility or organization is an exempt organization under 
    paragraph (3) of Section 501(c) of the Internal Revenue 
    Code or its successor, and either: (i) the bylaws of the 
    home or facility or not-for-profit organization provide 
    for a waiver or reduction, based on an individual's 
    ability to pay, of any entrance fee, assignment of assets, 
    or fee for services, or (ii) the home or facility is 
    qualified, built or financed under Section 202 of the 
    National Housing Act of 1959, as amended. 
        An applicant that has been granted an exemption under 
    this subsection on the basis that its bylaws provide for a 
    waiver or reduction, based on an individual's ability to 
    pay, of any entrance fee, assignment of assets, or fee for 
    services may be periodically reviewed by the Department to 
    determine if the waiver or reduction was a past policy or 
    is a current policy. The Department may revoke the 
    exemption if it finds that the policy for waiver or 
    reduction is no longer current. 
        If a not-for-profit organization leases property that 
    is otherwise exempt under this subsection to an 
    organization that conducts an activity on the leased 
    premises that would entitle the lessee to an exemption 
    from real estate taxes if the lessee were the owner of the 
    property, then the leased property is exempt. 
        (d) Not-for-profit health maintenance organizations 
    certified by the Director of the Illinois Department of 
    Insurance under the Health Maintenance Organization Act, 
    including any health maintenance organization that 
    provides services to members at prepaid rates approved by 
    the Illinois Department of Insurance if the membership of 
    the organization is sufficiently large or of indefinite 
    classes so that the community is benefited by its 
    operation. No exemption shall apply to any hospital or 
    health maintenance organization which has been adjudicated 
    by a court of competent jurisdiction to have denied 
    admission to any person because of race, color, creed, sex 
    or national origin. 
        (e) All free public libraries. 
        (f) Historical societies.
    Property otherwise qualifying for an exemption under this 
Section shall not lose its exemption because the legal title 
is held (i) by an entity that is organized solely to hold that 
title and that qualifies under paragraph (2) of Section 501(c) 
of the Internal Revenue Code or its successor, whether or not 
that entity receives rent from the charitable organization for 
the repair and maintenance of the property, (ii) by an entity 
that is organized as a partnership or limited liability 
company, in which the charitable organization, or an affiliate 
or subsidiary of the charitable organization, is a general 
partner of the partnership or managing member of the limited 
liability company, for the purposes of owning and operating a 
residential rental property that has received an allocation of 
Low Income Housing Tax Credits for 100% of the dwelling units 
under Section 42 of the Internal Revenue Code of 1986, as 
amended, or (iii) for any assessment year including and 
subsequent to January 1, 1996 for which an application for 
exemption has been filed and a decision on which has not become 
final and nonappealable, by a limited liability company 
organized under the Limited Liability Company Act provided 
that (A) the limited liability company's sole member or 
members, as that term is used in Section 1-5 of the Limited 
Liability Company Act, are the institutions of public charity 
that actually and exclusively use the property for charitable 
and beneficent purposes; and (B) the limited liability company 
is a disregarded entity for federal and Illinois income tax 
purposes and, as a result, the limited liability company is 
deemed exempt from income tax liability by virtue of the 
Internal Revenue Code Section 501(c)(3) status of its sole 
member or members; and (C) the limited liability company does 
not lease the property or otherwise use it with a view to 
profit.
(Source: P.A. 96-763, eff. 8-25-09.)
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.