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Another challenge to some hospitals’ tax-exempt status

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In the latest case, Modern Healthcare reports, an “an Illinois appeals court has ruled that a law defining what not-for-profit hospitals have to do to get tax breaks is unconstitutional. ”

The publication reports that “the {Illinois] law says that the value of certain charitable and other services offered by a hospital must exceed the estimated value of its property tax liability if it’s to get a property and sales tax exemptions. The law was passed after the Illinois Supreme Court, in 2010, upheld a decision to revoke Provena Covenant Medical Center’s property-tax exemption, worrying other nonprofits across the state. (The Urbana, Ill., hospital is now part of Presence Health.) ”

But in the latest case, Illinois’s 4th District Appellate Court ruled that the  stare Constitution lets lawmakers exempt only property “used exclusively” for “charitable purposes.”

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