Written by Tom Mason, director of ONESOURCE Property Tax, this article discusses how health reform and recent legal cases can affect hospitals' property tax exemption. The article was published by the Healthcare Financial Management Association.
Property Taxes are the largest component of state and local business taxes, comprising 36.5% or $215B in revenue (FY2009 COST study). By comparison, the second largest component is sales tax at 21.5%. Local and state governments use these funds to pay for schools, streets, roads, police, fire protection and many other services. It is important to understand the dependence that local jurisdictions have on property tax revenue when discussing the tax process and compliance and reduction strategies.