The Lake View Memorial Hospital and Clinic in Minnesota was denied a property tax exemption in February 2018. The Minnesota Tax Court stated that the Memorial Hospital failed the auxiliary-property test. Minnesota’s statute says that in order to qualify for the exemption a taxpayer must provide evidence of its not-for-profit status. The hospital did not provide the physician compensation, article of incorporation, and documentation related to the interdependence of the hospital and clinic.
For more information on this and other property tax issues, contact your state and local tax professional.