Fourth district ruling overturns statute granting hospital tax exemption
The 1970 Illinois Constitution allows the General Assembly to exempt properties that are "used exclusively for…charitable purposes" from property taxes. Ill. Const. 1970, art. IX, § 6. How those exemptions work for not-for-profit hospitals has been contentious for a while. Cash-strapped counties want to collect property taxes; not-for-profit hospitals want to claim an exemption.
In Carle Foundation v. Cunningham Township, 2016 IL App (4th) 140795, the Illinois Appellate Court, Fourth District, raises this issue again, holding that a 2012 statute designed to clarify the definition of "charitable purposes" is unconstitutional and the hospital is thus liable for property taxes. On March 14, the Illinois Supreme Court stayed enforcement of the fourth district ruling "pending disposition of the petition for leave to appeal" to the high court. Find out more in the April Illinois Bar Journal.

