As the new year commences, nonprofit health care providers are reminded of the importance of ensuring compliance with state-specific filing deadlines for property tax exemption. If the deadline for a particular year is missed, the provider will likely be obligated to pay the taxes for that year. In most jurisdictions, each tax year stands alone, so a missed filing means taxes will be levied for the full year in question.
To avoid the assessment of taxes, nonprofit providers must carefully navigate this complex regulatory landscape. Each state has a unique property tax exemption process, with varying filing deadlines and renewal requirements. The following provides a brief overview of key deadlines and obligations in select states. This summary is not comprehensive, and providers are encouraged to review state- and county-specific regulations to ensure full compliance.
Colorado
- New Applications: Applications may be submitted on a rolling basis. The exemption will be effective as of the year of application, as the administrator shall determine. Avoid filing applications late in the year to ensure time for administrator review.
- Renewal Requirements: Annual reports must be filed no later than April 15 each year.
Florida
- New Applications: Applications for new property tax exemptions must be filed by March 1.
- Renewal Requirements: Renewal applications vary by county, but if they are required, the county appraiser will mail a renewal application by February 1.
Illinois
- New Applications: Applications are reviewed on a rolling basis by the relevant county Board of Review.
- Renewal Requirements: Hospitals are required to submit Form PTAX-300-HA by January 31 to maintain their exemption.
Indiana
- New Applications: Applications for new exemptions must be filed by April 1. A late filing grace period of up to 30 days may be available, subject to a statutory penalty.
- Renewal Requirements: Once granted, the exemption does not require renewal unless there is a change in ownership or use of the property.
Kentucky
- New Applications: Applications must be submitted by March 1 for the applicable tax year.
- Renewal Requirements: Once granted, the exemption does not require renewal unless there is a material change in property use or location.
Michigan
- New Applications: Exemptions take effect only if the local assessor acts on the application by December 31 of the year submitted. Delays in processing may defer the exemption’s applicability to the following year.
- Renewal Requirements: No renewal is required.
Missouri
- New Applications: Applications for new exemptions must be filed by December 31 for the relevant tax year.
- Renewal Requirements: None, provided the Board of Equalization’s decision granted the exemption moving forward.
North Carolina
- New Applications: Hospital authorities do not need to file an application to receive an exemption. However, applications for properties used for religious, educational or charitable purposes must be submitted during the listing period, typically January 1 to January 31.
- Renewal Requirements: Renewal is unnecessary unless there are material changes in use or valuation.
Oklahoma
- New Applications: Applications (Form OTC 988) must be filed by March 15.
- Renewal Requirements: Annual affidavits must be filed with the county assessor to confirm continued qualification.
Pennsylvania
- New Applications: Applications must be submitted by September 1 or earlier, as designated by county commissioners, but no earlier than August 1.
- Renewal Requirements: Renewal is not required unless specifically requested during a compliance review by the county’s Office of Property Assessment.
Texas
- New Applications: Applications are due by April 30, with a potential 60-day extension for good cause.
- Renewal Requirements: Once the exemption is granted, the charitable organization does not need to reapply until the entity adds exempt property or the entity is notified by the chief appraiser to reapply. A nonprofit hospital or hospital system, however, must file its community benefits plan with the Texas Department of State Health Services no later than April 30 each year.
Wisconsin
- New Applications: Applications for new exemptions must be filed by March 1.
- Renewal Requirements: No renewal is required if property use remains unchanged.
With deadlines approaching, it is important to start applications as soon as possible, particularly for properties that have been newly acquired since the last appraisal date. The application process can be complex, often requiring detailed documentation of property use, ownership and financial records. Nonprofit providers must be diligent in navigating these requirements to ensure their filings are accurate and complete.
Providers are encouraged to consult legal counsel or their local property tax assessor to ensure all obligations are met.
If you have additional questions or would like to discuss strategies for maintaining property tax exemption at your hospital or health care facility, please contact:
- Eric Rupenthal at (317) 429-3681 or erupenthal@hallrender.com; or
- Joel Swider at (317) 429-3638 or jswider@hallrender.com; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
