Tax Exemption Case Study

As the rise of taxation and exemptions has been the focus since the 1970’s, so have court cases to resolve exemption matters. In the case of Greater Anchorage Area Borough v. Sisters of Charity involves the appeal of a tax exemption status of a building owned by the Sisters of Charity. The details of the Sisters of Charity entail of them being a long time health care provider in Alaska the Providence Professional building near the hospital deeded to them in 1959. After the construction in 1970, the building was for recreation, school, and hospital use; thereafter the building was fully opened in 1972. Nevertheless, the professional building was operating, and the three floors of the building are the subject of appeal. The purpose for the appeal

The Sisters decided to appeal the assessment to the Greater Anchorage Borough. With hearing the evidence and facts from both sides, the board denied the appeal. Then the sisters appealed to the Supreme Court for a different resolution. The purpose for the appeal again was for the property being assessed allowed for exemption. The Supreme Court initially remanded the matter and with frugally going back and forth with evidence and hearing both sides. The Supreme Court decided the burden is on the Sisters to show the office space was entitled for exemption. The courts also mentioned of statutes construing the exemptions in addition to the policy of the rules for tax

Sisters of Charity and for health care are for health care institutions to ensure all charity criteria’s have been met for tax-exempt purposes. Anti-trust laws are applied to some court cases, but all health care organizations must get familiar with statutes, anti-trust laws, and tax-exempt requirements for the 21st century. The other important aspect is competition is a prominent factor in the health care world as well as for markets, to decrease health care costs. Controlling costs will help prevent monopolizing of organizations for the long run in health care organizations. All in all, it’s expected that tax and federal issues will arise from different health care institutions. An eye-opening and relevant case such as Anchorage Area Borough v. Sisters of Charity is a learning lesson about taxation and exemption. Whether charitable organizations, property space, or tax exemption, it’s all of major importance to state and federal tax assessors for law