Full Text of SB0665 102nd General Assembly
SB0665sam003 102ND GENERAL ASSEMBLY | Sen. Bill Cunningham Filed: 4/9/2021
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| 1 | | AMENDMENT TO SENATE BILL 665
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 665 by replacing | 3 | | everything after the enacting clause with the following:
| 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 |
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| 1 | | income from those activities to
support the charitable, | 2 | | religious or beneficent activities of the owner,
whether | 3 | | or not such activities occur on the property.
| 4 | | (c) Old people's homes, facilities for persons with a | 5 | | developmental
disability, and not-for-profit | 6 | | organizations providing services or facilities
related to | 7 | | the goals of educational, social and physical development, | 8 | | if, upon
making application for the exemption, the | 9 | | applicant provides affirmative
evidence that the home or | 10 | | facility or organization is an exempt organization
under | 11 | | paragraph (3) of Section 501(c) of the Internal Revenue | 12 | | Code or its
successor, and either: (i) the bylaws of the | 13 | | home or facility or not-for-profit
organization provide | 14 | | for a waiver or reduction, based on an individual's
| 15 | | ability to pay, of any entrance fee, assignment of assets, | 16 | | or fee for services,
or (ii) the home or facility is | 17 | | qualified, built or financed under Section 202
of the | 18 | | National Housing Act of 1959, as amended.
| 19 | | An applicant that has been granted an exemption under | 20 | | this subsection on
the basis that its bylaws provide for a | 21 | | waiver or reduction, based on an
individual's ability to | 22 | | pay, of any entrance fee, assignment of assets, or fee
for | 23 | | services may be periodically reviewed by the Department to | 24 | | determine if the
waiver or reduction was a past policy or | 25 | | is a current policy. The Department
may revoke the | 26 | | exemption if it finds that the policy for waiver or |
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| 1 | | reduction is
no longer current.
| 2 | | If a not-for-profit organization leases property that | 3 | | is otherwise exempt
under this subsection to an | 4 | | organization that conducts an activity on the
leased | 5 | | premises that would entitle the lessee to an exemption | 6 | | from real estate
taxes if the lessee were the owner of the | 7 | | property, then the leased property
is exempt.
| 8 | | (d) Not-for-profit health maintenance organizations | 9 | | certified by the
Director of the Illinois Department of | 10 | | Insurance under the Health Maintenance
Organization Act, | 11 | | including any health maintenance organization that
| 12 | | provides services to members at prepaid rates approved by | 13 | | the Illinois
Department of Insurance if the membership of | 14 | | the organization is sufficiently
large or of indefinite | 15 | | classes so that the community is benefited by its
| 16 | | operation. No exemption shall apply to any hospital or | 17 | | health maintenance
organization which has been adjudicated | 18 | | by a court of competent jurisdiction to
have denied | 19 | | admission to any person because of race, color, creed, sex | 20 | | or
national origin.
| 21 | | (e) All free public libraries.
| 22 | | (f) Historical societies.
