The idea is part of the governor’s proposed $9.9-billion budget for the fiscal year that begins July 1.
The budget also reportedly lowers funding for the Payment in Lieu of Taxes program, which compensates municipalities for property tax revenue lost due to non-taxable properties. The proposed budget would cut $5 million from PILOT funding.
State officials said allowing cities and towns to tax properties owned by nonprofit hospitals and colleges would help offset the lower PILOT funding, according to WPRI-TV. But they said that cities and towns would have to do more work to determine whether a property is “non-mission essential” and would have to sign off on a new tax.
More articles on healthcare finance:
HCA reportedly selling $1B in debt to aid Mission Health acquisition
Universal Health Services finance chief Steve Filton on cost containment and challenges hospital CFOs face
Medicare payments not covering care costs, many physician practices say
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.