The nursing home residents, like those in apartments or condominiums, live in these units and use these utilities for domestic purposes. Likewise, the commission's decision granted a sales tax exemption to those portions of a complex designed for senior citizens that was residential only and denied the exemption for those areas of the facility where residents receive some level of nursing care. The economic reality is that sales taxes on utilities are ultimately passed on to the residents. It hardly makes sense to impose the tax burden on those who are receiving some level of direct care while reserving the exemption for those who are less in need of care. We do not think that the legislature intended this result.
Nursing homes are special homes for their residents.
The residents could have leased regular apartments but, due to their special needs, they have found themselves in these specialized facilities to have health and other care services provided by these nursing homes. Similarly these residents could have opted to stay in their homes and receive home health care services, without having their utilities subject to sales tax. Nothing about the care that is provided detracts from the notion that these nursing homes are residential apartments. As such, they are entitled to the sales tax exemption. Moreover, as noted above, the current method of imposing and exempting nursing homes from payments of sales taxes on various utilities is inconsistent.