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#1 Children's Hospital Los Angeles: Non-profit teaching hospital. #2 Kaiser Foundation Hospitals: Non-profit hospital #3 Cedars-Sinai Medical Center: Non-prof

by lkbm 12y ago

#1 Children's Hospital Los Angeles: Non-profit teaching hospital. #2 Kaiser Foundation Hospitals: Non-profit hospital #3 Cedars-Sinai Medical Center: Non-profit hospital Are non-profit hospitals property-tax exempt? I know non-profits normally aren't, but there are exceptions (e.g., low-income student housing co-ops in Texas).

zorpner 12y ago
That's correct, per section 214 of the CA revenue and taxation code: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=rtc&group=00001-01000&file=201-242 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=rtc&gr... There are a number of conditions that must be met for exemption, and being a non-profit hospital generally fulfills them.
jnosCo 12y ago
Yes, within a definition of non-profit. http://www.boe.ca.gov/proptaxes/pdf/ah267.pdf http://www.boe.ca.gov/proptaxes/pdf/ah267.pdf (page 19)
joshuaheard 12y ago
Yes. You pay taxes on profits. Since a non-profit entity makes no profit, it pays no taxes. The bigger issue I come across is whether a donation to a non-profit organization is tax deductible. For that, the non-profit entity must apply to the IRS for IRC 501(c)(3) status and receive it before a donation to a non-profit entity is tax deductible.
- _delirium 12y ago
  Property tax is a tax on property, not on profits. Even a business that's losing money (negative profit) has to pay property tax, if it owns property. Some states do exempt charities (or some types of charities) from property taxes as well, but it doesn't follow automatically from non-profit status.
- rtpg 12y ago
  >Since a non-profit entity makes no profit, it pays no taxes Is this true in the strictest sense? I mean I've seen a lot of non-profits make more money than they spend, but they're somewhat obligated to reinvest the money next year. My impression was that non-profit was sort of a "pinky promise" about how you'll use your profits (with the IRS flying in if this is not the case)
  - joshuaheard 12y ago
    That's true. If profit is defined as income less expenses, some orgs may have more income than expenses at the end of the year, which could be considered "profit". However, a non-profit is organized in such a way as there are no shareholders or other owners to distribute the profit. So, the precise term should be non-profit-distribution, I guess. Of course, the principals of a non-profit still take a salary, and you could probably sneak in a reasonable bonus as well, and not call it a profit distribution.
caycep 12y ago
Cedars, while "non-profit" in category, certainly isn't by spirit...

by lkbm 12y ago

zorpner 12y ago

That's correct, per section 214 of the CA revenue and taxation code: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=rtc&group=00001-01000&file=201-242 http://www.leginfo.ca.gov/cgi-bin/displaycode?section=rtc&gr... There are a number of conditions that must be met for exemption, and being a non-profit hospital generally fulfills them.

jnosCo 12y ago

Yes, within a definition of non-profit. http://www.boe.ca.gov/proptaxes/pdf/ah267.pdf http://www.boe.ca.gov/proptaxes/pdf/ah267.pdf (page 19)

joshuaheard 12y ago

Yes. You pay taxes on profits. Since a non-profit entity makes no profit, it pays no taxes. The bigger issue I come across is whether a donation to a non-profit organization is tax deductible. For that, the non-profit entity must apply to the IRS for IRC 501(c)(3) status and receive it before a donation to a non-profit entity is tax deductible.

_delirium 12y ago
Property tax is a tax on property, not on profits. Even a business that's losing money (negative profit) has to pay property tax, if it owns property. Some states do exempt charities (or some types of charities) from property taxes as well, but it doesn't follow automatically from non-profit status.
rtpg 12y ago
>Since a non-profit entity makes no profit, it pays no taxes Is this true in the strictest sense? I mean I've seen a lot of non-profits make more money than they spend, but they're somewhat obligated to reinvest the money next year. My impression was that non-profit was sort of a "pinky promise" about how you'll use your profits (with the IRS flying in if this is not the case)
- joshuaheard 12y ago
  That's true. If profit is defined as income less expenses, some orgs may have more income than expenses at the end of the year, which could be considered "profit". However, a non-profit is organized in such a way as there are no shareholders or other owners to distribute the profit. So, the precise term should be non-profit-distribution, I guess. Of course, the principals of a non-profit still take a salary, and you could probably sneak in a reasonable bonus as well, and not call it a profit distribution.

caycep 12y ago

Cedars, while "non-profit" in category, certainly isn't by spirit...