Wisconsin Senate Bill SB1047

Wisconsin 2023-2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 4/15/24

Caption

The property tax exemption for nonprofit hospitals. (FE)

Impact

If enacted, SB1047 could have considerable implications for nonprofit hospitals across the state. The measure aims to ensure that these institutions provide adequate charity care proportional to their exempt status from property taxation. Supporters of the bill argue that it holds nonprofit hospitals accountable for their contribution to community health and safety, effectively linking their tax benefits directly to their community service obligations. This could result in increased revenue for local governments that currently miss out on property taxes from these facilities.

Summary

Senate Bill 1047 proposes changes to the property tax exemption status of nonprofit hospitals in Wisconsin. The bill stipulates that nonprofit hospitals will not be exempt from property taxes in any year where their total charity care falls below the amount of property taxes that would have been owed. This represents a significant shift in how property taxation for nonprofit hospitals is assessed, as current law allows such hospitals to maintain tax-exempt status regardless of the amount of charity care provided.

Contention

Despite its intentions, SB1047 faces opposition based on concerns about potential financial pressure on nonprofit healthcare providers. Critics argue that by imposing a tax liability based on charity care levels, the bill could inadvertently undermine the financial viability of these hospitals, particularly those that already operate on narrow margins. This could lead to diminished healthcare services for underserved populations or reduce the hospitals' ability to provide essential community services. The debate reflects broader tensions about fiscal responsibility and access to health services in the state.