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Show Arguments Against I we do not intend to tax truly charitable hospitals. The constitution does not have to be The present changed to make charitable hospitals constitution and Utah Supreme Court rulings provide a method for charitable hospitals to be tax exempt if they meet certain requirements. For example, because Shriner's Hospital and By opposing Proposition 1 y 1 I I 1 Rebuttal to iriumvnts iqninst Proposition The Utah State Legislature passed overwhelmingly Proposition 1 by a vote of 25 to 2 in the Senate, and 61 to 9 in the House of Representatives. The Legislature passed this proposition: clarify the recent Utah Supreme Court rulings on property tax exemptions. Unless Proposition 1 is passed, I. To Primary Childrens Medical Center provide much charity care, they have never paid property taxes, If they remain charitable, they probably never will. Proposition 1 is unnecessary! 4 hospitals are often no different than hospitals. In the past, hospitals were not taxed because they cared for the sick and poor. They were often operated by religious groups only to provide a public service. Because hospitals were genuine charities and served a public purpose, they deserved tax exemptions. Now, there is little difference between many non profit hospitals and hospitals run for profit. t hospitals are big businesses, often run by large corporations. Some supposedly charitable hospitals even turn away or sue patients who cannot pay. These hospitals should not receive property tax exemptions. It is time to tax hospitals unless they really are charities. these rulings may take several years and hundreds of thousands of dollars in hearings and legal expenses to clarify, resulting in increased cost to patients. hospitals like Primary Childrens Medical Center, which provide millions of dollars in charity care, may be taxed because the courts rulings are vague and difficult to apply. Non-prof- Non-prof- j I i 5 j I If a hospital or nursing home does not provide charity care, then it should pay property taxes. If this amendment j I i, 1 - z i passes, any hospital or nursing home that is set up to be even if it gives no charity care at non profit would be all. There will be no incentive for hospitals to provide charity care. Only charitable non profit hospitals should be tax exempt! By defeating Proposition I, we encourage hospitals to be true charities. Proposition I! .) I j 3 j 1 Lets not ., 1 1 ! Unfair tax exemptions cause higher taxes for everyone. If nursing homes and hospitals take unfair advantage of this amendment to avoid paying taxes, we will lose tax dollars. All taxpayers will have to pay more to make up for the loss. One of the reasons that property taxes are so high now is there are relatively few people in the state who are required to pay property taxes. Proposition 1 would leave other taxpayers with an unfair tax burden. Vote "AGAINST Proposition hosptials and hospitals ARE different. All revenue generated by non profit hospitals is used to provide new equipment, facilities, and services for the communities they serve. For profit hospitals distribute a portion of their earnings to investor owners. Non profit hospitals have no investor owners, only exist to benefit the communities they serve, and under traditional American law have been exempt from taxes. Non-prof- III. To continue an exemption which has existed since statehood. The proposition is clear and precise. Only non-profhospitals and nursing homes as defined by state statute will qualify for exemption. No new exemptions will be created. avoid a new tax on the sick, the elderly, and the poor, those who can least afford it. The proposition will avoid a new regressive sick tax of the worst kind: the sicker you are the more you will pay. IV. To Vote FOR Proposition 1. Avoid a new sick tax. Senator Warren E. Pugh 3 5124 Cottonwood Lane Salt Lake City, Utah 84117 I Senator Fred W. Finlinson 720 Shiloh W'ay Murray, Utah 84107 give tax exemptions that arent justified! 1 II. is too vague, and could allow hospitals to avoid taxes unfairly. The field of health care changes everyday. Given the way the amendment is worded, it is difficult to know how it might be interpreted. Clinics and other medical facilities if they are set up as non profit might qualify as corporations. Passing this amendment could encourage many institutions to set up as non-profcorporations just to avoid taxes. County boards of equalization could not review the status of these hospitals and nursing homes. Now, counties can require non profit hospitals to pay taxes, depending on how much charity care they give. o , i if 1 ! $ i Page 9 |