Retirement News : Seniors : Retirement home must pay property taxes

Retirement home must pay property taxes

Date Added: 02-06-2005

A Hills retirement home must continue to pay taxes, Johnson County Attorney J. Patrick White has concluded — reaffirming a stance taken in the late 1980s that went all the way to the Supreme Court.

The nonprofit corporation is exempt from federal income tax and has sought exclusion from property tax as well. On a 3-0 vote today, the Board of Review denied the group’s latest appeal.

However, based on financial information provided — particularly dealing with vacancy in the independent living unit — the board agreed to reduce the assessed value by $1 million, down to $884,872.

“The situation would warrant that, on an income approach, the value just isn’t there based on the market,” County Assessor Bill Greazel said. “That may not be the relief they’re looking for, but I think we can justify it as being fair.”

Atrium’s attorney, Bob Downer, said he was uncertain what, if any legal action, the group will take. Any district court appeal would need to be filed within 20 days. Gov. Tom Vilsack recently signed legislation addressing nursing homes and property tax exemption, but it is not yet clear whether that will resolve the matter when it takes effect with next year’s tax bills.

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