Oswald v. HamerAnnotate this Case
Section 15-86 of the Property Tax Code (35 ILCS 200/15-86 ) provides a charitable property tax exemption specifically for eligible not-for-profit hospitals and their hospital affiliates. In a suit alleging that the section, on its face, violated section 6 of article IX of the Illinois Constitution, which requires that the subject property be “used exclusively for … charitable purposes,” the circuit court granted the defendants summary judgment. The appellate court and Illinois Supreme Court affirmed, based on legislative intent. Section 15-86 does not dispense with the Illinois Constitution’s requirements for charitable property tax exemption but, rather, the Department of Revenue must still evaluate a hospital applicant’s claim for a section 15-86 exemption under constitutional requirements and precedent. The plaintiff also failed to show that section 15-86 was inherently flawed in all circumstances.