Champaign County Treasurer Seeks Answers on Provena Tax Money

A Champaign County Judge has been asked to provide local taxing bodies with some clarity over whether they are free to use property tax funds paid out by Provena Covenant Medical Center.

Champaign County Treasurer Dan Welch wants to know what years between 2002 and 2009 will not remain part of a legal battle over the hospital's tax-exempt status.

"Tell us which ones are in jeopardy, and which ones are not," Welch said. "Just let Provena make their case to the judge about what legal authority they believe they have to tie up any of that money. If they can't, then I assume Urbana will be able to release whatever they want, but leave it up to the judge, let them make their legal argument."

Welch said Provena is appealing its 2006 property taxes. More than $8 million of the remaining funds, or 99 percent, is earmarked for a Tax Increment Financing District in Urbana. Welch said the city is not required to give it to anyone else, but Urbana opted to release some to other local governments. Champaign County's share of tax dollars for that stretch is about $600,000.

"Urbana wants to give this money to the taxing districts, and all taxing districts are in need of some money," Welch said. "So it makes some sense if we can clarify it once and for all. Yet some money is not in jeopardy of not having to be refunded again, and some money may be. Whatever the answer is, we just want to know what that answer is."

Welch said it could be several years before the county finds out what a judge's ruling will be for 2006. While his office still is not holding any of this money, it is still up to the Treasurer to keep track of tax dollars that have been paid or refunded. Welch said it has been difficult keeping track of the tax liability for each of the taxing districts.