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Tuesday, April 15, 2014

Senior Facility Not Exempt From Property Taxes

A tax case on tax day - enjoy!

Certain charitable and religious uses are exempt from property taxes in Illinois.  A senior housing facility, Meridian Village Association, applied for a charitable and religious property tax exemption, but was denied an exemption by the Department of Revenue. On appeal, the appellate court first applied the "charitable use" exemption standards for senior housing, and agreed with the Department of Revenue that the senior housing facility did not qualify for an exemption. Although senior housing facilities have qualified for exemptions in the past, they must meet very specific standards, including that the charity benefits an unlimited number of people and that the charity is dispensed to all who need it.  Here, the Meridian Village Association's bylaws allowed it to deny care if necessary to operate in a financial manner.  It also only provided charitable care to its residents, not all in need.  The association also operated for-profit.  Meridian Village Assoc. v. Hamer (Mar. 28, 2014).

As to the senior facility's religious exemption claim, the court determined that the primary use of the facility was to care for the elderly, not as a religious institution.  

Post Authored by Julie Tappendorf, Ancel Glink


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