A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Plain English Breakdown

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Nonprofit Hospital Property Taxes

This bill changes Indiana's tax laws to require certain nonprofit hospitals to pay property taxes on land they own if that land is not used for providing healthcare services after a specific period.

What This Bill Does

• Removes the exemption from property taxes for real estate owned by nonprofit hospitals (except critical access or county hospitals) purchased before July 1, 2026, if it's not being used to provide revenue-producing health care services ten years later.
• Requires that any real estate directly or indirectly owned by a nonprofit hospital and bought after June 30, 2026, must be used for providing healthcare services to avoid property taxes.
• Exempts parking garages, lots, equipment areas, and similar properties from the tax requirement if they actively support the operations of a nonprofit hospital.

Who It Names or Affects

• Nonprofit hospitals in Indiana (excluding critical access or county hospitals).
• Board of zoning appeals that will decide whether certain properties are exempt based on their use for supporting healthcare services.

Terms To Know

Revenue-producing health care services

Healthcare activities that generate income, such as patient visits or medical procedures.

Critical access hospital

A small rural hospital designated by the federal government to receive certain benefits and protections.

Limits and Unknowns

• The bill does not specify what happens if a nonprofit hospital fails to use its property for healthcare services after ten years.
• It is unclear how this change will affect hospitals' financial situations or their ability to provide care.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Nonprofit hospital property taxes.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Nonprofit hospital property taxes.

Provides that real property purchased before July 1, 2026, directly or indirectly owned by a nonprofit hospital (other than a critical access hospital or a county hospital) is not exempt from property taxation if, after 10 years from the date of purchase of the property by the nonprofit hospital, the property directly or indirectly owned by the nonprofit hospital is not being used for the performance of revenue producing health care services by the nonprofit hospital that directly or indirectly owns the property. Provides that real property directly or indirectly owned by a nonprofit hospital purchased after June 30, 2026, is not exempt from property taxation if the property directly or indirectly owned by the nonprofit hospital is not being used for the performance of revenue producing health care services by the nonprofit hospital that directly or indirectly owns the property. Provides that the disallowance of an exemption does not apply to a parking garage, parking lot, equipment facility area, or any other similar property that actively serves a nonprofit hospital. Provides that a determination as to whether a parking garage, parking lot, equipment facility area, or any other similar property actively serves a nonprofit hospital shall be made by the board of zoning appeals with jurisdiction over the property.