The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-02
BLOW TO HOSPITAL
New Tax Commission Ruling
on Taxation.
Sanitarium Property, Too, Must
Be Listed at Once.
Topeka HOSPITALS HARD HIT
Will Cost This City Nearly
$4,000 Annually.
institutions May Test Ruling
of Commission.

Under a ruling of the state tax com
mission, several million dollars worth
of hospital and Sanitarium property
must be listed for taxation. Much OF
this property has previously been eX-
empted. The tax commission, how
ever, has held that unless a hospital
or sanitarium is fostered and main
tanned by legislative enactment, 1t is
subject to taxation, regardless of the
amount of charity WORK done.
The ruling of the tax commission
will probably mean severe blow to
the big hospitals in Topeka, Wichita,
Kansas City and other large towns of
the state. Many of these institutions
have received state ale and because OF
their charity work have been exempt
ed from direct taxation. The value CT
these properties runs into the hun
dreds of thousands of dollars. Pay
ment of taxes under the ruling of the
commission means an added expense
of thousands of dollars a year.
Heads of several large hospitals in
Kansas have indicated that they will
test the ommissions ruling In
Wichita, the tax commissions order is
said to mean an expense of $1,000 a
year to tn institutions. Topeka hos
pitfalls may be caught for an even
heavier tax than those in Wichita. AS
a result of this added burden, it is
probable that a test case will be filed
when the properties are listed for tax
alton The county treasurers of the
several counties will likely be en-
joined from the collection of the tax
and the case fought out in the su-
preme court.
Many of the big hospitals of the
state do considerable charity work.
Because of this work and the relieving
of the strain on the state institutions,
directly created by legislative enact
ment, these institutions have been re-
lieVed of the payment of tx and their
property exempted from the visitations
of the assessor. In addition to escap-
ing taxation, the institutions have re
raafx frNr f1,0 zoe
part payment for their work among
charity patients.
Restriction of Charity.
The order of the tax commission,
however, may mean a new trouble and
possibly a greater restriction of char
ity work by the larger hospitals.
"'Where the legislature makes an
appropriation designed to foster and
maintain an institution as a charitable
or benevolent institution under condi-
tions that it shall be subject to vista
tions by the board of control, the
property of such institution is consid-
cred as being devoted exclusively to
charitable and benevolent uses and
thereby within the rule which exempts
such institution from taxation" says
the commission.
This ruling would seem to remove
from taxation the institutions receiv-
ing state aid directly under rulings
of the board of control.
The commission adds:
eff tie legislature does not foster
and maintain an institution as pro-
vided by the constitution, then the
property is not considered as being
devoted exclusively to charitable and
benevolent use, although in fact it
may be devoted in as large extent to
charitable uses as the other inStitu-
ton, but in the one case the legisla-
ture has recognized the institution as
charitable and benevolent, and in the
other case has not. This makes the
diStinctiOn'