103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4456 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-65 Amends the Property Tax Code. Provides that certain property on which a community-integrated living arrangement is located is exempt from taxation under the Code. Effective immediately. LRB103 34634 HLH 64475 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4456 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-65 35 ILCS 200/15-65 Amends the Property Tax Code. Provides that certain property on which a community-integrated living arrangement is located is exempt from taxation under the Code. Effective immediately. LRB103 34634 HLH 64475 b LRB103 34634 HLH 64475 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4456 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-65 35 ILCS 200/15-65
35 ILCS 200/15-65
Amends the Property Tax Code. Provides that certain property on which a community-integrated living arrangement is located is exempt from taxation under the Code. Effective immediately.
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A BILL FOR
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HB4456 LRB103 34634 HLH 64475 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 15-65 as follows:
6 (35 ILCS 200/15-65)
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 leased or otherwise
10 used with a view to profit:
11 (a) Institutions of public charity.
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
19 or not such activities occur on the property.
20 (c) Old people's homes, facilities for persons with a
21 developmental disability, and not-for-profit
22 organizations providing services or facilities related to
23 the goals of educational, social and physical development,
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4456 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
35 ILCS 200/15-65 35 ILCS 200/15-65
35 ILCS 200/15-65
Amends the Property Tax Code. Provides that certain property on which a community-integrated living arrangement is located is exempt from taxation under the Code. Effective immediately.
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LRB103 34634 HLH 64475 b
A BILL FOR
35 ILCS 200/15-65
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1 if, upon making application for the exemption, the
2 applicant provides affirmative evidence that the home or
3 facility or organization is an exempt organization under
4 paragraph (3) of Section 501(c) of the Internal Revenue
5 Code or its successor, and either: (i) the bylaws of the
6 home or facility or not-for-profit organization provide
7 for a waiver or reduction, based on an individual's
8 ability to pay, of any entrance fee, assignment of assets,
9 or fee for services, or (ii) the home or facility is
10 qualified, built or financed under Section 202 of the
11 National Housing Act of 1959, as amended.
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.
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
25 from real estate taxes if the lessee were the owner of the
26 property, then the leased property is exempt.
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1 (d) Not-for-profit health maintenance organizations
2 certified by the Director of the Illinois Department of
3 Insurance under the Health Maintenance Organization Act,
4 including any health maintenance organization that
5 provides services to members at prepaid rates approved by
6 the Illinois Department of Insurance if the membership of
7 the organization is sufficiently large or of indefinite
8 classes so that the community is benefited by its
9 operation. No exemption shall apply to any hospital or
10 health maintenance organization which has been adjudicated
11 by a court of competent jurisdiction to have denied
12 admission to any person because of race, color, creed, sex
13 or national origin.
14 (e) All free public libraries.
15 (f) Historical societies.
16 (g) Property on which a community-integrated living
17 arrangement is located. If the community-integrated living
18 arrangement is not operated by a not-for-profit
19 organization, then the exemption under this paragraph (g)
20 applies only if all of the following conditions are met:
21 (1) the property must be owned by a resident of the
22 community-integrated living arrangement, by a family
23 member of a resident of the community-integrated
24 living arrangement, or by a limited liability company
25 that has a member who is a resident of the
26 community-integrated living arrangement or a family
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1 member of a resident of the community-integrated
2 living arrangement;
3 (2) the community-integrated living arrangement
4 must be the principal place of residence of at least
5 one other person who is not a family member of an owner
6 or member described in item (1);
7 (3) the community-integrated living arrangement
8 must be licensed under the Community-Integrated Living
9 Arrangements Licensure and Certification Act; and
10 (4) the owner of the property may not be the owner
11 of any other community-integrated living arrangement.
12 As used in this paragraph (g):
13 "Community-integrated living arrangement" has the
14 meaning given to that term in Section 3 of the
15 Community-Integrated Living Arrangements Licensure and
16 Certification Act.
17 "Family member" means a spouse, civil union partner,
18 child, stepchild, grandchild, sibling, aunt, uncle, niece,
19 nephew, first cousin, parent, stepparent, or grandparent
20 of a person who is a resident of the community-integrated
21 living arrangement.
22 Property otherwise qualifying for an exemption under this
23 Section shall not lose its exemption because the legal title
24 is held (i) by an entity that is organized solely to hold that
25 title and that qualifies under paragraph (2) of Section 501(c)
26 of the Internal Revenue Code or its successor, whether or not
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1 that entity receives rent from the charitable organization for
2 the repair and maintenance of the property, (ii) by an entity
3 that is organized as a partnership or limited liability
4 company, in which the charitable organization, or an affiliate
5 or subsidiary of the charitable organization, is a general
6 partner of the partnership or managing member of the limited
7 liability company, for the purposes of owning and operating a
8 residential rental property that has received an allocation of
9 Low Income Housing Tax Credits for 100% of the dwelling units
10 under Section 42 of the Internal Revenue Code of 1986, as
11 amended, or (iii) for any assessment year including and
12 subsequent to January 1, 1996 for which an application for
13 exemption has been filed and a decision on which has not become
14 final and nonappealable, by a limited liability company
15 organized under the Limited Liability Company Act provided
16 that (A) the limited liability company's sole member or
17 members, as that term is used in Section 1-5 of the Limited
18 Liability Company Act, are the institutions of public charity
19 that actually and exclusively use the property for charitable
20 and beneficent purposes; (B) the limited liability company is
21 a disregarded entity for federal and Illinois income tax
22 purposes and, as a result, the limited liability company is
23 deemed exempt from income tax liability by virtue of the
24 Internal Revenue Code Section 501(c)(3) status of its sole
25 member or members; and (C) the limited liability company does
26 not lease the property or otherwise use it with a view to
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1 profit.
2 (Source: P.A. 96-763, eff. 8-25-09.)
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