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I was on the the property tax review board that worked to strip a local hospital of its property tax exemptions because they were suing poor people, not providing charity care, and generally being buttheads (that last one is my term--not a technical one!)
The fact that they were associated with a religious institution had protected them from examination for a long time. However, we felt it was high time the local community got something back in return for the property tax exemptions the hospital got. They claimed to be a charity but were not acting like one.
What a lot of people don't realize is that even IF you rent your housing you are paying a portion of the property taxes--it is calculated into the rent as an expense to the landlord. Every taxing district has a calculated amount they need to keep everything running (called the levy) and if one landowner doesn't pay it, the rest pick up the tab.
When we went in to examine the policies, financials, and the business practices of that hospital we found that they were doing less than one percent of actual revenues in Charity Care. Our state laws are explicit that property tax exemption for charities must be reserved for places using property for "exclusively" charitable purposes.
Less than ONE percent in charity care is not exclusively charitable, IMO. It would seem that the State of Illinois agrees--they upheld us on our decision to remove tax exemption, and are defending it for us in the appeal hearings (Ongoing, I might add. This is probably headed to the IL Supreme Court before it is all over.)
One of the driving factors in the entire review of the hospital was the realization that our community was subsidizing a business that was taking money out of our local area, as well as preying on the poorest and least powerful members of our society.
As an official (paid by the taxpayers!) I felt I had an obligation to represent their best interests. Predatory lending and ripping off the local tax base seemed like a good thing to stop.
The local GOP hates me with a passion because they see me as picking on a large employer and a religious institution.
The local health care activists are pleased, because what they have been saying for a long time about the predatory activities of this hospital has finally been opened up for inspection.
Finally, the hospital's Board of Directors (made up of the real estate developers and some high status socialites) is unsure how to proceed because the hospital looks awful to public now. They are spending a huge amount of cash with a PR firm to try and salvage their image.
To be honest, the only opinions I care about at all are those of the people tormented by this bunch of parasites. They have told me that they feel like this is the first freaking time the government has EVER done anything for them, that they'd given up hope of ever having a fair shake.
I felt I OWED it to the taxpayers. I still feel that way.
Laura
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