State of Illinois and Non-Profit Hospitals Dispute Property Taxes

The Illinois Constitution provides that property used “exclusively for….charitable purposes” are subject to certain property tax exemptions. Yet, until the Illinois government withdrew Provena Covenant Medical Center’s tax exemption in 2004, that clause was rarely enforced. The state’s revocation of Provena’s exemption (based on their insufficient level of charity care) marked the start of years-long legal proceedings that culminated in 2010 with the Illinois Supreme Court’s decision that the withdrawal was justified. The state then revoked the exemption from three additional hospitals, all of which have disputed the decision.State of Illinois and Non-Profit Hospitals Dispute Property Taxes

As reported in The Chicago Tribune, the issue of exactly how much charity work is required for the property tax exemption to apply continues to be a hot button issue. Last October, after numerous officials complained that the process was flawed, Gov. Pat Quinn halted the Department of Revenue’s review of the hospitals currently receiving the exemption. Representatives from the Illinois Hospital Association (IHA), Department of Revenue, and the governor’s and attorney general’s offices began meeting in January, in efforts to clarify the legal requirements regarding the hospital property tax exemption.

When the issue hadn’t been resolved by the March 1st deadline, Gov. Quinn recently decided to proceed with the reviews that had been halted in October. Not surprisingly, the IHA was displeased with this decision, expressing concern that any new decisions made on specific exemptions would detract from the committee’s ability to come to a more permanent legislative solution.

Property tax laws – and tax laws in general – are complex and ever-changing. Businesses dealing with tax related legal issues require the assistance of an experienced Naperville tax attorney such as Denice A. Gierach. Click here or call (630) 756-1160 to contact the skilled Naperville tax lawyers at The Gierach Law Firm to discuss your situation.