CHICAGO (AP) — The Illinois Supreme Court has agreed to review a case regarding the constitutionality of hospital tax exemptions.

The court announced Wednesday it will hear arguments in a case involving Carle Foundation Hospital in Urbana. The case could affect all Illinois hospitals. No date was set for when the court will hear arguments.

The 4th District Appellate Court ruled in January that a 2012 state law allowing hospitals to avoid taxes is unconstitutional. The ruling reopened a statewide dispute over whether hospitals should be exempt from paying millions of dollars in income taxes and property taxes to local governments.

The Illinois Health and Hospital Association has said taxation would force hospitals operating on thin margins to reduce services, lay off staff and delay the purchase of equipment or facility upgrades.

 

 
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.