Illinois General Assembly - Full Text of SB0665
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Full Text of SB0665  102nd General Assembly


Sen. Bill Cunningham

Filed: 4/19/2021





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2    AMENDMENT NO. ______. Amend Senate Bill 665, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Property Tax Code is amended by changing
6Section 15-65 as follows:
7    (35 ILCS 200/15-65)
8    Sec. 15-65. Charitable purposes. All property of the
9following is exempt when actually and exclusively used for
10charitable or beneficent purposes, and not leased or otherwise
11used 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



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1    of donated goods and related activities and uses all the
2    income from those activities to support the charitable,
3    religious or beneficent activities of the owner, whether
4    or not such activities occur on the property.
5        (c) Old people's homes, facilities for persons with a
6    developmental disability, and not-for-profit
7    organizations providing services or facilities related to
8    the goals of educational, social and physical development,
9    if, upon making application for the exemption, the
10    applicant provides affirmative evidence that the home or
11    facility or organization is an exempt organization under
12    paragraph (3) of Section 501(c) of the Internal Revenue
13    Code or its successor, and either: (i) the bylaws of the
14    home or facility or not-for-profit organization provide
15    for a waiver or reduction, based on an individual's
16    ability to pay, of any entrance fee, assignment of assets,
17    or fee for services, or (ii) the home or facility is
18    qualified, built or financed under Section 202 of the
19    National Housing Act of 1959, as amended.
20        An applicant that has been granted an exemption under
21    this subsection on the basis that its bylaws provide for a
22    waiver or reduction, based on an individual's ability to
23    pay, of any entrance fee, assignment of assets, or fee for
24    services may be periodically reviewed by the Department to
25    determine if the waiver or reduction was a past policy or
26    is a current policy. The Department may revoke the



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1    exemption if it finds that the policy for waiver or
2    reduction is no longer current.
3        If a not-for-profit organization leases property that
4    is otherwise exempt under this subsection to an
5    organization that conducts an activity on the leased
6    premises that would entitle the lessee to an exemption
7    from real estate taxes if the lessee were the owner of the
8    property, then the leased property is exempt.
9        (d) Not-for-profit health maintenance organizations
10    certified by the Director of the Illinois Department of
11    Insurance under the Health Maintenance Organization Act,
12    including any health maintenance organization that
13    provides services to members at prepaid rates approved by
14    the Illinois Department of Insurance if the membership of
15    the organization is sufficiently large or of indefinite
16    classes so that the community is benefited by its
17    operation. No exemption shall apply to any hospital or
18    health maintenance organization which has been adjudicated
19    by a court of competent jurisdiction to have denied
20    admission to any person because of race, color, creed, sex
21    or national origin.
22        (e) All free public libraries.
23        (f) Historical societies.
24        (g) Cultivation and sale of fresh fruits and
25    vegetables. A vacant lot that is leased from a
26    municipality or owned by a nonprofit corporation or



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1    association for the cultivation, sale, or cultivation and
2    sale of fresh fruits and vegetables under Section 11-11-4
3    of the Illinois Municipal Code is exempt when actually and
4    exclusively used for such purposes. To qualify for the
5    exemption, the nonprofit corporation or association must
6    verify that it is not controlled, directly or indirectly,
7    by any agricultural, commercial, or other business. The
8    nonprofit corporation or association must also verify
9    that, if the fresh fruits or vegetables are sold, any
10    profits are used to further the mission of the exempt
11    organization.
12    Property otherwise qualifying for an exemption under this
13Section shall not lose its exemption because the legal title
14is held (i) by an entity that is organized solely to hold that
15title and that qualifies under paragraph (2) of Section 501(c)
16of the Internal Revenue Code or its successor, whether or not
17that entity receives rent from the charitable organization for
18the repair and maintenance of the property, (ii) by an entity
19that is organized as a partnership or limited liability
20company, in which the charitable organization, or an affiliate
21or subsidiary of the charitable organization, is a general
22partner of the partnership or managing member of the limited
23liability company, for the purposes of owning and operating a
24residential rental property that has received an allocation of
25Low Income Housing Tax Credits for 100% of the dwelling units
26under Section 42 of the Internal Revenue Code of 1986, as



