Idaho’s Tax Commission is claiming St. Luke’s Hospital and Elks Rehab owe more than $400,000 in sales tax on purchases the institutions claimed are exempt.
The joint venture run by the non-profit hospitals are “for profit ventures” in the eyes of the tax commission, but the hospitals see it differently. They have filed a legal action against the state which will likely take months to be resolved.
The issue before the court in a state lawsuit filed last month by St. Luke’s-Idaho Elks Rehabilitation Services, or SLIERS, and the Center for Wound Healing and Hyperbaric Medicine could have far reaching tax ramifications.
If the court finds the “spin off” joint ventures are indeed FOR PROFIT, local tax authorities will likely swoop in to collect personal property tax on values exceeding $100,000 as well as property taxes on buildings and land.
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