Revenue & Finance Committee
Filed: 5/19/2009
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1 | AMENDMENT TO SENATE BILL 2252
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2 | AMENDMENT NO. ______. Amend Senate Bill 2252 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Property Tax Code is amended by changing | ||||||
5 | Section 15-65 as follows:
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6 | (35 ILCS 200/15-65)
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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:
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11 | (a) Institutions of public charity.
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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.
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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21 | (e) All free public libraries.
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22 | (f) Historical societies.
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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
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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.
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26 | (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)".
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