Full Text of SB0665 102nd General Assembly
SB0665eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-65 as follows:
| 6 | | (35 ILCS 200/15-65)
| 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:
| 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 | 5 | | Section shall not
lose its exemption because the legal title | 6 | | is held (i) by an entity that is
organized solely to hold that | 7 | | title and that qualifies under paragraph (2) of
Section 501(c) | 8 | | of the Internal Revenue Code or its successor, whether or not
| 9 | | that entity receives rent from the charitable organization for | 10 | | the repair and
maintenance of the property, (ii) by an entity | 11 | | that is organized as
a
partnership or limited liability | 12 | | company, in which the charitable organization, or an affiliate | 13 | | or
subsidiary of the charitable organization, is a general | 14 | | partner of the partnership or managing member of the limited | 15 | | liability company, for the
purposes of owning and operating a | 16 | | residential rental property that has
received an allocation of | 17 | | Low Income Housing Tax Credits for 100%
of the dwelling units | 18 | | under Section 42 of the Internal Revenue
Code of 1986, as | 19 | | amended, or (iii) for any assessment year including and | 20 | | subsequent to
January 1, 1996 for which an application for | 21 | | exemption has been filed and a
decision on which has not become | 22 | | final and nonappealable, by a limited
liability company | 23 | | organized under the Limited Liability Company Act provided
| 24 | | that (A) the limited liability
company's sole member or
| 25 | | members, as that term is used in Section 1-5 of the Limited | 26 | | Liability Company
Act, are the institutions of public charity |
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| 1 | | that actually and exclusively use
the property for charitable | 2 | | and beneficent purposes; (B) the limited liability company is | 3 | | a disregarded entity for federal and Illinois income tax | 4 | | purposes and, as a result, the limited liability company is | 5 | | deemed exempt from income tax liability by virtue of the | 6 | | Internal Revenue Code Section 501(c)(3) status of its sole | 7 | | member or members; and (C) the limited
liability company does | 8 | | not lease the property or otherwise use it with a view
to | 9 | | profit.
| 10 | | (Source: P.A. 96-763, eff. 8-25-09.)
| 11 | | Section 10. The Illinois Municipal Code is amended by | 12 | | adding 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 | 15 | | cultivation and sale of fresh fruits and vegetables. | 16 | | (a) As used in this Section, "vacant lot" means all or any | 17 | | part of municipal-owned property, with or without | 18 | | improvements, not then needed for municipal purposes, as | 19 | | determined by the city council of a municipality. | 20 | | (b) A city council may, by resolution or ordinance, | 21 | | authorize a leasehold to be made with a nonprofit corporation | 22 | | or association for a term not in excess of 25 years, and | 23 | | extended in increments of no more than 25 years, by ordinance | 24 | | or resolution thereafter for one or more of the following |
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| 1 | | purposes: | 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, | 15 | | authorize a private sale or conveyance of a vacant lot, or any | 16 | | part thereof, for nominal consideration, without compliance | 17 | | with any other law governing disposal of lands by | 18 | | municipalities requiring adequate consideration, to a | 19 | | nonprofit corporation or association for use for one or more | 20 | | of 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 | 8 | | subsection shall contain a limitation that the property shall | 9 | | only be used by the nonprofit corporation or association for | 10 | | one or more of the following purposes: (i) the cultivation of | 11 | | land for gardening fruits and vegetables; or (ii) the sale of | 12 | | fresh fruits and vegetables. If it is determined by the city | 13 | | council of the municipality that the property is being used | 14 | | for any purpose other than the purposes set forth in this | 15 | | subsection, its full right and title shall revert back to the | 16 | | municipality without any entry or reentry made on the property | 17 | | on behalf of the municipality. | 18 | | Whenever a sale of property is proposed pursuant to this | 19 | | subsection, the municipality shall give at least 10 days' | 20 | | notice of such sale prior to a public hearing where an | 21 | | ordinance 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 | 24 | | the lease would allow such a sale. | 25 | | (d) A nonprofit organization or association leasing, | 26 | | conveyed, or sold a lot under this Section may not be |
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| 1 | | controlled, directly or indirectly, by any agricultural, | 2 | | commercial, or other business. The nonprofit organization or | 3 | | association must also include among its principal purposes the | 4 | | cultivation, sale, or cultivation and sale of fresh fruits and | 5 | | vegetables. | 6 | | (e) A nonprofit organization or association leasing, | 7 | | conveyed, or sold a lot under this Section is authorized to | 8 | | sell fresh fruits and vegetables either on the land, off the | 9 | | land, or both, and the sales must be related and incidental to | 10 | | the nonprofit purposes of the organization or association and | 11 | | the net proceeds received by the nonprofit organization or | 12 | | association must be used to further the nonprofit purposes of | 13 | | the organization or association. | 14 | | (f) Property leased, conveyed, or sold under this Section | 15 | | may be exempt from property taxation if the requirements of | 16 | | subsection (g) of Section 15-65 of the Property Tax Code are | 17 | | sufficiently met and the property is actually and exclusively | 18 | | used for the cultivation, sale, or cultivation and sale of | 19 | | fresh fruits and vegetables.
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