Court rules against tax exemption for nonprofit entity

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An Illinois Appellate Court judge has ruled that a nonprofit clinic does not qualify for a property tax exemption under state law. Such a ruling could pave the way for future exemption challenges for all nonprofit providers.

Even though Community Health Care Inc., Rock Island, IL, provides care regardless of ability to pay, the state appeals court said the provider did not qualify for a property tax exemption because its property is not used "exclusively" for charitable purposes.

The appeals court decision reversed a state trial court ruling but concurred with a prior decision of a state administrative law judge.

The full decision is available at http://op.bna.com/hl.nsf/r?Open=psts-6uvm6k.