Illinois Supreme Court Overturns Tax Exemption, Carle Health Care System Appeals

By Staff Writer | Jan 30, 2016 06:23 AM EST

An Illinois health care system, Carle Foundation Hospital system plans to offer a plea to the Illinois supreme court on the ruling over hospitals must pay taxes. The appeal happened a day after the city authorities announced to include local hospitals in the tax roll.

On Thursday, Urbana-based Carle health system claimed that they will appeal to the court that tax exemption allows them to provide charity care to low-income individuals, Progress Illinois says. A day before that, the Champaign County Board of Review elected Carle and Presence Covenant Medical Center to be included in a list of hospitals that will be included back on the tax rolls.  After the decision, the hospitals will be notified of their reclassification from exempt to nonexempt. The health care systems will also be informed of the assessment of their 2015 taxes payable this year.

"Carle believes it is entitled to its property tax exemptions granted decades ago, so people in need can get care regardless of their ability to pay - something that is critical to our mission as a not-for-profit health care provider," Carle said in a statement on Thursday, according to News Gazette. "Therefore, Carle will file an appeal of the 4th District Appellate Court opinion with the Illinois Supreme Court prior to the Feb. 9, 2016, deadline."

Earlier this month, the long-standing legal case between Carle Health Care and the local taxing units was tackled by the Illinois 4th District Appellate Court. The court claimed that the tax exemption of the hospitals is unconstitutional, Chicago Business reports.  After the court decision was made, the state's 2012 tax exemption/ charity care law was overturned.  It is said, tax exemption is only for property used exclusively for charitable purposes.

Carle spokeswoman Jennifer Hendricks Kaufmann said that the health care system is still planning on the steps to handle the case before the deadline on Feb.9.  Kaufmann assured that they're still committed to their mission to care for the patients.

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