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Appeals Court Upholds Tax on Illinois Hospital

August 29, 2008, 1:18 pm

An appeals court in Springfield, Ill., has ruled that Provena Covenant Medical Center, in Urbana, is required to pay property taxes, reports the Associated Press.

In agreement with the state Department of Revenue and local tax authorities, the court contended that the Urbana hospital does not provide enough charity care to qualify for a tax exemption. Hospital officials declined immediate comment, the newspaper said.

In 2004 Provena was denied renewal of its tax exemption by the Department of Revenue and therefore was obligated to pay more than $1-million a year in property taxes. An administrative judge later sided with the hospital, but the Department of Revenue rejected that recommendation. The appellate court was then asked to weigh in on the matter.

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