More and more municipalities are challenging traditional non-profit property tax exemptions

Spectrum Health prevailed in court in 2017 when the local township tried to tax its new integrated care clinic in Grand Rapids, Mich.

As recently as the early 1990’s, property tax-exempt status for nonprofit organizations, including hospitals, was nearly sacrosanct. Typically, all they needed to do to qualify was to demonstrate that they were “exempt organizations” under section 501(c)(3) of the Internal Revenue Service (IRS) Code.