Full Text of HB0779 95th General Assembly
HB0779 95TH GENERAL ASSEMBLY
|
|
|
95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0779
Introduced 2/7/2007, by Rep. William B. Black SYNOPSIS AS INTRODUCED: |
|
|
Amends the Property Tax Code. In a provision concerning tax exemptions for charitable purposes, sets forth requirements that a hospital must meet to be deemed to be actually and exclusively used for charitable purposes. Effective immediately.
|
| |
|
|
FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
|
|
A BILL FOR
|
|
|
|
|
HB0779 |
|
LRB095 09437 BDD 29634 b |
|
| 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 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 | 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.
| 20 |
| (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
|
|
|
|
HB0779 |
- 2 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| 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
| 5 |
| 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.
| 12 |
| 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.
| 21 |
| 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.
|
|
|
|
HB0779 |
- 3 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| (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
| 5 |
| 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
| 9 |
| 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.
| 14 |
| (e) All free public libraries.
| 15 |
| (f) Historical societies.
| 16 |
| (g) Notwithstanding any other provision of law, for any | 17 |
| assessment year for which an application has been filed and | 18 |
| a decision on which has not become final and nonappealable | 19 |
| as of the effective date of this amendatory Act of the 95th | 20 |
| General Assembly, real property that is used in furtherance | 21 |
| of the establishment, operation, administration, | 22 |
| preservation, security, repair, or maintenance of a | 23 |
| not-for-profit hospital is deemed to be actually and | 24 |
| exclusively used for charitable purposes if all of the | 25 |
| following requirements are satisfied:
| 26 |
| (1) The hospital benefits the general welfare of an |
|
|
|
HB0779 |
- 4 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| indefinite number of persons by providing health care | 2 |
| to persons in its community in a way that does not | 3 |
| discriminate based on race, religion, gender, or | 4 |
| national origin.
| 5 |
| (2) The hospital does not have capital stock or | 6 |
| shareholders and none of the hospital's net earnings | 7 |
| inure to the benefit of private individuals, as the | 8 |
| private inurement standard is interpreted under | 9 |
| Section 501(c)(3) of the Internal Revenue Code.
| 10 |
| (3) The majority of the hospital's operating funds | 11 |
| are derived from and used for the provision of health | 12 |
| care services or donations.
| 13 |
| (4) The hospital dispenses charity to all who need | 14 |
| and apply for it and does not place obstacles in the | 15 |
| way of those who need and would avail themselves of its | 16 |
| charitable
benefits. This standard is satisfied if:
| 17 |
| (A) The hospital provides emergency services, | 18 |
| as required under the Hospital Licensing Act, to | 19 |
| patients regardless of their ability to pay; | 20 |
| (B) The hospital provides financial assistance | 21 |
| to patients in accordance with a written policy | 22 |
| that is
based on community need, the available | 23 |
| resources of the hospital, and other factors that | 24 |
| may be unique to the hospital, such as the | 25 |
| hospital's volume of Medicare and Medicaid | 26 |
| patients; and |
|
|
|
HB0779 |
- 5 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| (C) The hospital provides notice of the | 2 |
| availability of financial assistance to patients | 3 |
| by posting signs that are visible to the public in | 4 |
| the hospital and by including such a statement on | 5 |
| or with the bill that is sent to uninsured | 6 |
| patients.
| 7 |
| Notwithstanding any other provision of law, a | 8 |
| hospital does not fail to satisfy the requirements of | 9 |
| this item (4) by requiring verification of a patient's | 10 |
| financial condition before providing financial | 11 |
| assistance or by pursuing collection from a patient who | 12 |
| does not apply or qualify for financial assistance | 13 |
| under the hospital's written financial assistance | 14 |
| policy.
| 15 |
| (5) The hospital's property is actually and | 16 |
| factually used in furtherance of providing health | 17 |
| care, including but not limited to gift shops, | 18 |
| cafeterias, and parking facilities that are used by | 19 |
| patients, visitors, and staff and facilities for staff | 20 |
| and community education. A hospital does not fail to | 21 |
| satisfy this standard by entering into independent | 22 |
| contracts with providers of services to the hospital or | 23 |
| its patients, provided that such contracts are entered | 24 |
| into on an arm's length basis. If a hospital leases | 25 |
| property that is otherwise exempt under this | 26 |
| subsection to an organization that conducts an |
|
|
|
HB0779 |
- 6 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| activity on the leased premises that is in furtherance | 2 |
| of the establishment, operation, administration, | 3 |
| preservation, security, repair, or maintenance of the | 4 |
| hospital, then the leased property is exempt. If a | 5 |
| not-for-profit organization leases property that is | 6 |
| otherwise exempt under this subsection to an | 7 |
| organization that conducts an activity on the leased | 8 |
| premises that would entitle the lessee to an exemption | 9 |
| from real estate taxes if the lessee were the owner of | 10 |
| the property, then the leased property is exempt.
| 11 |
| (6) The hospital's property is primarily used in | 12 |
| furtherance of providing health care. This standard is | 13 |
| satisfied if the use of the hospital's property for | 14 |
| health care is not simply an incidental or secondary | 15 |
| use.
| 16 |
| Property otherwise qualifying for an exemption under this | 17 |
| Section shall not
lose its exemption because the legal title is | 18 |
| held (i) by an entity that is
organized solely to hold that | 19 |
| title and that qualifies under paragraph (2) of
Section 501(c) | 20 |
| of the Internal Revenue Code or its successor, whether or not
| 21 |
| that entity receives rent from the charitable organization for | 22 |
| the repair and
maintenance of the property, (ii) by an entity | 23 |
| that is organized as
a
partnership, in which the charitable | 24 |
| organization, or an affiliate or
subsidiary of the charitable | 25 |
| organization, is a general partner, for the
purposes of owning | 26 |
| and operating a residential rental property that has
received |
|
|
|
HB0779 |
- 7 - |
LRB095 09437 BDD 29634 b |
|
| 1 |
| an allocation of Low Income Housing Tax Credits for 100%
of the | 2 |
| dwelling units under Section 42 of the Internal Revenue
Code of | 3 |
| 1986, or (iii) for any assessment year including and subsequent | 4 |
| to
January 1, 1996 for which an application for exemption has | 5 |
| been filed and a
decision on which has not become final and | 6 |
| nonappealable, by a limited
liability company organized under | 7 |
| the Limited Liability Company Act provided
that (A) the limited | 8 |
| liability company receives a notification from the
Internal | 9 |
| Revenue Service that it qualifies under paragraph (2) or (3) of
| 10 |
| Section 501(c) of the Internal Revenue Code; (B) the limited | 11 |
| liability
company's sole
members, as that term is used in | 12 |
| Section 1-5 of the Limited Liability Company
Act, are the | 13 |
| institutions of public charity that actually and exclusively | 14 |
| use
the property for charitable and beneficent purposes; and | 15 |
| (C) the limited
liability company does not lease the property | 16 |
| or otherwise use it with a view
to profit.
| 17 |
| (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)
| 18 |
| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law. |
|