Rating: +1

Bill Summary:
H0130 amends Idaho Code § 63-602D to give county boards of equalization the discretion to grant or deny property tax exemptions for nonprofit hospitals and public hospital districts. Previously, these exemptions were automatic if statutory criteria were met. The bill allows exemptions to be partial or full, particularly for properties that serve both exempt and non-exempt functions (e.g., for-profit clinics or leased space). It also limits construction-related exemptions to three consecutive tax years unless a certificate of occupancy is obtained, ensuring properties under indefinite development don’t remain off the tax rolls. Reporting requirements for large hospitals remain in place, although they do not affect exemption status. The bill includes an emergency clause and takes effect July 1, 2025.

Reason for Rating:
H0130 aligns with the Idaho Republican Party Platform by promoting local control, fiscal accountability, and equal treatment under the law. It ensures that tax exemptions are not automatically granted to large nonprofit hospital systems that may engage in commercial activity, restoring fairness to the property tax system and protecting the local tax base. The bill enhances oversight without growing state bureaucracy and allows elected county officials to weigh community benefit before granting tax relief. It represents a conservative approach to preventing abuse of nonprofit status while upholding limited, locally accountable governance.