Nonprofit Ga. Hospitals Gear Up to Head Off Tax Fight
January 4, 2011 | Read Time: 1 minute
Following last year’s battle in Georgia’s legislature over proposals to eliminate sales-tax exemptions for many nonprofit hospitals, medical facilities are seeking to deter a similar debate in the forthcoming session, according to Chattanooga Times Free Press.
A new report by the Georgia Alliance of Community Hospitals argues that nonprofit hospitals provide more than $4 in uncompensated community benefit for every dollar of state tax breaks.
Last year Gov. Sonny Perdue proposed ending the sales-tax exemption for many institutions as part of a budget-cutting plan. Hospitals struck a compromise with lawmakers, accepting a 1.45 percent “bed tax”—a levy on net patient revenues—in exchange for preserving the break on sales taxes.
