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
On September 20, 2018, the Illinois Supreme Court upheld 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. Oswald v. Beard was filed to challenge the language of Section 15-86 shortly after it was enacted, alleging that the law was unconstitutional. IHA intervened in the case as a defendant to fully participate in the statute’s defense. Both the trial and the appellate courts had also rejected Oswald’s arguments.

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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