Illinois Administrative Code › Title 89 - SOCIAL SERVICES › Part 140 - MEDICAL PAYMENT › Subpart E - GROUP CARE › Section 140.578 - Property Taxes

Current through Register Vol. 48, No. 28, July 12, 2024
a) For long term
				care services rendered from July 1, 1984, through June 30, 1985, each facility
				shall be reimbursed for property taxes at a rate equal to the reported per diem
				property tax adjusted for occupancy as specified in Section
				140.570(b)(3)
				 and projected forward to the mid-point of
				the rate year using the average yearly changes in property taxes as reported on
				the most recent available cost report for a sample of homes in the geographic
				area.
b) For long term care
				services rendered subsequent to June 30, 1985, the reimbursement for real
				estate taxes shall be based upon the actual taxes assessed for the base year.
				The base year will be the calendar year which ended 18 months before the
				beginning of the rate year on July 1. A per diem real estate tax will be
				determined using actual occupancy or adjusted occupancy as specified in Section
				140.570(b)(3).
				This per diem cost will be projected forward to the mid-point of the rate year
				using the average yearly changes in property taxes for each geographic area
				based upon a 20 percent sample of facilities with property tax cost. Property
				taxes which do not relate to the provision of care in the nursing home, such as
				tax assessments for investment property, will not be considered for
				reimbursement.
1) Each year long term care
				facilities must submit a copy of the real estate tax bills to the Department.
				The Department will send a Property Tax Statement form for the long term care
				facility to complete and return with a copy of the tax bill. This will provide
				information necessary to calculate the real estate tax portion of the capital
				rate.
2) Beginning with rates to be
				effective on July 1, 1995, the real estate tax cost described in this Section
				will be adjusted as follows prior to rate calculation:
A) Any direct appeal cost from Section
				140.535(c)(2)
				 will be added. If the same cost reporting
				period is used to set rates for more than one rate year this cost will only be
				used for one rate year.
B) If a
				facility receives a refund of real estate taxes used to calculate a payment
				rate for the current or previous rate years, a portion of that refund will be
				offset against real estate tax cost to be used to calculate rates for the next
				rate year. The full amount of the direct appeal cost reported as a real estate
				tax cost plus one-half of the amount by which the refund exceeds the appeal
				cost, will be the offset. For example, assume that a facility receives a refund
				of $70,000 in 1994 for taxes paid for 1991, and the facility pays $10,000 in
				legal fees related to the appeal. The $10,000 legal fee can be reported as a
				real estate tax cost on the 1994 cost report. Forty thousand dollars of the
				refund must be offset against the cost that would otherwise be used to
				calculate the next year's real estate tax rates. The $40,000 is the $10,000 fee
				plus one-half of the $60,000 excess above the fee. If the same cost reporting
				period is used to set rates for more than one rate year, this refund will only
				be offset in one rate year.
C) This
				benefit of the offset of less than the full refund is only provided to
				facilities which report that amount of refund on the cost report in the year in
				which the refund was received or accrued as a receivable. Any unreported
				refunds will be offset in full and the reported appeal cost will be
				reclassified as an administrative cost rather than a real estate tax
				cost.