Full Text of HB5000 94th General Assembly
HB5000ham002 94TH GENERAL ASSEMBLY
|
Rep. George Scully Jr.
Filed: 3/2/2006
|
|
09400HB5000ham002 |
|
LRB094 15260 DRJ 56938 a |
|
| 1 |
| AMENDMENT TO HOUSE BILL 5000
| 2 |
| AMENDMENT NO. ______. Amend House Bill 5000, AS AMENDED, by | 3 |
| replacing the title with the following: | 4 |
| "AN ACT concerning taxation."; and
| 5 |
| by replacing everything after the enacting clause with the | 6 |
| following: | 7 |
| "Section 5. The Property Tax Code is amended by changing | 8 |
| Section 15-65 as follows:
| 9 |
| (35 ILCS 200/15-65)
| 10 |
| Sec. 15-65. Charitable purposes. All property of the | 11 |
| following is exempt
when actually and exclusively used for | 12 |
| charitable or beneficent purposes, and
not leased or otherwise | 13 |
| used with a view to profit:
| 14 |
| (a) Institutions of public charity.
| 15 |
| (b) Beneficent and charitable organizations | 16 |
| incorporated in any state of
the United States, including | 17 |
| organizations whose owner, and no other person,
uses the | 18 |
| property exclusively for the distribution, sale, or resale | 19 |
| of donated
goods and related activities and uses all the | 20 |
| income from those activities to
support the charitable, | 21 |
| religious or beneficent activities of the owner,
whether or | 22 |
| not such activities occur on the property.
| 23 |
| (c) Old people's homes, facilities for persons with a |
|
|
|
09400HB5000ham002 |
- 2 - |
LRB094 15260 DRJ 56938 a |
|
| 1 |
| developmental
disability, and not-for-profit organizations | 2 |
| providing services or facilities
related to the goals of | 3 |
| educational, social and physical development, if, upon
| 4 |
| making application for the exemption, the applicant | 5 |
| provides affirmative
evidence that the home or facility or | 6 |
| organization is an exempt organization
under paragraph (3) | 7 |
| of Section 501(c) of the Internal Revenue Code or its
| 8 |
| successor, and either: (i) the bylaws of the home or | 9 |
| facility or not-for-profit
organization provide for a | 10 |
| waiver or reduction, based on an individual's
ability to | 11 |
| pay, of any entrance fee, assignment of assets, or fee for | 12 |
| services,
or (ii) the home or facility is qualified, built | 13 |
| or financed under Section 202
of the National Housing Act | 14 |
| of 1959, as amended.
| 15 |
| An applicant that has been granted an exemption under | 16 |
| this subsection on
the basis that its bylaws provide for a | 17 |
| waiver or reduction, based on an
individual's ability to | 18 |
| pay, of any entrance fee, assignment of assets, or fee
for | 19 |
| services may be periodically reviewed by the Department to | 20 |
| determine if the
waiver or reduction was a past policy or | 21 |
| is a current policy. The Department
may revoke the | 22 |
| exemption if it finds that the policy for waiver or | 23 |
| reduction is
no longer current.
| 24 |
| If a not-for-profit organization leases property that | 25 |
| is otherwise exempt
under this subsection to an | 26 |
| organization that conducts an activity on the
leased | 27 |
| premises that would entitle the lessee to an exemption from | 28 |
| real estate
taxes if the lessee were the owner of the | 29 |
| property, then the leased property
is exempt.
| 30 |
| (d) Not-for-profit health maintenance organizations | 31 |
| certified by the
Director of the Illinois Department of | 32 |
| Insurance under the Health Maintenance
Organization Act, | 33 |
| including any health maintenance organization that
| 34 |
| provides services to members at prepaid rates approved by |
|
|
|
09400HB5000ham002 |
- 3 - |
LRB094 15260 DRJ 56938 a |
|
| 1 |
| the Illinois
Department of Insurance if the membership of | 2 |
| the organization is sufficiently
large or of indefinite | 3 |
| classes so that the community is benefited by its
| 4 |
| operation. No exemption shall apply to any hospital or | 5 |
| health maintenance
organization which has been adjudicated | 6 |
| by a court of competent jurisdiction to
have denied | 7 |
| admission to any person because of race, color, creed, sex | 8 |
| or
national origin.
| 9 |
| (e) All free public libraries.
| 10 |
| (f) Historical societies.
| 11 |
| Property used for hospital purposes may qualify for the | 12 |
| exemption under this Section only if the hospital meets all of | 13 |
| the following criteria: | 14 |
| (1) The services provided by the hospital are for an | 15 |
| indefinite number of persons for their general welfare or | 16 |
| in some way reduce the burdens on government. | 17 |
| (2) The organization owning the hospital has no | 18 |
| capital, capital stock, or shareholders and does not profit | 19 |
| from the operation of the hospital. | 20 |
| (3) Funds for the operation of the hospital are derived | 21 |
| mainly from private and public charity, and those funds are | 22 |
| held in trust for the objects and purposes expressed in the | 23 |
| charter of the organization owning the hospital. | 24 |
| (4) Charity hospital care is dispensed to all who need | 25 |
| and apply for it. | 26 |
| (5) No obstacles are placed in the way of those seeking | 27 |
| services from the hospital. | 28 |
| (6) The primary use of the hospital property is for | 29 |
| charitable purposes.
| 30 |
| Property otherwise qualifying for an exemption under this | 31 |
| Section shall not
lose its exemption because the legal title is | 32 |
| held (i) by an entity that is
organized solely to hold that | 33 |
| title and that qualifies under paragraph (2) of
Section 501(c) | 34 |
| of the Internal Revenue Code or its successor, whether or not
|
|
|
|
09400HB5000ham002 |
- 4 - |
LRB094 15260 DRJ 56938 a |
|
| 1 |
| that entity receives rent from the charitable organization for | 2 |
| the repair and
maintenance of the property, (ii) by an entity | 3 |
| that is organized as
a
partnership, in which the charitable | 4 |
| organization, or an affiliate or
subsidiary of the charitable | 5 |
| organization, is a general partner, for the
purposes of owning | 6 |
| and operating a residential rental property that has
received | 7 |
| an allocation of Low Income Housing Tax Credits for 100%
of the | 8 |
| dwelling units under Section 42 of the Internal Revenue
Code of | 9 |
| 1986, or (iii) for any assessment year including and subsequent | 10 |
| to
January 1, 1996 for which an application for exemption has | 11 |
| been filed and a
decision on which has not become final and | 12 |
| nonappealable, by a limited
liability company organized under | 13 |
| the Limited Liability Company Act provided
that (A) the limited | 14 |
| liability company receives a notification from the
Internal | 15 |
| Revenue Service that it qualifies under paragraph (2) or (3) of
| 16 |
| Section 501(c) of the Internal Revenue Code; (B) the limited | 17 |
| liability
company's sole
members, as that term is used in | 18 |
| Section 1-5 of the Limited Liability Company
Act, are the | 19 |
| institutions of public charity that actually and exclusively | 20 |
| use
the property for charitable and beneficent purposes; and | 21 |
| (C) the limited
liability company does not lease the property | 22 |
| or otherwise use it with a view
to profit.
| 23 |
| (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)
| 24 |
| Section 99. Effective date. This Act takes effect January | 25 |
| 1, 2007.".
|
|