Free public hospitals

From the 2024 DOR Tax Exemption Study

82.08.02795; 82.12.02745 - Free public hospitals Description Free hospitals are exempt from sales and use taxes on purchases of items used in the operation of the hospital or the provision of health care services. A free hospital does not charge its patients for health care provided. Purpose To reduce the cost of health care services provided by free hospitals to their patients. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes CTI CTI CTI CTI Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 CTI CTI CTI Assumptions This exemption impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Other Year Enacted: 1993 Primary Beneficiaries: Free hospitals Taxpayer Count: Fewer than three Program Inconsistency: None evident JLARC Review: Expedited review completed in 2021 2024 Tax Exemption Study Page 877