Illinois Beta House Fund Corporation v. Illinois Department of Revenue

State: Illinois

Court: 1st District Appellate

Docket No: 1-07-0624 Rel

Case Date: 04/25/2008

Preview:SIXTH DIVISION April 25, 2008

No. 1-07-0624 ILLINOIS BETA HOUSE FUND CORPORATION, Plaintiff-Appellant, v. ILLINOIS DEPARTMENT OF REVENUE, and BRIAN A. HAMER, Director, Department of Revenue, Defendants-Appellees. ) ) ) ) ) ) ) ) ) ) Appeal from the Circuit Court of Cook County 04 L 50223 Honorable Rita M. Novak, Judge Presiding

PRESIDING JUSTICE McBRIDE delivered the opinion of the court: Plaintiff Illinois Beta House Fund Corporation appeals from an order of the circuit court of Cook County affirming the finding of defendant Illinois Department of Revenue that real property owned by plaintiff is not exempt from taxation for the year 2000. The subject real property is the Phi Delta Theta Fraternity House, situated at 5625 South University Avenue, Chicago, 60637, near the main campus of the University of Chicago. The plaintiff argues it is entitled to an exemption under section 15-35(c) of the Property Tax Code (35 ILCS 200/15-35 (West 1998)), because its residential real estate is being "used for *** college, *** university or other educational purposes." The real property is used primarily to provide housing to male students of the University of Chicago who are members of the Illinois Beta Chapter of the Phi Delta Theta Fraternity. Occasionally, rooms are rented to nonmembers of the Illinois Beta Chapter and one such person resided in the house during 2000. The property has been used as a fraternity house (residence)

1-07-0624 since 1958. The house is a brick three-story structure providing approximately 7,000 square feet of living space, including its attic and basement, and is on an 8,500 square foot lot. It has 21 rooms, consisting of 12 bedrooms which each accommodate one-to-three individuals and 9 rooms devoted to study, dining, recreation, and storage. Residents of the house have access to a kitchen where they may prepare their own food, but most take their meals in the school's dining halls. It is undisputed that residents of the fraternity house and residents of the University of Chicago's dormitories use the respective facilities in comparable ways. Property taxes on the fraternity house have been assessed and paid as follows: $17,996.28 for 1999, $13,853.30 for 2000, and $14,213.58 for 2001. The plaintiff owner of the house, Illinois Beta House Fund Corporation (Beta House Fund), was organized under the Illinois General Not for Profit Corporation Act of 1986 (705 ILCS 105/101.01 et seq. (West 1998)), and is tax-exempt under section 501(c)(7) of the Internal Revenue Code. 26 U.S.C.

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