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H0764...............................................by REVENUE AND TAXATION
PERSONAL PROPERTY TAX - Amends existing law to provide that certain
property of a county hospital or hospital district is exempt from taxation;
and to provide that the Board of Equalization shall grant an exemption to
the property of a county hospital or a hospital district if certain
circumstances occur.
03/03 House intro - 1st rdg - to printing
03/06 Rpt prt - to Rev/Tax
03/15 Rpt out - rec d/p - to 2nd rdg
03/16 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 63-0-7
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart,
Pence, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Trail, Wills, Wood
NAYS -- None
Absent and excused -- Bell, Crow, Ellsworth, Jaquet, Raybould,
Stevenson, Mr. Speaker
Floor Sponsor - Martinez
Title apvd - to Senate
03/21 Senate intro - 1st rdg - to Loc Gov
03/24 Rpt out - rec d/p - to 2nd rdg
03/27 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Werk, Williams
NAYS -- None
Absent and excused -- Sweet
Floor Sponsor - Hill
Title apvd - to House
03/29 To enrol
03/30 Rpt enrol - Sp signed
03/31 Pres signed - To Governor
03/31 Governor signed
Session Law Chapter 319
Effective: 01/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 764
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602D, IDAHO
3 CODE, TO PROVIDE THAT CERTAIN PROPERTY OF A COUNTY HOSPITAL OR HOSPITAL
4 DISTRICT IS EXEMPT FROM TAXATION AND TO PROVIDE THAT THE BOARD OF EQUAL-
5 IZATION SHALL GRANT AN EXEMPTION TO THE PROPERTY OF A COUNTY HOSPITAL OR A
6 HOSPITAL DISTRICT IF CERTAIN CIRCUMSTANCES OCCUR; DECLARING AN EMERGENCY
7 AND PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-602D, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-602D. PROPERTY EXEMPT FROM TAXATION -- CERTAIN HOSPITALS. (1) For the
12 purposes of this section, "hospital" means a hospital as defined by chapter
13 13, title 39, Idaho Code, and includes one (1) or more acute care, outreach,
14 satellite, outpatient, ancillary or support facilities of such hospital
15 whether or not any such individual facility would independently satisfy the
16 definition of hospital.
17 (2) The following property is exempt from taxation: the real property
18 owned and personal property, including medical equipment, owned or leased by a
19 hospital corporation or a county hospital or hospital district which is oper-
20 ated as a hospital and the necessary grounds used therewith.
21 (3) If real property, not currently exempt from taxation, is being pre-
22 pared for use as a hospital, the value of the bare land only shall be taxed
23 while the property is being prepared for use as a hospital. All improvements
24 to and construction on the real property, while it is being prepared for use
25 as a hospital, shall be exempt from taxation. For purposes of this section,
26 property is being "prepared for use as a hospital" if the corporation has
27 begun construction of a hospital project as evidenced by obtaining a building
28 permit that will, on completion, qualify such property for an exemption and,
29 as of the assessment date, has not abandoned the construction. Construction
30 shall not be considered abandoned if it has been delayed by causes and circum-
31 stances beyond the corporation's control or when delay is caused by an event
32 that has occurred in the absence of the corporation's willful neglect or
33 intentional acts, omissions or practices engaged in by the corporation for the
34 purpose of impeding progress. Notwithstanding the foregoing, in no event shall
35 improvements to property that is being prepared for use as a hospital qualify
36 for an exemption from ad valorem property tax under this subsection for more
37 than three (3) consecutive tax years; upon completion of construction and
38 obtaining a certificate of occupancy, the entire real property shall be exempt
39 from taxation if the corporation meets the requirements of subsection (4) of
40 this section; provided, property already exempt or eligible for exemption
41 shall not be affected by the provisions of this subsection.
42 (4) The corporation must show that the hospital:
43 (a) Is organized as a nonprofit corporation pursuant to chapter 3, title
2
1 30, Idaho Code, or pursuant to equivalent laws in its state of incorpora-
2 tion;
3 (b) Has received an exemption from taxation from the Internal Revenue
4 Service pursuant to section 501(c)(3) of the Internal Revenue Code.
5 (5) The board of equalization shall grant an exemption to the property
6 of: (a) a county hospital; (b) a hospital district; or (c) any hospital corpo-
7 ration meeting the criteria provided in subsection (4) of this section.
8 (6) If a hospital corporation uses property for business purposes from
9 which a revenue is derived which is not directly related to the hospital
10 corporation's exempt purposes, then the property shall be assessed and taxed
11 as any other property. If property is used in part by a hospital corporation
12 for such purposes, then the assessor shall determine the value of the entire
13 property and the value of the part used that is not directly related to the
14 hospital corporation's exempt purposes. If the value of the part which is not
15 directly related to the hospital corporation's exempt purposes is determined
16 to be three percent (3%) or less than the value of the entire property, then
17 the property shall remain exempt. If the value of the part which is not
18 directly related to the hospital corporation's exempt purposes is determined
19 to be more than three percent (3%) of the value of the entire property, then
20 the assessor shall assess the proportionate part of the property, including
21 the value of the real estate used for such purposes.
22 (7) A hospital corporation issued an exemption from property taxation
23 pursuant to this section and operating a hospital having one hundred fifty
24 (150) or more patient beds shall prepare a community benefits report to be
25 filed with the board of equalization by December 31 of each year. The report
26 shall itemize the hospital's amount of unreimbursed services for the prior
27 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.
36 SECTION 2. An emergency existing therefor, which emergency is hereby
37 declared to exist, this act shall be in full force and effect on and after its
38 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 16122C1
The purpose of this legislation is to clarify existing law to
ensure that county hospitals and hospital districts continue to
have the same property tax exemption for leased equipment
afforded other tax exempt hospitals.
FISCAL NOTE
There is no impact on the state General Fund.
Contact
Name: Steven A. Millard, Idaho Hospital Association
Phone: 208-338-5100 ext. 203
Representative Elmer Martinez
208-332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 764