Illinois Property Tax Exemption For Non-Profit Hospitals Held Unconstitutional By State Appellate Court

On January 5, 2016, an Illinois appellate court ruled that a 2012 state law granting property tax exemptions to non-profit hospitals only if the amount of charity care provided exceeded the value of the property tax liability was unconstitutional. The court said the state constitution only authorizes the Illinois General Assembly to enact laws granting a property tax exemption to “property used exclusively for . . . charitable purposes.” The 2012 law only required non-profit hospitals to provide some charitable services to merit the property tax exemption, but did not mandate that the hospital property be used exclusively for charitable purposes . . .