HB3273 98TH GENERAL ASSEMBLY

LRB098 08177 HLH 38273 b

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 adding Section 15-87 as follows:

(35 ILCS 200/15-87 new)

Sec. 15-87. Hospice residence exemption.

(a) Property on which a hospice residence is located shall be issued a charitable exemption under this Section if the value of services or activities listed in subsection (b) for the taxable year equals or exceeds the estimated property tax liability for the property for the year for which exemption is sought. For purposes of making the calculations required by this Section, if the hospice provider owns more than one hospice residence, the value of the services or activities listed in subsection (b) shall be calculated on the basis of only those services and activities relating to the subject property, and the relevant hospice's estimated property tax liability shall be calculated only with respect to the properties comprising that hospice residence.

Notwithstanding any other provisions of this Act, any parcel or portion thereof, that is owned by a for-profit entity, or that is leased, licensed or operated by a for-profit entity regardless of whether a hospice program is provided on that parcel shall not qualify for exemption. If a parcel has both exempt and non-exempt uses, an exemption may be granted for the qualifying portion of that parcel. In the case of parking lots and common areas serving both exempt and non-exempt uses those parcels or portions thereof may qualify for an exemption in proportion to the amount of qualifying use.

(b) The following services and activities shall be considered for purposes of making the calculations required by subsection (a):

(1) Charity care. Free or discounted services provided to low-income and underserved individuals either without charge or at a reduced rate pursuant to the hospice provider's financial assistance policy.

(2) Subsidy of State or local governments. Direct or indirect financial or in-kind subsidies of State or local governments by the hospice provider that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.

(3) Dual-eligible subsidy. The amount of subsidy provided to government by treating dual-eligible Medicare/Medicaid patients.

(4) Relief of the burden of government related to the care of low-income individuals. Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the hospice provider attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to care for low-income individuals.

(5) Any other activity by the hospice provider that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.

(c) Each hospice provider applying for an exemption under this Section shall use an application form provided by the Department. The application form shall specify the records required in support of the application and those records shall be submitted to the Department with the application form. Each application or affidavit shall contain a verification by the Chief Executive Officer of the hospice provider under oath or affirmation stating that each statement in the application or affidavit and each document submitted with the application or affidavit is true and correct.

(d) For the purposes of this Section:

"Hospice residence" has the meaning ascribed to that term in the Hospice Program Licensing Act.

"Hospice provider" means a licensed public agency or private organization, or a subdivision of either of those, that is primarily engaged in providing care to terminally ill individuals through a program of home care or inpatient care, or both home care and inpatient care, utilizing a medically directed interdisciplinary hospice care team of professionals or volunteers, or both professionals and volunteers.

(e) Nothing in this Section shall be construed to limit the ability of otherwise eligible taxpayers to obtain or maintain property tax exemptions pursuant to a provision of the Property Tax Code other than this Section.

Section 10. The Use Tax Act is amended by adding Section 3-8.5 as follows:

(35 ILCS 105/3-8.5 new)

Sec. 3-8.5. Hospice provider. Tangible personal property sold to or used by a hospice provider is exempt from taxation under this Act during each taxable year in which the hospice provider's property is exempt under Section 15-87 of the Property Tax Code. For the purpose of this Section, "hospice provider" has the meaning ascribed to that term in Section 15-87 of the Property Tax Code.

This Section is exempt from the provisions of Section 3-90.

Section 15. The Service Use Tax Act is amended by adding Section 3-8.5 as follows:

(35 ILCS 110/3-8.5 new)

Sec. 3-8.5. Hospice provider. Tangible personal property sold to or used by a hospice provider is exempt from taxation under this Act during each taxable year in which the hospice provider's property is exempt under Section 15-87 of the Property Tax Code. For the purpose of this Section, "hospice provider" has the meaning ascribed to that term in Section 15-87 of the Property Tax Code.

This Section is exempt from the provisions of Section 3-75.

Section 20. The Service Occupation Tax Act is amended by adding Section 3-8.5 as follows:

(35 ILCS 115/3-8.5 new)

Sec. 3-8.5. Hospice provider. Tangible personal property sold to or used by a hospice provider is exempt from taxation under this Act during each taxable year in which the hospice provider's property is exempt under Section 15-87 of the Property Tax Code. For the purpose of this Section, "hospice provider" has the meaning ascribed to that term in Section 15-87 of the Property Tax Code.

This Section is exempt from the provisions of Section 3-55.

Section 25. The Retailers' Occupation Tax Act is amended by adding Section 2-9.5 as follows:

(35 ILCS 120/2-9.5 new)

Sec. 2-9.5. Hospice provider. Tangible personal property sold to or used by a hospice provider is exempt from taxation under this Act during each taxable year in which the hospice provider's property is exempt under Section 15-87 of the Property Tax Code. For the purpose of this Section, "hospice provider" has the meaning ascribed to that term in Section 15-87 of the Property Tax Code.

This Section is exempt from the provisions of Section 2-70.

Section 99. Effective date. This Act takes effect upon becoming law.