Appellate Court Won’t Delay Impact Of Ruling On Hospital Taxes

A state appellate court has refused to delay the effects of a ruling that allowed both Carle health system and Presence Hospital to be put back on local tax rolls.  The 4th District Appellate Court Monday turned down requests for a stay from Carle and the Illinois Department of Revenue. 

In January, the court threw out a state law that determined when hospitals deserve a property tax exemption for charity care.

After that earlier ruling, the Champaign County Board of Review put the hospital properties back on the tax rolls. 

Two weeks ago, attorney Steven Pflaum, who represents both hospital systems, told the board that if nothing changes, the hospitals would owe about $10 million in taxes, $9 million of that coming from Carle. Pflaum said a lawsuit was possible if the stay was denied.

Urbana Mayor Laurel Prussing expects the issue to eventually to wind up before the Illinois Supreme Court, but says the hospitals will pay their fair share in the meantime.

"I think it’s good news for Urbana taxpayers – first of all, the board of review upheld their position," she said.  "And it is the law of the land.  The Illinois Hospital Association had been saying that it wasn’t.  And the Carle attorney repeated that it was the law of the land at the board of review hearing.”

Prussing says she expects Urbana’s tax rate to drop anywhere from 11 to 20 percent.