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91_HB0578eng HB0578 Engrossed LRB9102898PTpk 1 AN ACT to amend the Property Tax Code by changing Section 2 15-65. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Property Tax Code is amended by changing 6 Section 15-65 as follows: 7 (35 ILCS 200/15-65) 8 Sec. 15-65. Charitable purposes. All property of the 9 following is exempt when actually and exclusively used for 10 charitable or beneficent purposes, and not leased or 11 otherwise used with a view to profit: 12 (a) Institutions of public charity. 13 (b) Beneficent and charitable organizations 14 incorporated in any state of the United States, including 15 organizations whose owner, and no other person, uses the 16 property exclusively for the distribution, sale, or 17 resale of donated goods and related activities and uses 18 all the income from those activities to support the 19 charitable, religious or beneficent activities of the 20 owner, whether or not such activities occur on the 21 property. 22 (c) Old people's homes, facilities for persons with 23 a developmental disability, and not-for-profit 24 organizations providing services or facilities related to 25 the goals of educational, social and physical 26 development, if, upon making application for the 27 exemption, the applicant provides affirmative evidence 28 that the home or facility or organization is an exempt 29 organization under paragraph (3) of Section 501(c) of the 30 Internal Revenue Code or its successor, and either: (i) 31 the bylaws of the home or facility or not-for-profit HB0578 Engrossed -2- LRB9102898PTpk 1 organization provide for a waiver or reduction, based on 2 an individual's ability to pay, of any entrance fee, 3 assignment of assets, or fee for services, or (ii) the 4 home or facility is qualified, built or financed under 5 Section 202 of the National Housing Act of 1959, as 6 amended. 7 An applicant that has been granted an exemption 8 under this subsection on the basis that its bylaws 9 provide for a waiver or reduction, based on an 10 individual's ability to pay, of any entrance fee, 11 assignment of assets, or fee for services may be 12 periodically reviewed by the Department to determine if 13 the waiver or reduction was a past policy or is a current 14 policy. The Department may revoke the exemption if it 15 finds that the policy for waiver or reduction is no 16 longer current. 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 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 25 operation. No exemption shall apply to any hospital or 26 health maintenance organization which has been 27 adjudicated by a court of competent jurisdiction to have 28 denied admission to any person because of race, color, 29 creed, sex or national origin. 30 (e) All free public libraries. 31 (f)AnHistorical societiessociety, but only if32all taxing districts within which the property is33situated have adopted a resolution finding that the34society is a charitable organization using the propertyHB0578 Engrossed -3- LRB9102898PTpk 1exclusively for charitable purposes. 2 Property otherwise qualifying for an exemption under this 3 Section shall not lose its exemption because the legal title 4 is held (i) by an entity that is organized solely to hold 5 that title and that qualifies under paragraph (2) of Section 6 501(c) of the Internal Revenue Code or its successor, whether 7 or not that entity receives rent from the charitable 8 organization for the repair and maintenance of the property, 9 (ii) by an entity that is organized as a partnership, in 10 which the charitable organization, or an affiliate or 11 subsidiary of the charitable organization, is a general 12 partner, for the purposes of owning and operating a 13 residential rental property that has received an allocation 14 of Low Income Housing Tax Credits for 100% of the dwelling 15 units under Section 42 of the Internal Revenue Code of 1986, 16 or (iii) for any assessment year including and subsequent to 17 January 1, 1996 for which an application for exemption has 18 been filed and a decision on which has not become final and 19 nonappealable, by a limited liability company organized under 20 the Limited Liability Company Act provided that (A) the 21 limited liability company receives a notification from the 22 Internal Revenue Service that it qualifies under paragraph 23 (2) or (3) of Section 501(c) of the Internal Revenue Code; 24 (B) the limited liability company's sole members, as that 25 term is used in Section 1-5 of the Limited Liability Company 26 Act, are the institutions of public charity that actually and 27 exclusively use the property for charitable and beneficent 28 purposes; and (C) the limited liability company does not 29 lease the property or otherwise use it with a view to profit. 30 (Source: P.A. 89-235, eff. 8-4-95; 89-426, eff. 6-1-96; 31 89-626, eff. 8-9-96; 90-207, eff. 1-1-98.) 32 Section 99. Effective date. This Act takes effect upon 33 becoming law.