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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
|||| 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
2 RELATING TO EXEMPTIONS FROM TAXATION; AMENDING SECTION 63-602D, IDAHO CODE, TO
3 REQUIRE INFORMATION REGARDING CHARITY CARE AND NET PROFITS IN REPORTS FROM
4 CERTAIN HOSPITALS EXEMPT FROM PROPERTY TAXATION AND TO MAKE TECHNICAL COR-
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:
9 63-602D. PROPERTY EXEMPT FROM TAXATION -- CERTAIN HOSPITALS. (1) For the
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;
2
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
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.
Contact
Name: David Bieter
Phone: 332 1243
STATEMENT OF PURPOSE/FISCAL NOTE H 10