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August 29, 2008

Appeals Court Upholds Tax on Illinois Hospital

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.

Friday August 29, 2008 | Permalink

Comments

1. The IRS should have a standard for how charity care is calculated. The UT System auditors could not even determine how UT Southwestern Medical Center in Dallas determined its charity care.(Hint they have a VIP list of patients that receive preferential treatment.Perhaps that extends to comped medical care that is counted as “charity”)

   — Jack    Aug 30, 09:21 AM    #

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