Public Act 90-0207 of the 90th General Assembly
Public Act 90-0207
HB0992 Enrolled LRB9003374KDks
AN ACT to amend the Property Tax Code by changing Section
15-65.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 15-65 as follows:
(35 ILCS 200/15-65)
Sec. 15-65. Charitable purposes. All property of the
following is exempt when actually and exclusively used for
charitable or beneficent purposes, and not leased or
otherwise used with a view to profit:
(a) Institutions of public charity.
(b) Beneficent and charitable organizations
incorporated in any state of the United States, including
organizations whose owner, and no other person, uses the
property exclusively for the distribution, sale, or
resale of donated goods and related activities and uses
all the income from those activities to support the
charitable, religious or beneficent activities of the
owner, whether or not such activities occur on the
property.
(c) Old people's homes, facilities for persons with
a developmental disability, and not-for-profit
organizations providing services or facilities related to
the goals of educational, social and physical
development, if, upon making application for the
exemption, the applicant provides affirmative evidence
that the home or facility or organization is an exempt
organization under paragraph (3) of Section 501(c) of the
Internal Revenue Code or its successor, and either: (i)
the bylaws of the home or facility or not-for-profit
organization provide for a waiver or reduction, based on
an individual's ability to pay, of any entrance fee,
assignment of assets, or fee for services, or (ii) the
home or facility is qualified, built or financed under
Section 202 of the National Housing Act of 1959, as
amended.
An applicant that has been granted an exemption
under this subsection on the basis that its bylaws
provide for a waiver or reduction, based on an
individual's ability to pay, of any entrance fee,
assignment of assets, or fee for services may be
periodically reviewed by the Department to determine if
the waiver or reduction was a past policy or is a current
policy. The Department may revoke the exemption if it
finds that the policy for waiver or reduction is no
longer current.
(d) Not-for-profit health maintenance organizations
certified by the Director of the Illinois Department of
Insurance under the Health Maintenance Organization Act,
including any health maintenance organization that
provides services to members at prepaid rates approved by
the Illinois Department of Insurance if the membership of
the organization is sufficiently large or of indefinite
classes so that the community is benefited by its
operation. No exemption shall apply to any hospital or
health maintenance organization which has been
adjudicated by a court of competent jurisdiction to have
denied admission to any person because of race, color,
creed, sex or national origin.
(e) All free public libraries.
(f) An historical society, but only if all taxing
districts within which the property is situated have
adopted a resolution finding that the society is a
charitable organization using the property exclusively
for charitable purposes.
Property otherwise qualifying for an exemption under this
Section shall not lose its exemption because the legal title
is held (i) by an entity that is organized solely to hold
that title and that qualifies under paragraph (2) of Section
501(c) of the Internal Revenue Code or its successor, whether
or not that entity receives rent from the charitable
organization for the repair and maintenance of the property,
or (ii) by an entity that is organized as a partnership, in
which the charitable organization, or an affiliate or
subsidiary of the charitable organization, is a general
partner, for the purposes of owning and operating a
residential rental property that has received an allocation
of Low Income Housing Tax Credits for 100% of the dwelling
units under Section 42 of the Internal Revenue Code of 1986,
or (iii) for any assessment year including and subsequent to
January 1, 1996 for which an application for exemption has
been filed and a decision on which has not become final and
nonappealable, by a limited liability company organized under
the Limited Liability Company Act provided that (A) the
limited liability company receives a notification from the
Internal Revenue Service that it qualifies under paragraph
(2) or (3) of Section 501(c) of the Internal Revenue Code;
(B) the limited liability company's sole members, as that
term is used in Section 1-5 of the Limited Liability Company
Act, are the institutions of public charity that actually and
exclusively use the property for charitable and beneficent
purposes; and (C) the limited liability company does not
lease the property or otherwise use it with a view to profit.
(Source: P.A. 88-455; 88-660, eff. 9-16-94; 88-670, eff.
12-2-94; 88-676, eff. 12-4-94; 89-235, eff. 8-4-95; 89-426,
eff. 6-1-96; 89-626, eff. 8-9-96.)