NH may consider revoking tax exemption for hospitals
A New Hampshire lawmaker is mulling whether to begin a legislative effort that would expand the state's business enterprise tax to include not-for-profit hospitals, the Concord Monitor reported.
Rep. David Hess, a Republican, told the Monitor that "the non-profit sector of the economy represents approximately 12 percent of the state's gross domestic product, and for some reason the Business Enterprise Tax exempts 12 percent of the state's economy from its applicability. And it's funny: When you look at the highest-paid employees in the state . . . a hefty percentage are hospital executives."
Twenty-four of the Granite State's 26 hospitals are exempt from the business tax, which includes a 0.75 percent levy on interest, dividends and compensation at any business or nonprofit that reach a certain business threshold except charitable enterprises, according to the Monitor.
Hess has filed an intention to draft legislation that would tax the pay of non-profit hospital executives, among others. He has until mid-November to decide whether to move forward with any draft bills through the legislative process.
The issue of hospital compensation has been a controversial one, with many top executives at tax-exempt facilities earning $1 million a year. The Internal Revenue Service has been increasing its scrutiny at such institutions, although revocations have not occurred. And like New Hampshire, many states have also been considering ending tax exemptions for hospitals.
To learn more:
- read the Concord Monitor article
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