by Logan Finney, Idaho Reports

The Senate has passed a bill to revise property tax exemptions for nonprofit hospitals.

Senate Majority Caucus Chairman Ben Toews described the bill as “a collaborative effort between the Idaho Association of Counties and the Idaho Hospital Association.” It tightens the general definition of hospital while specifically designating critical access hospitals and rural emergency hospitals for the exemption.

“This is a great example of the legislative process working well,” said Toews, R-Coeur d’Alene.

House Bill 130, now amended twice by the Senate, is the result of Ada County’s repeated requests for more control over which hospital properties qualify for the tax exemption.

Senate Majority Leader Lori Den Hartog, R-Meridian, explained the issue in debate Tuesday.

“Some of our hospitals now are health systems, so they own and operate – and do – a lot of different things in our community. When the hospital exemption was put into place in this section of code back in the mid to late 90s, we didn’t have what we have today,” Den Hartog said. “In this valley, we have two major health systems. They own and operate a lot of different satellite offices that, again, benefit the community but they’re not what we think of as traditional hospitals.”

The bill will return to the House for consideration because it has been amended. If they concur with the changes, it moves to the governor’s desk for his signature or veto.

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