Questions about Property Taxes at Spring Harbor
Recently, local media have run several news stories raising questions about past due property taxes on Spring Harbor. While these stories generally contain accurate information, aside from the negative and misleading headlines and introductions, following is additional information omitted from the news stories that will better explain this issue.
The Medical Center Hospital Authority has repeatedly pointed out to the city taxing authority, and to the Mayor and City Attorney that the tax has been incorrectly applied and that the Authority does not owe the tax. Taxes that are legitimate on the land have been paid on time each year.
Property taxes in Muscogee County can be separated into taxes on the land itself and taxes on the improvements built on the land. The land where Spring Harbor is located is owned by Columbus Regional Healthcare System, Inc. This land has been leased to The Medical Center Hospital Authority for 40 years.
Columbus Regional has paid the property taxes on the land itself on time every year that it has owned the property, up to and including the 2009 property taxes. It will pay the 2010 property taxes when due on October 1st.
The Authority built, paid for, and owns all the buildings known as Spring Harbor. The Authority financed the construction of Spring Harbor by issuing bonds to be repaid from the revenue generated by Spring Harbor. Any income associated with the operation of Spring Harbor belongs to The Authority.
Beginning in 2005 when construction began on Spring Harbor, The Columbus Consolidated Government billed The Authority for property taxes on the improvements on the land. This was the first tax bill ever sent to The Authority; it has never been required to pay property taxes since it was created in 1975. The Authority declined to pay the taxes reminding the City that The Authority is tax-exempt by Georgia law. In 2007, after unsuccessfully attempting to resolve the disputed property taxes, The Authority was forced to sue the City to enforce the property tax exemption granted under State law. That lawsuit is still pending today. It is clear, under Georgia Law, that the Authority is tax exempt and does not owe the city tax.
Following is a summary of The Authority’s legal position obtained from publicly available court documents.
- The Georgia Hospital Authorities law, OCGA §31-7-72 (e)(1), grants hospital authorities the same exemptions and exclusions that are granted cities and counties. Cities and Counties do not pay property taxes, therefore the Authority does not pay property taxes.
- The Georgia’s Revenue Code, OCGA §48-5-41 (a)(12), exempts from property taxes any property of a “home for the aged” when the home is qualified as a “tax exempt organization under the federal Internal Revenue Code. Spring Harbor and the Authority are both so qualified therefore they do not owe property taxes.
- In Hospital Authority of Albany v. Stewart, 226 Ga. 530, 175 S.E.2d 857 (Ga. 1970), the Georgia Supreme Court held that any property owned by a hospital authority, even if it is not directly used for charitable purposes, is exempt from taxation.
- In Augusta and Macon, the local hospital authorities operate facilities exactly like Spring Harbor and those facilities are treated as exempt from property taxes and do not pay property taxes.
- Franciscan Woods, a non-profit assisted living facility located in Columbus and sponsored by St. Francis Hospital, does not pay local property tax.
Click to view a PDF of the complete lawsuit.
Columbus Regional Healthcare System has acquired the Tidwell Cancer Treatment Center in Columbus, GA.
This summer,
Threepeat! For the third consecutive year, 




