Medical Facilities & Property Taxes
The healthcare industry is one of the largest in the country. Like all other businesses, though, it is subject to property taxes. Like other business industries, healthcare facilities can be overassessed, resulting in the establishments having to pay more on their property taxes than they might have paid otherwise. There are a few measures that those in the healthcare industry can take however, to help keep their property taxes low.
Property Tax Exemptions
One tactic that some hospitals and health care providers are taking is choosing to incorporate themselves as nonprofit organizations. Nonprofit organizations come with property tax exemptions that traditional businesses don’t get. The idea behind this is that hospitals and health care facilities that are exempt from property taxes can channel those unused funds into providing indigent care that covers the cost of those without the ability to pay. They might also reinvest those funds into furthering their charitable causes.
Qualifying for Exemptions
In order to qualify for property tax exemption in the healthcare industry, the facility must qualify as a nonprofit one. The hospital must be organized as a nonprofit one according to federal laws, and it must meet other constitutional, statutory and common law tests. It also usually must provide evidence that it functions as a charitable organization in its ownership, operation and usage.
Getting a Healthcare Business Appraised
If your healthcare business doesn’t meet the guidelines to be classified as nonprofit, then it will have to be assessed. Unfortunately, healthcare businesses are complex ones that can oftentimes be misunderstood by appraisers. Assessment Technologies law experts can help you assess your assessment, though, to ensure that your healthcare business was not overvalued. Some of the elements that Assessment Technologies analyzes to assess your property and how it relates to taxes include the following:
- Real estate factors (location, comparable market data and obsolescence)
- Tangible personal property (furniture, equipment and fixtures)
- Intangible business value (administration, management, flag, etc.)
Of course, sales and operation performance must also be taken into account when assessing the value of healthcare facilities.
If Assessment Technologies believes that your healthcare property tax was overassessed, then their law experts can assist you with filing an appeal with the county appraiser. If a favorable settlement cannot be secured, then they can take your case before an independent local property tax board. If that still doesn’t work, then their lawyers can take your case all the way up to a state or federal board.