From the Richmond Pallidium Item:
"Reid Hospital has purchased the medical practices, equipment and offices of many private physicians over the last few years, a move that removes some or all of the properties from the county's property tax rolls.
The Wayne County Property Tax Assessment Board of Appeals took a close look last year at the exemptions the hospital had filed and the board in July denied exemptions on eight parcels owned by Reid Hospital and Health Care Services Inc.
In October, the hospital appealed the county board's denial to the Indiana Board of Tax Review. A hearing date has not been set for the appeal.
The total assessed value of the property under appeal is $1.12 million, Wayne County Assessor Mike Statzer said. Auditor Karen Stevens estimated the lost tax revenue at $17,122 for 2010 and $32,697 for 2011.
The physicians' offices acquired by Reid were fully on the tax rolls, Statzer said. Tax exemptions were denied on one parcel of real estate on Dillon Drive and on personal property at seven offices, Statzer said.
The exemption for some personal property in Reid's medical office building was denied in 2010, but the hospital didn't get the denial notice, Statzer said. The hospital appealed the 2010 denial in 2011, he said.
...
Statzer said there are differing interpretations on tax-exempt status for cases such as this one.
"(Reid) has an attorney that has cited court cases in their favor. The county has an attorney who has court cases that say they shouldn't be exempt. They (attorneys) have been talking to each other to see if it can be worked out," Statzer said. "It's a very friendly dispute. We want to make the right call."
For the tax years in question, the property was owned and used by Reid Hospital and Health Care Services Inc. or Reid Physicians Associates for charitable purposes and both organizations have federal non-profit status, according to a statement from the hospital.
Reid officials declined to make further comment on the appeal because it is a pending matter.
Union County lost $525,000 in assessed property value in 2010 when Reid Hospital purchased the medical center on U.S. 27 North that was formerly owned by Dr. John Clarkson and Lori Clarkson.
Union County Assessor Diana Baker said the advice she received from several sources indicated the hospital should be granted the exemption.
If Wayne County is successful in its case, Union County likely will review the hospital's exemption for the medical office, Baker said."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203070307
The Palladium Item published an editorial on the exemption issue Tuesday:
"But let's be clear about a couple of the bigger picture items here.
First, officeholders as a rule seem to prefer to get worked up over the dollars that they can't get their hands on in their never-ending efforts to spend more. If only they were to put the same time and energy into curbing costs, consolidating services and achieving efficiencies that return more of those dollars to where they belong ... namely, taxpayers.
Secondly, local governments and their taxpayers are supposed to shoulder a large share of the responsibility for providing indigent medical care to those in need. They might want to pause in their quest for $17,000 or $32,000 from a Reid Hospital to appreciate, maybe even thank, Reid for annual uncollectibles from the uninsured that represent a more than $20 million annual cost to the local hospital, a cost that must be passed on all or in part to those who can and do pay their bills."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203130315
