Section 110.113 Fraternal Organization Assessment Freeze

Section 110

Section 110.113  Fraternal

Organization Assessment Freeze

a)         Eligibility

1)         Section 10-355 of the Property Tax Code [35 ILCS 200/10-355]

provides that, for taxable year 2002 and thereafter, a fraternal organization,

or its subordinate organization or entity, may apply for a Fraternal

Organization Assessment Freeze on property it owns and uses, provided that it

satisfies all of the following requirements in either Group A or Group B:

A)        Group A

i)          was chartered in the State of Illinois in February 1898;

ii)         is an exempt entity under section 501(c)(8) of the Internal

Revenue Code (26 USC 501(c)(8)); and

iii)        has members who provide direct or indirect financial support

for charitable works, such as medical care, drug rehabilitation, or education.

B)        Group B

i)          had its national headquarters in the State of Illinois on

December 31, 1926;

ii)         is an exempt entity under section 501(c)(8) of the Internal

Revenue Code (26 USC 501(c)(8)); and

iii)        has members who provide direct or indirect financial support

for charitable works, such as medical care, drug rehabilitation, or education.

2)         Section 10-350 of the Property Tax Code provides that for

taxable year 2001 and thereafter, a fraternal organization chartered by the

State of Illinois prior to 1900, or its subordinate organization or entity, may

apply for a Fraternal Organization Assessment Freeze on property it owns and

uses, provided that:

A)        the fraternal organization prohibits gambling and the use of

alcohol on the property;

B)        the fraternal organization is an exempt entity under section

501(c)(10) of the Internal Revenue Code; and

C)        the members of the fraternal organization provide direct or

indirect financial support for charitable works, such as medical care, drug

rehabilitation or education

ided that:

A)        the fraternal organization prohibits gambling and the use of

alcohol on the property;

B)        the fraternal organization is an exempt entity under section

501(c)(10) of the Internal Revenue Code; and

C)        the members of the fraternal organization provide direct or

indirect financial support for charitable works, such as medical care, drug

rehabilitation or education.

3)         Section 10-360 of the Property Tax Code [35 ILCS 200/10-360]

provides that, for the taxable year 2003 and thereafter, a fraternal

organization or its affiliated Illinois not for profit corporation chartered

prior to 1920 may apply for a Fraternal Organization Assessment Freeze on

property it owns or uses, provided that:

A)        the fraternal organization is an exempt entity under section

501(c)(2), (c)(8) or (c)(10) of the Internal Revenue Code; and

B)        the members of the fraternal organization provide direct or

indirect financial support for charitable works, such as medical care, drug

rehabilitation or education.

b)         Applications

An application

form (Form No. PTAX-764 for qualification under Section 10-350 of the Property

Tax Code [35 ILCS 200/10-350], Form No. PTAX-765 for qualification under

Section 10-355 of the Property Tax Code [35 ILCS 200/10-355] and Form No.

PTAX-766 for qualification under Section 10-360 of the Property Tax Code [35

ILCS 200/10-360]) for a Fraternal Organization Assessment Freeze shall be

obtained from the Chief County Assessment Officer in the county in which the

property is located.  All questions on the application shall be answered

completely and the chief presiding officer of the fraternal organization shall

sign the form.  Fraternal organizations shall annually submit a notarized

application form to the Chief County Assessment Officer on or before January 31

of each assessment year in counties with a population of 3,000,000 or more and

December 31 of each assessment year in all other counties

ication shall be answered

completely and the chief presiding officer of the fraternal organization shall

sign the form.  Fraternal organizations shall annually submit a notarized

application form to the Chief County Assessment Officer on or before January 31

of each assessment year in counties with a population of 3,000,000 or more and

December 31 of each assessment year in all other counties.

c)         Documentation

Fraternal organizations shall, at a minimum, attach all

required documentation to the initial application form as follows:

1)         For qualification under Section 10-350 of the Property Tax

Code [35 ILCS 200/10-350] as described under subsection (a)(2), proof of being

a qualified fraternal organization, such as a copy of:

A)        a charter issued by the State of Illinois prior to 1900;

B)        a certification that the fraternal organization was issued an

Illinois charter prior to 1900;

C)        a certification that the fraternal organization was chartered

by a qualified fraternal organization that was issued an Illinois charter prior

to 1900; or

D)        a certification that the fraternal organization is subordinate

to a qualified fraternal organization that was issued an Illinois charter prior

to 1900.

