Some nonprofit hospital property would face taxes without revenue-producing care

The property would not qualify for a property tax exemption unless the owning hospital uses it for health care services that bring in revenue. This covers property bought on or after July 1, 2026, and owned directly or indirectly by a nonprofit hospital. County and critical access hospitals are excluded. Health care services include patient care, medical education, and administrative work needed for patient care. The rule would take effect January 1, 2027.

The property would not qualify for a property tax exemption once ten years have passed since purchase if the owning hospital is not using it for health care services that bring in revenue. This covers property bought before July 1, 2026, and owned directly or indirectly by a nonprofit hospital. County and critical access hospitals are excluded. Parking, equipment areas, and similar property that actively serves a nonprofit hospital are excluded. The local zoning appeals board decides whether they qualify. The rule would take effect January 1, 2027. The ten-year period runs from the purchase date.