Full Text of HB1110 95th General Assembly
HB1110 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1110
Introduced , by Rep. William B. Black SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that all property of a not-for-profit hospital is exempt from the tax imposed by the Property Tax Code if, upon making the application for the exemption, the hospital provides affirmative evidence: (i) that the hospital is is an exempt organization under paragraph (3) of Section 501(c) of the federal Internal Revenue Code and (ii) that the hospital has policies and procedures in effect to provide for a waiver or reduction, based on an individual's ability to pay, of any fee for services. Provides that property leased by the hospital that would otherwise be exempt
under the charitable purpose exemption to an organization that conducts an activity on the
leased premises that would entitle the lessee to an exemption from real estate
taxes if the lessee were the owner of the property, then the leased property
is exempt. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB1110 |
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LRB095 08981 BDD 29172 b |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by changing | 5 |
| Section 15-65 as follows:
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| (35 ILCS 200/15-65)
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| 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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| (a) Institutions of public charity.
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| (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 or | 19 |
| not such activities occur on the property.
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| (c) Old people's homes, facilities for persons with a | 21 |
| developmental
disability, and not-for-profit organizations | 22 |
| providing services or facilities
related to the goals of | 23 |
| educational, social and physical development, if, upon
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HB1110 |
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LRB095 08981 BDD 29172 b |
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| making application for the exemption, the applicant | 2 |
| provides affirmative
evidence that the home or facility or | 3 |
| organization is an exempt organization
under paragraph (3) | 4 |
| of Section 501(c) of the Internal Revenue Code or its
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| successor, and either: (i) the bylaws of the home or | 6 |
| facility or not-for-profit
organization provide for a | 7 |
| waiver or reduction, based on an individual's
ability to | 8 |
| pay, of any entrance fee, assignment of assets, or fee for | 9 |
| services,
or (ii) the home or facility is qualified, built | 10 |
| or financed under Section 202
of the National Housing Act | 11 |
| of 1959, as amended.
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| 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.
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| 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 from | 25 |
| real estate
taxes if the lessee were the owner of the | 26 |
| property, then the leased property
is exempt.
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| (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
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| 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
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| 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.
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| (e) All free public libraries.
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| (f) Historical societies.
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| (g) Not-for-profit hospitals, if, upon
making | 17 |
| application for the exemption, the applicant provides | 18 |
| affirmative
evidence (i) that the hospital is an exempt | 19 |
| organization
under paragraph (3) of Section 501(c) of the | 20 |
| Internal Revenue Code or its
successor and (ii) that the | 21 |
| hospital has policies and procedures in effect to provide | 22 |
| for a waiver or reduction, based on an individual's
ability | 23 |
| to pay, of any fee for services.
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| If a not-for-profit hospital leases property that is | 25 |
| otherwise exempt
under this subsection to an organization | 26 |
| that conducts an activity on the
leased premises that would |
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| entitle the lessee to an exemption from real estate
taxes | 2 |
| if the lessee were the owner of the property, then the | 3 |
| leased property
is exempt.
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| Property otherwise qualifying for an exemption under this | 5 |
| Section shall not
lose its exemption because the legal title is | 6 |
| 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
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| 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, in which the charitable | 12 |
| organization, or an affiliate or
subsidiary of the charitable | 13 |
| organization, is a general partner, for the
purposes of owning | 14 |
| and operating a residential rental property that has
received | 15 |
| an allocation of Low Income Housing Tax Credits for 100%
of the | 16 |
| dwelling units under Section 42 of the Internal Revenue
Code of | 17 |
| 1986, or (iii) for any assessment year including and subsequent | 18 |
| to
January 1, 1996 for which an application for exemption has | 19 |
| been filed and a
decision on which has not become final and | 20 |
| nonappealable, by a limited
liability company organized under | 21 |
| the Limited Liability Company Act provided
that (A) the limited | 22 |
| liability company receives a notification from the
Internal | 23 |
| Revenue Service that it qualifies under paragraph (2) or (3) of
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| Section 501(c) of the Internal Revenue Code; (B) the limited | 25 |
| liability
company's sole
members, as that term is used in | 26 |
| Section 1-5 of the Limited Liability Company
Act, are the |
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| institutions of public charity that actually and exclusively | 2 |
| use
the property for charitable and beneficent purposes; and | 3 |
| (C) the limited
liability company does not lease the property | 4 |
| or otherwise use it with a view
to profit.
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| (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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