2)         For qualification under Section 10-355 of the Property Tax

Code [35 ILCS 200/10-355] as described for Group A under subsection (a)(1)(A),

proof of being a qualified fraternal organization, such as a copy of:

A)        a charter for the fraternal organization in the State of

Illinois in February 1898;

B)        a certification that the fraternal organization was chartered

in the State of Illinois in February 1898;

C)        a certification that the fraternal organization was chartered

by a qualified fraternal organization that was chartered in the State of

Illinois in February 1898; or

D)        a certification that the fraternal organization is subordinate

to a qualified fraternal organization that was chartered in the State of

Illinois in February 1898

tered

in the State of Illinois in February 1898;

C)        a certification that the fraternal organization was chartered

by a qualified fraternal organization that was chartered in the State of

Illinois in February 1898; or

D)        a certification that the fraternal organization is subordinate

to a qualified fraternal organization that was chartered in the State of

Illinois in February 1898.

3)         For qualification under Section 10-355 of the Property Tax

Code [35 ILCS 200/10-355] as described for Group B under subsection (a)(1)(B),

proof of being a qualified fraternal organization, such as a copy of:

A)        historical records or other evidence establishing that the

fraternal organization had its national headquarters in the State of Illinois

on December 31, 1926;

B)        a certification that the fraternal organization had its

national headquarters in the State of Illinois on December 31, 1926; or

C)        a certification that the fraternal organization is subordinate

to a fraternal organization that had its national headquarters in the State of

Illinois on December 31, 1926.

4)         For qualification under Section 10-360 of the Property Tax

Code [35 ILCS 200/10-360] as described under subsection (a)(3), proof of being

a qualified fraternal organization, such as a copy of:

A)        a charter issued by the State of Illinois prior to 1920;

B)        a certification that the fraternal organization was chartered

in Illinois prior to 1920; or

C)        a certification that the fraternal organization was affiliated

with a qualified fraternal organization that was chartered in Illinois prior to

1920

proof of being

a qualified fraternal organization, such as a copy of:

A)        a charter issued by the State of Illinois prior to 1920;

B)        a certification that the fraternal organization was chartered

in Illinois prior to 1920; or

C)        a certification that the fraternal organization was affiliated

with a qualified fraternal organization that was chartered in Illinois prior to

1920.

5)         Proof of having exempt status under section 501(c)(10) of the

Internal Revenue Code (26 USC 501(c)(10)) for qualification under Section

10-350 of the Property Tax Code [35 ILCS 200/10-350], or under section

501(c)(8) of the Internal Revenue Code (26 USC 501(c)(8)) for qualification

under Section 10-355 of the Property Tax Code [35 ILCS 200/10-355], or under section

501(c)(2) of the Internal Revenue Code (26 USC 501(c)(2), (c)(8), (c)(10)) for

qualification under Section 10-360 of the Property Tax Code [35 ILCS

200/10-360], such as a copy of:

A)        a group exemption letter from the Internal Revenue Service to a

fraternal organization, plus its annual filing to the Internal Revenue Service

listing any other fraternal organizations covered by the letter;

B)        a U.S. Form 990; or

C)        a determination letter issued in response to U.S. Form 1024 by

the Internal Revenue Service.

6)         Proof of having ownership or other legal or equitable interest

in the property, such as a copy of:

A)        a deed;

B)        a contract-for-deed;

C)        a trust document;

D)        a title insurance policy;

E)        an organizational agreement;

F)         an incorporation document;

G)        a court order; or

H)        an affidavit of adverse possession.

7)         Copies of leases or contracts concerning the property, if

applicable

equitable interest

in the property, such as a copy of:

A)        a deed;

B)        a contract-for-deed;

C)        a trust document;

D)        a title insurance policy;

E)        an organizational agreement;

F)         an incorporation document;

G)        a court order; or

H)        an affidavit of adverse possession.

7)         Copies of leases or contracts concerning the property, if

applicable.

d)         Verification

The Chief County Assessment Officer of each county may verify

information contained on applications for a Fraternal Organization Assessment

Freeze by any of the following methods:

1)         Requiring each applicant, at the time of filing an

application, to produce for inspection by the Chief County Assessment Officer,

or a designee, any or all of the documentation specified in subsections (b) and

(c);

2)         Establishing uniform audit guidelines and procedures for

determining under what circumstances additional documentation will be required

from applicants and what procedures will be used to obtain that documentation

from applicants;

3)         Examining under oath the affiant on the application or any

other member of the fraternal organization, chartered fraternal organization,

or subordinate fraternal organization; and

4)         Examining any public records or conducting an investigation to

determine the identity of persons using the property for the assessment year.