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Show -- .JfcL charges . were issued ran m u - :;h;f For O Against O Proposition No. 1 PROPERTY TAX EXEMPTION FOR NON-PROFI- T HOSPITALS AND NON-PROFI- T NURSING HOMES v cast 1986 Legislature on final passage: by the members of the E (75 members): Yeas, 61; Nays, 9; Absent or not voting, 5. SENATE (29 members): Yeas, 25; Nays, 2; Absent or not voting, L id-J-he classroom .or ... teacher r ' : Official Ballot Title: Shall Article XIII, Section 2 be amended to allow property owned by a nonprofit entity that is used exclusively for hospital or 'nursing home purposes to be exempt from q property tax; and to provide an effective & date of January 1, 1986? I ft u u :t U !r .n )( jt! ;i P" " ' J i " ts n b IMPARTIALNALYSIS Proposal Thestateconstitutionprovidesforthetaxationofprope Option from the property tax must also be ncu d fitution. TheUtahConstitutionhas always fW ively for "charitable purposes" to be exemf JgJ Property owned by a non-prof- entity S'W considered exemp or nursing home purposes was unt. fPWy taxes under the charitable exemption 198 Court issued an interpretation of this language " fle decided that, in determining a non-pro- hosp JJ we lhe charitable exemption, the following six factors must wit ou 1 whether the hospital exists to provide a service, "pecting to be paid; in SUDPOrting the 1 Whether role donations and gifts play a large hospital; whether patients are required to pay for se rvices; gifts J 8 Aether the income from all sources (Including operating and other expenses; restricted to 5' Aether are those who may benefit from the charity certain groups, or unrestricted; private 6' benefit to any Aether the hospital provides financial Person or interest. hospitals and nursing homes that were b Many non-prof-rfm.. lv tax exempt find it difficult to meet the court's new 3 Proportion 1 passes, hospitals and nursing homes would r f meet the court s property taxes without having to .y pnSente If Proposition 1 fails, the Utah Supreme Court's tc Su "menu.would be used to determine if individual should be taxed. o hospitals and nursing homes Effective Date 5 the voters, this amendment would apply to the x If TloinninB January 1, 1986. Taxes imposed on certain non- - tl '"fiSS nursing homes under the requirements of the SirSurt's 1985 decision would not have to be paid for 1986. Fiscal Impact n constitutional amendment is adopted non- - If the proposed je nursing homes will not have to begin fit hnwitals and Pr ooertv If it is not adopted, t hospitals and it 0 n Jll begin to pay property taxes to local governments "TloTdistricJ The estimated property tax revenue from non- - ASSS homes will be $7 to $10 million per year. e, sr "I u V n 3! a Page 7 - |