Holland & Hart Healthcare Law Blog

Illinois Supreme Court says 503(C)(3) Company Must Walk the Talk for Property Tax Exemption.

Eden Retirement Center is a federal tax exempt entity that provides independent living facilities for seniors. It has a bylaw that permits the entity to waive or defer certain fees for impecunious applicants to its facilities. The Center applied for a state property tax exemption on the basis of its federal tax exempt status and its charitable waiver bylaw. The state rejected the application. In Eden Retirement Center V. Department of Revenue, Doc. No. 97703 filed on December 2, 2004, the Illinois Supreme Court reversed decisions by a state trial court and appellate court which had granted and sustained the tax exemption.

Thank You Richard Grasso - IRS Launches Tax Exempt "Compensation Enforcement Project."

In the wake of Richard Grasso's obscene money grab from the tax exempt New York Stock Exchange, Steve Miller, the newly appointed head of the IRS Commission For Tax Exempt Organizations recently announced a new IRS initiative tentatively entitled "Compensation Enforcement Project" to review the level and methodology of executive compensation for tax exempt originations. There are approximately 1.8 million tax exempt organizations in the United States and the levels of compensation in the health and hospital sector is likely to be a prime target.

St. David's II - A Faustian Bargain For Tax Exempt Hospitals?

Last year Tax Exempt Hospitals engaged in joint ventures with For Profit entities breathed a sigh of relief as a Federal District Court in Texas granted Summary Judgment to St. David's Health System of Austin, Texas in their Joint Venture with Columbia HCA on St. David's suit for the recovery of taxes paid because of an IRS determination that they were no longer tax exempt.