Tax Exemption

As charitable entities, Illinois non-profit hospitals are able to obtain tax exemption. IHA supports the 2012 state law establishing a fair and reasonable test for that tax exemption.

Legal Rulings

Oswald v. Beard
The Illinois Supreme Court is now considering the case of Oswald v. Beard, which challenges the constitutionality of Section 15-86 to the Property Tax Code, which was enacted in 2012, to create a new statutory test for hospital property tax exemption. Both the trial court and the appellate court rejected Oswald’s arguments and ruled that section 15-86 is constitutional. Both the Department of Revenue and the Illinois Health and Hospital Association are defending the constitutionality of Section 15-86.

The Carle Foundation v. Illinois Department of Revenue
On March 23, 2017, the Illinois Supreme Court vacated the Fourth District Appellate Court’s decision in the Carle Foundation case, which had declared the state’s tax exemption test unconstitutional. The favorable decision in Oswald v. Beard is now the law of the land.

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