Monday, March 5, 2012
The saga of tax exemption for nonprofit hospitals in Illinois continues. As previously noted in this blog (here), in the wake of the Illinois Supreme Court's Decision in the Provena case, last August the Illinois Department of Revenue denied tax exemption to three Illinois hospitals. Governor Quinn then issued a moratorium on exemption decisions by the Department to give the politicians a chance to work our a statutory solution to exemption issues, with a March 1, 2012 deadline (see previous blog post here). That deadline has now come and gone without agreement between the state and the Illinois Hospital Association regarding exemption standards, and as the Chicago Tribune reports, Governor Quinn has now lifted the moratorium - meaning the Department can now proceed with at least a dozen pending cases.
While talks between the state legislative leaders, the Governor and the IHA continue, this is going to get very messy very quickly. One suspects more tax exemption denials are coming, followed by more litigation.