In my January 24 Health Law column, I discussed a recent case involving the revocation of the property tax exemption of three not-for-profit (NFP) hospitals in Pennsylvania. State and local taxing authorities across the country are taking a closer look at how NFP hospitals, nursing homes, clinics, and other health care providers operate. If they determine that these organizations are not providing enough charity care, are operating more like a business than a charity, are overly aggressive in their collection of patient bills, are paying excessive compensation to executives, are allowing profit-making organizations like private physician practices to operate on their premises, or are engaging in other activities inconsistent with their charitable purpose, the property tax exemption of these health care providers could be in jeopardy. Federal exemption from income tax offers absolutely no assurance that their property tax exemption is safe.

All NFP organizations that have property tax exemptions should periodically review the requirements of state and local laws governing their continuing eligibility for such exemptions. New York City and every other county or municipality in New York state may have their own eligibility standards for these exemptions. This column will review the property tax exemption eligibility requirements of New York state, and guidance from the state and New York City on how NFPs qualify for such exemptions.