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House Bill 109 — Hospitals, property tax

House Bill 109 — Hospitals, property tax

Parrish Miller
February 13, 2023

Bill Description: House Bill 109 would limit the kinds of properties that are exempt from taxation because they are owned by a nonprofit hospital. 

Rating: +2

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?

Idaho law currently grants nonprofit hospitals an exemption from paying property taxes, including taxes on their "acute care, outreach, satellite, outpatient, ancillary or support facilities." Even properties that would not "independently satisfy the definition of hospital" can receive an exemption.

House Bill 109 would amend Section 63-602D, Idaho Code, by striking “acute care, outreach, satellite, outpatient, ancillary or support facilities” from the list of exempt properties. It also limits the definition of a hospital to what is found in chapter 13, title 39, Idaho Code. The bill also strikes language allowing property that "is being prepared for use as a hospital" to be tax exempt. 

House Bill 109 further stipulates that property "losing an exemption under this section shall not be included on any new construction roll prepared by the county assessor pursuant to section 63-301A, Idaho Code."

By eliminating this special property tax exemption for clinics and other facilities that are not part of a hospital, House Bill 109 would indirectly reduce the property taxes of property owners in the same taxing district as the facilities losing their exemption. 


Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?

Allowing doctors' offices and clinics owned by a hospital to receive a special tax exemption gives them an unfair financial advantage compared to similar facilities that are privately owned. Eliminating this exemption helps to level the playing field and stops forcing private facilities to pay more in taxes to subsidize their competition. 


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