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Bill

LC 336

Revise nonprofit hospitals' tax-exempt status laws

2025 Regular Session

Revise nonprofit hospitals' tax-exempt status rules to tighten eligibility and require more community-benefit reporting, increasing transparency and compliance burdens.

(LC) Draft Died in Process
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Bill Summary · LC 336

Summary: LC 336 — Revise nonprofit hospitals' tax-exempt status laws

Overview

LC 336 is a draft bill titled “Revise nonprofit hospitals' tax-exempt status laws.” The measure targets health care services and taxation, focusing on nonprofit hospitals and their tax-exempt status. As of the available information, the bill is a draft that did not advance in its process and is listed with a status indicating it died in process.

  • Bill number: LC 336
  • Title: Revise nonprofit hospitals' tax-exempt status laws
  • Introduced: September 27, 2024
  • Status: (LC) Draft Died in Process
  • Classification: bill
  • Subject: Health Care Services; Taxation

Purpose and intent

The bill’s stated aim is to revise laws governing the tax-exempt status of nonprofit hospitals. While the exact statutory provisions are not provided in the information available here, such revisions typically seek to clarify or tighten the criteria under which hospitals can maintain tax-exempt status, potentially addressing community benefit requirements, reporting, governance, or related compliance expectations.

Key provisions

Specific text and provisions are not provided in the available data. Therefore, no detailed provisions can be listed. If the text becomes accessible, expected areas often included in similar reforms may cover:
- Community benefit requirements and reporting
- Transparency and financial disclosures
- Governance and charitable purpose obligations
- Compliance procedures and enforcement mechanisms
- Transitional rules for already exempt entities

Note: These are general topic areas commonly associated with revisions to nonprofit hospital tax-exempt status and should not be construed as confirmed provisions of LC 336.

Affected parties

  • Nonprofit hospitals seeking or maintaining tax-exempt status
  • State or local tax authorities responsible for granting and monitoring tax exemption
  • Communities served by nonprofit hospitals (potential beneficiaries or overseers of community benefits)
  • Patients and local health systems affected by hospital compliance and service obligations

Procedural history and timeline

  • 2024-09-27: Drafter Assigned; Draft On Hold
  • 2024-09-27: Introduced
  • 2025-05-22: (LC) Draft Died in Process

The designation “Draft Died in Process” indicates the bill did not progress toward enactment in its current form during the session, though it could be reintroduced or revised in the future.

Potential impact

If enacted, LC 336 could alter the framework governing when nonprofit hospitals retain tax-exempt status and what obligations they must meet (e.g., community benefits, reporting). Potential outcomes might include increased administrative compliance costs for hospitals, greater transparency for taxpayers and communities, and possible shifts in how charitable activities are valued and demonstrated. However, due to the lack of text, these potential impacts remain speculative and depend on the final provisions if reintroduced.

Next steps

  • Monitor official legislative resources for the full text and any amendments.
  • If reintroduced, review the exact provisions to assess fiscal impact, compliance requirements, and effects on hospitals and communities.
  • Check for committee hearings or fiscal notes that may accompany a revived version.

Compiled from official sources — confirm details with the bill’s official record.

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