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1amended, or (iii) for any assessment year including and
2subsequent to January 1, 1996 for which an application for
3exemption has been filed and a decision on which has not become
4final and nonappealable, by a limited liability company
5organized under the Limited Liability Company Act provided
6that (A) the limited liability company's sole member or
7members, as that term is used in Section 1-5 of the Limited
8Liability Company Act, are the institutions of public charity
9that actually and exclusively use the property for charitable
10and beneficent purposes; (B) the limited liability company is
11a disregarded entity for federal and Illinois income tax
12purposes and, as a result, the limited liability company is
13deemed exempt from income tax liability by virtue of the
14Internal Revenue Code Section 501(c)(3) status of its sole
15member or members; and (C) the limited liability company does
16not lease the property or otherwise use it with a view to
18(Source: P.A. 96-763, eff. 8-25-09.)
19    Section 10. The Illinois Municipal Code is amended by
20adding Section 11-11-4 as follows:
21    (65 ILCS 5/11-11-4 new)
22    Sec. 11-11-4. Lease, conveyance, or sale of property for
23cultivation and sale of fresh fruits and vegetables.
24    (a) As used in this Section, "vacant lot" means all or any



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1part of municipal-owned property, with or without
2improvements, not then needed for municipal purposes, as
3determined by the city council of a municipality.
4    (b) A city council may, by resolution or ordinance,
5authorize a leasehold to be made with a nonprofit corporation
6or association for a term not in excess of 25 years, and
7extended in increments of no more than 25 years, by ordinance
8or resolution thereafter for one or more of the following
10        (1) The cultivation or use of a vacant lot for
11    gardening fruits and vegetables.
12        (2) The use of a vacant lot to sell fresh fruits and
13    vegetables. Any lease entered into pursuant to this
14    paragraph may permit the nonprofit corporation or
15    association to sell fresh fruits and vegetables on the
16    leased land, off the leased land, or both, if the sales are
17    related and incidental to the nonprofit purposes of the
18    corporation or association and the net proceeds received
19    by the nonprofit corporation or association are used to
20    further the nonprofit purposes of the corporation or
21    association.
22    (c) A city council may, by resolution or ordinance,
23authorize a private sale or conveyance of a vacant lot, or any
24part thereof, for nominal consideration, without compliance
25with any other law governing disposal of lands by
26municipalities requiring adequate consideration, to a



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1nonprofit corporation or association for use for one or more
2of the following purposes:
3        (1) The cultivation or use of the lot for gardening
4    fruits and vegetables.
5        (2) The use of the lot to sell fresh fruits and
6    vegetables. Any sale or conveyance entered into pursuant
7    to this paragraph may permit the nonprofit corporation or
8    association to sell fresh fruits and vegetables on the
9    lot, off the lot, or both, provided, that: (i) the sales
10    are related and incidental to the purpose of the nonprofit
11    corporation or association and (ii) the net proceeds
12    received by the nonprofit corporation or association are
13    used to further the purposes of the nonprofit corporation
14    or association.
15    Any conveyance or sale of property pursuant to this
16subsection shall contain a limitation that the property shall
17only be used by the nonprofit corporation or association for
18one or more of the following purposes: (i) the cultivation of
19land for gardening fruits and vegetables; or (ii) the sale of
20fresh fruits and vegetables. If it is determined by the city
21council of the municipality that the property is being used
22for any purpose other than the purposes set forth in this
23subsection, its full right and title shall revert back to the
24municipality without any entry or reentry made on the property
25on behalf of the municipality.
26    Whenever a sale of property is proposed pursuant to this



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1subsection, the municipality shall give at least 10 days'
2notice of such sale prior to a public hearing where an
3ordinance or resolution approving the sale is adopted.
4    Property subject to an unexpired lease under subsection
5(b) is not eligible to be sold under this subsection, unless
6the lease would allow such a sale.
7    (d) A nonprofit organization or association leasing,
8conveyed, or sold a lot under this Section may not be
9controlled, directly or indirectly, by any agricultural,
10commercial, or other business. The nonprofit organization or
11association must also include among its principal purposes the
12cultivation, sale, or cultivation and sale of fresh fruits and
14    (e) A nonprofit organization or association leasing,
15conveyed, or sold a lot under this Section is authorized to
16sell fresh fruits and vegetables either on the land, off the
17land, or both, and the sales must be related and incidental to
18the nonprofit purposes of the organization or association and
19the net proceeds received by the nonprofit organization or
20association must be used to further the nonprofit purposes of
21the organization or association.
22    (f) Property leased, conveyed, or sold under this Section
23may be exempt from property taxation if the requirements of
24subsection (g) of Section 15-65 of the Property Tax Code are
25sufficiently met and the property is actually and exclusively
26used for the cultivation, sale, or cultivation and sale of



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1fresh fruits and vegetables.".