Idaho State Statutes - Idaho Attorney Directory

(1) For the
purposes of this section, "hospital" means a hospital as defined by chapter
13, title 39, Idaho Code, and includes one (1) or more acute care, outreach,
satellite, outpatient, ancillary or support facilities of such hospital
whether or not any such individual facility would independently satisfy the
definition of hospital.
(2) The following property is exempt from taxation: the real property
owned and personal property, including medical equipment, owned or leased by a
hospital corporation which is operated as a hospital and the necessary grounds
used therewith.
(3) If real property, not currently exempt from taxation, is being
prepared for use as a hospital, the value of the bare land only shall be taxed
while the property is being prepared for use as a hospital. All improvements
to and construction on the real property, while it is being prepared for use
as a hospital, shall be exempt from taxation. For purposes of this section,
property is being "prepared for use as a hospital" if the corporation has
begun construction of a hospital project as evidenced by obtaining a building
permit that will, on completion, qualify such property for an exemption and,
as of the assessment date, has not abandoned the construction. Construction
shall not be considered abandoned if it has been delayed by causes and
circumstances beyond the corporation's control or when delay is caused by an
event that has occurred in the absence of the corporation's willful neglect or
intentional acts, omissions or practices engaged in by the corporation for the
purpose of impeding progress. Notwithstanding the foregoing, in no event shall
improvements to property that is being prepared for use as a hospital qualify
for an exemption from ad valorem property tax under this subsection for more
than three (3) consecutive tax years; upon completion of construction and
obtaining a certificate of occupancy, the entire real property shall be exempt
from taxation if the corporation meets the requirements of subsection (4) of
this section; provided, property already exempt or eligible for exemption
shall not be affected by the provisions of this subsection.
(4) The corporation must show that the hospital:
(a) Is organized as a nonprofit corporation pursuant to chapter 3, title
30, Idaho Code, or pursuant to equivalent laws in its state of
incorporation;
(b) Has received an exemption from taxation from the Internal Revenue
Service pursuant to section 501(c)(3) of the Internal Revenue Code.
(5) The board of equalization shall grant an exemption to the property of
any hospital corporation meeting the criteria provided in subsection (4) of
this section.
(6) If a hospital corporation uses property for business purposes from
which a revenue is derived which is not directly related to the hospital
corporation's exempt purposes, then the property shall be assessed and taxed
as any other property. If property is used in part by a hospital corporation
for such purposes, then the assessor shall determine the value of the entire
property and the value of the part used that is not directly related to the
hospital corporation's exempt purposes. If the value of the part which is not
directly related to the hospital corporation's exempt purposes is determined
to be three percent (3%) or less than the value of the entire property, then
the property shall remain exempt. If the value of the part which is not
directly related to the hospital corporation's exempt purposes is determined
to be more than three percent (3%) of the value of the entire property, then
the assessor shall assess the proportionate part of the property, including
the value of the real estate used for such purposes.
(7) A hospital corporation issued an exemption from property taxation
pursuant to this section and operating a hospital having one hundred fifty
(150) or more patient beds shall prepare a community benefits report to be
filed with the board of equalization by December 31 of each year. The report
shall itemize the hospital's amount of unreimbursed services for the prior
year (including charity care, bad debt, and underreimbursed care covered
through government programs); special services and programs the hospital
provides below its actual cost; donated time, funds, subsidies and in-kind
services; additions to capital such as physical plant and equipment; and
indication of the process the hospital has used to determine general community
needs which coincide with the hospital's mission. The report shall be provided
as a matter of community information. Neither the submission of the report nor
the contents shall be a basis for the approval or denial of a corporation's
property tax exemption.

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