June 14, 2021
Florida Legislature repeals law limiting nonprofit hospital's property tax exemption to community benefit provided
The Florida Legislature has repealed a law, enacted in April 2020, that would have added certain community benefit reporting requirements for hospitals that apply for a property tax exemption. The law, which would have become effective on January 1, 2022, would have effectively limited a tax-exempt hospital's property tax exemption to the amount of community benefit the hospital provides. (For details, see Tax Alert 2020-0095.)
Repeal of the law relieves tax-exempt hospitals with physical locations in Florida from the burden of additional tracking and reporting related to community benefit. The repeal suggests a reconsideration of the taxing authority's determination to tie the state's tax exemption benefits to the value the organization provides to the community.
Although repeal of the legislation provides some immediate relief, exempt hospital organizations with physical locations in Florida should monitor future legislation for similar proposals drafted by proponents of the original law. Exempt hospitals in other states should assess the possibility that comparable legislative efforts may be underway within their taxing jurisdictions.
Please contact your EO professional for further information.
— For more information about EY's Exempt Organization Tax Services group, visit us here.