A state appellate court has overturned the 2012 Illinois law setting terms for when charity care exempts a property from paying taxes.
The ruling comes in a lawsuit filed by Carle Foundation Hospital in Urbana, which was arguing for its tax exempt status. But the ruling has implications statewide and beyond, according to Urbana Mayor Laurel Prussing. She says her city lost more than a tenth of its property tax assessments when the law was passed.
“This is not just an Urbana issue or an Illinois issue. This is an issue in the whole country, that there are very large institutions that call themselves not-for-profit and don’t pay taxes, when in fact they are making very large profits.”
The 4th District Appellate Court ruled that the 2012 state law’s standards for charity care provided by tax-exempt properties were not stringent enough to meet requirements in the Illinois Constitution.
A spokesperson for the Carle Foundation says it’s “disappointed” by the court ruling, and that it may consider appealing the case to the Illinois Supreme Court. But Jennifer Hendricks Kaufmann says the hospital remains “focused on providing care to … patients … regardless of their ability to pay”.