Barton Building/Property Will Be Exempt From Property Taxes in Douglas County
501(c)(3) Exempt From All Taxes
The legal requirements for a hospital to be exempt from paying taxes are straightforward: A nonprofit hospital must be organized and operated exclusively to promote one of the purposes specified in section 501(c)(3) of the Internal Revenue Code, including charitable, religious, educational, and scientific purposes. Section 501(c)(3) offers not only exemption from paying federal taxes, but state taxes and local property taxes as well. It also provides the ability to receive tax-deductible contributions and to issue tax-exempt bonds, which lower the cost of borrowing.​​
Douglas County Hospital Approval = Lost Revenues
Compared to prior use by Lakeside Hotel & Casino, an approved hospital would not pay Douglas County for:
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Property Tax
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Transient Occupancy Tax
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Gaming Revenue
Barton's status as a non profit will exclude them from paying into local infostructure expenses.
We would like to see the numbers the Planning Dept calculated to present to the Commissioners for lost tax revenue as a result of choosing to go with a hospital and not go with mixed use residential/commercial for this site. So far $29 Million worth of real estate is Barton tax exempt in this area of Stateline, NV (and property values/lost tax revenue will only go up once the hospital is built). In addition, we would like to hear why any of the decision makers would go away from much needed residential units in this area.
From Page 87 of the South Shore Area Plan:
South Shore Policy 8.3
Provide flexibility for Barton Healthcare System to engage in public-private ventures. Upon adoption of a Facilities Plan, healthcare services in which Barton Healthcare System owns a majority interest and are located within the Healthcare Subdistrict will be considered public services provided by a non-profit organization and may be exempt from the requirements for CFA pursuant to TRPA Code Section 50.8.3.
Above, Barton claims that this is just to exempt themselves from TRPA...but we can be sure that they will claim exemption from property tax as well, and that those "public services provided by a non-profit organization" will include "hospital guest housing" (also open to the public as a hotel) and "hospital guest dining facilities" (restaurants also open to the public).
In other words, Barton becomes a for-profit landlord, but doesn't pay any tax to the County or anyone else.