| 23 | | (g) Cultivation and sale of fresh fruits and | 24 | | vegetables. A vacant lot that is leased from a | 25 | | municipality or owned by a nonprofit corporation or | 26 | | association for the cultivation, sale, or cultivation and |
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| 1 | | sale of fresh fruits and vegetables under Section 11-11-4 | 2 | | of the Illinois Municipal Code is exempt when actually and | 3 | | exclusively used for such purposes. To qualify for the | 4 | | exemption, the nonprofit corporation or association must | 5 | | verify that it is not controlled, directly or indirectly, | 6 | | by any agricultural, commercial, or other business. The | 7 | | nonprofit corporation or association must also verify | 8 | | that, if the fresh fruits or vegetables are sold, any | 9 | | profits are used to further the mission of the exempt | 10 | | organization. | 11 | | Property otherwise qualifying for an exemption under this | 12 | | Section shall not
lose its exemption because the legal title | 13 | | is held (i) by an entity that is
organized solely to hold that | 14 | | title and that qualifies under paragraph (2) of
Section 501(c) | 15 | | of the Internal Revenue Code or its successor, whether or not
| 16 | | that entity receives rent from the charitable organization for | 17 | | the repair and
maintenance of the property, (ii) by an entity | 18 | | that is organized as
a
partnership or limited liability | 19 | | company, in which the charitable organization, or an affiliate | 20 | | or
subsidiary of the charitable organization, is a general | 21 | | partner of the partnership or managing member of the limited | 22 | | liability company, for the
purposes of owning and operating a | 23 | | residential rental property that has
received an allocation of | 24 | | Low Income Housing Tax Credits for 100%
of the dwelling units | 25 | | under Section 42 of the Internal Revenue
Code of 1986, as | 26 | | amended, or (iii) for any assessment year including and |
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| 1 | | subsequent to
January 1, 1996 for which an application for | 2 | | exemption has been filed and a
decision on which has not become | 3 | | final and nonappealable, by a limited
liability company | 4 | | organized under the Limited Liability Company Act provided
| 5 | | that (A) the limited liability
company's sole member or
| 6 | | members, as that term is used in Section 1-5 of the Limited | 7 | | Liability Company
Act, are the institutions of public charity | 8 | | that actually and exclusively use
the property for charitable | 9 | | and beneficent purposes; (B) the limited liability company is | 10 | | a disregarded entity for federal and Illinois income tax | 11 | | purposes and, as a result, the limited liability company is | 12 | | deemed exempt from income tax liability by virtue of the | 13 | | Internal Revenue Code Section 501(c)(3) status of its sole | 14 | | member or members; and (C) the limited
liability company does | 15 | | not lease the property or otherwise use it with a view
to | 16 | | profit.
| 17 | | (Source: P.A. 96-763, eff. 8-25-09.)
| 18 | | Section 10. The Illinois Municipal Code is amended by | 19 | | adding Section 11-11-4 as follows: | 20 | | (65 ILCS 5/11-11-4 new) | 21 | | Sec. 11-11-4. Lease or sale of property for cultivation | 22 | | and sale of fresh fruits and vegetables. | 23 | | (a) The General Assembly finds: | 24 | | (1) There exists in certain older, urban |
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| 1 | | municipalities an excess of vacant property that is not | 2 | | needed for public use. | 3 | | (2) Vacant properties present numerous problems for | 4 | | these municipalities, such as: presenting the opportunity | 5 | | for criminal activity; deterring neighboring property | 6 | | owners from improving their properties and prospective | 7 | | purchasers and renters from locating into these areas; and | 8 | | serving as a location to dispose of unwanted items. | 9 | | (3) These municipalities are often centers of high and | 10 | | increasing populations and population densities comprised, | 11 | | in part, of lower-income families. | 12 | | (4) Due, in part, to increasing population densities, | 13 | | the deterioration of infrastructure, and fiscal | 14 | | constraints, these municipalities have been challenged to | 15 | | offer residents opportunities to enhance the quality of | 16 | | their lives. | 17 | | (5) Due to the scarcity of full service supermarkets | 18 | | and farmer's markets within these municipalities, | 19 | | municipal residents often suffer from a shortage of fresh | 20 | | fruits and vegetables. | 21 | | (6) The shortages of sources of fresh fruits and | 22 | | vegetables have contributed to alarming increases in | 23 | | childhood obesity and other adverse health consequences | 24 | | for municipal residents. | 25 | | (7) It would be beneficial to enlist nonprofit | 26 | | corporations or associations to develop these properties |
