Property tax exemption for nonprofit hospitals

This article discusses management practices that hospital administrators can use to minimize the exposure to property taxation. First, the results of a national survey on the extensiveness of property tax exemption are reviewed. Next, a review of the history of recent developments in Utah is presented, including the recent ruling of the Utah State Supreme Court that "nonprofit" status does not necessarily qualify a hospital for property tax exemption. Finally, a series of suggestions for nonprofit hospitals to consider in an effort to minimize the probability of a challenge to their tax-exempt status is offered.