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Zion to intervene in nonprofit hospital tax-exemption filing; staff warns of multi-million-dollar shift if exemption granted
Summary
Council authorized the city to intervene in a property tax-exemption application filed by a not-for-profit hospital. City staff said the property contributes about $4.6 million in taxes to local taxing bodies and estimated the city's portion at roughly $800,000 that would be at risk if the exemption were granted.
Zion — The Zion City Council voted Oct. 7 to authorize the city’s intervention in a tax-exemption assessment filed by a not-for-profit hospital.
Why it matters: city officials said the hospital currently pays about $4.6 million in property taxes that are distributed among the school district, city, park district and library. If the hospital’s exemption were granted, staff explained, the resulting revenue loss would either shift the tax burden to other taxpayers or force taxing bodies to reduce levies to offset the shortfall.
City attorney (identified in the meeting as Vasselli) told the council the hospital has filed similar applications in prior years and that staff had been successful opposing those filings through a coordinated approach. “If they were successful in this application, the impact ... would be a shift of about $4,600,000 in property taxes,” the attorney said. He added the city’s share of that amount would be about $800,000.
Council approved the resolution to intervene and staff said they would file the resolution with the county promptly; staff indicated they will notify the public about hearing dates and specifics when they are available. Council members and staff urged residents and supporters to attend the hearing to show community interest in preserving the tax base.
The resolution was passed by a recorded roll call vote (4–0).