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| 1 | | for public purposes that could enhance the nutritional | 2 | | needs of local residents. | 3 | | (8) Authorization for municipalities to lease and sell | 4 | | vacant land to nonprofit entities to cultivate these lands | 5 | | can provide a source of fresh, locally-grown fruits and | 6 | | vegetables for local residents. | 7 | | (9) The nonprofit cultivation of previously vacant | 8 | | land by nonprofit entities is a public purpose for which | 9 | | the long term lease and sale of these properties, and | 10 | | exemption from property taxation, is warranted, even in | 11 | | those instances when produce is sold to further the | 12 | | mission of these nonprofit corporations or associations. | 13 | | (b) A leasehold for a term not in excess of 25 years may be | 14 | | made with a nonprofit corporation or association, and extended | 15 | | in increments of no more than 25 years, by ordinance or | 16 | | resolution thereafter for one or more of the following | 17 | | purposes: | 18 | | (1) The
cultivation or use of vacant lots for | 19 | | gardening fruits and vegetables. | 20 | | (2) The use of vacant lots to sell fresh fruits and | 21 | | vegetables. Any lease entered into pursuant to this | 22 | | paragraph may permit the nonprofit corporation or | 23 | | association to sell fresh fruits and vegetables on the | 24 | | leased land, off the leased land, or both, provided, that | 25 | | the sales are related and incidental to the nonprofit | 26 | | purposes of the corporation or association and the net |
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| 1 | | proceeds received by the nonprofit corporation or | 2 | | association are used to further the nonprofit purposes of | 3 | | the corporation or association. | 4 | | (c) When the city council of a municipality determines | 5 | | that all or any part of a municipal-owned tract of land, with | 6 | | or without improvements, is not then needed for municipal | 7 | | purposes, the city council may, by resolution or ordinance, | 8 | | authorize a private sale and conveyance of the same, or any | 9 | | part thereof, for nominal consideration, without compliance | 10 | | with any other law governing disposal of lands by | 11 | | municipalities requiring adequate consideration, to a | 12 | | nonprofit corporation or association for use for one or more | 13 | | of the following purposes: | 14 | | (1) The cultivation of vacant lots for gardening | 15 | | fruits and vegetables. | 16 | | (2) The use of vacant lots to sell fresh fruits and | 17 | | vegetables. Any conveyance entered into pursuant to this | 18 | | paragraph may permit the nonprofit corporation or | 19 | | association to sell fresh fruits and vegetables on the | 20 | | leased land, off the leased land, or both, provided, that | 21 | | the sales are related and incidental to the nonprofit | 22 | | purposes of the corporation or association and the net | 23 | | proceeds received by the nonprofit corporation or | 24 | | association are used to further the nonprofit purposes of | 25 | | the corporation or association. | 26 | | Such conveyance shall contain a limitation that the |
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| 1 | | lands or buildings shall be used only for the purposes of | 2 | | such organization or association, and to render such | 3 | | services or to provide such facilities as may be agreed | 4 | | upon and, if said lands or buildings are not used in | 5 | | accordance with the limitation, title shall revert back to | 6 | | the municipality without any entry or reentry made on the | 7 | | property on behalf of the municipality. | 8 | | Whenever a sale of property is proposed pursuant to this | 9 | | subsection, the municipality shall give at least 10 days' | 10 | | notice of such sale prior to a public hearing where an | 11 | | ordinance or resolution approving the sale is adopted. | 12 | | Property subject to an unexpired lease under subsection | 13 | | (b) is not eligible to be sold under this subsection, unless | 14 | | the lease would allow such a sale. | 15 | | (d) If
the nonprofit organization or association uses the | 16 | | property leased or purchased under this Section for the | 17 | | cultivation, sale, or cultivation and sale of fresh fruits and | 18 | | vegetables on a tract of land, the nonprofit organization or | 19 | | association may not be controlled, directly or indirectly, by | 20 | | any agricultural, commercial, or other business. The nonprofit | 21 | | organization or association is authorized to sell fresh fruits | 22 | | and vegetables either on the land that was leased or conveyed, | 23 | | off that land, or both, and the sales must be related and | 24 | | incidental to the nonprofit purposes of the organization or | 25 | | association and the net proceeds received by the nonprofit | 26 | | organization or association must be used to further the |
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| 1 | | nonprofit purposes of the organization or association. | 2 | | (e) Property leased or conveyed under this Section is | 3 | | exempt from property taxation under the Property Tax Code if | 4 | | the property is actually used for the cultivation, sale, or | 5 | | cultivation and sale of fresh fruits and vegetables and owned | 6 | | by a nonprofit organization or association that includes among | 7 | | its principal purposes the cultivation, sale, or cultivation | 8 | | and sale of fresh fruits and vegetables. Before property may | 9 | | be leased or conveyed under this Section, the nonprofit | 10 | | organization or association shall provide to the municipality | 11 | | proof of exemption issued under Section 15-65 of the Property | 12 | | Tax Code. ".
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