Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Illinois Reconsiders Property Tax Exemptions for Hospitals

September 23rd

As the US economy continues to struggle, state and local deficits are continuing to rise. Most notably, the state of Illinois is currently facing a budget deficit in excess of $11 billion. In an effort to combat the rising debt, Illinois has, in recent weeks, begun a series of discussions challenging the property tax exemptions granted to some of its hospitals.

Citing an insufficient amount of charity care as the reason, the state of Illinois has actually gone so far as to strip property tax exemptions from a number of well-known hospitals, including the Prentice Women’s Hospital in Chicago. Edward Hospital, a growing medical center in Naperville, and Decatur Memorial Hospital in central Illinois have also recently lost their tax-exempt status.

All of the hospitals in question supposedly only provided between 0.96 percent and 1.85 percent free or discounted medical care. The state therefore claimed that the hospitals had been operating as “for profit” businesses when the Illinois State Constitution clearly states that only nonprofits may qualify for tax exemptions.

Future Plans to Gather Unpaid Taxes

In an effort to gather more unpaid taxes from potentially dubious nonprofit organizations, the state of Illinois is planning a broader examination of charity care provision by tax-exempt entities. If successful with the three hospitals already facing exemption revocation, Illinois is expected to begin a search for other nonprofit hospitals with low percentages of charity care.

At present, the state has announced that it is already reviewing entities owned by 15 separate hospital systems. Despite moves by the Illinois Hospital Association to combat this state action, previous court rulings have upheld such disciplinary action against nonprofit organizations.

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011