TaxNewsFlash-Exempt Organizations

August 29, 2008
No. 2008-83

PRINTABLE VERSION

State Appellate Court Upholds Administrative Decision Denying Illinois Hospital’s Property Tax Exemption; State Circuit Court’s Judgment Is Reversed

The Appellate Court of Illinois recently issued a decision that reverses a decision of a state circuit court concerning a hospital’s exemption from property tax. In 2007, the circuit court had reversed a decision of the Director of the Illinois Department of Revenue denying the hospital’s claim for a property tax exemption, and granted the exemption from taxation pursuant to Illinois statutes concerning charitable use and religious use of property. On appeal, the Illinois Appellate Court reversed the circuit court’s judgment because it found no clear error in the Director’s decision. Provena Covenant Medical Center v. Department of Revenue, No. 4-07-0763 (Ill. App. August 26, 2008).

For an electronic version of the Illinois Appellate Court’s decision: Provena Covenant

Provena has several parcels of real estate located in Illinois that it uses for the operation of a general acute care hospital. Provena applied to the local county Board of Review for property tax exemptions for its 2002 tax year. The county board denied Provena’s request. Provena appealed the decision to the Illinois Department of Revenue, which upheld the county board's determination. The Circuit Court of Sangamon County reversed the decision of the Department of Revenue without discussion of its rationale.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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