In order for a private healthcare institution’s real estate and personal property to be tax exempted, there are two qualifying factors. The factors are qualifying as a charity and use for a charitable purpose (Showalter, 2012). To qualify as a 501 (c)(3) charitable organization, the organization must be organized and operated for religious, hospital, educational, employee representation, or welfare purposes (Showalter, 2012). In order for an organization to qualify as charitable, the IRS has been using the “community benefit standard” since 1969 to determine if an organization reaches this standard (Lunder & Liu, 2012).
Each parcel of land that the entity wants to be included in tax exemption must be owned by them and each parcel must qualify …show more content…
v. Wilkins case. The Ohio Supreme Court is attempting to narrow charitable use property tax exemption. The Community Health Professionals Inc. sought tax exemption status for administrative buildings that were leased. They claimed exemption under R.C.5709.12 and R.C. 5709.121 (Engel, 2007). The controversy dealt with whether or not the leased administrative buildings qualified for tax exemption because there was no evidence of charity care from the property. In the end, the court ruled that the property used for administrative offices qualified for charitable purposes. Although there was no level of charitable care occurring at the building, the building was still being used for charitable purposes (Engel, 2007). The profit occurring from the usage of the buildings was not benefiting the owner’s entity. This case helped Ohio define what was considered charitable care before a property can be exempted from tax. This case was similar to the Provena case in Illinois (Engel, …show more content…
In the case of The Community Health Professionals Inc. v. Wilkins, administrative buildings may receive tax exemption status as long as they are for charitable use and purposes. The administrative buildings are being used to benefit the not for profit organization. Therefore, the administrative building used by the Marlin Health System in Ohio will qualify for exemption status because of its affiliation with the not for profit organization. However, if the administrative building being to make a profit or benefits the owner’s entity, it will lose its property tax exemption status (Engel,
Each parcel of land that the entity wants to be included in tax exemption must be owned by them and each parcel must qualify …show more content…
v. Wilkins case. The Ohio Supreme Court is attempting to narrow charitable use property tax exemption. The Community Health Professionals Inc. sought tax exemption status for administrative buildings that were leased. They claimed exemption under R.C.5709.12 and R.C. 5709.121 (Engel, 2007). The controversy dealt with whether or not the leased administrative buildings qualified for tax exemption because there was no evidence of charity care from the property. In the end, the court ruled that the property used for administrative offices qualified for charitable purposes. Although there was no level of charitable care occurring at the building, the building was still being used for charitable purposes (Engel, 2007). The profit occurring from the usage of the buildings was not benefiting the owner’s entity. This case helped Ohio define what was considered charitable care before a property can be exempted from tax. This case was similar to the Provena case in Illinois (Engel, …show more content…
In the case of The Community Health Professionals Inc. v. Wilkins, administrative buildings may receive tax exemption status as long as they are for charitable use and purposes. The administrative buildings are being used to benefit the not for profit organization. Therefore, the administrative building used by the Marlin Health System in Ohio will qualify for exemption status because of its affiliation with the not for profit organization. However, if the administrative building being to make a profit or benefits the owner’s entity, it will lose its property tax exemption status (Engel,