community health centers;
taxation; exemption
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Committee on Public Institutions & Rural Affairs |
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DP |
Committee on Ways & Means |
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X |
Caucus and COW |
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Third Read |
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As Passed the House |
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SB 1290 exempts qualifying community health centers operating in medically underserved areas, from property tax if they are not used or held for profit.
Current Status
SB 1290 passed the Public Institutions & Rural Affairs and the Ways and Means Committees unamended.
Current statute (A.R.S. § 42-11105) provides that hospitals used for the relief of the indigent or afflicted, appurtenant land and their fixtures and equipment, are exempt from property tax if they are not used or held for profit. A similar property tax exemption exists for charitable institutions for the relief of the indigent or afflicted (ARS 42-11107).
The Arizona Association of Community Health Care Centers (AACHC) had previously claimed exemption under these statutes. In September of 2001, the Pima County Assessor levied a property tax against the centers in Tucson. The County Assessor stated that the clinics were not hospitals and, therefore, not exempt. The clinics appealed and the Tax Court ruled in favor of the Pima County Assessor. However, the County Assessor revised his policy so that clinics are tax exempt if they qualify for federal grants to community-based primary health care clinics that primarily serve the uninsured or underinsured.
SB 1290 would exempt community health centers from property tax. A.R.S. § 36-2907 defines qualifying community health center as a community based primary care facility that provides medical care in medically underserved areas, or in medically underserved areas or medically underserved populations as designated by the United States Department of Health and Human Services, through the employment of physicians, professional nurses, physician assistants or other health care technical and paraprofessional personnel.
· Stipulates that qualifying community health centers operating in medically underserved areas, appurtenant land and their fixtures and equipment are exempt from property tax if they are not used or held for profit.
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45th Legislature
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Second Regular Session 2 April
9, 2002
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