Bill Description: House Bill 658 would give counties more flexibility to determine if a hospital qualifies for a property tax exemption. 

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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

House Bill 658 would amend Section 63-602D, Idaho Code, to clarify the definition of a hospital as it relates to property tax exemptions. It would give counties more flexibility to determine if a hospital qualifies for a property tax exemption.

Hospitals seeking a property tax exemption would be required to "provide to the board of county commissioners by December 31 of each year a signed statement by the chief operating officer of the hospital corporation that it is in compliance with" a list of conditions added to Idaho code by this bill. 

Among these conditions are that none of the hospital's "net earnings and no donations made to it inures to the benefit of private shareholders or other individuals" and "payments made to its officers, employees, contractors, and suppliers are reasonable and not a covert means of making payments to private persons." 

The hospital would also have to demonstrate that the hospital's "total gift to the community exceeds on an annual basis its property tax liability for that year."

While this bill does not guarantee that any hospitals in the state will lose their property tax exemption, should that happen (as the bill's fiscal note correctly states), "Local taxing districts that have properties losing exemptions should see a lower levy rate for all property taxpayers."

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