Illinois Supreme Court Considers Whether Non-Profit Hospitals Should Pay Property Taxes

Jan 12, 2017

The Illinois Supreme Court considered a case Thursday that asks whether not-for-profit hospitals have to pay property taxes.

Credit Flickr user Mark Hillary / "My bed" (CC BY 2.0)

The case involves Urbana-based Carle hospital and clinics — though it could affect health systems across Illinois.  

At issue is the constitutionality of a state law that exempts not-for-profit hospitals from paying property taxes.

Laurel Prussing, the mayor of Urbana, says losing that tax money cost the city 11 percent of its tax base. 

"What it did was shift Carle's burden to every other taxpayer in Urbana. Every other business, and all the residents,” Prussing said.

The hospital says if it has to pay property taxes, it would mean that much less money to invest in its charitable activities.

There's no timeline for when the justices might rule on the case.