State tax-exempt guidelines for hospitals move forward

After the bill passed in the Illinois Senate, the state General Assembly on Wednesday announced it submitted for the governor's approval new legislation, which spells out property and sales tax exemptions for hospitals. The bill sets clear standards for sales tax exemptions and income tax credits regarding non-profit versus investor-owned hospitals.

"This legislation sets clear, fair and workable criteria that state which activities and services are sufficient for hospitals to qualify for tax exemption and how charitable care is determined," Illinois Hospital Association (IHA) President and CEO Maryjane Wurth said in a Tuesday statement.

This issue has been under scrutiny by Gov. Pat Quinn for several months. Previously, the Department of Revenue had restricted tax-exemptions only to hospitals that provided sufficient charitable services, a parameter that helps determine what makes a hospital truly nonprofit as opposed to a business. IHA statement (.pdf)