Brigham Young University Journal of Public Law


The taxation of hospitals is plagued with subjectivity, which especially burdens nonprofit hospitals. Inconsistencies across localities further exacerbate the uncertainty encountered by nonprofit hospitals seeking local tax exemptions. While federal and state tax implications for nonprofit hospitals receive most of the attention from debaters and scholars, local property tax exemptions are also of significant value for nonprofit hospitals and have been largely overlooked. This Comment explores the policy arguments for and against nonprofit status for hospitals. It shows that while the federal government has chosen relatively bright-line rules for determining non-profit status, localities are far less predictable. This Comment contributes to the literature by (1) highlighting the overlooked local taxation implications on the non/for profit hospital debate, (2) analyzing the inefficiencies that are created through inconsistencies across localities, and (3) suggesting the implementation of clear expectations for hospitals to receive specified tax breaks.


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