Senate Passes Bill For Hospital Taxes Study

Hospitals aren’t necessarily charities anymore, Sen. Jack Riggs told the Senate Wednesday, and they may not be entitled to exemption from property taxes.

“The key is the nonprofit issue,” said Riggs, R-Coeur d’Alene. “Many hospitals which started as charitable entities no longer have that particular role.”

Instead, he said, some make “enormous profits.”

Riggs’ comments came as the Senate voted unanimously for House Bill 689, a bill that calls for studying when hospitals should qualify as property tax-exempt. The measure was prompted by Ada County’s attempt this year to collect millions in property taxes from St. Luke’s Regional Medical Center, which had long been tax-exempt. The county argued that the hospital made too much money to be considered nonprofit.

Riggs is a doctor who owns a chain of immediate-care centers.

In addition to the study, the bill puts off any tax liability for St. Luke’s for one year, to allow the issue to be resolved at the state level.

“This seemed at first to be just an Ada County problem,” said Sen. Sheila Sorensen, R-Boise. “What it is is something that could potentially spill over to the rest of the state.” Sen. Gordon Crow, R-Hayden, said, “I hope they will come up with a reliable answer to this.”

The measure now goes to Gov. Phil Batt.

, DataTimes