Carle’s tax-exempt status had been the subject of years of ongoing litigation. However, a law passed earlier this year grants Carle tax-exempt status as long as the value of free or discounted care provided by the system exceeds the amount it would owe in property taxes, according to the report.
Once its tax-exempt status was confirmed, the system sued both the local school and park districts to recoup almost $20 million paid in property taxes while its charity status was being litigated, according to the report.
Both districts have settled with Carle, and will return a total of about $7 million in exchange for Carle dismissing the suits. The city of Urbana was not part of the settlement, and continues to hold $3.6 million of Carle’s property taxes in escrow, according to the report.
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