May 22, 2013

Weekly RoundUp: Carle tax exemption

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Urbana Mayor Laurel Prussing is challenging an Illinois law that gives Carle Hospital tax-except status for their charity work – providing medical care and services at discounted or no cost to thousands of people. According the Prussing, the city of Urbana will bear the brunt of the loss of revenue from Carle, with residents and businesses facing a steep property tax hike. In a recent letter to Urbana city council members, Prussing wrote, “Urbana taxpayers, only 3 percent of the region’s population, will now be paying for almost $6 million of the nearly $16 million in charity care that Carle says it provides the region.”

Here is a roundup of recent news stories on this issue:

Urbana Resolution to Challenge Carle Tax-Exempt Status – Illinois Public Media

“The Urbana city council is expected to take its first vote next week on a resolution opposing Carle Foundation Hospital’s tax-exempt status.

The measure seeks a legislative solution requiring the hospital to ‘pay its fair share’ in property taxes, opposing a law that passed in 2012 that gives tax-exempt status to hospitals that provide charity care.

Mayor Laurel Prussing said the tax exemption for Carle Foundation Hospital hurts the city, because more than 80 percent of the hospital’s property is in Urbana.”

Prussing pressing case against Carle tax exemption – The News-Gazette

“Mayor Laurel Prussing is continuing to take a strong stand against a state-mandated property tax exemption for Carle Foundation Hospital, and she plans to ask for support from local lawmakers.

She said last week that a number of approaches could be taken to fix what would become a $830,000 budget problem for the city: Either the legislation needs to be changed, or the law needs to be challenged in the courts.”

Carle says tax exemptions are deserved – IllnoisHomepage.net

“Representatives from Carle Hospital say they’re helping the city. Earlier this week, Mayor Laurel Prussing said she doesn’t believe the hospital should be exempt from paying property taxes. She says without the funds, the city will be destroyed. Thursday, the hospital decided to fight back.

A representative issued a statement outlining the charity work it’s done and how it’s helped the community. It’s called the “Carle Effect.” Charity care, community benefit and economic impact are three things making up the “Carle Effect.””