2001 Legislation
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HOUSE BILL NO. 107 – Hospitals, charity care, reports


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Daily Data Tracking History

H0107.............................................................by BIETER
HOSPITALS - CHARITY CARE - Amends existing law to require information
regarding charity care and net profits in reports from certain hospitals
exempt from property taxation.
01/29    House intro - 1st rdg - to printing
01/30    Rpt prt - House desk
02/01    To Rev/Tax

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 107
                                         BY BIETER
  1                                        AN ACT
  5        RECTIONS.
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION 1.  That Section 63-602D, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
 10    purposes of this section, "hospital" means a hospital as  defined  by  chapter
 11    13,  title  39, Idaho Code, and includes one (1) or more acute care, outreach,
 12    satellite, outpatient,  ancillary  or  support  facilities  of  such  hospital
 13    whether  or  not  any such individual facility would independently satisfy the
 14    definition of hospital.
 15        (2)  The following property is exempt from  taxation:  the  real  property
 16    owned and personal property, including medical equipment, owned or leased by a
 17    hospital corporation which is operated as a hospital and the necessary grounds
 18    used therewith.
 19        (3)  If  real  property, not currently exempt from taxation, is being pre-
 20    pared for use as a hospital, the value of the bare land only  shall  be  taxed
 21    while  the  property is being prepared for use as a hospital. All improvements
 22    to and construction on the real property, while it is being prepared  for  use
 23    as  a  hospital,  shall be exempt from taxation. For purposes of this section,
 24    property is being "prepared for use as a  hospital"  if  the  corporation  has
 25    begun  construction of a hospital project as evidenced by obtaining a building
 26    permit that will, on completion, qualify such property for an  exemption  and,
 27    as  of  the  assessment date, has not abandoned the construction. Construction
 28    shall not be considered abandoned if it has been delayed by causes and circum-
 29    stances beyond the corporation's control or when delay is caused by  an  event
 30    that  has  occurred  in  the  absence  of the corporation's willful neglect or
 31    intentional acts, omissions or practices engaged in by the corporation for the
 32    purpose of impeding progress. Notwithstanding the foregoing, in no event shall
 33    improvements to property that is being prepared for use as a hospital  qualify
 34    for  an  exemption from ad valorem property tax under this subsection for more
 35    than three (3) consecutive tax years;  upon  completion  of  construction  and
 36    obtaining a certificate of occupancy, the entire real property shall be exempt
 37    from  taxation  if the corporation meets the requirements of subsection (4) of
 38    this section; provided, property already  exempt  or  eligible  for  exemption
 39    shall not be affected by the provisions of this subsection.
 40        (4)  The corporation must show that the hospital:
 41        (a)  Is  organized as a nonprofit corporation pursuant to chapter 3, title
 42        30, Idaho Code, or pursuant to equivalent laws in its state of  incorpora-
 43        tion;
  1        (b)  Has  received  an exemption from taxation from the Iinternal Rrevenue
  2        Sservice pursuant to section 501(c)(3) of the Internal Revenue Code.
  3        (5)  The board of equalization shall grant an exemption to the property of
  4    any hospital corporation meeting the criteria provided in  subsection  (4)  of
  5    this section.
  6        (6)  If  a  hospital  corporation uses property for business purposes from
  7    which a revenue is derived which is  not  directly  related  to  the  hospital
  8    corporation's  exempt  purposes, then the property shall be assessed and taxed
  9    as any other property. If property is used in part by a  hospital  corporation
 10    for  such  purposes, then the assessor shall determine the value of the entire
 11    property and the value of the part used that is not directly  related  to  the
 12    hospital  corporation's exempt purposes. If the value of the part which is not
 13    directly related to the hospital corporation's exempt purposes  is  determined
 14    to  be  three percent (3%) or less than the value of the entire property, then
 15    the property shall remain exempt. If the  value  of  the  part  which  is  not
 16    directly  related  to the hospital corporation's exempt purposes is determined
 17    to be more than three percent (3%) of the value of the entire  property,  then
 18    the  assessor  shall  assess the proportionate part of the property, including
 19    the value of the real estate used for such purposes.
 20        (7)  A hospital corporation issued an  exemption  from  property  taxation
 21    pursuant  to  this  section  and operating a hospital having one hundred fifty
 22    (150) or more patient beds shall prepare a community  benefits  report  to  be
 23    filed  with  the board of equalization by December 31 of each year. The report
 24    shall itemize and provide, under the signature of the hospital's auditor,  the
 25    amount  of charity care provided by the hospital and the hospital's net profit
 26    in the prior year, the hospital's amount  of  unreimbursed  services  for  the
 27    prior year (including charity care, bad debt, and underreimbursed care covered
 28    through  government programs); special services and programs the hospital pro-
 29    vides below its actual cost; donated time, funds, subsidies and  in-kind  ser-
 30    vices;  additions to capital such as physical plant and equipment; and indica-
 31    tion of the process the hospital has used to determine general community needs
 32    which coincide with the hospital's mission. The report shall be provided as  a
 33    matter  of community information. Neither the submission of the report nor the
 34    contents shall be a basis for the approval or denial of a corporation's  prop-
 35    erty tax exemption.

Statement of Purpose / Fiscal Impact

                     STATEMENT OF PURPOSE
                           RS 10739
In 1999 the legislature amended the hospital tax exemption to allow
hospitals to receive a property tax exemption if they met certain
federal standards and filed an annual community benefits plan with
the county commissioners. This bill would require no more charity
care or other community benefits of the hospitals. The bill merely
requires information the hospitals already prepare every year to be
included with their community benefits plan to better inform the
public about such hospitals.

                         FISCAL IMPACT

There is no fiscal impact.

      Name: David Bieter
      Phone:     332 1243