Bill Text: IL HB4880 | 2009-2010 | 96th General Assembly | Introduced

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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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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB4880 Introduced 1/15/2010, by Rep. Keith P. Sommer SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-65
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.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
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, except as otherwise
provided below, 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

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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.
If a not-for-profit organization leases property that
is otherwise exempt under this subsection to an
organization that conducts an activity on the leased
premises that would entitle the lessee to an exemption from
real estate taxes if the lessee were the owner of the
property, then the leased property is exempt.

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Beginning in taxable year 2010, if residential real
property that otherwise satisfies the requirements of this
subsection (c) 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. Once such property is
exempt from taxation, it shall remain exempt so long as it
is (i) rented or leased for a de minimus sum to the exempt
organization and (ii) operated and controlled by that
organization solely for use as a community integrated
living arrangement. The Chief County Assessment Officer
may require lessors seeking this exemption to annually file
an application verifying the satisfaction of these
requirements.
(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

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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) Historical societies.
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 or limited liability
company, in which the charitable organization, or an affiliate
or subsidiary of the charitable organization, is a general
partner of the partnership or managing member of the limited
liability company, 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, as
amended, 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's sole member or members, as

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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; (B) the limited liability company is a
disregarded entity for federal and Illinois income tax purposes
and, as a result, the limited liability company is deemed
exempt from income tax liability by virtue of the Internal
Revenue Code Section 501(c)(3) status of its sole member or
members; and (C) the limited liability company does not lease
the property or otherwise use it with a view to profit.
(Source: P.A. 96-763, eff. 8-25-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.