Full Text of HB5444 98th General Assembly
HB5444 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5444 Introduced , by Rep. Michael Unes SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that property that is leased by a charitable organization for a period of at least one year is exempt from taxation.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 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 owned by of | 8 | | the following , or leased by the following for a period of at | 9 | | least one year, is exempt
when actually and exclusively used | 10 | | for charitable or beneficent purposes , and
not leased or | 11 | | otherwise used with a view to profit :
| 12 | | (a) Institutions of public charity.
| 13 | | (b) Beneficent and charitable organizations | 14 | | incorporated in any state of
the United States, including | 15 | | organizations whose owner, and no other person,
uses the | 16 | | property exclusively for the distribution, sale, or resale | 17 | | of donated
goods and related activities and uses all the | 18 | | income from those activities to
support the charitable, | 19 | | religious or beneficent activities of the owner,
whether or | 20 | | not such activities occur on the property.
| 21 | | (c) Old people's homes, facilities for persons with a | 22 | | developmental
disability, and not-for-profit organizations | 23 | | providing services or facilities
related to the goals of |
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| 1 | | educational, social and physical development, if, upon
| 2 | | making application for the exemption, the applicant | 3 | | provides affirmative
evidence that the home or facility or | 4 | | organization is an exempt organization
under paragraph (3) | 5 | | of Section 501(c) of the Internal Revenue Code or its
| 6 | | successor, and either: (i) the bylaws of the home or | 7 | | facility or not-for-profit
organization provide for a | 8 | | waiver or reduction, based on an individual's
ability to | 9 | | pay, of any entrance fee, assignment of assets, or fee for | 10 | | services,
or (ii) the home or facility is qualified, built | 11 | | or financed under Section 202
of the National Housing Act | 12 | | of 1959, as amended.
| 13 | | An applicant that has been granted an exemption under | 14 | | this subsection on
the basis that its bylaws provide for a | 15 | | waiver or reduction, based on an
individual's ability to | 16 | | pay, of any entrance fee, assignment of assets, or fee
for | 17 | | services may be periodically reviewed by the Department to | 18 | | determine if the
waiver or reduction was a past policy or | 19 | | is a current policy. The Department
may revoke the | 20 | | exemption if it finds that the policy for waiver or | 21 | | reduction is
no longer current.
| 22 | | If a not-for-profit organization leases property that | 23 | | is otherwise exempt
under this subsection to an | 24 | | organization that conducts an activity on the
leased | 25 | | premises that would entitle the lessee to an exemption from | 26 | | real estate
taxes if the lessee were the owner of the |
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| 1 | | property, then the leased property
is exempt.
| 2 | | (d) Not-for-profit health maintenance organizations | 3 | | certified by the
Director of the Illinois Department of | 4 | | Insurance under the Health Maintenance
Organization Act, | 5 | | including any health maintenance organization that
| 6 | | provides services to members at prepaid rates approved by | 7 | | the Illinois
Department of Insurance if the membership of | 8 | | the organization is sufficiently
large or of indefinite | 9 | | classes so that the community is benefited by its
| 10 | | operation. No exemption shall apply to any hospital or | 11 | | health maintenance
organization which has been adjudicated | 12 | | by a court of competent jurisdiction to
have denied | 13 | | admission to any person because of race, color, creed, sex | 14 | | or
national origin.
| 15 | | (e) All free public libraries.
| 16 | | (f) Historical societies.
| 17 | | Property otherwise qualifying for an exemption under this | 18 | | Section shall not
lose its exemption because the legal title is | 19 | | held (i) by an entity that is
organized solely to hold that | 20 | | title and that qualifies under paragraph (2) of
Section 501(c) | 21 | | of the Internal Revenue Code or its successor, whether or not
| 22 | | that entity receives rent from the charitable organization for | 23 | | the repair and
maintenance of the property, (ii) by an entity | 24 | | that is organized as
a
partnership or limited liability | 25 | | company, in which the charitable organization, or an affiliate | 26 | | or
subsidiary of the charitable organization, is a general |
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| 1 | | partner of the partnership or managing member of the limited | 2 | | liability company, for the
purposes of owning and operating a | 3 | | residential rental property that has
received an allocation of | 4 | | Low Income Housing Tax Credits for 100%
of the dwelling units | 5 | | under Section 42 of the Internal Revenue
Code of 1986, as | 6 | | amended, or (iii) for any assessment year including and | 7 | | subsequent to
January 1, 1996 for which an application for | 8 | | exemption has been filed and a
decision on which has not become | 9 | | final and nonappealable, by a limited
liability company | 10 | | organized under the Limited Liability Company Act provided
that | 11 | | (A) the limited liability
company's sole member or
members, as | 12 | | that term is used in Section 1-5 of the Limited Liability | 13 | | Company
Act, are the institutions of public charity that | 14 | | actually and exclusively use
the property for charitable and | 15 | | beneficent purposes; (B) the limited liability company is a | 16 | | disregarded entity for federal and Illinois income tax purposes | 17 | | and, as a result, the limited liability company is deemed | 18 | | exempt from income tax liability by virtue of the Internal | 19 | | Revenue Code Section 501(c)(3) status of its sole member or | 20 | | members; and (C) the limited
liability company does not lease | 21 | | the property or otherwise use it with a view
to profit.
| 22 | | (Source: P.A. 96-763, eff. 8-25-09.)
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