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Reimbursement to Tampa General Hospital for Overpayment of Payment In Lieu of Taxes (PILOT) Payment Due to Non-profit Status
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BRIEF OVERVIEW
In October of 2024, Hernando County sent an invoice to Tampa General Hospital Hernando, LLC (TGH) totaling $502,973.50 for FY 25 payment In lieu of taxes (PILOT).
Per the Amended and Restated Lease Agreement, Article III, ? 3.3(B), "Additional Payment for County Services," requires TGH to pay a PILOT to the County annually. The PILOT is to be calculated as the sum of the following:
1) The amount of ad valorem (i.e., property) taxes that the County would have levied on the leased properties if they were owned not by the County (i.e., the General Fund, Transportation Trust, and County Health levies), but instead, by a not-for-profit, tax-exempt entity; and,
2) The total amount of ad valorem taxes that government entities other than the County would have levied on the leased properties; and,
3) The total amount of all special assessments that the County would have levied on the leased properties through its MSBU's; and,
4) The total amount of ad valorem taxes that the County would have levied on the leased properties through its MSTU's.
The change in the invoice, associated with the list above, is component (1) needs to be updated to $0. Per Legal, pursuant to Fla. Stat. ? 196.197, hospitals are exempt from ad valorem taxation to the extent that they meet the following criteria:
The owner must be a Florida not for profit corporation that is exempt, as of January 1 of the year for which exemption from ad valorem property taxes is requested, from federal income taxation as a 501(c)(3)-qualified exempt organization. See ? 196.197(1), Fla. Stat., referring to 26 U.S.C.A. ? 501(c)(3).
In determining the extent of exemption to be granted to a hospital, portions of the property leased as parking lots or garages operated by private enterprise will not be deemed to be serving an exempt purpose and will not b...
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