SB0665 EngrossedLRB102 15453 AWJ 20816 b

1    AN ACT concerning local government.
 
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,

 

 

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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.

 

 

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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        (g) Cultivation and sale of fresh fruits and
17    vegetables. A vacant lot that is leased from a
18    municipality or owned by a nonprofit corporation or
19    association for the cultivation, sale, or cultivation and
20    sale of fresh fruits and vegetables under Section 11-11-4
21    of the Illinois Municipal Code is exempt when actually and
22    exclusively used for such purposes. To qualify for the
23    exemption, the nonprofit corporation or association must
24    verify that it is not controlled, directly or indirectly,
25    by any agricultural, commercial, or other business. The
26    nonprofit corporation or association must also verify

 

 

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1    that, if the fresh fruits or vegetables are sold, any
2    profits are used to further the mission of the exempt
3    organization.
4    Property otherwise qualifying for an exemption under this
5Section shall not lose its exemption because the legal title
6is held (i) by an entity that is organized solely to hold that
7title and that qualifies under paragraph (2) of Section 501(c)
8of the Internal Revenue Code or its successor, whether or not
9that entity receives rent from the charitable organization for
10the repair and maintenance of the property, (ii) by an entity
11that is organized as a partnership or limited liability
12company, in which the charitable organization, or an affiliate
13or subsidiary of the charitable organization, is a general
14partner of the partnership or managing member of the limited
15liability company, for the purposes of owning and operating a
16residential rental property that has received an allocation of
17Low Income Housing Tax Credits for 100% of the dwelling units
18under Section 42 of the Internal Revenue Code of 1986, as
19amended, or (iii) for any assessment year including and
20subsequent to January 1, 1996 for which an application for
21exemption has been filed and a decision on which has not become
22final and nonappealable, by a limited liability company
23organized under the Limited Liability Company Act provided
24that (A) the limited liability company's sole member or
25members, as that term is used in Section 1-5 of the Limited
26Liability Company Act, are the institutions of public charity

 

 

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1that actually and exclusively use the property for charitable
2and beneficent purposes; (B) the limited liability company is
3a disregarded entity for federal and Illinois income tax
4purposes and, as a result, the limited liability company is
5deemed exempt from income tax liability by virtue of the
6Internal Revenue Code Section 501(c)(3) status of its sole
7member or members; and (C) the limited liability company does
8not lease the property or otherwise use it with a view to
9profit.
10(Source: P.A. 96-763, eff. 8-25-09.)
 
11    Section 10. The Illinois Municipal Code is amended by
12adding Section 11-11-4 as follows:
 
13    (65 ILCS 5/11-11-4 new)
14    Sec. 11-11-4. Lease, conveyance, or sale of property for
15cultivation and sale of fresh fruits and vegetables.
16    (a) As used in this Section, "vacant lot" means all or any
17part of municipal-owned property, with or without
18improvements, not then needed for municipal purposes, as
19determined by the city council of a municipality.
20    (b) A city council may, by resolution or ordinance,
21authorize a leasehold to be made with a nonprofit corporation
22or association for a term not in excess of 25 years, and
23extended in increments of no more than 25 years, by ordinance
24or resolution thereafter for one or more of the following

 

 

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1purposes:
2        (1) The cultivation or use of a vacant lot for
3    gardening fruits and vegetables.
4        (2) The use of a vacant lot to sell fresh fruits and
5    vegetables. Any lease entered into pursuant to this
6    paragraph may permit the nonprofit corporation or
7    association to sell fresh fruits and vegetables on the
8    leased land, off the leased land, or both, if the sales are
9    related and incidental to the nonprofit purposes of the
10    corporation or association and the net proceeds received
11    by the nonprofit corporation or association are used to
12    further the nonprofit purposes of the corporation or
13    association.
14    (c) A city council may, by resolution or ordinance,
15authorize a private sale or conveyance of a vacant lot, or any
16part thereof, for nominal consideration, without compliance
17with any other law governing disposal of lands by
18municipalities requiring adequate consideration, to a
19nonprofit corporation or association for use for one or more
20of the following purposes:
21        (1) The cultivation or use of the lot for gardening
22    fruits and vegetables.
23        (2) The use of the lot to sell fresh fruits and
24    vegetables. Any sale or conveyance entered into pursuant
25    to this paragraph may permit the nonprofit corporation or
26    association to sell fresh fruits and vegetables on the

 

 

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1    lot, off the lot, or both, provided, that: (i) the sales
2    are related and incidental to the purpose of the nonprofit
3    corporation or association and (ii) the net proceeds
4    received by the nonprofit corporation or association are
5    used to further the purposes of the nonprofit corporation
6    or association.
7    Any conveyance or sale of property pursuant to this
8subsection shall contain a limitation that the property shall
9only be used by the nonprofit corporation or association for
10one or more of the following purposes: (i) the cultivation of
11land for gardening fruits and vegetables; or (ii) the sale of
12fresh fruits and vegetables. If it is determined by the city
13council of the municipality that the property is being used
14for any purpose other than the purposes set forth in this
15subsection, its full right and title shall revert back to the
16municipality without any entry or reentry made on the property
17on behalf of the municipality.
18    Whenever a sale of property is proposed pursuant to this
19subsection, the municipality shall give at least 10 days'
20notice of such sale prior to a public hearing where an
21ordinance or resolution approving the sale is adopted.
22    Property subject to an unexpired lease under subsection
23(b) is not eligible to be sold under this subsection, unless
24the lease would allow such a sale.
25    (d) A nonprofit organization or association leasing,
26conveyed, or sold a lot under this Section may not be

 

 

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1controlled, directly or indirectly, by any agricultural,
2commercial, or other business. The nonprofit organization or
3association must also include among its principal purposes the
4cultivation, sale, or cultivation and sale of fresh fruits and
5vegetables.
6    (e) A nonprofit organization or association leasing,
7conveyed, or sold a lot under this Section is authorized to
8sell fresh fruits and vegetables either on the land, off the
9land, or both, and the sales must be related and incidental to
10the nonprofit purposes of the organization or association and
11the net proceeds received by the nonprofit organization or
12association must be used to further the nonprofit purposes of
13the organization or association.
14    (f) Property leased, conveyed, or sold under this Section
15may be exempt from property taxation if the requirements of
16subsection (g) of Section 15-65 of the Property Tax Code are
17sufficiently met and the property is actually and exclusively
18used for the cultivation, sale, or cultivation and sale of
19fresh fruits and vegetables.