Bill Text: IL HB4880 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Provides that, beginning in taxable year 2010, if residential real property is (i) rented or leased for a de minimus sum to an organization that is exempt under paragraph (3) of Section 501(c) of the Internal Revenue Code and (ii) operated and controlled by that organization solely for use as a community integrated living arrangement, then that property is exempt from taxation. Provides that once such property is exempt from taxation, it shall remain exempt so long as it is (i) rented or leased to the exempt organization for a de minimus sum and (ii) operated and controlled by that organization solely for use as a community integrated living arrangement. Authorizes the Chief County Assessment Officer to require lessors seeking this exemption to annually file an application verifying the satisfaction of these requirements. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB4880 Detail]
Download: Illinois-2009-HB4880-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||||||||||||||||||||
5 | Section 15-65 as follows:
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6 | (35 ILCS 200/15-65)
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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 , except as otherwise | ||||||||||||||||||||||||
10 | provided below, leased or otherwise used with a view to profit:
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11 | (a) Institutions of public charity.
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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.
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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
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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
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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.
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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.
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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.
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1 | Beginning in taxable year 2010, if residential real | ||||||
2 | property that otherwise satisfies the requirements of this | ||||||
3 | subsection (c) is (i) rented or leased for a de minimus sum | ||||||
4 | to an organization that is exempt
under paragraph (3) of | ||||||
5 | Section 501(c) of the Internal Revenue Code and (ii) | ||||||
6 | operated and controlled by that organization solely for use | ||||||
7 | as a community integrated living arrangement, then that | ||||||
8 | property is exempt from taxation. Once such property is | ||||||
9 | exempt from taxation, it shall remain exempt so long as it | ||||||
10 | is (i) rented or leased for a de minimus sum to the exempt | ||||||
11 | organization and (ii) operated and controlled by that | ||||||
12 | organization solely for use as a community integrated | ||||||
13 | living arrangement. The Chief County Assessment Officer | ||||||
14 | may require lessors seeking this exemption to annually file | ||||||
15 | an application verifying the satisfaction of these | ||||||
16 | requirements.
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17 | (d) Not-for-profit health maintenance organizations | ||||||
18 | certified by the
Director of the Illinois Department of | ||||||
19 | Insurance under the Health Maintenance
Organization Act, | ||||||
20 | including any health maintenance organization that
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21 | provides services to members at prepaid rates approved by | ||||||
22 | the Illinois
Department of Insurance if the membership of | ||||||
23 | the organization is sufficiently
large or of indefinite | ||||||
24 | classes so that the community is benefited by its
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25 | operation. No exemption shall apply to any hospital or | ||||||
26 | health maintenance
organization which has been adjudicated |
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1 | by a court of competent jurisdiction to
have denied | ||||||
2 | admission to any person because of race, color, creed, sex | ||||||
3 | or
national origin.
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4 | (e) All free public libraries.
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5 | (f) Historical societies.
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6 | Property otherwise qualifying for an exemption under this | ||||||
7 | Section shall not
lose its exemption because the legal title is | ||||||
8 | held (i) by an entity that is
organized solely to hold that | ||||||
9 | title and that qualifies under paragraph (2) of
Section 501(c) | ||||||
10 | of the Internal Revenue Code or its successor, whether or not
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11 | that entity receives rent from the charitable organization for | ||||||
12 | the repair and
maintenance of the property, (ii) by an entity | ||||||
13 | that is organized as
a
partnership or limited liability | ||||||
14 | company, in which the charitable organization, or an affiliate | ||||||
15 | or
subsidiary of the charitable organization, is a general | ||||||
16 | partner of the partnership or managing member of the limited | ||||||
17 | liability company, for the
purposes of owning and operating a | ||||||
18 | residential rental property that has
received an allocation of | ||||||
19 | Low Income Housing Tax Credits for 100%
of the dwelling units | ||||||
20 | under Section 42 of the Internal Revenue
Code of 1986, as | ||||||
21 | amended, or (iii) for any assessment year including and | ||||||
22 | subsequent to
January 1, 1996 for which an application for | ||||||
23 | exemption has been filed and a
decision on which has not become | ||||||
24 | final and nonappealable, by a limited
liability company | ||||||
25 | organized under the Limited Liability Company Act provided
that | ||||||
26 | (A) the limited liability
company's sole member or
members, as |
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1 | that term is used in Section 1-5 of the Limited Liability | ||||||
2 | Company
Act, are the institutions of public charity that | ||||||
3 | actually and exclusively use
the property for charitable and | ||||||
4 | beneficent purposes; (B) the limited liability company is a | ||||||
5 | disregarded entity for federal and Illinois income tax purposes | ||||||
6 | and, as a result, the limited liability company is deemed | ||||||
7 | exempt from income tax liability by virtue of the Internal | ||||||
8 | Revenue Code Section 501(c)(3) status of its sole member or | ||||||
9 | members; and (C) the limited
liability company does not lease | ||||||
10 | the property or otherwise use it with a view
to profit.
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11 | (Source: P.A. 96-763, eff. 8-25-09.)
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12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
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