Illinois Senate Bill SB1819

Illinois 2023-2024 Regular Session

• Introduced: 2/9/23
• Refer: 2/9/23
• Refer: 2/28/23
• Refer: 3/31/23
• Refer: 3/15/24

Caption

PROP TX-HOSPITALS

Impact

The amendments introduced by SB1819 would significantly influence the way hospitals report their community benefits and charitable activities. By establishing standardized definitions and requirements, the bill aims to eliminate ambiguity that has persisted since the Illinois Supreme Court's decision in Provena Covenant Medical Center v. Department of Revenue. Hospitals will now have a clearer framework to demonstrate their eligibility for tax exemptions, leading potentially to an increase in transparency regarding the charitable services they provide. This is particularly relevant in the context where financial sustainability and community support for healthcare institutions are in constant flux.

Summary

SB1819 is a legislative proposal aimed at amending the Property Tax Code and the Community Benefits Act in Illinois. The bill requires that assessors publish the assessed value of all properties eligible for a hospital exemption along with the estimated property tax liabilities for those properties. It also seeks to clarify the definitions surrounding 'charity care' and 'community benefits', with the intent to hold hospitals accountable for their contributions to the welfare of low-income and underserved individuals in their service areas. A significant aspect of the bill is to streamline the application process for property tax exemptions, ensuring that hospitals' efforts in providing services to needy populations are accurately represented.

Contention

Notably, the bill addresses longstanding concerns about the adequacy of charity care provided by nonprofit hospitals. Critics might argue that by solidifying the exemption criteria, it may incentivize hospitals to focus solely on meeting quantified thresholds rather than genuinely improving community health. Advocates for the bill believe it provides necessary oversight and encourages nonprofit hospitals to contribute meaningfully to the communities they serve. Another point of contention could arise over whether the definitions of charity care and community benefits adequately capture all the necessary services provided, or if they might inadvertently exclude certain types of care that are vital for low-income populations.