Illinois Denies CMHC Request for Property Tax Exemption—Serving Medicaid Clients Not Considered Charitable Care

On June 27, 2011, the non-profit Family Counseling Center, Inc. (FCC), a community mental health center in Illinois, learned that the state Department of Revenue denied its request for property tax exemption; the denial determination said that serving Medicaid clients, even at a loss, did not meet the charitable care requirements to earn an exemption. The request was for the Johnson County Developmental Training Center, which is used to provide habilitation services for 48 adults with developmental disabilities. The FCC operates as a federally tax-exempt charity, formed to operate a . . .