Court Ruling On Hospitals Could Prompt Tax Payments

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.

Comments & Discussion

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  1. The big news today is Otter vetoing the law that would allow the AG to look into misdoings by County officials.

  2. How many times is this going to happen? Seems like every couple years or so they are in the same mess with profits.
    Heres a solution St Lukes, open a walk in/ drop off detox center that will take care of some of your profit problems.
    $2 mil a year will be a drop in the bucket profit wise but would go along way toward helping the community.

  3. We all see it every day with hospitals and doctors in this valley. They are all “non-profit” affiliated operations. It is a tax loophole that is exploited and we all know it. They make huge profits and pay little or no taxes.

    I say tax all churches and their property just like the average citizen gets taxed. They all need to quit playing “hide the ball” with us.

  4. Rod in SE Boise
    Apr 12, 2013, 4:53 pm

    I agree with Flyhead. Everyone should pay a fair share of taxes.

  5. Grumpy ole guy
    Apr 12, 2013, 6:02 pm

    I’m in line with Flyhead and Rod. Any facility which isn’t used exclusively for its healing/religious purpose should be subject to property tax. any portion of any property not so utilized should proportionally so taxed.

    And, while we’re at it, if Corporations are people, let’s do away with Corporate taxes and have the personal tax rates apply to all.

  6. The following should be taxed.

    All Doctors offices. especially the ones who refuse medicare/medicaid

    All Hospitals, clinics and any subsidiary thereof.

    All houses of worship (church, temple, synagogue, mosque, etc.)

    Corporations who bully legislatures into tax law changes just because they don’t like to pay and no they are not people, or they can begin to pay the income taxes they try and avoid. You know like Walmart.

    Corporate farms and dairies.

    Companies like Chobani in Twin Falls who so far has cost the Idaho taxpayer over 54-million dollars. Source: http://stateimpact.npr.org/idaho/2012/12/17/chobani-opens-twin-falls-yogurt-facility-today-but-at-what-cost-to-taxpayers/
    and they have provided less jobs and less pay than they have claimed. It will also be 10+ years before the state or region sees the projected $1.3-Billion.

    Any organization that claims tax exemption, but discriminates on age, origin, race, religion, sex, or even sexual orientation. Including organizations which discriminate against people with disabilities. In Idaho there is no such thing as “reasonable accommodation” just discrimination.

  7. Can’t agree more. Tax them! It’s all become a money maker.

  8. @ Grumpy
    “And, while we’re at it, if Corporations are people, let’s do away with Corporate taxes and have the personal tax rates apply to all.”
    Now there’s a brilliant solution to a lot of ills curretnly affecting the body politic.

  9. Clancy:

    Governor vetoed the so-called “Bujak” law because lawmakers failed to pass a trailer bill to appropriate the $212,000 needed to hire extra deputy AG and investigator. Hopefully next legislative session will correct the problem so that the AG’s office can assume the oversight of county official misdeeds instead of conflicted county prosecutors.

  10. Chobani has sealed the deal in Twin Falls and now they have the dairy farmers by the short hairs or is it the other way around. Bottom line the whole mess is nothing but corporate welfare at taxpayer expense.

    It is amazing to me just how far locals will bend tax laws to accommodate jobs that pay low wages and few benefits to their workers. And they pat themselves on the back for creating jobs where the workers will still qualify for food stamps and Medicaid payments.

    Idaho is and will remain the land of low paying jobs, cheap housing and cheap dirt due to this mentality. 4 in 10 high school grads. will go on to college and 1 will make it to graduation. It would be interesting to know how many Idaho College grads actually find jobs here in the Gem State.

    Underemployment is endemic in this state but few in the legislature are willing to acknowledge that fact.

  11. Flyhead says, “Underemployment is endemic in this state but few in the legislature are willing to acknowledge that fact.”

    Yes of course, because most of them benefit from our under employment and low wages!

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