Residents Renew Property Tax Debate for Cleveland Clinic, University Hospitals

Two Cleveland residents have renewed the debate over whether Cleveland Clinic and University Hospitals should pay property taxes, according to a Plain Dealer report.

The residents, members of the group Common Good Ohio, have requested the Cleveland Metropolitan School District hold a hearing on the matter. They are urging that the health systems either pay property taxes for the $2 billion in property they own in Cuyahoga County, or arrange a payment in lieu of taxes agreement.

Debate over the issue slowed in the past couple of months after it was put on the table with December report from Policy Matters Ohio, a left-leaning think tank, in conjunction with Common Good Ohio and the Cleveland Teachers Union.

That report found the hospitals would pay at least $43 million more in combined taxes each year if their property was not tax exempt. Those funds would go directly toward the county, city and school district, among other government entities.

About $34 million of that estimated total would come from the health systems' Cleveland properties, $20.5 million of which would go to the schools, according to the report.

Both health systems have defended their nonprofit status, contending that they provide millions of dollars worth of care and other services to the community. That comes in the form of free or reduced care to low-income residents, unreimbursed care, research, education efforts and medical training.

More Articles on Hospitals and Taxes:
Groups Argue Cleveland Clinic, University Hospitals Unfairly Avoid Millions in Property Taxes
Report: Restrictions on Tax-Exempt Bonds Would Damage Hospitals, Economy
States, Cities Ready to Dispute Hospitals' Tax-Exemption

 

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