State of Illinois
91st General Assembly
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Public Act 91-0416

HB0578 Enrolled                                LRB9102898PTpk

    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 societies 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,
(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.  89-235,  eff.  8-4-95;  89-426,  eff. 6-1-96;
89-626, eff. 8-9-96; 90-207, eff. 1-1-98.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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